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What is Startup India Program?

A startup is a firm operated by a small group of individuals that addresses a crisis. A startup can also be formed when the director(s) come up with a potentially brilliant concept. The most major benefit of a startup is that it boosts employment in the country as more and more enterprises pop up. With the potential of greater job opportunities, the Indian government has endeavoured to aid start-up businesses in developing and succeeding in the Indian market. The Startup India Program can help you innovate and improve your economic sustainability.

Now that you have a better understanding of what a startup is and what Startup India Program is all about, let us look at which firms in India qualify as startups.

The startup India Program eligibility criteria

What qualifies you as a Startup India Program participant?

The corporation must be either a private limited company or a     limited liability partnership.

For the     first 10 years after registration, the firm remains a startup. The Indian     government has increased the period from 7 to 10 years in order to provide     enterprises with more chances and tax breaks in the long run.

If the     company's annual revenue does not exceed Rs 100 crore in any of the next     ten years, it will be considered a startup. Once the threshold is reached,     the firm is no longer considered a startup. The Indian government has just     raised the Rs 100 crore threshold from Rs 25 crore.

An     Incubation Fund, an Angel Fund, or a Private Equity Fund should provide     funding for the company.

It is     important to obtain a patron guarantee from the Indian Patent and     Trademark Office.

You     should have a letter of recommendation from an incubation programme.

The company     must come up with novel concepts and plans.

All     financing information must be filed with SEBI (Securities and Exchange     Board of India)

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Nidhi Company Business Plan

A Nidhi company Business Plan is required to hold 10% of total deposits collected in any nationalised bank as a fixed deposit each month. A Nidhi company Business Plan may close a branch only if it has issued an advertisement in a vernacular language newspaper in the area where it conducts business at least 30 days prior to the closure, alerting the public about the closure. Fixed deposit arrangements implemented by a mutual benefit company or a Nidhi business must be for a minimum of six months and a maximum of sixty months.  In the event of recurrent deposits, the minimum duration is 12 months and the maximum length is sixty months. A Nidhi corporation registration might take about two months from the day the application is filed.

 This corporation cannot issue dividends in excess of 25% or any greater amount permitted by the Regional Director. No Nidhi may appoint or re-appoint an auditor for more than one term of five years in a row. The rate of interest imposed on any loan made by a mutual benefit company should not be more than 7.5 per cent more than the highest rate of interest offered by Nidhi on deposits and shall be computed using the diminishing balance technique. This corporation must keep net owned funds of at least ten lakh rupees or the amount prescribed by the Central Government.

Nidhi company Business Plan Execution

This corporation cannot issue dividends in excess of 25% or any greater amount permitted by the Regional Director. No Nidhi may appoint or re-appoint an auditor for more than one term of five years in a row. The rate of interest imposed on any loan made by a mutual benefit company should not be more than 7.5 per cent more than the highest rate of interest offered by Nidhi on deposits and shall be computed using the diminishing balance technique. This corporation must keep net owned funds of at least ten lakh rupees or the amount prescribed by the Central Government. First and foremost, Nidhi Company must recruit 200 people in the first year. Furthermore, it should have net owned funds of at least ten lakhs or more, unencumbered term deposits of at least 10% of outstanding deposits, and a net owned funds to deposits ratio of no more than 1:20.

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Core Investment Company

Why Core Investment Company in the News

The Reserve Bank of India (RBI) organised a working group that proposed steps to improve Core Investment Companies (CIC). Tapan Ray, the former Corporate Affairs Secretary, leads the organisation.

 Core Investment Company

·        Core Investment Company (CICs) are a subset of Non-Banking Financial Institutions (NBFCs).

·        A Core Investment Company registered with the RBI has more than Rs 100 crore in assets.

·        Their primary activity is the purchase of shares and securities under particular conditions.

o   For example, these should not invest less than 90% of their net assets in group firms in the form of equity shares, preference shares, bonds, debentures, debt, or loans.

o   A group company is an arrangement involving two or more entities that are related to each other through one or more of the following relationships: subsidiary, joint venture, associate, promoter-promotee for listed companies, a related party, common brand name, and investment in equity shares of 20% or more.

