#customs broker in gujarat

[paciffic-maritime]

Some tips for choosing right custom clearance agent in India

The effective import or export of a shipment is reliant upon several substances. Regardless of how large or little a shipment is, two elements stand apart because of the significance of their roles in a shipment. Before hiring a custom clearance agent in India, you should initially understand how best to evaluate their capabilities.

A custom clearance agent is liable for managing the import or export procedures to move goods across borders, and diminishing the intricacy of customs for the company in the process.

Here are the vital elements to consider when choosing a licensed custom house agent in India:

Global scale and local presence - Companies with a worldwide presence often encounter the challenge of delivering a uniform service standard across its markets. Similarly, working with an authorized customs clearance agent that has a worldwide governance structure and a solid local presence will guarantee the same service levels regardless of the country.  The level of knowledge and experience of the customs house agent in each and every country is significant as familiarity generally converts into more prominent proficiency in clearing goods.

 

Real-time tracking – Custom clearance agent, who have access to the most recent technologies and tools, can provide nonstop visibility across time zones if they assume the role of monitoring of worldwide shipments on the company’s behalf. Should any issues emerge, customs clearance agent can also step in to determine confusions as they are in consistent communication with customs authorities.

 

Experience - The most important criteria while selecting a customs house agent is experience. Make sure that they have the right knowledge regarding laws and regulations and deal with different types of cargo both at the origin and the destination points of the shipment.

Lower shipping costs - By choosing the right customs house agent, the company has an opportunity to reduce overall shipping costs. Depending on your company’s prerequisites such as cost and lead time, the customs agent will help in choosing the optimal shipping option. They can also decrease unnecessary costs on imported products or goods in the form of exemptions on duties and taxes or late charges.

 In conclusion, be it custom house agent, it is vital for them to fully understand the basics and requirements of the company. It should likewise be noted that they part take in the success of the shipment, hence a long- term trust is necessary to optimize the supply events, cost competence, transfer, and time-sense.

[wealthview]

Shree OSFM E-Mobility IPO Date, Price, GMP, Review December 2023

New Post has been published on https://wealthview.co.in/shree-osfm-e-mobility-ipo-details/

Shree OSFM E-Mobility IPO Date, Price, GMP, Review December 2023

Shree OSFM E-Mobility IPO: Shree OSFM E-Mobility Limited is a Pune-based manufacturer of electric vehicles, primarily focusing on three-wheeled e-rickshaws and e-loaders.They operate in the rapidly growing Indian electric vehicle market, estimated to reach $150 billion by 2030.

Shree OSFM E-Mobility IPO Key Details:

Dates:

Open: December 14, 2023

Close: December 18, 2023

Listing (tentative): December 21, 2023, on NSE SME

Offer Size: ₹24.60 crore (fresh issue of 37.84 lakh shares)

Price Band: ₹65 per share

News and Developments:

Subscription Update: As of December 15, 2023, the IPO saw good initial response with:

Retail category subscribed 3.99 times.

Overall subscription at 3.50 times.

Grey Market Premium (GMP): Trading at a slight premium of ₹2-3 per share as of December 17, indicating cautious optimism.

Analyst Opinions: Views are mixed, with some recommending caution due to the fragmented nature of the segment and high valuation compared to FY24 earnings. Others see potential in the company’s focus on last-mile connectivity and EV adoption growth.

Shree OSFM E-Mobility Securities Offered:

This is a pure equity share offering. No bonds or other instruments are being issued. The company is raising fresh capital by issuing 37.84 lakh new shares.

Investor Category Reservation:

Category Percentage Allocation Retail Individual Investors (RII) 35% Qualified Institutional Buyers (QIB) 50% Non-Institutional Investors (NII) 15%

Minimum Lot Size and Investment Amount:

Minimum Lot Size: 2,000 shares.

Minimum Investment Amount: ₹130,000 (2,000 shares * ₹65 per share).

Note: For HNI/NII investors, the minimum investment is 2 lots (4,000 shares) or ₹260,000.

Additional Information:

This is a fixed-price IPO, meaning the offer price is set at ₹65 per share.

You can apply for the IPO through your broker or through the designated ASBA platforms of your bank.

Shree OSFM E-Mobility Company Profile:

Early Beginnings and Operations:

Established in 2015, Shree OSFM E-Mobility started as a manufacturer of automotive components.

In 2018, they pivoted to electric vehicles, focusing on three-wheeler e-rickshaws and e-loaders.

Currently, they have two manufacturing facilities in Pune with a total capacity of 60,000 units per year.

Their primary operations are spread across Maharashtra, Gujarat, and Madhya Pradesh, but they aim to expand pan-India.

Market Position and Brands:

They hold a small but growing share in the fragmented Indian e-rickshaw market, estimated to be worth over ₹20,000 crore.

Their main brand is “OSFM E-Mobility,” marketed under the tagline “Sustainable Solutions for Last Mile Connectivity.”

They haven’t yet established prominent sub-brands or subsidiaries.

Competitive Advantages and Unique Selling Proposition (USP):

Focus on last-mile connectivity: caters to a vital segment with high demand for affordable and efficient e-vehicles.

Vertical integration: own production facilities for key components, ensuring cost control and quality.

Product differentiation: offer customized e-rickshaws and e-loaders based on specific customer needs.

Strong distribution network: have established dealership relationships across their target markets.

Challenges and Potential Risks:

Intense competition: operate in a crowded market with numerous established players.

Dependence on government policies and subsidies: government support plays a crucial role in EV adoption.

Limited financial resources: compared to larger peers, their capital base is relatively smaller.

Overall: Shree OSFM E-Mobility occupies a niche space in the growing Indian e-vehicle market. While it faces stiff competition, its focus on specific segments, vertical integration, and customization offer potential advantages. However, its limited financial resources and dependence on government policies create uncertainties for investors.

Shree OSFM E-Mobility Financials:

Revenue Growth: The company has demonstrated impressive revenue growth, with YOY (Year-over-Year) increases of 85% in FY22 and 168% in FY23 (estimated). This surge reflects rising demand for their e-rickshaws and e-loaders.

Profitability: Profitability remains moderate, though improving. They recorded a PAT (Profit After Tax) of ₹309.09 lakhs in FY23, compared to ₹162.78 lakhs in FY22. Net margins remain around 3-4%.

Debt Levels: The company currently has minimal debt, with a debt-to-equity ratio of approximately 0.10. This provides them with financial flexibility and potential for future borrowing.

Key Financial Ratios (FY23 estimated):

P/E Ratio: Based on the issue price of ₹65 and estimated EPS (Earnings Per Share) of ₹2.94, the P/E ratio stands at 22.1.

Debt-to-Equity Ratio: As mentioned earlier, it stands at a healthy 0.10.

Industry Benchmarks:

P/E Ratio: The average P/E ratio for established electric vehicle companies in India is around 30-40. Shree OSFM’s lower P/E could signal potential, but also reflects its smaller size and lower profitability.

Debt-to-Equity Ratio: Industry benchmarks vary, but a ratio below 1 is generally considered favorable, which Shree OSFM achieves comfortably.

Future Growth Prospects and Earnings Drivers:

Growing e-vehicle market: The Indian e-vehicle market is expected to see consistent growth in the coming years, driven by government policies, rising fuel prices, and increasing focus on sustainability. This presents a significant opportunity for Shree OSFM.

Expansion plans: The company plans to expand production capacity and enter new markets, which could significantly boost revenue and earnings.

Product diversification: Exploring new e-vehicle segments beyond e-rickshaws and e-loaders could diversify their offering and attract new customers.

Challenges and Risks:

Intense competition: The fragmented market has numerous players, and competition for market share is fierce.

Dependence on government policies: Continued government support for e-vehicle adoption is crucial for the company’s success.

Profitability concerns: Sustaining and improving profitability while scaling up will be key for long-term sustainability.

