Registration Archives - Page 8 of 12 - Business , Financial & Legal Consultant In India

April 2, 2020April 2, 2020

What Is Trademark Rectification ?

What is Trademark Rectification?

Trademark rectification is needed when there is a need for any kind of alteration, change, modification or rectification in the registered mark or in the register of trademarks, or rectification of the trademark register by such aggrieved party.

Trademark rectification rights in India is governed by chapter VII of the trademark Act, 1999. Under section 57 of the Trademarks Act, any person who is aggrieved by the entry in the trademark register can file for trademark rectification before the registrar of trademarks. However, in certain cases consequences can be cancellation of trademark registration.

Who can file Trademark Rectification?

It can be filed by the owner of the trademark itself, or
It may also be filed by the party or entity being aggrieved by such entry.

Common grounds for filing Trademark rectification in India

Due to latest knowledge or advancement
Due to non-use of registered trademark for over 5 years by the registered owner.
Due to non-renewal of the original or previous registration of the trademark.
In cases where inclusion of addition of certain more classes of goods or services to the business gamut of the registered trademark.
Conditions which are beyond any more grounds stipulated in section 9 and 11 of the Indian Trademark Act, 1999.
The certain omission of any entry eg, a disclaimer, condition or limitation.
Where the registration is obtained by misrepresentation of facts, similar to an earlier mark registered and lacks sufficient cause for registration.
Cases where mark was wrongly remaining on the register and causing or likely to cause confusion.
When the renewal fee has not been paid.

Procedure for Trademark Rectification In India

Procedure for Trademark rectification in India includes following hings-

In cases where trademark registry has marked the trademark application as Formality check or send back to EDP, therefore in this case option of rectification and of being is being given and it requires to be resubmitted. In such cases, rectification deed is required to be prepared to address all the concerns of the trademark examiner-

TM-O form is required to be filled in order to file trademark rectification.
Make sure that your trademark rectification application is a clear and crisp statement of grounds related to the application.
You must support your arguments with strong evidence to support rectification of the specified trademark.

We have immense and diversified experience in handling Trademark rectification cases and shall suggest more professional ways to avoid trademark rectification.

January 29, 2020January 29, 2020

PEER TO PEER [P2P] LENDING LICENSE

The Peer to Peer lending can be defined as a mode of business where a platform in digital form is provided to an individual or an entity for raising loans or fund at certain interest rates and is needed to be paid back as per the specified terms and conditions.The interest rates are either set by the lending organization or after mutual discussion between the borrower and lender etc.

In India ,the Peer to Peer[P2P] lending business has been extended to 5 billion dollar as per the reports being concerned.Therefore the entrepreneurs and startups business can easily avail loans from this platform without much documentation.

In such lending there is no involvement of any financial institutions and banks and the lenders are free to choose the borrowers whichever they want to give loans. This form of lending money is getting very famous among investors as they get a higher rate of return through the Peer to Peer[ P2P] lending business.

The Peer to peer lending companies are being regulated through Reserve Bank of India [RBI]and therefore reserve bank of India reserves power for providing lending license to the applicant.

TYPES OF PEER TO PEER LENDING MODEL –

There are namely 03 types of model being defined below ;

A] CONSUMER LENDING –

The consumer loans involve small personal loans taken by the individual for purchase of car , bike , marriage expenses , home repairs , Repayment of credit card etc.

B] SMALL BUSINESS [SME] LENDING –

The loans provided to small businesses for various purposes such as asset finance , working capital , business to be extended etc .

C] PROPERTY LENDING –

Under this lending ,the applicant borrows loan for purchase of property ,commercial ,refurbishing of house etc .

ELIGIBILITY TO APPLY FOR PEER TO PEER LENDING LICENSING –

In india one needs to fulfil certain conditions in order apply for the peer to peer lending license-

1] A company should be registered

2]The applicant shall have adequate amount of capital structure

3] The applicant company shall have technological , managerial ,

4] A pure motive to serve the public and its interest

5] a proper business layout and plan

6] The board of directors shall fulfill all terms and conditions of RBI

PROCEDURE TO OBTAIN THE LENDING LICENSE –

Any company being registered as private or public limited company can apply for the license with the reserve bank of India.They need to fulfill the conditions below –

1] The applicant company must be registered as a private or public company under the eyes of law and have an objective of doing financial financing of money.

