April 2024

An organization is composed of individuals working together, sharing similar perspectives. While the leader plays a vital role in decision-making, the workforce is encouraged to voice their opinions, and these contributions are deemed valuable. Recognition in the form of promotions is bestowed upon more seasoned employees. Ultimately, a company’s triumph is intricately tied to the contributions of its workforce. It is, therefore, apt to assert that workers constitute the vital core of an organization, ensuring its smooth operation. Definition of a Company Member A company member is an individual who formally joins a company by having their name included in the official list of registered members known as the ‘Register of Members.’ This step signifies their acceptance of the company’s norms and often involves holding shares in the company under their name. In a limited company, individuals who own shares are referred to as members. Conversely, in an unlimited company, members are those individuals whose liability extends to claims on the company’s debts. Distinguishing Members from Shareholders MATTER Member Shareholder Meaning A person whose name is entered in the register of members of a company. A person who owns the shares of the company. Definintion Companies Act, 2013 defines ‘Member’ under section 2(55) Shareholder is not listed under the Companies Act, 2013 Share Warranges The holder of the share warrant is not a member. The holder of the share warrant is a Shareholder. Company Every company must have a minimum number of members. The Company limited by shares can have shareholders Memorandum A person who signs the memorandum of association with the company becomes a member. After signing the memorandum, a person can become a shareholder only if shares are allotted to him. Liabilities of Company Membership o make shares if he/she is allotted as per the Act. To pay call money or pay the due amount of shares. To abide by the decision of majority when they act ‘bonafide’. To contribute to the Asset of the company in case of winding up and when the shares are partly paid up.   Modes of Acquiring Membership Subscribing to MOA If a person agrees to sign the memorandum and pledge his presence on the board of members, he becomes the member of the company. Names of the people who have agreed to join the membership of the company should be entered in Register of Members. Along with the agreement, if they’ve agreed to share the company’s shares they become the Shareholders of the Company. Agreement in Writing A person would become the member of the company if he ‘agrees in writing’ and gets his name entered in the register of members of the company. A shareholder would also become a member of the company if he ‘agrees in writing’, and by the following methods: By transfer of shares By transmission of shares By Estoppels (Membership Without sufficient Cause). Holding Shares A person becomes a member of the company if his name is entered as a beneficial owner of the records of the depository and also holds equity share capital of the company. In such cases, the person needn’t apply ‘in writing’ to become a member of the company. Removal of Membership The term ‘Cessation’ means ‘Termination’. Just as there’s a process to add a member of the company, there’s a process to terminate that member. Terminating a member of the company can result in removal from the ‘Register of Members’. The following are the modes of removing a member of the company: Transfer of Membership Here, the shares of a member are transferred to another person by the company in the name of the transferee. The name of the transferor is removed from the Register of Members. After transferring all the shares from the person to another person, the person is legally removed from the company. Transmission of Membership On the death of a shareholder/member of the company, his/her legal heir or representative becomes a member. Surrender of Membership A person is removed from the membership once he/she surrenders his shares, which requires ‘Acceptance on part of Board’. Forefeiture of Membership On account of Loss or selling of a share, the member is terminated from the company. Share Buy Back The person is terminated from the company if the company buys back its shares. FAQs Who is considered a member of a company? A member of a company is any person who holds shares or stock in the company and whose name is entered in the register of members. What are the rights of members in a company? Members have various rights, including the right to receive dividends, the right to attend and vote at general meetings, the right to inspect company records, the right to sue the company for wrongful acts, and the right to transfer their shares. Can a company have different classes of members? Yes, a company can have different classes of members, such as ordinary shares, preference shares, or other categories with distinct rights attached to them. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major