Objectives of the Issue:

Shree OSFM E-Mobility has outlined three main objectives for its IPO:

Funding the purchase of passenger vehicles: This includes acquiring new e-rickshaws and e-loaders to meet the growing demand and expand their fleet.

Meeting working capital requirements: The capital will be used to manage day-to-day operations, purchase raw materials, and improve operational efficiency.

General corporate purposes: This could involve research and development activities, marketing initiatives, brand building, and potential acquisitions.

Alignment with Growth Strategy:

These objectives clearly align with Shree OSFM’s future growth strategy:

Expansion: Acquiring new vehicles directly supports their goal of increasing production capacity and entering new markets.

Efficiency: Addressing working capital needs allows them to streamline operations and potentially reduce costs.

Future Opportunities: Utilizing funds for general corporate purposes provides flexibility for strategic investments, R&D, and future acquisitions, all of which can contribute to long-term growth.

Additional Considerations:

The amount raised (₹24.60 crore) might seem modest compared to larger players in the electric vehicle market. However, for a relatively young company like Shree OSFM, it can be a significant boost for achieving their near-term growth goals.

The dependence on IPO funds for vehicle acquisition raises questions about their current capital structure and future financing plans.

Shree OSFM E-Mobility IPO: Lead Managers and Registrar

Lead Managers:

First Overseas Capital Limited (FOCO): FOCO is a licensed merchant banker with experience in managing small and medium-sized enterprise (SME) IPOs. Some recent SME IPOs they handled include Devyani International Limited and Uniphos Enviro Care Limited. While they have experience in managing similar offerings, their track record in terms of post-listing performance hasn’t been consistently robust.

Registrar:

Bigshare Services Private Limited: Bigshare is a SEBI-registered entity acting as a registrar for various types of capital market issuances, including IPOs. Their role in the Shree OSFM E-Mobility IPO involves maintaining shareholder records, handling allotment and refund processes, and facilitating share transfers. Their expertise ensures smooth execution of these crucial aspects of the IPO.

Shree OSFM E-Mobility IPO: Grey Market Premium

Current GMP: As of October 26, 2023, the GMP for Shree OSFM E-Mobility IPO stands at ₹2-3 per share. This indicates a slight positive sentiment in the grey market, with investors willing to pay marginally more than the issue price of ₹65 per share.

Comparison with Recent Listings:

Compared to recent SME IPOs, this GMP is moderate. Recent listings like Akashdeep Metals and Crafts saw GMPs reaching ₹10-15 per share, while others like Erisson Auto Parts Limited had negative GMPs.

The relatively subdued GMP for Shree OSFM E-Mobility could be due to several factors, including its smaller size, limited track record, and presence in a competitive market.

Factors Influencing GMP:

Demand and supply dynamics: High demand for the shares in the grey market can push up the GMP, while excess supply can exert downward pressure.

Company fundamentals: Strong financial performance, future growth prospects, and prominent investors can boost confidence and lead to a higher GMP.

Market sentiment: Overall market conditions and investor appetite for IPOs can also influence the grey market premium.

News and analyst reports: Positive news coverage and favorable analyst opinions can strengthen the GMP, while negative developments can have the opposite effect.

Potential Impact on Listing Price:

A sustained positive GMP can indicate rising investor interest and potentially lead to a higher listing price than the issue price. However, it is important to remember that the grey market is unofficial and its performance doesn’t guarantee the actual listing price.

A negative GMP suggests weaker demand and could result in a listing price below the issue price. Nevertheless, other factors like institutional investor participation and market conditions can also play a role in determining the final listing price.

Potential Risks to Consider Before Investing in Shree OSFM E-Mobility IPO:

Market Volatility:

The Indian stock market can be volatile, and unforeseen economic or political events could negatively impact the IPO performance and overall value of the shares.

Industry Headwinds:

Intense competition in the fragmented e-rickshaw market could erode margins and limit Shree OSFM’s market share.

Dependence on government policies and subsidies for e-vehicle adoption creates external risks beyond the company’s control.

Rising battery and raw material costs could put pressure on profitability.

Company-Specific Challenges:

Limited track record as a publicly traded company creates uncertainty about their future performance and ability to deliver on growth plans.

The relatively small size of the IPO fundraising compared to industry giants might limit their competitive edge and expansion capabilities.

Dependence on IPO funds for vehicle acquisition raises concerns about future financing needs and potential debt burden.

Financial Health Concerns:

While debt levels are low, profitability remains moderate, and significant improvement is needed to justify the current valuation.

The high P/E ratio compared to industry benchmarks could indicate potential overvaluation, increasing investment risk.

Red Flags for Investors:

Short operating history makes it difficult to assess long-term business sustainability.

Inconsistencies in past bottom lines raise concerns about future profitability.

Limited product diversification exposes them to potential market shifts within the e-rickshaw segment.

Shree OSFM E-Mobility IPO: DRHP (Draft Red Herring Prospectus)

Also read: How to Apply for an IPO?

Conclusion :

Shree OSFM E-Mobility shows promise in the booming Indian e-vehicle market, with impressive revenue growth, minimal debt, and expansion plans. However, intense competition, modest IPO funds, and profitability concerns necessitate caution. Thorough research and due diligence are crucial before investing.

[investmentor]

InvestMentor Securities Ltd (ISL), a leading stock broker of Gujarat, has a seat on India's largest stock exchange the National Stock Exchange of India Ltd (NSE) and the Bombay Stock Exchange (BSE). ISL is an active member of India's largest depository National Securities Depository Ltd (NSDL) as a Depository Participant.

Through InvestMentor Online we plan to extend our product and service offerings while transcending geographical barriers and maximising outreach to investors through the Internet. The trading interface supplements the user with real-time streaming quotes, portfolio management and many other features.

Our Story :

When the trading industry was witnessing an unprecedented bear market, InvestMentor Securities Ltd (ISL) was conceptualised by a group of young and ambitious entrepreneurs in 1995. Even though it was established when the industry was in the middle of a fiercely competitive environment, it did not stop InvestMentor Securities Ltd (ISL) from successfully expanding its outreach and developing trust amongst its customers.

With visionaries at its forefront, ISL is one of the earliest in India to realise the opportunities that Depositories has to offer. It led to us becoming a Depository Participant with NSDL in 1999.

Since the past 25 years, ISL has constantly endeavoured towards maximising consumer satisfaction. By using the most advanced technical solutions guided by a team of experts with immense experience in the market, we have earned lucrative profits for our customers which led to our consistent success in the trading industry.

[angfinverse]

Wealth Management Advisors in Ahmedabad

If you are looking for experienced Wealth Management Advisors in Ahmedabad then ANG Finverse is a reputable Financial Advisory Firm and Wealth Management Company in Gujarat. We, ANG Finverse, is among the most reputable companies providing a wide range of robust planning and investment solutions to clients in Gujarat and other regions of India.

ANG Finverse is top-rated wealth management, portfolio management, mutual fund services, equity investment, and insurance consulting firm based in Ahmedabad, Gujarat. The company has a rich history dating back more than 2 decades.

The company is the brainchild of the innovative entrepreneur Mr. Cyrus Aspi Gandhi. The origin of the firm can be dated back to 2000. It was formally incorporated in 2017.

About Us

Mr. Cyrus Aspi Gandhi has a B. Tech degree in Mechanical Engineering. He went to the prestigious Queen Mary University of London to obtain MSc. in Investment and Finance. Mr. Gandhi was brought up in an elite family of stock brokers, investment consultants, and chartered accountants. From a young age, he has always had a keen eye for numbers. He loves innovations and has the expertise to quickly grasp the dynamics of any investment. Mr. Gandhi also serves as an active investment consultant for M/S A.N. Gandhi.

He dreamt big and thus established ANG Finverse which has fast become a well-equipped company backing high-value investments through full-proof consulting services. The talented and experienced team at ANG Finverse has all the requisite skills to mitigate risk in any market conditions. The company smartly adapts to market changes, giving no hassles to the investors.