Key Recommendations

 ·        Registration: The present asset size limitation of Rs 100 crore and access to public money for CIC registration should be maintained.

 ·        Concerning Group Companies:

o   Every CIC group should have a Group Risk Management Committee.

o   The number of CIC levels in a group should be limited to two. As a result, each CIC within a group may not invest via more than two tiers of CICs, including itself.

o   The term "layer" refers to a holding company's subsidiary or subsidiaries.

  ·        For Better Governance:

o   Independent directors must be appointed, internal audits must be performed, and consolidated financial statements must be prepared.

o   There is a need to ring-fence CIC boards by barring employees/executive directors from group enterprises.

o   Core investment company should form board-level committees.

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Understanding the Financial Creditor Under IBC

Financial creditors under IBC and operation creditors differ in that their liabilities stem from various sources. Where a financial creditor under IBC is obligated according to a contract, such as a loan or debt, and an operational creditor is obligated due to operational activities.

The new insolvency and bankruptcy law in India, the Insolvency and Bankruptcy Code, 2016, caused a significant deal of doubt over a complainant's eligibility to commence a corporate insolvency resolution procedure. It is primarily determined by the law's requirement that a complaint is a "financial creditor under IBC" or "operational creditor."

Homebuyers are currently caught in a Catch-22 position due to interpreting many new terminologies employed in the legislation. As a result, the applicability of financial and operational creditors to a homebuyer and a commercial real estate purchaser has been addressed in this article.

Financial creditors under IBC are defined as follows under Section 5(7) of the Insolvency and Bankruptcy Code of 2016, 'A person who owes a financial obligation, including a person to whom such debt has been lawfully assigned or transferred.' A financial creditor under IBC has a 'financial debt' owing to him under Section 5(8) of the Insolvency and Bankruptcy Code, 2016.

The following is how the Code defines financial debt: 'A debt, including with any interest, which is disbursed in exchange for the time worth of money and includes:

Money borrowed in exchange for interest

Any sum raised by acceptance under any acceptance credit     arrangement or its de-materialized equivalent

Any funds raised by the use of a note purchase facility or the issuance     of bonds, notes, debentures, loan stock, or other similar instruments

The amount of any liability arising from any lease or hire purchase     contract that is classified as a finance or capital lease under Indian     Accounting Standards or other accounting standards as required.

Receivable sold or reduced other than a non-recourse receivable

Any sum raised by any other transaction, including any forward sale     or buy agreement, that has the commercial impact of borrowing

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Dpiit Startup Registration

Eligible enterprises can be recognised as Startups by Dpiit startup registration under the Startup India initiative, gaining access to a variety of tax incentives, simplified compliance, IPR fast-tracking, and more. Read on to learn more about eligibility and perks.

The Government of India's flagship programme, the Startup India Scheme, was introduced in 2016. Via this effort, the government hopes to empower startups to develop through innovation and design. Startup India's mission is to produce and innovate goods and services while also boosting jobs in India. Eligible enterprises can be classified as Startups by the Department for Promotion of Industry and Internal Trade (Dpiit startup registration) to have access to a variety of tax perks, simpler compliance, IPR fast-tracking, and other benefits under the Startup India initiative. The Department for Promotion of Industry and Internal Trade (Dpiit startup registration) is in charge of coordinating the Startup India initiative's execution with other government agencies. The Small Industries Development Bank of India (Sidbi) is the operational agency for the Fund of Funds for Startups, while DPIIT is the monitoring agency (FFS).

Benefits of Dpiit startup registration

The advantages constitute a compelling narrative for the government's support of the entrepreneurial environment, which will enable jobs and innovations. Only 4% of startup applicants received tax benefits in the first 30 months of the Startup India initiative in January 2019.

 Section 56(2)(vii)(b) of the Income Tax Act of 1961 provides an exception.

The imposition of tax on this extra consideration is an exemption accessible to a registered startup. This exemption is especially useful during the stage of an angel/venture capital round, when the angel or VC invests in excess of the fair market value.

 Section 80-IAC tax exemption

For the first ten years after its formation, a registered startup can get an exemption from paying income tax for three years in a row.

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What is NBFC DSA Registration?

Who requires NBFC DSA Registration in India?

