August 1, 2024

The term foreign direct investment (FDI) refers to an ownership stake in a foreign company or project made by an investor, company, or government from another country. FDI is generally used to describe a business decision to acquire a substantial stake in a foreign business or to buy it outright to expand operations to a new region. The term is usually not used to describe a stock investment in a foreign company alone. FDI is a key element in international economic integration because it creates stable and long-lasting links between economies Foreign Direct Investment or FDI Foreign Portfolio Investments or FPIs, an investor in one country can hold a controlling stake of any business or organization in a foreign country that receives the investment. FDI is also a significant and insightful indicator of a certain country’s political and socio-economic stability. This essentially implies a country that receives large amounts of investments from foreign entities on a regular basis is more likely to have a dynamic and vibrant economy. How Does FDI Work? Foreign investments can be either ‘organic’ or ‘inorganic’. With organic investments, a foreign investor will pump in funds to expand and accelerate growth in established businesses. Inorganic investments are instances when an investing entity buys out a business in its target country.  In developing and emerging economies like India and other parts of South-East Asia, FDIs offer a much-needed fillip to businesses that may be in poor financial shape. The Government of India has undertaken several measures to ensure that larger chunks of investments pour into the country across sectors including defence production, the telecom sector, PSU oil refineries and IT. Since Foreign Direct Investment is a non-debt financial resource, it has the potential to become a major driver of economic development in India. Globalization and internationalization are 2 factors which made FDI possible. However, the celebrated Canadian economist Stephen Hymer, considered the ‘Father of International Business’, theorized in the 1960s that foreign investments would continue growing rapidly because – It provided control over companies in a foreign land. It helped certain business sectors overthrow monopolistic practices, and  Most importantly, since market imperfections will always exist, such investments provide companies with a cushioning effect if there was a sharp and unpredictable decline in business activity. Types of FDI The following are the main types of Foreign Direct Investment – Type Definition Horizontal The first type is observed whenever a business expands and enters a foreign country via the FDI route without changing its core activities.  An example would be McDonald’s investing in an Asian country to increase the number of stores in the region. Vertical Here, a business enters a foreign economy to strengthen a part of its supply chain without changing its business in any way. If McDonald’s bought a large-scale meat processing plant in Canada or in a European country to bolster its meat supply chain in the target nation, it would amount to vertical FDI. Conglomerate This 3rd type is noticed whenever a business invests in a foreign country and buys an entity which manufactures totally different products.  The idea is to add more business niches and start new journeys in other countries. In the late 1980s, Sir Richard Branson’s Virgin Group launched clothing stores in France, called ‘Virgin Clothing’. The venture, however, failed miserably and very few outlets remain, mostly in the Middle-East. Platform The last type refers to the expansion of a business to a foreign country, but everything manufactured there is exported to a third country. Platform FDI is seen in free-trade zones of FDI-hungry countries. Almost all luxury items marketed by famous fashion brands are manufactured in countries like Bangladesh, Vietnam and Thailand. They are then sold in other countries, a clear case of platform FDI at work. Pros and Cons of FDI Advantages of Foreign Direct Investment – For businesses, more FDI means preferential tariffs, tax breaks or incentives, and an ability to diversify further. For a country that receives foreign funds, some benefits include greater employment opportunities, a stimulus to its domestic economy, and access to some of the latest technologies and modern management methods. Disadvantages of Foreign Direct Investment-  Local businesses lose out as big corporations take over markets. One example is Walmart, which was accused of ruining age-old smaller stores with its deep pockets. However, Walmart’s foray was not successful; its entire portfolio is now owned by Flipkart. There is always the risk of profit repatriation, which means that any profits generated in India will not enter the domestic economy.  FAQs Why is foreign direct investment important? Foreign direct investment promotes economic development. It is a country’s principal source of external money as well as higher revenues. It frequently results in the establishment of factories in the country of investment, with some local equipment – whether materials or labor – being used. What are the benefits of foreign direct investment? Foreign direct investment provides numerous benefits to the country. Some of them are discussed further down. Brings in financial resources to help with economic development. Introduces new technologies, skills, knowledge, and so on. Increases the number of job opportunities for people. Increases the country’s competitive business environment. Improves the quality of products and services in several industries.