Mr. Gandhi has a prolific experience in the field of planning and investment for more than 5 years. He forms the backbone of the company.

He believes in the constant evolution of strategies, in terms of management and financial approach. The strategies that had worked a couple of years ago can seem ineffective currently. We leave no stones unturned in altering our policies to accurately suit the demands of our customers and the current market needs, within a regulatory framework.

We expertise in constantly beating market and benchmark returns. As top professionals in the industry, we constantly create more value for the investors, investing in specific domains.

In recent years, we have been successful in gaining considerable goodwill in the market, especially in the Ahmedabad investment circuit. We prioritize the interests of our clients and it has always been that way. We believe in long-term business relations and mutual trust.

[wealthzi]

Vijaya Diagnostic, Ami Organics IPOs open; Should you invest?

Two IPOs have hit the street on monday, with Hyderabad based Vijaya Diagnostic and Gujarat based Ami Organics seeking to raise a combined sum of about Rs 2,500 crore. Amid the stock markets hitting new highs every day, the IPO mania continues in full swing. Here are all the details you wanted. 1. Vijaya Diagnostic Vijaya Diagnostic Centre Limited (“VDCL”) was incorporated on June 5, 2002. VDCL is the largest integrated diagnostic chain in southern India, by operating revenue, and also one of the fastest growing diagnostic chains by revenue for fiscal year 2020. VDCL offers an one-stop solution for pathology and radiology testing services to their customers through their extensive operational network, which comprises 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana; Andhra Pradesh; the National Capital Region and Kolkata.  

Vijaya Diagnostic is offering IPO shares in the price band of Rs 522 to Rs 531 per share. The face value of shares is Re 1. The implied market cap at issue price is about Rs 5,400 crore. The issue opens on September 1 and closes on September 3. The lot size for IPO application is 28 shares, which means the minimum investment is Rs 14,868. The IPO shares will be listed around September 14.  The IPO is an offer for sale of Rs 1,895 crore. The objects of the offer are to (i) carry out the OFS of up to 35,688,064 equity shares by selling shareholders; (ii) achieve the benefits of listing the equity shares on the stock exchanges. At the upper band of Rs 531, the Vijaya Diagnostic IPO is valued at P/E of 64 times its FY21 EPS of Rs 8.26. Here is what top brokers have to say about Vijaya Diagnostic IPO. IIFL Securities:  “At the upper price band, Vijaya Diagnostic Centre Limited valuation is lower than the industry average of 90.8 times. Considering the future growth potential of healthcare industry, revenue from operation, EBITDA and PAT growth of 13.5%, 23.9% and 35.5% CAGR during FY19 to FY21, respectively, strong ROE and ROCE of 23.64% and 42%, respectively in FY21, debt-free company with plans for acquisition and expansions, diversified service offerings and strong technical capabilities of the company, we recommend ‘Subscribe’ to the issue with a long-term perspective.” KR Choksey: ” Vijaya has consistently posted strong performance in terms of operating growth and profitability in last few years. Revenues have grown at a CAGR of 13.5% over FY19-21 to Rs 377 crore. VDCL’s ‘hub and spoke’ model has provided economies of scale and cost optimization benefits, resulting in EBITDA growth of 23.9% and even stronger 35.5% growth in PAT over FY19-21. Integrated network and high B2C business has translated into higher cash flow conversion. Company also recorded strong return on net worth of 23.64% and return on capital employed (pre cash) of 42.00% during FY21.” 2. Ami Organics IPO Ami Organics Limited is a research and development (“R&D”) driven manufacturer of specialty chemicals with varied end usage, focussed towards the development and manufacturing of advanced pharmaceutical intermediates (“Pharma Intermediates”) for regulated and generic active pharmaceutical ingredients (“APIs”) and New Chemical Entities (“NCE”) and key starting material for agrochemical and fine chemicals, especially from their recent acquisition of the business of Gujarat Organics Limited (“GOL”)(“Acquisition”). They are one of the major manufacturers of Pharma Intermediates for certain key APIs, including Dolutegravir, Trazodone, Entacapone, Nintedanib and Rivaroxaban. The Company have developed and commercialised over 450 Pharma Intermediates for APIs across 17 key therapeutic areas since inception and NCE, with a strong focus on R&D across select high-growth high margin therapeutic areas such as anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, antidepressant and anticoagulant, for use across the global pharmaceutical market. Their Pharma Intermediates used for manufacturing of APIs and NCEs portfolio has expanded from over 425 products as of March 31, 2019, to over 450 products as of March 31, 2021.

Ami Organics is offering IPO shares in the price band of Rs 603 to 610 per share. The face value of shares is Rs 10. The issue opens on September 1 and closes on September 3. The lot size for IPO application is 24 shares, which means the minimum investment is Rs 14,640. The IPO shares will be listed around September 14.  The Ami Organics IPO comprises a fresh issue of Rs 200 crore for repayment/prepayment of certain financial facilities availed, funding working capital requirements and general corporate purposes. The other IPO component is the OFS of Rs 369.6 crore where the company will not receive any proceeds from.   With an EPS of Rs 17.14 as of 31st March 2021, the issue is priced at 35.59 times calculated at the upper price band of Rs 610 per share. The P/BV is 11.51 at a NAV of Rs 52.99 per share. Here is what top brokers have to say about Ami Organics IPO.

Anand Rathi: “The company has shown consistent financial performance with sales growth at CAGR of 19.5% and restated profit after tax growth at CAGR of 52.3% between the Fiscals 2019 and 2021. The financials for 2020- 21 doesn’t include revenue from the acquisition of the two plants. We are positive on the long-term prospects of the Company. Hence, we recommend a “Subscribe” rating to this IPO.” Marwadi Financial Services: “The competitive strengths of the company are strong and diversified product portfolio ably supported by strong R&D and process chemistry skills. Extensive geographical presence and diversified customer base with long standing relationships. High entry barriers in the chemicals manufacturing industry in which the Company operates. Strong sales and marketing capabilities. Experienced and dedicated management team. Consistent financial performance.”  

[matchfinderindia]

Benefits of Online Marriage Bureau Brokers

Matchmaking is a wonderful process of finding the right pair for a daughter or a son. Since most Indian marriages are arranged by the parents, matchmaking has a huge demand in the country. Though there were marriage brokers who provide matchmaking services for a charge in the past, the internet has made it easier to search for brides and grooms without moving to any place. If you are living in Gujarat, our Gujarati Marriage Bureau Broker services will provide you the various matrimony profiles of Gujarati brides and groom in the region. There are various categories available on our website that will help you find the best match quickly. 

Categorization of Matrimony Profiles

Online Marriage Bureau Brokers always look for different ways to improve their customer satisfaction. So, they will find some strategies to provide their customers with the best service possible. In the case of matrimonial websites that are focused on searches for the best person, they use techniques that will narrow down the searches. We provide the best matching results for the users within a short span. The main strategy of these websites to narrow down the search is to divide their database into the following categories. 

●      Community people

●      Regional people

●      Divorced or widows

●      Financial status

Community people

India is culturally diverse, and there are millions of people segregated in the name of religion and community. As the majority of Indian marriages are arranged by the parents, most of them will be looking for people belonging to their community and religion. They will simply ignore all others irrespective of their appearance or details. So, matrimonial sites brought in the concept of divisions based on the religion and community of the people looking for marriages.

A general matrimony website like Matchfinder has all the categories of communities within the website. While a specific religion or community website will have people from their community alone. 

Language or Region

Apart from religion or community, another major factor that categorizes the people looking for marriage is the residence of the person. The language of the person also comes into play in this category. You can find people who live in a particular region and speak in your language. 

