July 1, 2024

Application for surrender of DIN in e-form DIR-5 can be filed for any reason such as DIN is unused and not intended for future reference also or multiple DINs are allotted to the same person or DIN the holder is no more/has become of unsound mind or insolvent etc. eForm DIR-5 is required to be filed pursuant to Section 153 of the Companies Act, 2013 & Rule 11 (f) of Companies (Appointment and Qualification of Directors) Rules, 2014. According to Section 153 of the Companies Act, 2013 every individual who is intending to be appointed as director of a company shall make an application for allotment of DirectorIdentification Number to the Central Government in such form along with fees. According to Rule 11 (f) of Companies (Appointment and Qualification of Directors) Rules, 2014 application made in Form DIR-5 by the DIN holder to surrender his or her DIN along with the declaration that he has never been appointed as a director in any company and the said DIN has never been used for filing any document with any authority, the Central Government may deactivate such DIN. Latest Update in Form DIR-3 KYC Under MCA Important Update by MCA – “DIN holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web and those Companies whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification (ACTIVE) e-form are encouraged to become compliant once again in pursuance of the General Circular No. 11 dated 24th March 2020 & General Circular No.12 dated 30th March 2020 and file DIR-3KYC/DIR-3KYC-Web/ACTIVE as the case may be between 1st April 2020 to 30th September 2020 without any filing fee of INR 5000/INR 10000 respectively.” Who Needs to File e-Form DIR 3 KYC? As per MCA recent announcement, any director who was allotted a DIN by or on 31st March 2018 and whose DIN is in approved status, will have to submit his/her KYC details to the MCA. Further, this procedure is mandatory for the disqualified directors too. From the Financial Year 2019-20 onwards, it is mandatory for every director who has been allotted a DIN on or before the end of the financial year and whose DIN is in approved status, will have to file form DIR-3 KYC before 30th September of the immediately next financial year. For example– For the Financial Year 2022-23, the directors having DIN or Director Partner Identification Number (DPIN) and the directors allotted with a DIN/DPIN by 31st March 2023, need to file the e-Form DIR-3 KYC before 30th September 2023. There are two types of e-Form DIR-3 KYC, which are as follows: DIR-3 KYC – Any director who is filing e-Form DIR-3 KYC for the first time after allotment of DIN or whose details are required to be updated/changed must file this form. DIR-3 KYC (Web) – Any director who has already filed the e-Form DIR-3 KYC/DIR-3 KYC (Web) in the previous year can file this form when there is no change in his/her KYC details. In this e-Form, the basic details of the director will be pre-filled from the MCA data and, thus, cannot be changed.  What is the due date for Filing DIR-3 KYC? The last date for filing of Director KYC for the Financial Year 2023-24 (ending on 31st March 2024) is 30th September 2024. However, the Director KYC can be filed on or after 1st April 2024 and until 30th September 2024. If the Annual Filing of the DIN KYC is not completed within the due date, then the status of the DIN is changed to Deactivated. A deactivated DIN primarily restricts the director’s ability to act as a director.Every DIN holder whose DIN has been deactivated due to non-filing of DIR-3 KYC must file an eform known as DIR-3 KYC or perform KYC through the web service along with the applicable fee. Once the form (DIR-3 KYC) is filed, it is approved on an STP basis, and the system will automatically reactivate the DIN. Non-compliant DINs’ status would remain ‘Deactivated due to Non-filing of DIR-3 KYC.’ However, please note that filing of DIN KYC after its due date attracts an additional government fee of Rs. 5000/-. Documents required for filing e-Form DIR-3 KYC Permanent address proof, such as Voter’s ID, driving license or PAN card.  Present address proof, such as utility bills not older than 2 months, rental agreement, etc. Aadhaar card. Passport. Other optional documents. Apart from the above documents mentioned above, please keep the following things ready: Digital Signature Certificate (DSC) of the director filing the form (applicant). DSC, membership number, certificate of practise number from a practising professional, such as CA, CS, or Cost Accountant.  Step-by-step guide to file e-Form DIR-3 KYC Step 1: Login to MCA website Login to the MCA website by clicking ‘Sign In/Sign Up’ button on the homepage. If you have not registered on the MCA website, you can register by clicking the ‘Register’ button, entering the required details and logging in by entering the User ID and password. Step 2: Enter the mobile number and email After logging into the MCA website, go to ‘MCA Services’ tab, then ‘Company e-Filing’, ‘DIN Related Filings’ and click ‘Form DIR-3 KYC’ or ‘Form DIR-3 KYC Web’. On the form, the director must enter the DIN number, mobile number and email. OTP will be sent to mobile number and email. Enter the OTP and click on ‘Next’.  Step 3: Enter the details in the DIR-3 KYC Form The director has to enter the below details on the next page: Name Father’s name Nationality Date of birth Gender PAN number Mobile number OTP sent to mobile number Email ID OTP sent to email ID Aadhaar number Permanent residential address Present residential address If the director is filling e-Form DIR-3 KYC (Web), the above details will be pre-filled. The details which are not pre-filled will have to be filled by the director. Note: It is mandatory to declare Permanent Account Number (PAN). After entering PAN details, director will have to click on the ‘Verify income-tax PAN’ button. The system will verify the