2] The Minimum net owned fund should be Rs.2 crore .

3] There should be efficient information technology system i.e mobile application for the workflow

4] The online application form is available at the RBI website.

5] The hard copy of the application together with required documents to be submitted to the office of the reserve bank of india.

6] After doing detailed and vigilant verification of the application and documents attached with it , the RBI provides the license certificate to the applicant company .

MERITS AND DEMERITS OF PEER TO PEER LENDING PLATFORM –

There are various merits and demerits of peer lending platform for both borrowers and lenders and these are highlighted below –

FOR BORROWERS :

A] MERITS –

1] The first and foremost benefit is the amount of loan received is either at fixed rate of interest or low interest rate as compared to other financial institutions .

2] The documentation is very simple and easy as compared to documents required while taking loan from financial institutions

3] The fees and other charges required are low as compared to banking institutions

B] DEMERITS –

1] There is high use of information technology and there is a lack of security as documents can be leaked or information can be wrongly utilized.

2] The amount of loan provided is less as compared to the financial institutions.

FOR LENDERS :

A] MERITS –

1] The return of the investor is higher as compared to the risk taken

2] The investor is happier as he has diversification and more places available to invest his capital and earn more.

3] In peer to peer lending ,the lenders communicates with the borrower directly to finalize the deal

B] DEMERITS –

1]The risk factors involved here are higher and uncertain as compared to the banking financial institutions

2] The returns are lower in comparison to public traded index fund

3] The future possibilities are uncertain and unrealistic and it’s too early to make future opinions of this type of industry

December 31, 2019December 31, 2019

What Is Joint Venture ?

In today’s business World , every Organization focuses on the expansion of its business and enhances its revenue in a small period of time . In such a scenario , Joint Venture agreement Plays an important Role .It can be defined as an agreement that includes two or more parties agreed on a common prospective with better utilization of resources in order to achieve desired target or outcome.

There is a difference between joint venture and Merger as merger leads to transfer of ownership whereas in case of Joint venture there is no such case of ownership transfer.

Joint Venture can be classified in two types namely –

1]Equity Based Joint Venture – It can be defined as an agreement between the two companies to enter into a separate business venture together .Each partner participated in gains and losses according to the percentage equity ownership they have as per the agreement.

Equity joint venture is one of the best mediums the best way in which a foreign company can establish its business in India and it is also fruitful for an indian company as it gets the required amount of investment and technology due to the venture.

Contractual Based Joint Venture – It can be defined as an agreement in which two parties come together for a particular business project and sign a contract with terms that define that they will be together for that particular project only.

The franchise Business is a great example of Contractual Based Joint Venture that includes franchisee and franchise owner entering a joint venture for a specific project that has no resemblance to their individual work or business as it will carry on in a similar manner .

Checklist before entering into Joint venture –

A] A Proper and deep research work to be done on the Business activities of other company

B] SWOT Analysis is mandatory to be done our business as it provides us important knowledge of our ongoing business in terms of strength , weakness , opportunities , threats of the company

C] One should also compare the working model and criteria of his company with the one you are going to be in venture agreement

D] A view of the management and its employees should always be taken into consideration

Process of Joint Venture

1] The selection of an accurate and right partner is the first and most important step for having a successful Joint venture . The culture and working module of a proposed partner should be similar with your organization or company.

2] The second step leads towards signing a memorandum of understanding {MOU} that defines terms and conditions on the basis of which both parties are entering into the Joint venture agreement .Each and every point that defines the need of Joint venture is marked here.

3] Joint Venture Agreement and MOUs should always be drafted in the Presence of Corporate law expertize.