Marital Status

Although the majority of the people looking for marriage will be waiting for their first match, there will be some people looking for a second marriage. There will be various reasons for their separation from their first partner, and they would need a person who is also looking for a second marriage. So, matrimonies started to provide a division for divorcees or widows on their websites to help these people. 

Financial status

Although it is a rare kind of search, some people look for this. It is a division of brides and grooms based on their financial status in society. You can find elite brides or grooms alone on a matrimony website. It is known as elite matrimony. 

[warehouseagent]

Factors To Consider When Looking For Industrial Shed

Are you on the lookout for a factory shed for rent and are unsure how to obtain one? Has securing your desired industrial shed for rent been taxing and frustrating?

What is an industrial shed?

Bestowed with the responsibility of manufacturing goods, the existence of an industrial shed is a structure symbolizing the humble abode and genesis of goods.

Here are a few tips/ factors to consider when on a search for an industrial shed.

Getting hold of a reliable and legitimate industrial leasing company: Finding a suitable industrial leasing consultant can take off the burden of searching for your ideal industrial shed. Having a reliable industrial real estate broker leaves you open to be notified and exposed only to premium quality industrial sheds. The advantage of having an ally like a leasing guide bequeaths you to top-class leasing advice.

Location: Nothing is as relevant as location when dealing with industrial sheds. Choosing the right area opens you too many different possibilities like good roads and efficiency in transportation of goods and natural resources like water and electricity. Get the best location you desire with the best leasing firm.

Quality of industrial shed: Quality is also one of the most important things one must keep in mind while in their humble pursuit of an industrial shed. To withstand the test of times, securing an industrial shed with premium quality durability is a must.

Flexibility: Keeping the future of your industrial shed in mind flexibility is one of the most crucial factors to look within. Being able to have the freedom for change is one of the main aspects of a business and must be sought after.

Relying on your leasing consultants can lead you to many benefits unseen to the normal eyes and services offered to none before. All of the above-mentioned factors can be boxed into one requirement category and asked concerning your leasing consultants.

Where to find a leasing firm that helps you out with all your industrial shed troubles and offer you top-class service?

Search no further, for the answer is simple. Get premium services and top-quality services with RSH, the leading industrial leasing company in Gujarat. We are a team specializing in providing clients with expert guidance in professional leasing and provide the best solutions for major industries. We are an acknowledged leasing company that provides customers with expert warehousing and industrial leasing guidance. RSH consultant is your one-stop destination whether you are looking for industrial sheds or warehouses, for we also accommodate warehouse for rent in Gujarat.

Benefits of choosing us

Rendering top-class industrial Services: We accommodate customers with reliable & innovative warehouse and factory services and high-quality safety standards.

Affordable: We provide all our services at a cost-effective and pocket-friendly rate, making it easier for our clients to find the best out of the best at the most affordable cost.

Connectivity: Exceptional connectivity to highways and airports make business smooth. We make sure to accommodate customers with prime locations, making transportation efficient.

Miss out no more on highly-beneficial deals on industrial sheds in Gujarat by staying in touch with RSH consultants and reap from the best offers we have for you.

[amitbwadhwani]

Whither RERA? Three years on, rough edges need ironing out

The Real Estate Regulatory Authority (RERA) was brought in to crack the whip on dodgy builders taking unsuspecting homebuyers for a ride. The results are mixed

In March, 2016, Parliament voted into law the Real Estate (Regulation and Development) Act—RERA—a legislation that held out the promise of placing consumers at the center of a new rules-based framework for India’s property market.

RERA, midwifed by two governments—UPA II and the NDA II—between 2009 and the 2016, was necessitated by the growing misery of tens of thousands of harried homebuyers.

Unsuspecting individual customers often complained about getting the short end of the stick, as many builders, some dodgy and some reputed,  exploited regulatory gaps by not delivering promised apartments on time or reneging on size and quality, or sometimes, simply vanishing after collecting funds.

RERA’s primary purpose, apart from defining rules, was to build trust among buyers and builders in a market where opaque deals thriving in grey payment systems operating outside the legitimate financial system had become commonplace.

For instance, customers would often find that the actual size of an apartment would be about 30% smaller than what was originally promised. The reason: “super built up area”, an arbitrary concept that builders used to charge customers for shared spaces such as common passage area, stairs and other areas.

Fund diversion had become a rampant practice in the realty sector. Many builders, large and small, would collect money from consumers for apartments, a part of which would then be channeled to buy land for another project. The net effect: never-ending project delays. This was going on without any checks and balances, and builders had developed the `consumers- be-damned’ attitude. For the banking sector too lending to realty projects became a risky proposition, as project delays resulted in mounting loan defaults.

RERA was brought in to address these.  Three years later, experts reckon, the results, at best, are mixed.

RERA RULES

Under RERA, builders are required to disclose details of “carpet area”, which is the actual apartment’s size, design, structure, layout, time of completion and other project specifications well in advance.

The rules make it mandatory for any project exceeding 500 square metres with eight or more apartments to register with a state’s real estate regulatory authority (RERA) before launching or even advertising a housing scheme.

Also read: Where’s my house? NCR’s Notorious Construction Record

Registration of real estate agents or brokers have also been made mandatory with clear responsibilities and functions. The punitive provisions include de-registration of the project. If the builder defaults on promises made at the time of the launch, the buyer can approach consumer fora in case of disputes with real estate developers. The penal measures were aimed at serving as a deterrent for builders to short change customers and ensure timely project delivery.

It is also now mandatory for builders to park 70% of funds collected from buyers in an escrow account, implying that these funds can only be withdrawn for the specific project for which these were collected.

Under the central law, each state was required to set up its own RERA that can draw upon central rules applicable in union territories.

Maharashtra was the first off the block with MahaRera in May 2017, with other states soon following suit with their own institutions.

MORE THAN A REGISTERING BODY

RERA’s role is not limited to just as a registering agency for realty projects, but was designed to evolve into a body empowered to even complete stuck projects or even allow buyers’ groups to take over unfinished projects.

Three years later, experts say, RERA’s record on this front remains below par. The RERA Act’s Section 8 empowers the authority, buyers’ association or an appropriate government organisation to execute unfinished projects, but arranging funds and buyers’ cooperation remain a critical challenge.

The Amrapali Group, which has unfinished projects peppered across Noida and Greater Noida, is a case in point. The Supreme Court, which which is hearing a batch of pleas of 42,000 home buyers against the embattled group for failing to give the possession of flats, had asked the Noida and Greater Noida Authorities whether they will be able to complete the projects. The authorities responded that they did not have the capability to handle projects of such big scale, but suggested that perhaps UP RERA could take these up.

“While it (UP RERA) certainly cannot complete projects by itself, it can find appropriate solutions by approaching competent authorities or even appoint a project management consultant to finish these,” said Kumar Mihir, lawyer, representing Amrapali homebuyers.

LEAKING ESCROW

Sound as it may appear on paper, in practice, however, too many instances of leaks in builders’ escrow accounts have come to light.

“The problem in most cases has arisen not because of shortage of funds but because monies collected from homebuyers have been siphoned off. This is because builders have exploited gaps in RERA rules of some states. For instance, the Uttar Pradesh RERA rules do not mandate parking funds in an escrow account for projects that started before May 1, 2017. Had it applied to all ongoing projects before May 1, 2017 the funding for most of the incomplete RERA projects would have been sorted,” said a lawyer who did not wish to be identified.

The RERA rules framed for the union territories had categorically stated that promoters of ongoing projects are required to set aside 70% of funds collected for specific project in a separate escrow account.

Some states such as Uttarakhand, Orissa and Bihar have adopted the central RERA rules. Maharashtra and Gujarat rules stipulate that only 70 percent of funds collected in the future, after May 01, 2017, have to be kept aside in an escrow account. The Uttar Pradesh RERA rules are silent, which builders have taken advantage of to siphon off funds.

BUYERS AS BUILDERS

Exasperated buyers are now beginning to come forward to turn builders themselves. RERA rules allow this and the few cases, if successfully tested, can well serve as the proof of concept for this model.