A passport is a crucial document for any citizen traveling to a foreign country. In urgent situations, applicants can apply for a ‘Tatkal Passport,’ which is processed quickly and issued within a few days. While the document requirements and application process are largely the same as for regular passports, applicants may need to submit a few added documents under the Tatkal scheme.  Tatkal applications can be made for both reissued and new passports. Earlier, a Verification Certificate from a Gazetted officer was required, but this requirement has been removed, simplifying the process for emergencies.  Tatkal passport applications must be submitted online through the Passport Seva Portal. Applicants are required to attend a personal interview for document verification. Once the documents are verified and the passport is ‘Granted,’ it can be dispatched within a day’s time. What is a Tatkal Passport ? A Tatkal Passport refers to a specialised application scheme designed to expedite the passport issuance process in India. It serves as a more convenient alternative, allowing applicants to acquire a passport more swiftly than the typically time-consuming procedure. In situations where an unforeseen foreign trip arises, the absence of a passport can pose challenges. Concerns about the lengthy and intricate passport application process in India may add to the apprehension. However, there’s no need to be daunted, as the Ministry of External Affairs (MEA) has introduced the Tatkal Passport mechanism to facilitate faster passport acquisition for applicant Documents Required For Tatkal Passport Voter ID Aadhaar Card Ration Card Certificate of OBC/SC/ST Arms Licence PAN Card Gas Bill Property Documents Birth Certificate Service Identification  Pension Documents Student’s Identity Card from a recognised institution Kisan Passbook Post Office Passbook Bank Passbook Tatkal Passport Eligibility Criteria—Who Can Apply For Tatkal Passport? Any person who is over 18 can apply for a Tatkal passport by submitting at least three of the documents specified in the list of documents required for the Tatkal passport. Applicants under 18 can submit at least two of the listed documents. However, the Regional Passport Office (RPO) has the authority to decide whether someone should receive a Tatkal Passport. This scheme applies to people who fall into one of the following categories.  Tatkal Passport Ineligibility The Tatkal passport scheme is made to only serve the genuine urgent needs of individuals who need their passports due to some unforeseen travel requirements. Any misuse of the scheme without a valid reason just to bypass the regular process will not be entertained.  The following categories are not eligible for obtaining a Tatkal passport: Individuals who get deported from another country to India Indian Descent or applicants born abroad to parents who are Indian Residents of India who receive their citizenship as per the naturalisation or registration A person getting repatriated to India from another country Individuals needing to change their name on the passport Residents from the J&K (Jammu & Kashmir) and Nagaland Indian citizens who are Naga natives but living somewhere outside Nagaland Minors who are Nagaland residents Minors with single-parent Applicants who need short-validity passport renewal Applicants who change their sex or appearance (This doesn’t include changing your personal credentials like the signature) How To Apply For A Tatkal Passport Online? Step 1: Visit the official Passport Seva portal. Step 2: Register to create your account, then use your credentials to log in. Step 3: Choose between Fresh or Reissuance of Passport. Step 4: Select “Tatkal” as the type of scheme. Step 5: Download the form and duly fill it out with accurate information, such as name, family, employment, etc. Step 6: Submit the filled-out application online along with the requested payment. Step 7: Download the receipt and schedule your appointment at the local PSK or Passport Seva Kendra. FAQs How can I apply for a Tatkaal passport? Applying for a Tatkaal passport no longer requires a Verification Certificate from a Gazetted Officer. The necessary documents are specified in G.S.R. 939(E) dated 16 December 2019. Applicants over 18 must submit any three documents from the List of Acceptable Documents, while those under 18 must submit any two.  What are the processing benefits of a Tatkaal passport application? A Tatkaal application is not just for early appointments but also ensures faster processing. It includes post (police) verification and a separate print queue, leading to quicker passport dispatch within one day to three days of the PSK visit, compared to the longer processing times for Normal applications. 