4] All Details such as type of firm ,source of funding , stake of shareholders , contribution of intangible assets etc. should be mentioned in the joint venture agreement .It should also include the exit Strategy of the involved parties as they might try to dissolve the venture.

5]The next step is the selection of name for the Joint venture with the consent of both the parties

6]After formulation of Agreement , the last and final step is to register the company and the articles of association.

Important Clauses to be mentioned in Joint venture Agreement –

There are some important clauses that should always be highlighted in the Agreement are provided below –

1] The amount of capital being invested by the involved parties in the joint venture

2] It should be mentioned how the profits, losses, liabilities to be distributed

3] Mentioning the responsibilities and work of parties involved in the venture

4] Mediating mechanism and procedure to be followed in case any dispute may arise in future

5] Proper data to be maintained of the new venture that include administrative and financial records

6] Exit Strategy should be mentioned in case both the involved parties are ready for dissolution of Joint venture.

Opportunities /Advantage of Having Joint Venture Agreement –

The joint venture Agreement provide various advantages being highlighted below –

1] The new joint venture agreement provides opportunities to involved parties such as access to new resources in terms of technology , experience and talented staff , modern assets and equipment , capital investment etc.

2] It also leads to a new client or customer acquisition for involved parties which might not have been possible before being entered into agreement .

3] It also leads to sharing useful ideas , opinions , and information which will be beneficial in terms of growth and development of the new business.

4] Due to two or more parties involved , It also enhances the workforce level and speed of production of the organization.

5] In case one of the companies involved has a better reputation or goodwill in the market it will ultimately provide assistance to the other company to enhance its image and reputation in the market.

However it should be kept in mind that if Joint ventures are improperly planned then due to certain aspects like poorly drafted contracts ,cultural differences , misunderstandings between the parties it may lead to the termination of agreement.

Disadvantages of the Joint Venture Agreement –

Basically joint ventures have more advantages compared to disadvantages but one should keep an eye on the disadvantages while entering into joint venture agreement. Some of the disadvantages are as follows –

1] Liability –

In case of joint ventures there is no liability protection being provided to the businesses involved

2] Unequal Involvement-

Both the parties involved in joint ventures do not share equal involvement in the business activities and functioning . For example – When one company is monitoring the production department and the other is responsible for the sales and marketing department .Therefore the responsibilities of both companies differ and as a result the involvement period is also different.

3] Objective –

The objectives of joint ventures are not clearly defined among people involved in the joint venture agreement.

4] Cultural Differences –

In joint ventures two parties are involved and both the parties have different Management teams and carry different working styles and due to this difference of management culture it may lead to poor cooperation and integration of both parties.

Termination of Joint Venture Agreement –

The various factors that may lead to the termination of joint venture agreement are as follows –

1] The parties involved are not able to solve the disputes arising between them

2] Breach of agreement is done by one of the parties involved in the agreement

3]Due to Insolvency

4]The Project being defined in agreement is being finished or completed

The termination policy and rules of the joint venture should be clearly stated in the agreement and in case a joint venture is being terminated due to default of one of the parties involved then the other party shall have the opportunity to get remedies or relief for the losses incurred from other party.

As per the conclusion , it shows that Joint Ventures provides numerous opportunities and advantages to the business involved in the agreement to come together to share their capital , ideas , resources , technology ,equipment ,expertise etc. in order to develop a desired project.

Therefore a proper Agreement is needed to be drafted in order to have a successful joint venture while improper drafting of Agreements may lead to the termination of Joint venture agreement.

July 21, 2019July 21, 2019

Decoding the benefits of registering a business

Incorporating or Registering your business idea is not a bad idea in India as it gives a strong foundation to your business aspirations so that you don’t come crashing down.