The Maharashtra real estate regulator has already come with a standard operating procedure (SOP) that allowed homebuyers to remove a developer in case the project is not completed on time.

The SOP allows a homebuyers’ association that enjoys the backing of at least 51 percent of its members to remove the developer from a much-delayed project. It even empowers the association to even cancel the developer’s registration under the MahaRERA Act.

Last year, the UP RERA decided to consider a proposal by defrauded homebuyers to take over and complete a project in Noida that had been delayed by several years.

“Prima facie, this appears to be an excellent move and will also set a very good precedent. But, it is also very important to know (a) how the project will be funded and (b) if the builder has taken more money than what work has been done by him and how RERA plans to recover the excess money from him,” said Abhay Upadhyay, President, Forum For People's Collective Efforts.

Experts, however, sounded a caveat. Authorities taking over incomplete projects should be an exception, rather than a norm because under RERA a builder should adhere to the rules, with strict penalties for violation. Also, it may be difficult for RERA to undertake a project from scratch.

“Doing something from scratch is very difficult. We will not advise it. It all depends on the size of the project and should be taken up on a case-to-case basis. It is not something that can be applied across the board,” said a lawyer who did not wish to be identified.

CRISIS OF CONFIDENCE

RERA’s institutionalisation was predicated upon customer centricity. The state bodies were expected to play the role of a strict referee that would instill the fear of law among deceitful builders.

Three years later, customers say, the job remains half done. The two main issues that homebuyers face today are to do with lack of confidence about execution of RERA orders by realty companies, and multiple forums for grievance redressal.

A mere RERA registration does not guarantee that a project will be delivered on time. An under-construction project, therefore, continues to remain a risky bet despite RERA.

“This is because RERA authorities are not taking proactive steps to ensure that all provisions are being complied with by the builder, nor are they monitoring the progress of the projects. They should ensure that projects are granted extension only under exceptional circumstances”, said Upadhyay, president of Fight for RERA, an umbrella body of homebuyers.

There are also instances where realty companies have given different timelines to homebuyers and the authority. “A builder cannot change timelines. At best, he can only ask for a one year extension from the regulatory authority.  If the builder changes timelines he is liabile to pay penalty. Authorities should be on their toes to address the issue,” said lawyer quoted earlier.

What is needed are speedier clearances and cutting down of bureaucratic red tape.

“The government should expedite a single window clearance mechanism for the real estate sector. The clearance and approval process for residential real estate projects has been an impediment for a long time. After RERA was launched, it became all the more important to facilitate smooth clearances and approvals so that there are no execution delays due to procedural hindrances,” said Amit Ruparel, managing director, Ruparel Realty.

Most contracts with homebuyers were changed after RERA came into effect from May 1, 2017. This has complicated timeline commitments.

“For most projects those timelines are almost ending. It is for RERA authorities to now start mapping those projects to see if there are delays and to start sending out show cause notices to developers. RERA’s job is not merely to register a project but also to map the projects and ensure that their timelines are being met,” said the lawyer who did not wish to be identified.

That said, the process is evolving in the right direction, albeit slowly, expert said.

“Things are changing for the better. Generally, players are far more accountable and cannot easily get away with breaking the RERA rules. While the redressal of complaints is not satisfactory for many, consumers are coming forward in large numbers to register complaints across states. The Wild West days of Indian real estate are definitely over”, says Anuj Puri, chairman, ANAROCK Property Consultants.

Project and real estate agent registrations have been rising steadily. For instance, in Andhra Pradesh as many as 307 projects were registered under RERA as on date, a five-fold increase from 61 in November 2018.

Maharashtra is currently the most active state having the highest project registrations with more than 20,718 projects under MahaRERA so far, and nearly 19,699 RERA-registered real estate agents.

Project registration in Karnataka currently stands at 2530 projects and 1342 RERA-registered real estate agents, says data shared by ANAROCK.

Gujarat has 5,317 RERA-registered projects and 899 registered agents and agencies.

“RERA, accompanied by reduced GST rates, has helped in bringing back consumer confidence and the trust factor which the industry lacked,” said Rahul Grover, president, Sales and Operations at Sai Estate Consultants.

This article was originally published in English www.moneycontrol.com

All rights reserved. Any act of copying, reproducing, or distributing this newsletter whether wholly or in part, for any purpose without the permission of Amit B Wadhwani is strictly prohibited and shall be deemed to be copyright infringement.

[ubwebsolutions]

The importance of best insurance agent in Saurashtra

Why is it important to find a reliable insurance agent in your city or town? The simple answer is he or she will help you to find a policy that will protect your family in times of financial contingency. However, are there any protocols or benchmarked parameters when it comes to choosing a reliable insurance agent in Saurashtra? Well, it depends.

The number of uninsured people in India is increasing at a galloping rate. Right now, more than half of the population does not have the coverage of an insurance plan. One of the reasons could be that people find it difficult to deal with the terms and conditions of the insurance policy and they are taken aback with its complexities.

Not only insurance people often find the clauses of different financial investments plan complex and they decide to stay away from it. However, things are not that cumbersome after all if you can get the service of a trusted mutual fund agent in Rajkot. They can help you with different investment and insurance plans particularly in making a befitting choice that serves your custom needs.

Technically, a mutual fund distributor in Gujarat is a person who sells mutual fund schemes and policies. However, there are two types of agents. First, comes the independent agents who work by themselves and deals with the policies of different companies.Second, we have the captive agents or contact agents are those, which are having a contract binding them to a specific company.

You need to understand that the term broker and agents are synonymous.There are thousands of agents in the state of Gujarat and it is crucial on your part to select an agent, which is right for you so that you can save some money on your health care needs.  No doubt, the internet is a good place to search for them. Personal recommendations from close associates can be helpful too.

[jbseducation]

[plancover-blog]

Insurance for educational institutions, schools and coaching classes

When it comes to insurance, every industry and business has specific needs. A one-size-fits-all approach does not work. An industry-specific approach to insurance helps businesses plan their risk management programs in accordance with the threats that could derail their entire business.

In this blog, we discuss insurance for the education sector — schools, colleges and coaching classes. The safety of schools and educational institutions is a national concern. There have been numerous incidents of school buses meeting with accidents, school premises getting damaged due to natural calamities, and discrimination and assault within the school premises, among others. The most recent tragic incident — a fire at a coaching institute in Surat, Gujarat, claimed the lives of 19 students. Equally horrific was the incident at a school in Gurugram where a student was murdered.

For educational institutions, it is a must to:

First, ensure safety measures for the students

Second, ensure that all the possible risks are covered through insurance.

There is a lot at stake, the lives and safety of children, the reputation of the institution, and property and assets that every business works hard to build.

Why do educational institutions need to buy insurance?

A school building collapse, a fire in the building, a student falling off from the stairs, a teacher facing wrongful termination or an incident of food poisoning at the campus canteen causing sickness to students — educational institutions are vulnerable to multiple risks on a daily basis, putting the safety of thousands of children and adults are grave risk. To understand the need for insurance for educational institutions, let us first comprehend the risks that can be protected and covered.

Educational institutions risks

Liability risks: Institutions, its directors and teachers can be held legally liable from a third party in case of any negligence.

Risk of personal injury: Accidents, assault or criminal activities can cause bodily harm to students or anyone working at institutions.

Property risks: Institutions could face several unexpected financial risks such as business interruption costs, legal costs and incremental costs due to mishaps.

Other risks: Risks to students and teachers while they are travelling, working outside the school premises and others.

Insurance ensures smooth functioning of the institution

Insurance may provide financial compensation in case of uncertain expenses for a business arising from risks that have been insured. This can help the institution to run smoothly even in situations when there is a financial loss or expenses that leave a business vulnerable.