Custodian of Securities” is the entity which has been granted a certificate of registration by the PFRDA for the safekeeping of securities or assets held under the NPS or APY. Custodian is responsible for carrying out settlements, recording receipts, keeping and maintaining records, and managing custody accounts of the schemes on behalf of the NPS Trust. Presently, the Deutsche Bank AG is the Custodian under the NPS. What Is a Custodian Bank? A custodian bank is a financial institution that holds customers’ securities for safekeeping to prevent them from being stolen or lost. The custodian may hold stocks, bonds, or other assets in electronic or physical form on behalf of its customers.   Often, a custodian bank does more than provide asset protection. It can manage customers’ accounts and transactions, manage the settlement of financial transactions, account for the status of assets, and ensure compliance with tax regulations. How a Custodian Bank Works Since they are responsible for the safety of assets and securities worth hundreds of millions or even billions of dollars, custodians tend to be large and reputable firms, such as banks. Investment advisory firms routinely use custodian banks to safeguard the assets they manage for their clients. A custodian also may be appointed to maintain control of the assets of a minor child or an incapacitated adult and manage them on their behalf. Other Services Provided Most custodians offer related services such as account administration, transaction settlements, the collection and distribution of dividends and interest payments, tax support, and foreign exchange management.A custodian bank may handle investment activities for customers. This could involve placing orders with a brokerage to buy or sell securities, transferring funds to and from accounts, overseeing investment account activities, and reporting account activity to customers. Custodians may also prepare the necessary tax filings related to investment activities for customers. The fees for their services depend on exactly what they provide and can be based on the value of assets held. Functions and Responsibilities of a Custodian The Custodian under NPS is designed to perform the following functions: The securities under the schemes are held in dematerialized form by the Custodian in the name of the NPS Trust. Acts as a Domestic Depository participant and undertakes activities as prescribed in the Depositories Act, 1996 or as defined by the Securities and Exchange Board of India (SEBI). Acts as a Custodian to pension funds managing various schemes on behalf of the NPS Trust. Collects the benefits or rights such as dividends or income that have accrued on the securities. Keeps the pension funds posted about various corporate actions. Keeps records and reconciles the records of the securities. FAQs What Purpose Does a Custodian Financial Institution Serve? A custodian financial institution keeps the securities owned by individuals and organizations safe. This serves an important purpose since financial securities must be cleared and settled properly, with various regulatory and accounting procedures met. These are often far too complex or time consuming for investors or traders. What Other Services Do Custodian Banks Offer? Custodians today do more than maintain the security of assets. They also provide accounting and settlement services, such as managing dividends or interest that has been distributed to the account or managing stock splits. The custodian bank performs such actions in the client’s name, and the SEC ensures that custodians will notify customers when certain activities are conducted on their behalf in addition to sending regular account statements. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act

The importance and level of acceptance for credit rating agencies have increased widely over the years among investors of the Indian financial market especially in the last twenty years. To put it simply, opinions of the credit rating agencies do have a significant impact on the investor’s mind compared to what was its impact two decades back. The world is growing fast and with the advent of new methods of analysis brought by powerful software, credit rating agencies are able to derive reliable data to research and give ratings.  Credit rating is generally defined as an opinion of the expert of the agency on the credit quality of a firm or the ability of a debt issuing firm to serve the instrument. Thus, credit rating agencies give a simple link between returns and risk by doing some calculations based on the company’s financial history, liabilities, and current assets. Any investors can then use this assessment of the company to make his/her decision to invest in the company by comparing the offered return to risk levels.  Regulation and Structure of Credit rating Agencies Credit agencies are regulated under the framework released by SEBI under its Credit Rating Regulations of 1999. As per these regulations, any new agency willing to start the activities of credit rating agencies in India must get itself registered with the SEBI. Although the SEBI’s regulations only cover the rating of securities and not the foreign exchange, fixed deposits, real estates, etc.  These agencies act as one of the market intermediaries involved in the business of rating securities offered by way of right issues or public issues. These entities rate the debtors on their ability to pay the debt on time. The large-scale borrowers (Government Organisations or big corporate houses) are rated by these agencies and thus they do not rate any individuals. The assessed entities by credit rating agencies include companies, state governments, special purpose entities, local Government bodies, countries, and non-profit bodies.  