Benefits of Business Registration in India

Registering a business has importance everywhere in the world, but it is India where it is more significant. The major benefits of registering a Business in India are as Follows-

It Gives you Structure- when you register a business in India then you give a proper structure to your business. As without proper structure there is no order in Business and therefore, there is hardly any profit. Without a proper business criteria there is no business conducted properly. Therefore, it is always advisable to register a business for the proper and smooth brunning of your business.
Separate Entity- It forms a separate entity once you form a separate business. Once you get the certificate of incorporation, you apply for PAN card in the name of the company which is considered as a Valid ID of the company.
Perpetual Existence- we live in an era of startups, everyone not only wants to make money, they want to establish a legacy. When an entity is registered then it becomes a separate entity. Therefore, if and when the owner of the business dies , the business can continue to exist.
Registered Business are more trusted- generally a business which is a registered one is trusted more are compared to the unregistered one. We are not saying that unregistered business are worthless, but they are hidden more,less advertised, less marketed and therefore, less trusted. However once you have registered your business

, you are free to reveal yourself and market yourself.

5. Trust then leads to more funds- If you have trust of the people then you would have more trust of the investors and Financial institutions as well. A business cant survivev on the personal assets of its owner, it needs outside funding for expansion, diversification. Being a registered business attracts more investors towards you, who see your business a legitimate one.

6. Limited Liability- Limited liability is probably the most used terms when “Benefits of Business Registration” is the topic. however , people are still fuzzy about its meaning.

A company is a separate legal entity, then is its own person has only has to bear its own losses.

The above statement basically means that if the company goes through any loss on finances, personal finances or assets of the Directors of this company are not affected.

Conclusion

When it comes to the business registration benefits there are any, but what is lacking is the understanding of these benefits. Hope that through this blog we have enlightened you with the understanding of what the benefit actually means. For Registration of Business please contact BIATconsultant.com.

July 21, 2019July 21, 2019

Requirement for Forming a State Co-Operative Society

credit co operative society registration

A state cooperative society is defined as an association of persons who united voluntarily to meet their common economic needs and aspirations as specified from time to time depends upon the nature of society, through a jointly owned and democratically legal identity registered under the Cooperative societies Act.

What are the kinds of Societies in india?

Credit Cooperative societies
Consumer cooperative societies
Urban cooperative society
Marketing Cooperative Societies
Industrial Cooperative societies
Labour cooperative societies
Transport cooperative societies
Security services cooperative societies
Group housing societies
Cooperative societies formed by professionals in the area of Art, Education, Insurance etc.

What are the requirements for forming a Cooperative Society

A minimum number of members required depending upon the nature of the Societies
Minimum share capital required depends on the nature of the societies
The object of the society must be the promotion of the economic interests of its members in accordance with the principles of cooperative society.
A society which was proposed to be registered must be economically capable of being run by own.
Proposed society must not have any adverse effect on co-operative movement.
Subscription of the minimum amount in the form of capital is required for prospective members depend upon the nature of society and as per bye laws.

What are the Documents Required for Registration

Proposed name of cooperative society
Name, address, profession, the monthly income of promoter members
A Bank Certificate to the effect that from the share capital raised by the promoters has been deposited in a suspense account in the name of proposed cooperative society.
Proposed bye laws of the cooperative societies must be duly signed by each of the promoter members (4 copies)
An affidavit of chief promoter for proposal pf approval of the Registrar on the prescribed form.
Promoter member list who have subscribed capital together with the amount contributed by them.
A declaration of each of the members that he is not the family member of any other promoter.
Proposed cooperative society scheme including woking which reflects economic soundness of the proposed cooperative society.
A statement of each member reflecting his financial position
A residence proof of members in the area of operation of State Cooperative society.
A certified copy of the resolution of members adopting the bye laws and authorizing officer who can make modification in proposed bye laws, if suggested by Registrar in process of Cooperative society Registration and member’s resolution will also specify the name and address of the person for any correspondence in process of registration and deliver incorporation certificate.

What will be the procedure of Registration/

Persons who want to register a State Cooperative Society will make an application to the Registrar of the area on a prescribed form i.e. Form 1.

Along with the form type of the society they want to register, proposed bye laws of that society, number of members, chief promoters name and address.

The application must be signed by not less than 10 persons or by a number of members depends upon the nature of societies.

If the Registrar is satisfied will register cooperative society and issue a certificate of incorporation.