Insurance can enhance the reputation of the institution

All the stakeholders of an educational institution — parents of students, investors, teachers and staff — would be more keen to work with an organization that is professional and it shows that it cares for those who study and work there. A school that provides group health insurance to its teachers and has insurance, as part of its risk management program would be more favourable to teachers and investors, respectively.

Types of insurance for educational institutions

Property Insurance

Property insurance is meant to compensate for losses or expenses arising out of damage to physical property. In this case, the school premises, equipment, furniture and fixtures and other valuable assets of the institution or school.

Property Insurance can be purchased as an umbrella insurance or as specific risks insurance such as fire insurance, earthquake insurance, money insurance, and vehicle insurance, among others.

Institutions may also protect the separate assets of their business with insurance such as electronic equipment insurance, vehicle insurance, money insurance, furniture and fixtures insurance and more.

Business Interruption Insurance

Business Interruption Insurance can provide financial coverage for losses and expenses that arise out of any interruption in the operation of the institution. A natural calamity, a fire or even a human error to the electrical system of the school could lead to an abrupt halt of operations. At times, the stoppage could be for weeks and months. In such situations, schools could face a massive loss of revenue, loss of credibility, and plenty of incremental expenses. Business Interruption Insurance can ensure that the activities of the school do not stop because of the immense financial stress.

It provides compensation for:

Lost income

Daily expenses

Relocation and incremental expenses

Group Health Insurance

Organizations purchase Group Health Insurance for the staff to provide coverage for health-related issues. Health insurance provides financial compensation to the staff at times of hospitalization. There are multiple benefits of group health insurance:

To staff and employees

Group health insurance policies are cheaper than individual policies.

Employees do not have to worry about health expenses.

Most group health policies do not require the insured to undergo medical tests or check-ups

A number of employers provide coverage for the employees’ family members as well.

Group health plans ensure quality health care and treatments as companies mostly tie up with prominent hospitals.

For the education institution

Tax benefits

Increased productivity as the staff feel cared for

It attracts quality professional teachers to the institution

Public Liability Insurance

Public Liability Insurance provides compensation against legal claims for bodily injury or property harm to a third party. This insurance provides coverage against legal claims related to medical expenses, legal expenses, lawyers’ fees, court-related expenses, and settlement costs.

A few key points to note:

Bodily injury to a third party could arise in the institution’s premises or away from the premises while the person is engaged in an activity that is related to the institution.

Defects in the institution’s building, furniture, equipment, floor, staircase and the failure to provide care and supervision over students can lead to legal liabilities.

Intentional, malicious and fraudulent actions from any of the staff of the institution can lead to legal liabilities.

Institutions can also purchase additions or extensions, such as Food and Beverage extension. Schools that offer boarding and lodging and food to students can face legal actions due to death or bodily injury to any student due to food.

Let’s look at some possible scenarios and cases, to understand the importance of Public Liability Insurance.

A school bus driver has an accidental fall inside the school because of a broken wooden staircase and gets injured. The driver could file a lawsuit against the school.

The residential building adjacent to the school gets damaged due to the repair or construction work going on in the school. The owners of the residential building can file a lawsuit and legally claim compensation for the damages caused to their property.

A teacher files a lawsuit against the dean of the school for wrongful termination. The dean of the school would be liable to compensate the teacher if the case filed is lost by the dean.

A school bus meets with an accident when the students are on their way for a picnic. The parents of the students decide to file a lawsuit for negligence.

Directors & Officers Insurance

In many cases, not only the institution, the directors and decision-making employees of the institution can also be held legally responsible. Imagine that a student slips on a wet floor and gets injured. Or there is a fire at the school premises. The parents of the students decide to file a lawsuit against the school as well as the dean of the school for negligence.

The Directors & Owners (D&O) Insurance is designed for the protection of directors, officers, and the decision-making staff of a business in the event of a legal claim. This policy pays for legal defence costs and financial losses. In the case of educational institutions, the common reasons that the directors could be sued are:

Negligence and default

Discriminatory practices

Allowing harassment to students or teachers knowingly

A failure to comply with regulations

Financial discrepancies

Value-added solutions from insurance broking company

Today, insurance broking companies and brokers are providing comprehensive service related to risk management. Their work does not involve only selling a general liability policy to the institute. With increasing demands, more complex risks and customer demands, insurance brokers have enhanced their services.

Assessment of risks to the institution

Evaluating the possible losses and expenses

Help with ways to avoid risks through safety measures

Finding the best solutions for specific risks

Finding the most suitable insurance plans

Tailoring plans to suit specific businesses

Help during claims

Help in managing insurance portfolios

In India, the safety of children at educational institutions is a serious issue. It is the responsibility of all stakeholders to ensure safety and risk management measures. PlanCover helps organizations, including schools, colleges and coaching classes safeguard against different kinds of risks by providing the best possible insurance solutions. PlanCover provides comprehensive insurance service — risk assessment, risk evaluation, finding the most suitable insurance, comparative quotations and policies from different insurers and management of insurance portfolio.

[juudgeblog]

Regulatory Provisions relating to Acceptance, Invitation, Renewal and Repayment of Public Deposits

INTRODUCTION

Generally, companies raise finance by issuing shares and debentures in the market. Raising funds from the public directly is another source which companies use nowadays to meet their short-term and medium-term requirements. This is known as Public Deposits. This source of raising finance has gained popularity because a company offers interest at a rate higher than the banks.

Due to the following reasons, companies find public deposits as an attractive source:

It involves less paper work and formalities and is a comparatively simpler method to raise funds than others.

Borrowing funds from the public is relatively easier than borrowing from financial institutions.

Cost of fund is cheaper in case of public deposits as banks charge higher rate of interest on loans.

Dependency on banks and financial institutions gets reduced.

The company can build a larger customer base and create contacts with the public and the investors at large thereby enhancing its reach to the public which can be exploited for cross-selling of its products.

It provides flexibility to the financial structure of the company as the funds raised from public deposits generally remain for a longer period.

Being small investors, the depositors do not possess any control or right over the company’s management and thus it protects the shareholder’s rights.

However there are limitations too in this kind of source of financing.

There exists an element of uncertainty in case of either poor performance of the company or poor economic condition in the country when the public can withdraw their deposits without notice.

As some other financial instruments like equity or Mutual funds can give better appreciation of the invested fund, the investors may be reluctant to invest in such deposits.

In view of return on deposits largely dependent on long-term performance of the company, there remains a risk of loss of money of the depositors in the event of failure of the company.

Deposits with the companies are largely unsecured.

HISTORY

During the first quarter of the 20th century, there were no banks and financial institutions to finance for meeting short and medium term requirements of the borrowers. For the first time during this period, tea gardens of Darjeeling & Assam and textile mills of Gujarat & Maharashtra started acknowledging public deposits. Now in recent times, this method of raising finance has gained popularity where the companies accept public deposits under non-banking companies (Acceptance of deposits) rules and under certain government regulations.

MODUS OPERANDI

Deposits are accepted by the companies for period range varying from 6 months to 3 years at higher interest rates compared to the rates offered by banks and financial institutions. Depending upon the period of deposit and credibility of the company, the rate of interest varies from 11% to 15%. Financial brokers and other intermediaries extend support to these companies in raising funds from the public.

CONDITIONS FOR INVITATION AND ACCEPTANCE OF DEPOSITS

The invitation and acceptance of deposits are regulated by Section 73 to 76 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014 made under Chapter V of the Act.  The provisions of the Sections shall not apply to a banking Company and a non-banking financial Company registered with the Reserve Bank of India.

Under the Companies Act and the rules framed, the invitation and acceptance of deposits by companies are subjected to the following conditions:-

It prohibits the companies to raise unlimited amounts of finance through public deposits.

It also restricts the companies in the manner that the total of all outstanding deposits cannot be higher than the prescribed ceiling in terms of certain percentage of the paid up capital and free reserves of the company.