A letter of credit, or a credit letter, is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. If the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. It may be offered as a facility (financial assistance that is essentially a loan). Due to the nature of international dealings, including factors such as distance, differing laws in each country, and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade to protect buyers and sellers. A Letter of Credit (LC) is a document that guarantees the buyer’s payment to the sellers. It is issued by a bank and ensures timely and full payment to the seller. If the buyer is unable to make such a payment, the bank covers the full or the remaining amount on behalf of the buyer. Letter of Credit Letter of Credit (LC) is a credit limit that is used majorly by businesses engaged in international trade. It acts as a payment guarantee offered by Bank/NBFCs to exporters. Letter of Credit is a payment instrument in which Banks/NBFCs offer monetary guarantee to enterprises that are engaged in the import and export businesses, in case of payment delays or any default. Enterprises operating businesses overseas often deal with unknown suppliers so they require assurance of payment before performing any business transaction. Therefore, Letter of Credit acts as a financial instrument that offers payment assurance to the suppliers or exporters dealing in sales and purchase of goods and services. How Letter of Credit Works Letter of Credit is issued by the Bank to the Buyer in order to secure the timely payment by the buyer to the seller. It acts as a guarantee on behalf of the buyer that he/she pays the full amount to the seller, as per the defined timeline or on time. If in case the buyer is unable to repay the amount to the seller on time, then the bank will pay on the buyer’s behalf to the seller. Features LC is issued against Collateral/Security that may include buyer’s Fixed Deposits and Bank Deposit, etc. Certain fees is charged by the Bank depending on the type of Letter of Credit Guidelines are issued by the International Chambers of Commerce (ICC) for any form of Letter of Credit Correctness of Letter of Credit: Only documents are exchanged and no goods and services are involved in this process. Therefore, mentioned details in the letter should be correct that including the name of the seller, date, amount, product name and quantity, etc. Banks will deny the payment, if they find any slightest mistake in the buyer’s name, product name, shipping date, etc. As all parties deal in documents only and not goods and services, so the payment will not depend on the defects in goods and services, if any Types of Letter of Credit in India 1. Credit on Sight In this type of credit, an entrepreneur can present a bill of exchange to the lender with a sight letter and can take the funds instantly on the basis of a letter of sight. A sight letter of credit is considered to be the most instant letter of credit that can be availed immediately. 2. Time Credit Bill of exchange that is paid after an agreed time period between the lender and the borrower is known to be time credit. A certain time period is involved in this type of credit. Letter of Credit defining time credit allows a borrower with some days to repay the amount, only after receiving the goods. 3. Standby Letter of Credit (SBLC) Standby Letter of Credit (SBLC) is a credit mechanism in which an importer can get foreign currency funds internationally by providing the issuance of SBLC from the domestic bank that guarantees payment to the international bank if the borrower fails to repay the amount before the due date. 4. Revocable Credit Revocable credit is a type of letter of credit in which the terms and conditions of this type of LC can be amended or canceled by the issuing bank. It is not important for the issuing bank to tell beneficiaries about any change in the letter of credit. 5. Irrevocable Credit Irrevocable Credit is a type of LC in which the terms and conditions cannot be amended or canceled by the issuing bank. The bank has to obey the directions or commitments mentioned in the letter of credit. 6. Transferable Credit Transferable credit, as the name suggests is a type of LC in which the beneficiary can transfer his/her rights to third parties. The terms and conditions may differ as per the trade and industry. Process of Letter of Credit Step 1: The applicant or the buyer approaches the desired bank for the issuance of a letter of credit. This bank is known as an opening or issuing bank. Step 2: There will be an advising bank (mostly an international bank) for the beneficiary or seller that will receive the Letter of Credit issued by the issuing bank of the buyer. Further, the advising bank will check the authenticity of the letter of credit by checking the name, product details, etc. Step 3: Advising bank will share the letter of credit with the seller by keeping him/her rest assured that the money shall be received, as banks are now involved in this process. Step 4: Post seller assurance, the goods will be shipped as per the details mentioned by the buyer or applicant. The seller will now receive the bill of lading as the seller has already exported the goods. Step 5: The buyer shall now present the Bill of Lading to the Nominated or the Negotiating bank (International bank) where the bank will check all the shipping documents, and whether all goods were shipped as per the instructions. Finally, the nominating bank will do the payment to the seller or exporter. Step 6: Further