Microfinance companies, as the name suggests, are financial institutions that provide finances to low-income groups, where the finance requirement is lesser as compared to other sectors of the society. These sectors generally do not have access to traditional financial institutions such as banks and other financial institutions. What is Microfinance Company? Microfinance company registered under the Indian Companies Act, 2013. With the objective of providing financial to small business groups who are excluded from the formal banking system. Simply put, getting a loan from the bank is a tedious process. A  Microfinance Company can offer loans, insurance, and other products to its clients without requiring any collateral or security. The aim of a  Microfinance Company is to promote social welfare and economic development among the poor and marginalized sections of society. What are the features of a Microfinance Company? It is registered with the Registrar of Companies (ROC) as a non-profit organization under Section 8 of the Companies Act, 2013. It does not need to obtain a license from the Reserve Bank of India to operate as a microfinance institution as long as it follows the RBI guidelines on microfinance lending. It can charge interest rates of up to 26% p.a. On its loans, which is higher than the rates charged by banks and other regulated financial institutions. It can sue the defaulter in case of non-payment of pending Loans. It has to comply with the provisions of the Companies Act 2013 and file annual reports and returns with the ROC and the Ministry of Corporate Affairs (MCA). It can also engage in other incidental or facilitative activities to its main objectives, such as education, health, sanitation, environment, etc. There is no demographic barrier to Microfinance Company. No minimum capital requirement. It can lend unsecured loans. Need for Microfinance Companies It provides financial assistance to enterprises that cannot place collateral It encourages women entrepreneurship It provides startups with much-needed support It offers assistance even for nominal amounts which generally are funded as hand loans It formalizes the process of lending and hence brings about discipline in borrowing by low-income groups. This prevents over-borrowing and reduces complications arising out of high future debts. Formation of Microfinance Companies Ideally, only a Non-Banking Finance Company (NBFC) is authorized by the Reserve Bank of India to conduct financial business. However, certain exemptions are provided by RBI to particular businesses to perform financial activities up to a specified limit.  Therefore, a microfinance company registration can happen in the following two ways: Non-Banking Finance Companies (NBFC) duly registered with RBI Section 8 companies (companies formed under Section 8 of the Companies Act 2013) Prerequisites for Microfinance Company Registration Prerequisites NBFC Section 8 company Approval of RBI Mandatory Not Required Net owned funds Minimum 5 crores No minimum requirement  Director experience One director must have experience of more than 10 years in financial services No prior experience required Limit on loans Maximum of 10% of total assets Unsecured loan of Rs 50,000 to small businessLoan up to Rs1.25 lakh to dwelling residence Complexity of Microfinance Company Registration All processes involved in forming a company have to be performed.  Relatively simple as it is registered as a non-profit organization  Adhering to Compliances It has to adhere to all compliances of an NBFC. Adhere to compliance of RBI, but they are less stringent in comparison to NBFC No of members  For a private limited company minimum of 2 For a public limited company minimum of 7 Minimum of 2 members Status of organization Profit organization Non-profitable organization Microfinance Company Registration as an NBFC Register a company: To be registered as an NBFC microfinance company, the first step is to form a private or a public company. To form a private company, at least 2 members and a capital of Rs 1 lakh is required. To form a public company, at least 7 members are required. Raise capital: The subsequent step is to raise the required minimum net owned funds of Rs 5 crore. For the northeastern region the requirement is of Rs 2 crore. Deposit the capital: On collection of capital, the next step is to deposit the capital in a bank as a fixed deposit and obtain a ‘No lien’ certificate for the same. Apply for license: Finally, the NBFC must fill an online application for the license and submit it along with all the certified documents. A hard copy of the application and license must also be submitted at the regional office of Reserve Bank of India. The documents that must be available with the NBFC at the time of filing are: Memorandum of Association and Articles of Association Incorporation certificate of the company Board resolution copy Copy of Auditor’s report of receipt of fixed deposit receipt Banker’s Certificate of No Lien stating