A company can invite deposits only by means of advertisement. The advertisement must disclose the management structure and financial position of the company.

A company is prohibited from inviting further deposits if it has failed to repay previous deposits or interest thereon.

Under the regulation, the company must maintain its books with all the relevant details of the deposits and file audited returns of the deposits with the Registrar at regular interval.

Goodwill and past performance of the company have the bearing on rate of interest decided by it on the deposits collected from the public. However, it is required to be done in accordance with the guidelines prescribed by the Government.

Besides, The Reserve Bank of India (RBI) has put their regulatory provisions in order to regulate Public Deposits. The directives issued by the RBI are aimed at safeguarding the public interest and to provide them with a sense of security in investing in the public deposits. These regulations are concerned with:

Duration of deposits

Ratio of deposits to the free reserves and paid-up-capital of the company

For the purpose of safeguarding the interest of the depositors, the company has to invest a certain portion of the deposits in a scheduled bank free from any liability or in approved securities to repay the deposits to its depositors.

The company has to furnish returns with RBI at regular interval with specific details on its financial health, financial activities and public deposits.

RENEWAL OF DEPOSITS

Under this process, the depositor has an option of renewal of its deposits on maturity for an additional time period. This process may be continued as long as the depositor does not decide to withdraw his deposit.

REGULATIONS ON RENEWAL OF DEPOSITS

In case the rate of interest is revised upward and the depositor wants to take the benefit of higher rates by pre-maturing the existing deposit and renewal of the deposit at the higher rate of interest, a non-banking financial company will allow the existing depositor to avail the benefit of renewal of the deposit at higher rate of interest, provided that, the deposit is renewed for a period longer than the remaining period of the original deposit and in terms of the other provisions; and the interest on the expired period of the deposit is reduced by one percentage point from the rate which the company would have customarily paid, had the deposit been accepted for the period for which such deposit had run; any interest paid earlier in excess of such reduced rate will be adjusted with the maturity amount.

REPAYMENT OF PUBLIC DEPOSITS

After the end of a specified time period when the original amount that is invested is paid back to the investor, the process is called repayment of deposits.

Section 74 of the Companies Act 2013 stipulates that the deposits accepted by a company afore the commencement of the Act should be recompensed by a company within one year from the commencement of the Act or from the date on which payment of such deposit becomes due, whichever is earlier.[1]

According to the section 74

“(1) Where in respect of any deposit accepted by a company before the commencement of this Act, the amount of such deposit or part thereof or any interest due thereon remains unpaid on such commencement or becomes due at any time thereafter, the company shall—

(a) file, within a period of three months from such commencement or from the date on which such payments, are due, with the Registrar a statement of all the deposits accepted by the company and sums remaining unpaid on such amount with the interest payable thereon along with the arrangements made for such repayment, notwithstanding anything contained in any other law for the time being in force or under the terms and conditions subject to which the deposit was accepted or any scheme framed under any law; and

(b) repay within one year from such commencement or from the date on which such payments are due, whichever is earlier.

(2) The Tribunal may on an application made by the company, after considering the financial condition of the company, the amount of deposit or part thereof and the interest payable thereon and such other matters, allow further time as considered reasonable to the company to repay the deposit.

(3) If a company fails to repay the deposit or part thereof or any interest thereon within the time specified in sub-section (1) or such further time as may be allowed by the Tribunal under sub-section (2), the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fine which shall not be less than one crore  rupees but which may extend to ten crore rupees and every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or with both.”[2]

Regulations relating to repayment of deposits (In NBFCs)

Within a period of three months from the date of acceptance, no Non-banking Financial Company (NBFC) shall repay any public deposit.

Where at the request of depositor a non-banking financial company repays public deposit after the period of 3 months from the date of acceptance but before its maturity, the company shall make the payment of interest in the following way:

No interest to be paid up to three months

Between three months and six months interest not exceeding 10 % per annum to be paid

Between three months and twelve months:- 1 % point less than the rate which the company would have ordinarily paid, had the deposit been accepted for the period for which such deposit had run

A non-banking financial company may grant a loan up to 75 % of the amount of public deposit, to a depositor after the expiry of three months from the date of deposit. The rate of interest on the loan will be levied at a rate of interest which is higher by 2% points than the interest rate payable on the deposit.

In case of death of the depositor, maturity proceed of the deposits is paid to the survivor had it been a joint account with survivor clause, otherwise maturity amount is paid to the nominee or legal heir/s. In such case, applicable interest rate is reduced by 1% point from the rate which the company would have customarily paid, had the deposit been accepted for the period for which such deposit had run up to the date of repayment;

CONCLUSION

Public deposit is one of the multiple financial instruments for the public to invest their hard earned money. While there are regulations to regulate the functioning of these companies to collect public deposits and service them, security of the public deposits is of prime importance. The public should be educated on the rules and regulations applicable for the companies collecting public deposits. Government and regulators must activate all their machineries at their disposal for ensuring safety of the hard earned money of the depositors.

[1] The Companies Act, 2013, no. 18, Acts of Parliament, (India)

[2] The Companies Act, 2013, no. 18, Acts of Parliament, (India)

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[loyallogic]

Regulatory Provisions relating to Acceptance, Invitation, Renewal and Repayment of Public Deposits

INTRODUCTION

Generally, companies raise finance by issuing shares and debentures in the market. Raising funds from the public directly is another source which companies use nowadays to meet their short-term and medium-term requirements. This is known as Public Deposits. This source of raising finance has gained popularity because a company offers interest at a rate higher than the banks.

Due to the following reasons, companies find public deposits as an attractive source:

It involves less paper work and formalities and is a comparatively simpler method to raise funds than others.

Borrowing funds from the public is relatively easier than borrowing from financial institutions.

Cost of fund is cheaper in case of public deposits as banks charge higher rate of interest on loans.

Dependency on banks and financial institutions gets reduced.

The company can build a larger customer base and create contacts with the public and the investors at large thereby enhancing its reach to the public which can be exploited for cross-selling of its products.

It provides flexibility to the financial structure of the company as the funds raised from public deposits generally remain for a longer period.

Being small investors, the depositors do not possess any control or right over the company’s management and thus it protects the shareholder’s rights.

However there are limitations too in this kind of source of financing.

There exists an element of uncertainty in case of either poor performance of the company or poor economic condition in the country when the public can withdraw their deposits without notice.

As some other financial instruments like equity or Mutual funds can give better appreciation of the invested fund, the investors may be reluctant to invest in such deposits.

In view of return on deposits largely dependent on long-term performance of the company, there remains a risk of loss of money of the depositors in the event of failure of the company.

Deposits with the companies are largely unsecured.

HISTORY

During the first quarter of the 20th century, there were no banks and financial institutions to finance for meeting short and medium term requirements of the borrowers. For the first time during this period, tea gardens of Darjeeling & Assam and textile mills of Gujarat & Maharashtra started acknowledging public deposits. Now in recent times, this method of raising finance has gained popularity where the companies accept public deposits under non-banking companies (Acceptance of deposits) rules and under certain government regulations.

MODUS OPERANDI

Deposits are accepted by the companies for period range varying from 6 months to 3 years at higher interest rates compared to the rates offered by banks and financial institutions. Depending upon the period of deposit and credibility of the company, the rate of interest varies from 11% to 15%. Financial brokers and other intermediaries extend support to these companies in raising funds from the public.

CONDITIONS FOR INVITATION AND ACCEPTANCE OF DEPOSITS

The invitation and acceptance of deposits are regulated by Section 73 to 76 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014 made under Chapter V of the Act.  The provisions of the Sections shall not apply to a banking Company and a non-banking financial Company registered with the Reserve Bank of India.

Under the Companies Act and the rules framed, the invitation and acceptance of deposits by companies are subjected to the following conditions:-

It prohibits the companies to raise unlimited amounts of finance through public deposits.