redit rating is simply the assessment of the borrower’s willingness or ability or repays the rated debt according to the terms and conditions of the grant. If only there are significant changes observed in a company’s operating and financial aspects, its credit rating is changed. In essence, credit rating is just an opinion and not a recommendation to hold, sell, or purchase a borrower’s security. Only entities and not the issuers are rated by Credit Rating Agencies. Documents Required For Credit Rating Agency Registration The Incorporation Certificate of the applicant agency. Details of the directors/administration related to the company and documents regarding their professional profile. Information regarding the contact information about the applicant. Proofs showing a minimum net worth of Rs. 5 crores. Other sorts of business information associated with the company. Infrastructure certificates or documents stating adequacy of infrastructure to run the activities of the Credit Rating Agency. Memorandum of Association (MOU) and Articles of Association (AOU) of the Entity stating its objectives. Any other relevant document as asked during document verification Procedure for Credit Rating Agency Registration The person/entity willing to commence any activity as a Credit Rating Agency has got to apply to the Board within the sort of application made in Form A as prescribed within the SEBI regulations alongside a non-refundable fee. The board shall not consider the regulations unless the applicant is promoted by an individual belonging to any of the subsequent categories:1. Public financial organization.2. Any Foreign Bank Operating in India with RBI approval.3. Scheduled full-service bank. A foreign Credit Rating Agency having a minimum of five years’ experience in rating securities and recognized by the laws effective within the country of its operation. The board before granting the certificate satisfies itself on whether the applicant suits the subsequent parameters of registration or not. The board could reject an incomplete application or if there are any mistakes in the application. Other cause of rejection could be the company’s failure to meet the standards set for registration. However, the SEBI in most cases gives 1-month time to all applicants to rectify any mistakes or submit any necessary document asked by them. if the board is satisfied with the application and all the documents then it will intimate the applicant and upon receipt of the required licensing fee, it will grant a registration certificate in form B as per the regulations. The registration certificate granted by SEBI for this entity is valid for 5 years. Eligibility Criteria to Get Credit Rating Registration The applicant must be a corporation registered under the Companies Act, 2013 to carry any specified rating activity in its Memorandum of Association (MOA). The minimum net worth of rupees five crores The infrastructure must be adequate which enables it to supply rating services as per the provisions of the Act and Regulations. The applicant must be a fit and proper person as per the standards laid down within the regulations. FAQs What is a credit rating agency (CRA)? A credit rating agency is a company that assesses the creditworthiness of entities and assigns them credit ratings, indicating their ability to meet financial obligations. Why is registration necessary for a credit rating agency? Registration is necessary to ensure that CRAs adhere to regulatory standards, maintain integrity, and provide accurate and reliable credit assessments to the market. Who regulates the registration of credit rating agencies? In many jurisdictions, including India and the United States, the registration and regulation of credit rating agencies are overseen by the financial regulatory authorities such as the Securities and Exchange Board of India (SEBI) and the Securities and Exchange Commission (SEC) respectively. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright

Practice Area Income Tax Return Filing Income Tax Appeal Income Tax Notice GST Registration GST Return Filing FSSAI Registration Company Registration Company Audit Company Annual Compliance Income Tax Audit Nidhi Company Registration LLP Registration Accounting in India NGO Registration NGO Audit ESG BRSR Private Security Agency Udyam Registration Trademark Registration Copyright Registration Patent Registration Import Export Code Forensic Accounting and Fraud Detection Section 8 Company Foreign Company 80G and 12A Certificate FCRA Registration DGGI Cases Scrutiny Cases Income Escapement Cases Search & Seizure CIT Appeal ITAT Appeal  Auditors Internal Audit Financial Audit Process Audit IEC Code CA Certification Income Tax Penalty Notice u/s 271(1)(c) Income Tax Notice u/s 142(1) Income Tax Notice u/s 144 Income Tax Notice u/s 148 Income Tax Demand Notice Psara License FCRA Online In a recent development, the state of Rajasthan has increased the stamp duty for Incorporation of new companies. Earlier for an authorised capital of Rs 