the net owned fund Banker’s report about the company Recent credit report of the directors Net worth certificate of the directors Education/professional qualification proof of the director KYC and income proof of the director Proof of work experience in the financial sector Structure plan of the organization Microfinance Company Registration as a Section 8 Company Apply for Digital Signature Certificate (DSC) and Director Identification Number (DIN): To form a company, the first process is to apply for a DSC and DIN. The DSC is essential for authorizing the e-forms. Apply for name approval: The next step is to apply for name approval in Form INC-1. The name must suggest that it is registered as a Section 8 company. So it must have the words sanstha, foundation or micro credit. File Memorandum of Association (MOA) and Articles of Association (AOA): Post the name approval; the company must draft the MOA and AOA and file it along with necessary documents. File all relevant documents: The last step is to file all relevant documents along with the incorporation certificate, and Form INC -12 to obtain a license. The primary basic documents required for registering a company under both the models are: PAN Card copy of all directors/promoters Documents for identity proof Documents for address proof Photograph of all directors/promoters Proof of ownership of

In order to cater to admissions for the first year higher secondary education in Kerala, the department of higher secondary education has chosen a one-stop solution for the online registration system, which is called HSCAP. This portal is a convenient method for students who could opt for their desired course in the desired school promptly. The allotment process for HSCAP gets rid of the requirement of submitting various applications for different courses in different schools. With the help of HSCAP, admission process candidates could apply for a lot of courses in any school in a district via this portal.  Kerala HSCAP 2024 Application Form Kerala will release the form for the HSCAP 2024 on May 16, 2024 and the window to apply online will be available till May 25. Whether an individual wants to get admission for Plus One (+1) course with Science, Commerce or Arts, he or she needs to know that after the release of notification, we will also activate the direct link inside the table below. The application form for the Higher Secondary Centralized Admission Process 2024 provides a process for students seeking admission to Plus One courses in Science, Commerce, Arts, or Vocational streams in Kerala. To apply, applicants will be required to fill in their personal details, academic information, and preferences for course selection. HSCAP Registration Eligibility Candidates must have passed SSLC or 10th class from any recognized board. The aspirants eligible for the admissions are not age bound. However, it depends on the specified school or college, and it could be understood from the portal that belongs to the specific school or college. The selection of the candidates is on the basis of the merit marks of the 10th class. The application fee for the applicants is Rs.25 Registration The aspirants should pay application fee along with application online. The aspirants can check the official website of the school or college they are applying to understand the fee details. The application is dependent on the category of the students. The Principal of the school must sign the application along with the seal of the school. The interested candidate must retain the acknowledgment slip for the following procedures. The application fee is Rs 25, and it must be paid along with the submission of the application of Kerala Plus One Admission. Kerala HSCAP 2024 Required Documents SSLC (Class 10) Mark Sheet Transfer Certificate (TC) Category/Caste Certificate (if applicable) Income Certificate (if applicable) Passport-sized Photographs Aadhar Card or Identity Proof Steps to Fill the Online Application Form Step: 1 – Web Portal The applicant must visit the official website hscap.kerala.gov.in Step: 2 – Apply Online – SWS Select Apply Online – SWS (Single Window System) from the home page. Step: 3 – Enter Applicant Details Select the district in which the applicant has to make the application. Complete the following information about the student: Step: 4 – Filling the Form The applicant must fill in the form available on the web portal online. Finally, the applicant must upload the required documents and submit them before the last date of application. FAQs What is HSCAP? HSCAP stands for Higher Secondary Centralized Admission Process. It is a system implemented by the government for managing admissions to higher secondary schools (classes 11 and 12) in a streamlined and transparent manner. Who is eligible for HSCAP registration? Students who have completed their secondary education (class 10) and wish to pursue higher secondary education (class 11) in government or aided schools are eligible for HSCAP registration.