It also restricts the companies in the manner that the total of all outstanding deposits cannot be higher than the prescribed ceiling in terms of certain percentage of the paid up capital and free reserves of the company.

A company can invite deposits only by means of advertisement. The advertisement must disclose the management structure and financial position of the company.

A company is prohibited from inviting further deposits if it has failed to repay previous deposits or interest thereon.

Under the regulation, the company must maintain its books with all the relevant details of the deposits and file audited returns of the deposits with the Registrar at regular interval.

Goodwill and past performance of the company have the bearing on rate of interest decided by it on the deposits collected from the public. However, it is required to be done in accordance with the guidelines prescribed by the Government.

Besides, The Reserve Bank of India (RBI) has put their regulatory provisions in order to regulate Public Deposits. The directives issued by the RBI are aimed at safeguarding the public interest and to provide them with a sense of security in investing in the public deposits. These regulations are concerned with:

Duration of deposits

Ratio of deposits to the free reserves and paid-up-capital of the company

For the purpose of safeguarding the interest of the depositors, the company has to invest a certain portion of the deposits in a scheduled bank free from any liability or in approved securities to repay the deposits to its depositors.

The company has to furnish returns with RBI at regular interval with specific details on its financial health, financial activities and public deposits.

RENEWAL OF DEPOSITS

Under this process, the depositor has an option of renewal of its deposits on maturity for an additional time period. This process may be continued as long as the depositor does not decide to withdraw his deposit.

REGULATIONS ON RENEWAL OF DEPOSITS

In case the rate of interest is revised upward and the depositor wants to take the benefit of higher rates by pre-maturing the existing deposit and renewal of the deposit at the higher rate of interest, a non-banking financial company will allow the existing depositor to avail the benefit of renewal of the deposit at higher rate of interest, provided that, the deposit is renewed for a period longer than the remaining period of the original deposit and in terms of the other provisions; and the interest on the expired period of the deposit is reduced by one percentage point from the rate which the company would have customarily paid, had the deposit been accepted for the period for which such deposit had run; any interest paid earlier in excess of such reduced rate will be adjusted with the maturity amount.

REPAYMENT OF PUBLIC DEPOSITS

After the end of a specified time period when the original amount that is invested is paid back to the investor, the process is called repayment of deposits.

Section 74 of the Companies Act 2013 stipulates that the deposits accepted by a company afore the commencement of the Act should be recompensed by a company within one year from the commencement of the Act or from the date on which payment of such deposit becomes due, whichever is earlier.[1]

According to the section 74

“(1) Where in respect of any deposit accepted by a company before the commencement of this Act, the amount of such deposit or part thereof or any interest due thereon remains unpaid on such commencement or becomes due at any time thereafter, the company shall—

(a) file, within a period of three months from such commencement or from the date on which such payments, are due, with the Registrar a statement of all the deposits accepted by the company and sums remaining unpaid on such amount with the interest payable thereon along with the arrangements made for such repayment, notwithstanding anything contained in any other law for the time being in force or under the terms and conditions subject to which the deposit was accepted or any scheme framed under any law; and

(b) repay within one year from such commencement or from the date on which such payments are due, whichever is earlier.

(2) The Tribunal may on an application made by the company, after considering the financial condition of the company, the amount of deposit or part thereof and the interest payable thereon and such other matters, allow further time as considered reasonable to the company to repay the deposit.

(3) If a company fails to repay the deposit or part thereof or any interest thereon within the time specified in sub-section (1) or such further time as may be allowed by the Tribunal under sub-section (2), the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fine which shall not be less than one crore  rupees but which may extend to ten crore rupees and every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or with both.”[2]

Regulations relating to repayment of deposits (In NBFCs)

Within a period of three months from the date of acceptance, no Non-banking Financial Company (NBFC) shall repay any public deposit.

Where at the request of depositor a non-banking financial company repays public deposit after the period of 3 months from the date of acceptance but before its maturity, the company shall make the payment of interest in the following way:

No interest to be paid up to three months

Between three months and six months interest not exceeding 10 % per annum to be paid

Between three months and twelve months:- 1 % point less than the rate which the company would have ordinarily paid, had the deposit been accepted for the period for which such deposit had run

A non-banking financial company may grant a loan up to 75 % of the amount of public deposit, to a depositor after the expiry of three months from the date of deposit. The rate of interest on the loan will be levied at a rate of interest which is higher by 2% points than the interest rate payable on the deposit.

In case of death of the depositor, maturity proceed of the deposits is paid to the survivor had it been a joint account with survivor clause, otherwise maturity amount is paid to the nominee or legal heir/s. In such case, applicable interest rate is reduced by 1% point from the rate which the company would have customarily paid, had the deposit been accepted for the period for which such deposit had run up to the date of repayment;

CONCLUSION

Public deposit is one of the multiple financial instruments for the public to invest their hard earned money. While there are regulations to regulate the functioning of these companies to collect public deposits and service them, security of the public deposits is of prime importance. The public should be educated on the rules and regulations applicable for the companies collecting public deposits. Government and regulators must activate all their machineries at their disposal for ensuring safety of the hard earned money of the depositors.

[1] The Companies Act, 2013, no. 18, Acts of Parliament, (India)

[2] The Companies Act, 2013, no. 18, Acts of Parliament, (India)

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Get The Best Agents For Making Transportation Process Easy

Transport plays an important part in day to day life, where transport is the act of movement of products, goods, and services from one destination to another with different modes of transport. The different modes of transport are cable, space, air, water, land, and pipeline which is been used for the movement of goods and services from one place to another. Transportation plays an important role which allows importation and exportation easier among people for the development of civilizations. The organization work with the trained staff for the clients who understand the client requirement and work accordingly to give the hundred percent customer satisfaction with the cost-effective prices.

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[askstockmarket]

What do uniform stamp duties mean for stock markets?

What do uniform stamp duties mean for stock markets? During the week, the Ministry of Finance issued a circular announcing uniform stamp duty on all financial market transactions effective 09th January 2020. This had been on the cards for quite some time since Piyush Goyal first made the announcement in the interim budget 2019. Here is what it means. Uniform stamp duty takeaways Currently, when you enter into a capital market transaction, there is stamp duty payable on a per contract note basis. This amount is mentioned at the bottom of the contract note. The whole problem today is that stamp duties are levied by the state governments and each state levies its own rate of stamp duties on different financial products. Brokers are required to charge stamp duty to customers at the rates applicable to the state where the client’s account address is located. Then, these stamp duties are remitted by the broker to the respective states. Under the new arrangement, the stamp duty will be charged on financial products at a uniform rate and the broker will only have to remit the amount to the exchange.  Here are the rates of stamp duty applicable. Equity Delivery   0.02%       Equity Intraday   0.00%    Futures               0.00%   Options              0.00% Currency            0.00%  In the above cases, the stamp duty will apply to the notional value of options and only on the buy-side of equity delivery. Is this a positive move? For brokers and for market efficiency it is surely a positive move. They do not have to worry about multiple rates and multiple states to interface with. There is a uniform rate that is charged and paid to the stock exchange. Secondly, most traders and investors are also likely to benefit. The only states where active traders would lose out are Andhra Pradesh, Haryana and Telangana where there is a cap on stamp duty. Karnataka traders could also lose out due to lower rates currently. However, in the active markets of Maharashtra, Gujarat and West Bengal, this move is likely to bring down the overall stamp duty liability for traders and also for investors. Two areas to watch out In the fine print of uniform stamp duty announcement, two things will strike you. Firstly, all proprietary trades of brokers will now be subject to stamp duty. Currently, brokers do not have to prepare contract notes for prop trades but now contract notes will have to be prepared and stamp duty also paid. That will add to prop trading costs. Secondly, off-market Demat transfers will also come under the purview of stamp duty. So shares gifted to relatives or even shares transferred in the case of unlisted shares will entail payment of stamp duty on stated consideration. That will certainly be an added cost for traders and also to investors.

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