A non-banking financial company is an NBFC. DSA refers to someone who operates as a referral agent for such a corporation or bank (direct selling agent). The major role of an agent is to create leads and bring in new clients for banks and NBFCs. When a consumer takes out a loan using the agent's referral, the agent earns money. Working as a business loan DSA in Delhi, Bangalore, or Hyderabad may payout handsomely and consistently. Continue reading for more information on how to become an NBFC DSA loan agent. But first, what exactly is a DSA agent and what is an NBFC?

What is NBFC DSA Registration?

Non-banking financial institutions or enterprises do not have a financial licence given by regulatory organisations such as the RBI, yet they provide a variety of banking services. They are not permitted to take public demand deposits like savings accounts, fixed deposits, and so on. NBFCs are mostly involved in financial activities including loans and advances.

 The credit DSA collaborates with NBFC to market and sell their products. The DSA loan agent does not work from an office, although they may hold events to advertise their goods. They are self-sufficient individuals that create a sales network. They find consumers on their own and deal with them directly.

 Previously, DSA was known as door-to-door agents who went from door to door selling cleaning supplies, home equipment, and other items. Personal loans, vehicle loans, housing loans, and other financial goods are now available at your doorstep through loan DSAs. These agents are widely available in all locations, whether you are seeking a loan NBFC DSA registration in Delhi or a business loan after NBFC DSA registration in Jaipur.

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Invest in India: Get Startup India Certificate

Today's topic is the invest in India or Startup India certificate Registration Process for Indian Businesses. Recently, the Government of India clarified the definition of a startup and specified the legal structure and type of firm that is eligible for the initiative.

Startup India “Startup Definition” and Invest In India opportunity

1.   A startup will be defined as any legal entity.

2.   Up to five years from the incorporation date.

3.   If its annual revenue has not exceeded 25 crores in the previous five years.

4.   Its goal is to use technology or intellectual property to promote innovation, development, deployment, and commercialization of new goods, processes, or services.

 Points to be remembered about Invest in India :-

If a company, organisation, or business is     registered under the Companies Act of 2013, it is considered a start-up.

It is registered as a partnership firm under     Section 59 of the Partnership Act of 1932, or as a limited liability     partnership under the Limited Liability Partnership Act of 2002.

  A certificate from the Inter-Ministerial Board of Certification is required to gain tax benefits. The following people make up the board:

1.   Department of Industrial Policy and Promotion Joint Secretary

2.   Department of Science and Technology representative

3.   Department of Biotechnology representative

 Remember that a business is only deemed a startup India certificate  if it intends to develop and commercialise – a new product, service, or process, or significantly improves on an existing product, service, or process that will provide considerable value to customers or users.

If your startup is not classified as a startup, such as an ecommerce website or an IT firm, you will not be eligible for tax incentives.

 Startup India Certificate Registration Process

The following is the registration process for the Startup India certificate Initiative:

Step 1: Provide specifics and documentation.

Step 2: Document Drafting and Uploading

Step 3: Fill up the Startup India certificate registration form.

Step 4: DPIIT verification.

Step 5: Application approval or denial.

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Guide for GST Registration process Step by step

GST registration is an online process that must be completed on the government's website, gst.gov.in. Every dealer with an annual turnover of more than Rs.20 lakh (Rs.40 lakh or Rs.10 lakh, depending on the state and kind of goods) must register for GST. Here is a GST Registration process  Step by step procedure online–

 Steps to fill up Part-A: GST Registration process  Step by step

Step 1: Go to the GST website. Select Services. After that, go to the 'Registration' menu and select 'New Registration.'

Step 2 – In Part A, fill in the following information.

·        Choose the radio button for New Registration.

·        Select Taxpayer from the 'I am a drop-down menu.

·        Enter the company's name and PAN, as well as the email address and phone number. The OTPs will be sent to the registered email address and cellphone number.

·        Select Proceed.

Step 3: Input the two OTPs you got via email and cellphone. Select Continue. 

Step 4 – At this point, you will be given a 15-digit Temporary Reference Number (TRN). This will be delivered to your email and cell phone as well. Make a note of the TRN. Within the following 15 days, you must complete the part-B details.

Step 5 – Go to the GST portal once more. The 'New Registration' tab should be selected.