Fair Price Shop means a shop which has been licensed to distribute essential commodities by an order issued under section 3 of the Essential Commodities Act, 1955, to the ration card holders under the Targeted Public Distribution System. Responsibility It is the responsibility of every State Government to establish institutionalised licensing arrangements for fair price shops in accordance with the relevant provisions of the Public Distribution System (Control) Order, 2001 made under the Essential Commodities Act, 1955, as amended from time to time for efficient operations of the Targeted Public Distribution System. Under the Targeted Public Distribution System, it is the duty of the State Government to- take delivery of foodgrains from the designated depots of the Central Government in the State, at the prices specified, organise intra-State allocations for delivery of the allocated foodgrains through their authorised agencies at the door-step of each fair price shop; and ensure actual delivery or supply of the foodgrains to the entitled persons at the prices specified Every local authority, or any other authority or body, as may be authorised by the State Government, can conduct or cause to conduct, periodic social audits on the functioning of fair price shops, Targeted Public Distribution System and other welfare schemes, and may publicise its findings and take necessary action, in such manner as may be prescribed by the State Government. The State Government can fix an amount as the fair price shop owner’s margin, which may be periodically reviewed for ensuring sustained viability of the fair price shop operations. The State Governments may allow sale of commodities other than the foodgrains distributed under the Targeted Public Distribution System at the fair price shop to improve the viability of the fair price shop operations. FPS are mandated to make a lot of disclosures such as opening and closing stock, sample quality of grains sold, retail price details etc. Accounts of the actual distribution of foodgrains and the balance stock at the end of the month, at the fair price shop, have to be sent to the designated authority of the State Government with a copy to the local authority. Common Service Centre It is an initiative of the Ministry of Electronics & IT (MeitY). The CSC is a strategic cornerstone of the National e-Governance Plan (NeGP), approved by the Government in May 2006, as part of its commitment in the National Common Minimum Programme to introduce e-governance on a massive scale. They are the access points for delivery of various electronic services to villages in India, thereby contributing to a digitally and financially inclusive society. CSCs enable the three vision areas of the Digital India programme: Digital infrastructure as a core utility to every citizen. Governance and services on demand. Digital empowerment of citizens. The objective of CSCs is to provide high quality and cost-effective video, voice and data content and services, in the areas of e-governance, education, health, telemedicine, entertainment as well as other private services.. The PPP (Public Private Partnership) model of the CSC scheme envisages a 3-tier structure consisting of the: CSC operator (called Village Level Entrepreneur or VLE); Service Centre Agency (SCA), that will be responsible for a division of 500-1000 CSCs; and State Designated Agency (SDA) identified by the State Government responsible for managing the implementation in the entire State. FAQs What is a Fair Price Shop (FPS)? Fair Price Shop (FPS) is a government-approved retail outlet that distributes essential commodities like wheat, rice, sugar, and kerosene to eligible beneficiaries at subsidized prices under the Public Distribution System (PDS). Who is eligible to get ration from an FPS? Eligible beneficiaries include families that possess a ration card issued by the government. These ration cards are typically categorized into Above Poverty Line (APL), Below Poverty Line (BPL), and Antyodaya Anna Yojana (AAY) depending on their economic status.

Department of Pension and Pensioners’ Welfare in India has introduced an online Pension Sanction and Payment Tracking System called Bhavishya. The system provides for online tracking of pension sanction and payment process by the retiring employee as well as the administrative authorities. Implemented Ministries/ Departments in India Bhavishya is implemented in main secretariat of 88 Ministries/ Departments except Ministry of Railways, Ministry of Defence, Department of Post, Department of Atomic Energy, Department of Tele communication and some security related sensitive organizations. Retiree Registration Retiree does not need to register online in ‘Bhavishya’.  His/her details need to be added by Drawing & Disbursing Officer (DDO)/ Head of Office (HOO). Retiree need to send details given below to [email protected]. Name Date of Birth Mobile number Official Address Email Id (preferably designation/post based) Designation Ministry/Department List of PAO Codes Services offered Pension tracking can be done by the individual as well as the administrative authorities for all actions preparatory to grant of pension and other retirement benefits as well as monthly pension paid after retirement. Actions for timely payment of retirement dues and issue of Pension Payment Order (PPO) start one years before the date of retirement of the employee. There are a number of intervening stages and the system will pinpoint delays at each stage to enable timely interventions. The tracking can be done by the retiring employee as well as the administrative authorities. In addition, forms required during the process are available in electronic format. The retiring employee can fill the forms online. It facilitates the administrative authorities by processing the claims and passing on the calculated amounts and other details to the Pay and Accounts Offices. The new system will also capture personal information, service data and contact details like mobile number and e-mail etc. The retiring employees will be kept informed of the progress of pension sanction process through SMS/E-mail. Objective of Bhavishya To ensure active and dignified life for pensioner. To ensure payment of all retirement dues and delivery of Pension Payment Order (PPO) to retiring employees on the day of retirement itself. To obviate delays in payment of pension by ensuring complete transparency. Tracking of Pension Online Step 1: Visit home page of Bhavishya. Step 2: Click on the ‘Login’ tab. The page will redirected to next page. Step 3: Please provide your Login Id / User Id and enter security code. Step 4: Click on ‘Continue’ to track your pension details. FAQs What is Bhavishya – Pension Payment & Tracking System? Bhavishya is an online system developed by the Government of India to manage and track the pension payments of government employees. It ensures that retirees receive their pensions promptly and allows them to monitor the status of their payments. Who can use Bhavishya? Bhavishya is designed for central government employees who are nearing retirement or have already retired. It is also used by government departments and pension disbursing authorities.