Where Registrar refuses then from the date of receipt of an application for cooperative society registration within a period of one month registrar is required to communicate for refusal with valid reasons for such refusal.

The application shall be deemed to have been accepted for co operative society registration with the application for registration is not disposed off in a manner prescribed within a period of one month.

July 14, 2019July 14, 2019

Redressal mechanism and Penalty provisions against Collective Investment Management Company (CIMC)

A Registered CIMC is entitled to raise funds from the public for a particular scheme, and in return to this shares or units are given to the people and these units are given in proportion to the contribution made by the investor. Further, by law these units have to be compulsorily listed on stock exchange.

What is meant by Collective Investment scheme?

A Collective Investment Scheme as the name suggests means that it is an investment scheme wherein several individuals comes together to pool their money for investing in a particular assets and for sharing the returns arising from that investment as per the agreement enforced between them prior to pooling in the money.

As a guarantee, SEBI cannot guarantee we undertake the repayment of money to the investors invested in CIMC.

Whom to approach for any Grievance Redressal

For any grievance approach, Applicant must approach CIMC first and then to SEBI, if he is not satisfied. An investor can also approach District consumer redressal forum in case of any deficiency on part of company.

In certain cases where company fails to repay the deposits collected by it , then it should be settled as per section 58A of Companies Act, 1956. Then, SEBI in no way can help the investor in any manner as it is out f the purview of SEBI.

After obtaining the registration, as CIMC, SEBI shall issue a press release furnishing the details of CIMC like the name, address, and contact number of that registered entity and same shall appear on SEBI’s website i.e. www.sebi.gov.in.

What are the Penal provisions if a registered CIMC violates certain provisions of the Regulations?

If a registered CIMC violates any provisions of the regulations, then in such case action like, suspension or cancellation of the certificate of registration may be initiated against the registration of the company. Further, SEBI in the general interests of the security market and the investors at large, initiate criminal proceeding under section 24 of the SEBI Act, in addition to the passing of some stringent directions like-

Prohibit the company to Collect any money/fund from an investor or to launch any new scheme further.
Prohibiting the company from disposing of any of the properties/assets of the scheme acquired in violation of the regulations.
Requiring the company concerned to dispose off the assets acquired under the scheme in a manner as advised in the directions.
Requiring the company concerned to refund any money or the assets to the concerned investors along with the requisite interest on it or otherwise, collected under the scheme.
Disallowing the company concerned from operating in the capital market or from entering the capital market for the specific period.

As we can see above, that the penalty imposed are very high and it is very difficult to violate the rule, norms or regulations. This will insure the safety and risk free environment for the investors.

May 26, 2019May 26, 2019

A better Choice For Raising Funds for MSME

In the present scenario loans extended by the NBFCs to MSMEs grew rapidly and the experience of banks and NBFC in terms of quality asset explains the difference in the credit growth.

What is NBFC

NBFC is basically Non Banking financial institutions which is registered under the Companies Act, 2013 with principle objective of dealing in financial activities. Companies Financial asset shall constitute of more than 50% of the total asset and income, and Income for Financial statement constitutes more than 50% of gross income.

What is MSME

MSME stands for Micro and Small and Medium Enterprise. It has many benefits as it is given higher preference in terms of Government License and Certification. MSME also avails benefits in bank loans as compared to the interest paid on regular basis.

Role of NBFC P2P in India’s Economic Development

It helps in the supply of credit in the economic growth of economy, and it helps youth as it helps in achieving of cheaper and faster credit. The new entrants entrepreneur with the ability to repay the loan, are provided with the facility of dedicated loan products from various online platform.

In the current scenario as we can see that man and women are equal, therefore its purpose is to be to empower more and more women as it not only increases the economic development and prosperity but also a good indicator in the development of the entire household.

NBFC P2P helps in connecting and lenders with the borrowers by using the digital platform. For faster decision making and implementation, NBFC P2P has cut through end number of process which ensures interest of both lender and borrower. 24 hours banking facility is available for borrower.