100000, the stamp duty was 1010 which has now increased significantly to Rs 5510. It is important to note that the nearby states are having very low stamp duty for company incorporation with 1 Lakh authorised capital such as Delhi is having only Rs 360 as stamp duty whereas in the state of Haryana the stamp duty to incorporate new company is just Rs 135. In a move aimed at bolstering revenue streams and regulating business incorporations, the Rajasthan government has decided to hike the stamp duty on new company registrations. This decision, has sparked discussions within the business community about its potential implications on entrepreneurship and economic growth within the state. Professionals were taken by surprise when they saw the substantial increased stamp duty to be deposited while filing Spice +(INC-32) Form while they were proceeding for filing application for Company Registration in Jaipur. Previously, the stamp duty on company incorporation in Rajasthan was comparatively lower, but with the revised rates, the cost of establishing a new business entity within the state will see an increase.  The increase in stamp duty rates may pose initial challenges for entrepreneurs and small businesses, particularly those operating on tight budgets. The higher upfront costs associated with company incorporation could deter some prospective entrepreneurs or startups from initiating their ventures in Rajasthan, potentially impacting the state’s entrepreneurial ecosystem. However, proponents of the decision argue that the revised stamp duty rates are essential for maintaining the integrity of the state’s regulatory framework and ensuring adequate revenue generation. By aligning stamp duty rates with prevailing market conditions, the government aims to deter fraudulent practices and promote genuine business activities within the state. Moreover, the increase in stamp duty rates could potentially lead to enhanced transparency and accountability in the business sector. With higher registration costs, there may be a reduced propensity for shell companies or entities engaged in illicit activities to proliferate, thereby fostering a more conducive environment for legitimate businesses to thrive. It is imperative for businesses and entrepreneurs intending to incorporate in Rajasthan to factor in the revised stamp duty rates into their financial projections and business plans. While the initial costs may be higher, prudent planning and strategic decision-making can help mitigate the impact of the increased stamp duty on overall business operations. Additionally, businesses should stay abreast of any further regulatory changes or incentives introduced by the state government to support entrepreneurship and business growth. Engaging with professional advisors and consulting legal experts can also provide valuable insights into navigating the regulatory landscape and optimizing compliance strategies. In conclusion, the new increased rates may dent the startup eco-system in the state where the startups may find it beneficial to register company in neighboring state such as Delhi and Haryana instead of Rajasthan

The Department of School Education and Literacy (DoSEL), Ministry of Education, Government of India, is set to conduct the Foundational Literacy and Numeracy Assessment Test (FLNAT) as part of the ULLAS – Nav Bharat Saaksharta Karyakram on 17th March 2024, across 23 states. Approximately 37 lakh learners will appear for this important nationwide assessment. The FLNAT will be held in all districts of each participating State/UT, with the District Institutes of Education and Training (DIETs) and Government/aided schools serving as test centres. The assessment comprises three subjects – Reading, Writing, and Numeracy – each carrying 50 marks, totalling 150 marks. This test is developed to evaluate the foundational literacy and numeracy skills of registered non-literate learners. Previously, two FLNATs were conducted in 2023 – in March and September. In the last FLNAT held on 24th September 2023, 17,39,097 learners appeared, out of which 15,58,696 were certified. Till date, a total of 36,00,870 learners have been certified. The test will be conducted in the regional language of the learners, in line with NEP 2020’s focus on promoting multilingualism and using the mother tongue or local language as the medium of instruction. Conducting this test in regional languages shall help in promoting and preserving linguistic diversity. This time, some UTs, including Chandigarh, Puducherry, Lakshadweep, and Goa, are aiming to declare 100 per cent literacy through FLNAT. The test is crucial in assessing the impact of teaching-learning sessions conducted as part of the ULLAS – Nav Bharat Saaksharta Karyakram. Qualifying learners will receive a certificate issued by the National Institute of Open Schooling (NIOS), recognising their achievement in acquiring foundational literacy and numeracy skills. The FLNAT scheduled for 17th March 2024 represents another significant step in realising the vision of Viksit Bharat and Jan Jan Saakshar Bharat. We look forward to witnessing the continued success and impact of ULLAS in enhancing literacy rates across the nation. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013 | rtps | patta chitta