Step 6: Decide on a Temporary Reference Number (TRN). Click Proceed after entering the TRN and captcha code.

Step 7 – An OTP will be sent to the registered mobile phone and email address. Click on Proceed after entering the OTP.

Step 8 –The status of the application will be displayed as draughts. Select the Edit Icon.

Filling Procedures Part-B:  GST Registration process  Step by step

Part B of Step 9 comprises ten components. Complete all fields and attach all required papers. In 2020, the Aadhaar authentication portion was introduced, and the bank account component became optional.

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Online Company Registration in India

One of the most widely advised ways to establish a business in India is to form a private limited company. Directors and stockholders may be different in private limited Company registration. In India, MUDS, your trusted legal adviser, offers a low-cost business registration service. You can find out how to register your company here. We take care of all legal paperwork and comply with all Ministry of Corporate Affairs requirements. You will obtain a Certificate of Incorporation (CoI), as well as your PAN and TAN after the business registration procedure has been approved. You may now create a current bank account and start running your business.

 Benefits of Company Registration

There are several advantages to forming a business. A registered business adds legitimacy to your operation. It benefits your company because:

·  Increase your consumer base.

·  Protects your company's assets by providing liability protection.

·  Increased capital contribution and stability

·  Increases the ability to develop and grow large.

 How to do Company Registration Business Online - The Procedure

The process of registering your business is lengthy and involves several regulations. However, as long as you have MUDS, you won't have to worry since our specialists can assist you with every stage of the private limited company registration procedure.

·  Step 1: Get your DSC

·  Step 2: Submit an application for a DIN.

·  Step 3: Request the availability of a name

·  Step 4: File a Memorandum of Agreement and a Certificate of Authority to form a private limited business.

·  Step 5: Obtain the company's PAN and TAN.

·  Step 6: A certificate of incorporation with a PAN and TAN is issued by RoC.

 Company registration has been made easy in India with new laws and regulations sanctioned by MCA. If you want to complete your company registration in India kindly contact us at muds.co.in

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How to Claim IEPF Shares & IEPF Refund Guidelines

Investor Education and Protection Fund guidelines for collecting overdue amounts and shares (IEPF) and IEPF Claim Shares

The Investor Education and Protection Fund (IEPF), formed by the Central Government under section 125 of the Companies Act, 2013, outlines the idea and method for collecting unpaid payments and shares (the Act). While preparing these guidelines, we only considered dividend and equity share claims; however, under the Act, any person whose shares, unclaimed dividends, matured deposits, matured debentures, application money due for refund, or interest thereon, sale proceeds of fractional shares, redemption proceeds of preference shares, or other property has been transferred to the Fund may claim the shares under the provisions of sub-section (6) of section 124 or apply for a refund under section 124.

Procedure For IEPF claim shares

The person whose name any amount/share has been transferred to the IEPF (shares from iepf) can apply online to the Authority established by the Ministry of Corporate Affairs in Form IEPF-5, which is available on the website www.iepf.gov.in, along with the cost prescribed by the Authority.

The claimant must submit an application in Form IEPF-5, duly signed by him, together with the required papers listed below, to the company's Nodal Officer (iepf claim shares) at its registered office in an envelope labelled "claim for a refund from IEPF Authority" to begin the verification of his claim.

To know more about the transfer of company shares please visit our website muds.co.in IEPF claim shares is a simple process, one can directly consult our team and get more details about the complete process. We are the industry’s best consultants and provide our service across India. We have successfully recovered crores from iepf claim shares.

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What is Dematerialization (Demat of Shares)?

The process of changing physical shares and securities into digital or electronic form is known as dematerialisation or demat of shares. Let's take a closer look at the concept of dematerialisation (demat of shares).

The Securities and Exchange Board of India, better known as SEBI, has two depositories: Central Depository Services India Limited (CDSL) and National Securities Depository Limited (NSDL).

 Why is Dematerialization (demat of shares)Needed?

It might be difficult to keep track of all the paper paperwork. Furthermore, the growing number of papers may result in the loss of an important document. It has the potential to bring down the Indian stock market and any firms linked to it. Furthermore, stamp duty is reduced by 0.5 percent when a share is transferred. Dematerialized (demat of shares) shares get credits and bonuses directly into their account, with no risk of loss in transit and lower interest rates on loans linked with Demat accounts.