The Forest Rights Act, India or the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act is also known by other names like the Tribal Rights Act or the Tribal Land Act. It deals with the rights of the communities that dwell in the forests (including Scheduled Tribes), over land and other resources, which have been denied to them over the years because of the continuation of forest laws from the colonial era in the country. In December 2006, the Forest Rights Act was passed which accords legal recognition to the rights of traditional forest-dwelling communities and partially corrects the injustice caused by colonial-era forest laws. The earlier policies and acts – such as previous Forest Acts 1865, 1894, 1927 prevented the local communities from using the resources. Forest Rights Act (FRA) 2006 Forest Rights Act (FRA) 2006 What is it called? Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act (FRA)  What does the Act intend? The act tries to recognize marginal and tribal communities’ rights over forest lands over which they were traditionally dependent Are communities’ rights catered to by FRA 2006? Yes, the act intends to help all the destitute  forest communities across India to have right over common property forest lands What is the potential of FRA 2006? This Forest Rights Act is capable of:   Empowering local self-governance Issue of poverty alleviation and pro-poor growth is paid heed to  Conservation and management of natural resources of India are highlighted and addressed by the FRA Historical Background A large number of people especially the scheduled tribes have lived in and around forests for a long period in symbiotic relationship. This relationship has led to formalized or informal customary rules of use and extraction, often governed by ethical beliefs and practices that have ensured that forests are not too degraded. During the colonial time the focus shifted from the forests being used as a resource base for sustenance of local communities to a State resource for commercial interests and development of land for agriculture. Several Acts and policies such as the 3 Indian Forest Acts of 1865, 1894 and 1927 of Central Govt and some state forest Acts curtailed centuries‐old, customary‐use rights of local communities. This continued even after independence till much later until enactment of The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. Implementation of the Forest Rights Act 2006 Gram Sabha is the authority to initiate a process to vest rights on marginally and tribal communities after assessment of the extent of their needs from forest lands. Gram Sabha after its assessment, receives claims of the communities, consolidates and verify these to help them exercise their rights Gram Sabha then passes such a resolution to sub-divisional level committee (formed by the state governments.) If one or more communities are not satisfied by such a resolution, may file a petition to sub-divisional level committee Sub-Divisional Level committee after its assessment, passes the resolution to Sub-divisional officer to district level committee for its final decision The district-level committee’s decisions are considered final and binding A state-level monitoring committee is constituted by the state government to monitor the process of recognition of these rights The officers included in the sub-divisional level committee, district-level committee and state-level monitoring committee include: Officers of Department of Revenue of state government Officers of Department of Forests of state government Officers of Department of Tribal Affairs of state government Three members of Panchayati Raj Institutions including two Scheduled Tribes members and at least one woman The Act recognizes and vest the forest rights and occupation in Forest land in Forest Dwelling Scheduled Tribes (FDST) and Other Traditional Forest Dwellers (OTFD) who have been residing in such forests for generations. The Act identifies four types of rights: Title rights: It gives FDST and OTFD the right to ownership to land farmed by tribals or forest dwellers subject to a maximum of 4 hectares. Ownership is only for land that is actually being cultivated by the concerned family and no new lands will be granted. Use rights: The rights of the dwellers extend to extracting Minor Forest Produce, grazing areas etc. Relief and development rights: To rehabilitate in case of illegal eviction or forced displacement and to basic amenities, subject to restrictions for forest protection. Forest management rights: It includes the right to protect, regenerate or conserve or manage any community forest resource which the Significance of Forest Rights Act (FRA) 2006 Community rights and rights over common property resources (CPR) have been recognized for the first time Individual rights of the tribal and marginal communities have been highlighted by this act along with other rights too The concept of revenue villages have surfaced as the act talks about the conversion of all forest villages, old habitation, un-surveyed villages