Many types of schemes are started for the laborers working in the unorganized sector, one of those schemes is also E-Shram Card Pension Scheme. Under this scheme, workers are provided a monthly pension of ₹ 3000 after the age of 60 years. So that they can live their life comfortably in old age without doing any work. Although ₹ 3000 is not much every month, but this help by the government is very big for them. E-Shram Card Pension Scheme There are lakhs and crores of laborers in our country who are working in the unorganized sector. The e-Shram Card Pension Scheme was started by the government for these laborers. If you also have a labor card and you are also a laborer, then you can take advantage of the e-Shram Card Pension Scheme, under this scheme you will be provided a pension of ₹ 3000 every month. The pension provided under this scheme is provided after the worker attains the age of 60 years. To get this pension, the worker has to register under the Shram Yogi Maandhan Yojana and avail the benefits of this scheme. Apart from this, if you want to get a pension of ₹ 3000 after the age of 60, then you will have to pay some premium every month from now on. Under the e-Shram Card Pension Scheme, you can pay a premium of ₹ 55 to ₹ 200.  e-Shram Card Details Scheme name e-Shram Card Launched by Ministry of Labor and Employment Start date August 2021 Beneficiaries Unorganised sector workers Pension benefits Rs.3,000 per month Insurance benefits Death insurance of Rs.2 lakh Rs.1 lakh for partial handicap Age limits 16-59 years Official website https://eshram.gov.in/  Helpline number 14434 Main objective of E-Shram Card Pension Scheme The main objective of starting the e-Shram Card Pension Scheme run by the Central Government is to provide financial help to the laborers of the working class after they reach the destitute age so that they can live their life well. Actually, the laborers working in the unorganized sector have to face many problems after reaching the destitute age.  In such a situation, so that they do not have to face these problems, the e-Shram Card Pension Scheme has been started. Under this scheme, after the age of 60 years, they are provided a pension of ₹ 3000 every month. On the other hand, if you want to take advantage of this scheme after the age of 60, then you will have to pay the premium (contribution) under this scheme from now on. Under this scheme, you can pay a premium of ₹ 55 to ₹ 200. Eligibility for E-Shram Card Pension Scheme The benefit of e-Shram Card Pension Scheme is provided only to the native residents of India.  The benefit of e-Shram Card Pension Scheme will be provided to the laborers working in the unorganized sector.  To avail the benefits of this scheme, the monthly income of the worker should be less than ₹15000.  To avail the benefit of this scheme, the minimum age of the worker should be more than 18 years.  To avail the benefits of this scheme, the maximum age of the worker should be 40 years. Documents required for E-Shram Card Pension Scheme Aadhar card  PAN card  E-Shram Card  Bank account statement  mobile number  Passport size photograph How to apply for E-Shram Card Pension Scheme? To apply online for e-Shram Card Pension Scheme, first go to  the official website of the Ministry of Labor and Employment. After this click on the link  “Register on maandhan.in” . After this click on the option  “Click here to apply now” . After this click on the option of  “Self Registration” . After this , the “Application Form” of e-Shram Card Pension Scheme will open  in front of your mobile screen . This application form has to be filled after reading it carefully.   After this upload the photos of all the required documents.  Finally, you have to complete the process by clicking on the submit option. FAQs Who can apply for e-Shram card? Any person working in an unorganised sector (unorganised worker) aged between 16-59 years can apply for an e-Shram card. However, such a worker must have a valid mobile number linked with an Aadhaar card. How to check e-Shram card balance? Visit the e-Shram portal. Click on the ‘Already Registered’ option under the ‘Register Yourself’ tab. The e-Shram card balance payment status check page will open. Login by entering the username and password. Choose ‘Check Payment Status’ or ‘Know Your Payment Option’ from the drop-down list. Enter Aadhaar card information or UAN number and click on the ‘Submit’ button.