Process of Dematerialization (demat of shares)

The process of dematerialization (demat of shares) begins with the creation of a Demat account. 

·        Choose a DP (depository participant): Depository Participants are the majority of financial institutions and brokerage businesses.

·        Fill out the account registration form: To open a Demat account, you must complete an account opening form. Basic contact information is included.

·        To verify your papers, you must send a copy of your income evidence, identity proof, address proof, current bank account proof, and one passport-sized image. 

·        Sign the following standard agreement with the DP: The rules and regulations, as well as the charges and terms and conditions of the agreement between you and the depository participant, shall be contained in a standardised agreement.

·        Document authentication: All of the documentation you supplied in your application will be verified by a member of the DP staff.

·        The following is how the Demat account number and ID are generated: Your Demat account number and ID will be generated once all of your paperwork have been confirmed. You may use this information to log into your Demat account online.

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How To Onboard External Member For Posh?

The Act establishes the following conditions for an external member: the participant must be a representative of an NGO or a social organisation dedicated to the cause of women, as well as someone with expertise dealing with sexual harassment cases.

OR

A person with a legal basis with knowledge and competence in the area of sexual harassment of women might be an external member for posh.

Who Is Known As ‘External Member For Posh’?

According to current trends, most organisations seek a woman who: a) Is a legal specialist with extensive knowledge of POSH legislation.

b) Has the knowledge, abilities, and competence to successfully handle sexual harassment situations and complaints.

b) Is well-versed in the legal issues and consequences of sexual harassment.

 Who Is Known As ‘External Member For Posh’?

The preference for an outside member of the legal field is particularly advantageous since each organisation must develop its own standards, and given the broad definition of "sexual harassment," a thorough knowledge is required.

Reculta, a Delhi-based human resources (HR) digital start-up that reached ten members last month, is in a similar situation. It need an external member for posh for ICC, and it has begun discussions with a lawyer familiar with POSH legislation to form the committee. "For the ICC, we already have two female members." We aim to make the tiny team as professional as possible, therefore it's a really relaxed environment. Utsav Bhattacharjee, co-founder, adds that people should be informed of what they may and cannot say and do.

Both Pathak and Bhattacharjee recognise that the #MeToo movement and examples of sexual harassment in new-age enterprises such as TVF (the Viral Fever) accelerated the process of establishing a POSH policy and joining external member for posh. "The stakes are rising with each passing day, and we don't want to wait any longer," Bhattacharjee adds.

Under external member for posh, a company's policy against sexual harassment shall include the names and designations of external member for posh. A committee must have at least four members, with more than half of them being women, however a case can be considered by a quorum of three members as long as the presiding officer is present.

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What is dematerialisation (demat of shares) of shares

India successfully accepted the demat of shares system, and there are plans to make demat trading available for practically all financial assets in the future that is creating demat of shares.

 The dematerialisation (demat of shares) idea was developed in the Indian Financial Market to alleviate the hazards associated with share trading in paper format. Dematerialisation demat of shares, or Demat, is the process by which an investor's physical share certificate is transformed to an electronic format and stored in a Depository Participant account.

 India successfully accepted the demat system, and there are plans to make demat trading available for practically all financial assets in the future. We will try to comprehend the demat process and its benefits from the standpoint of a regular investor in this post.

What is it?

The required to transform physical shares into electronic forms is known as dematerialisation (demat of shares). To dematerialize (demat of shares) his shares, an investor must create a demat account with Depository Participant. Shareholder surrenders physical shares and receives electronic shares in his demat account in exchange.

 Depository for Dematerialized Shares Depository is the entity in charge of holding and preserving an investor's securities in demat or electronic form. NSDL and CDSL are the two receptacles in India.

 Demat Conversion

The majority of share trading is now done in demat format, however a few individuals still own shares in paper format. You can no longer trade paper shares, therefore you must first dematerialize them. Investors must fill out a Demat Request Form (DRF) and submit it with their physical shares in order to dematerialize their shares. DRF is available through the DP, and all you have to do is submit a request for demat conversion.