and other villages into these. It ensures the livelihood and food security of the Forest Dwellers Scheduled Tribes and Other Forest Dwellers and strengthens the conservation regime of the forest. Community Forest Resources are monitored and managed in a way that protects marginal communities’ traditional linkages with these. it is known how these communities have always traditionally utilized the forest resource for sustainable development. This act in a way protects intellectual property rights and the traditional knowledge related to cultural diversity and biodiversity It expands the mandate of the 5th & 6th Schedules of the Constitution that protect the claims of indigenous communities over tracts of land or forests they inhabit. The displaced communities’ rights are secured by the forest rights act 2006.  The alienation of tribes was one of the factors behind the Naxal movement, which affects states like Chhattisgarh, Odisha and Jharkhand.The Act through identifying IFR and CFR tries to provide inclusion to tribes.  The rights of marginal and tribal communities over developmental activities are also recognized and secured by FRA 2006 Forest rights can also be claimed by any member or community who has for at least three generations (75 years) prior to the 13th day of December, 2005 primarily resided in forest land for bona fide livelihood needs. The act will ensure that people get to manage their forest on their

Financial instruments such as loans has made our lives so much easier in the last decade. A loan makes it possible for us to achieve our dreams, be it purchasing your dream car or a house. Banks have launched new loan schemes over the years to suit the financial needs of its customers and one such loan is loan for commercial shop purchases. This loan offers finances to an individual who wants to purchase a commercial property to set up their shop or business. State Bank of India (SBI) offers a loan scheme for present and prospective owners of shops or offices or show-rooms or service centres to avail a loan for the purchase of shop premises or furniture or modernization of existing premises. State Bank of India is India’s largest bank with over 200 years of history with the highest amount of assets, deposits, profits, branches, customers and employees. SBI is the only Indian Bank to be featured in Fortune Global 500 list of companies in 2011 and is ranked 61st in the list of Top 1000 Banks in the World by ‘The Banker’ as on July 2011. Difference between loans for residential property purchase and commercial shop purchase LTV ratio– LTV ratio or loan-to-value ratio describes the ratio of the loan to the value of the property purchased. While for residential properties, the LTV ratio is around 75-85%, for commercial properties, the ratio is much lesser at 55%. Rate of interest- The rate of interest is higher for commercial property loans when compared to residential property loans. Loan tenure– The maximum loan tenure for commercial properties is usually restricted to 10 years while the loan tenure offered for residential properties can go up to 25-30 years. Processing fee– The processing fee charged for commercial property loans is much higher when compared to the processing fee for residential property loans. The usual processing fee for residential property loans is capped at Rs.10,000 while the standard processing fee for commercial loans is 1% of the loan amount. Eligibility A person can avail the SBI loan for setting up of shop or office in present and prospective owners of shops, offices, showrooms, training centres, service centres, garages, Chartered Accountants, Company Secretaries, Consultants and other professionals. The scheme can also be extended for services such as travel agencies, caterers, hotels, eateries, beauty salons, etc. The applicant could be an individual, firm, partnership, trust, franchisee, company or LLP. The purpose of using the loan amount for the following purposes:• Purchase of new/old shops/establishments/offices.• Modernization/expansion of establishments/shops, etc.• All furniture/fixtures, electrical fittings and other accessories required for shops/showrooms/offices. Nature of Loan The SBI provides loan for shops and offices as a term loan for a quantum of upto Rs.20 lakhs. Promoters require to contribute margin of upto 25%, in case of purchase of new property and margin of upto 40% in case of purchase of the old property. The interest rate for the loan is floating based on the Base rate of the Bank. A person can avail the repayment tenure of upto 7 years including moratorium period of 6 months under the scheme. The asset purchased must be pledged to the bank under hypothecation/pledge/mortgage/assignment of the assets. Further, all assets for the loan must insure for the full value of the loan until repayment. FAQs Loans for purchase of Commercial Shops/Properties in India It can be very hard to get a commercial loan if you have a poor credit score. If you have a good score and a credit history, you can easily get a commercial loan. How are figures for commercial loan rates determined? The loan issuing authority will look into your personal credit rating and also the rating of your business. This will affect the interest rate on your commercial loan and also the term of theloan.