Their representative will arrive to sign the DRF form. As a result, the entire dematerialisation (demat of shares) process entails:

1. The investor surrenders the physical certificates to the DP together with the DRF for dematerialization.

2. The investor's account is updated, and shares are assigned to the investor's demat holding.

Conclusion

Investors, brokers, and businesses all benefit from dealing in demat format (demat of shares). From the investor's standpoint, it minimises the risk of holding shares in physical form. Brokers benefit since it decreases the risk of late settlement and increases profit due to more participation. Because no paperwork are needed, issuance in demat format lowers the cost of a new issue for the issuing firm. Companies dealing with demat format preserve the issue's efficiency and timeliness.

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Paper Share Certificate Transfer Into Digital Form

There's a strong likelihood that if you had stock before the internet and online brokerages, you had a share certificate to prove it. A actual piece of paper called a share certificate was given to shareholders when a corporation sold shares of its stock. However, because the electronic trail has supplanted the exchange of paper shares certificates, share certificate have become obsolete.

If you require actual documentation of your investment, though, keep reading to learn how to obtain a share certificate.

 KEY TAKEAWAYS

The     physical share certificate has become obsolete due to electronic trading.

A share     certificate can still be obtained from the issuing business or a broker.

Brokerage     firms keep track of the quantity of shares you own in an account in your     name.

Share     certificate that are no longer valid may be valuable as ornamental items.

 Share Certificates Are No Longer Necessary

After a while, each American corporation ceased issuing share certificate. Although this move may not seem noteworthy, it has made the headlines on occasion, such as when Disney withdrew their frame-ready certificates depicting The Walt Disney Company's (DIS) most famous cartoon characters in 2013.

Most global exchanges have eliminated or are in the process of eliminating paper share certificate. Electronic records and electronic communication networks have made proving stock ownership considerably easier (ECN).

What to Do If You Find a Paper Share Certificate?

It's possible, though doubtful, that an old share certificate has any worth beyond wall art.

First, make sure the issuer is still operating. If it is, search for the state where the firm was founded on the share certificate, as well as the CUSIP number.

Then call the secretary of state's office in that state to see if the corporation is still doing business there.

If this is the case, you can contact the corporation directly to obtain the contact information for the transfer agent.

To sell the shares, you must fill out and have notarized the transfer form on the back of the share certificate. Send the notarized share certificate to the transfer agent, who will register you as the owner of the shares.

The shares can then be sold through the transfer agent or through a stockbroker.

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Workplace Harassment Act Guidelines

A challenge was recently filed in the Supreme Court contesting guidelines given by the Bombay High Court in cases brought underneath the Protection of Women from Sexual workplace Harassment posh act 2013.

· The challenged clause prohibits parties and lawyers from discussing records, especially orders and judgements, with the media.

· The rules were drafted by Justice G.S. Patel of the Bombay High Court in order to safeguard the names of the parties in a posh act 2013 case.

Key Points

Petitioner's Arguments: Against the Spirit of Article 19: The petitioner contended that a blanket ban violates Article 19's guarantee of freedom of speech and expression. According to the petition, a well-informed public governs themselves better. The right to free expression may only be limited if it interferes with the administration of justice.

§  Any restriction on the people's right to know comprehensive and accurate facts is an infringement on their right to information

§  Restriction of Women's Voices: It may be used by powerful men to continue sexually harassing women and then silence their opinions on social networking sites and in the news media.

§  In matters of social justice and women's empowerment, public discourse has a significant impact on the kind of legal privileges provided to women.

§  The ruling might have a "ripple effect," discouraging survivors from contacting the courts and creating a hazardous precedent for trial cases.

  The 2013 Protection       of Women Against Sexual Workplace Harassment Act or Posh Act 2013

 o   Background: In the landmark case of Vishakha and others against the State of Rajasthan in 1997, the Supreme Court issued "Vishakha recommendations."

o   The Sexual Harassment of Women at Workplace harassment (Prevention, Prohibition, and Redressal) posh act 2013, was based on these standards ("Sexual Harassment Act").

System:

The Regulations define sexual workplace harassment in the workplace and establishes a redressal mechanism for complaints. Every company is obligated to form an Internal Complaints Committee in each office or branch with ten or more workers. The Complaints Committees have the same authorities as civil courts when it comes to acquiring evidence. If a complainant requests it, the Complaints Committees must provide for mediation before launching an investigation.

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How To Constitute Internal Complaints Committee

Internal Complaints Committee (ICC)

The posh at work Act requires every organisation with ten (10) or more workers to form an Internal Complaints Committee by written order. The internal complaints committee will have sufficient authority to examine sexual harassment accusations and resolve them in accordance with the posh at work Act andposh at work Rules. If an organisation has many administrative divisions in various places, the internal complaints committee must be formed in each of them.

If the organisation has fewer than ten (10) workers, it is not required to form the internal complaints committee, and any sexual harassment accusations will be directed to the local complaints committee, which is established by district officials in each district in compliance with the posh at work Act.

Sexual harassment in the workplace is an extremely delicate subject that must be addressed with the utmost care, patience, and understanding. As a result, it is critical that complaints be resolved as soon as possible in order to guarantee a peaceful and harassment-free workplace for all employees. As a result, forming an internal complaints committee sends a strong statement that the firm is fully dedicated to working toward women's safety. Nonetheless, it is important to highlight that forming an internal complaints committee is a legal obligation under the posh at work Act, and failure to do so can result in significant fines and the loss of a licence to conduct commercial activities.

Composition of the ICC

An ICC formed by an organisation must have at least four (four) members, including one external member, and at least one-half of the internal complaints committee members must be women.

The three categories of internal complaints committee members are as follows:

1. Presiding Officer

The Presiding Officer is the chairwoman of the internal complaints committee and must be a female employee in a high position within the organisation.

2. Members of the Workforce

At least two (two) people must be nominated as internal complaints committee staff members. It is preferred that the aforementioned employee members have extensive legal expertise and have previously worked for a social cause or women's safety.

3. External Participant

The posh at work Act defines an external member as a person from a non-governmental organisation or group dedicated to the cause of women, or any individual who is familiar with sexual harassment concerns in general.

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Sexual Harassment at Workplace Act Regulations

Sexual harassment at workplace of women in the workplace is a major source of worry for humankind as a whole. It cannot be defined in a restricted sense since it may involve sexual approaches and other verbal or physical sexual harassment at workplace, as a result of which victims of sexual hharassment at workplace suffer from significant psychological and health concerns such as stress, sadness, anxiety, humiliation, and guilt.

The PoSH Act 2013 was enacted with the goal of preventing and protecting women from sexual harassment at workplace and, as a result, ensuring a safe working environment for women. The PoSH Act 2013 mandates any employer with more than ten (10) workers to form an Internal Complaints Committee ("ICC") in the prescribed way in order to accept and resolve complaints of any kind of sexual harassment at workplace from women in a time-bound and strictly secret manner.

Redressal Do’s And Dont’s

To adequately manage sexual harassment at workplace allegations at work, the ICC must first be aware of their key responsibilities, which include 

(i) being thoroughly prepared with the laws and procedures, including but not limited to policies, service rules, and relevant rules and regulations; 

(ii) gathering and recording all relevant information, documents with respect to the complaint made by the aggrieved; and 

(iii) determining the main issues in the complaint and acting accordingly.

The ICC must carry out the following tasks:

·        Create a conducive meeting setting.

·        Use body language that indicates your undivided attention to the parties.

·        Respectfully address the complaint.

·        Discard any preconceived notions.

·        Determine the damage.

However, the ICC must refrain from engaging in the following activities:

·        Aggressiveness is required.

·        Insist on a visual depiction of sexual harassment at workplace.

·        In the presence of the complainant or responder, examine and debate the complaint.

When it comes to resolving sexual harassment at workplace, employees/workers have the right to expect the following: a trained, skilled, and competent complaints committee, a time-bound process, information confidentiality, assurance of non-retaliation, counselling or other enabling support where needed, and assistance if the complainant chooses to pursue criminal proceedings.

If the employer fails to form the ICC and/or violates, seeks to violate, or aids and abets the violation of other sections of this PoSH Act 2013 or the PoSH Act 2013, he or she will be fined up to INR 50,000/-. (Indian Rupees Fifty Thousand Only).