Why NBFC P2P a better choice for raising funds for an MSME these days?

NBFC environment has now been changed as it provides larger opportunity for income seeking investor to diversify their portfolio which was earlier available to the Banks. Potential and e investor dealing in MSME sector are considering P2P platforms for various reasons-

Returns which are provided are highly competitive when considered against average returns delivered by other market linked investment like MFs and stock market.
In this process, both lender and borrower can choose their specified period of time between 6 to 36 months.
It provides diversification that can easily be attained by borrowers profile.
Availing more options for small business where in starting money is required for the temporary shortfall or to meet out the revenue expenses.
It bridges the gap of risk factor involved in funding the small business, as small business srae dependent of cash transactions.

Conclusion

NBFC P2P player has becoming more popular in MSME and in small business financing. It lends fund to the business of MSME by better choice to avail funds. NBFC manly focuses on young entrepreneur with potential and business ideas. It also empowers women entrepreneurs which also helps in increasing and improving economic growth of the country. Therefore, it can e said that P2P is the better choice for availing funds to meet out the revenue expenses and working capital requirement.

May 26, 2019

Categories of Alternative Investment Funds

alternative-investment-fund-registration

Categories of Alternative Investment Funds are registered and regulated as per the SEBI (Alternative Investment Funds), 2012. They are privately pooled investment vehicle who are in the business to collect funds from the sophisticated investors either Indian or otherwise and utilize them for the making the investment as per their policies.

Categories of AIF

As we know the gist of the fact that there are three categories of Alternative Investment Funds, in this blog we will discuss in detail the categories of AIF. AIF regulation have clearly specified as 3 different categories of AIF, then can be registered in Regulation 3 (4) of chapter 2.

As per Alternative Investment Fund regulation, registration can be done with SEBI under any 3 of the three below mentioned category:-

Category I

Under this category those funds are considered which can give good effect in the Indian economy. For example, if an investor is investing in startup, small and medium sized enterprise etc, then it is considered as good investment as these may give good effect in the economy of the country. These sectors are considered as socially or economically desirable and as result, government and sectors also gives discount, concession or incentive to them.

Category I AIFs includes-

Venture Capital Funds
SME Funds
Social Venture Funds
Infrastructure Funds etc.

Category II

Basically those which do not fall under category I and III fally under this category. They only take leverage and borrowings to meet operational requirements and such other activities permitted by the AIF regulations.

Category II includes-

Private Equity Funds
Debt Funds Etc.

Category III

Under this category diverse and complex trading strategies, unlike the other two categories. They can even make an investment in listed as well as unlisted derivatives.

This category includes

Hedge Funds
Funds which trade with an objective to make short term returns
Funds which are open ended etc.

Along with the application fees of Rs. 1,00,000/- is to be paid, where no fees for its registration is required to pay.

May 25, 2019

MCA announced- Companies (Incorporation) Fifth Amendment Rules, 2019

In its latest update to the Companies Act, MCA has come up with new amendment with companies (Incorporation) fifth amendment rules, 2019. It establishes a rule for naming a company. This amendment [provides details about name similarity, undesirable names and names that are not allowed for company incorporation.

Contents of Companies (Incorporation) Fifth amendment rules, 2019

The following notifications were issued by Companies Incorporation are as follows-

The first part establishes rules for names which resembles too nearly with the name of the existing company- in this rule the company name which has been applied incorporation would only be considered similar to the ones Only registered under the newly established rules. Under this part there are 12 rules established. It says that under sub rule 1 the contents or the 12 rules are to be disregarded when a comparison is made between the names of the company.
The second part establishes parameters of what are considered to be undesirable names. There are 19 different rules under that establish the types of names that are not desirable for the purpose of Company Incorporation in india.
The third part is the part of the previous section. It establishes the words and expressions that cannot be used for company registration. There are over 27 such words that cannot be used within the names of the company if the company wants to be registered.

The Ministry has elaborated a variety of illustrations under this rule while determining the name of the company and companies (incorporation) fifth amendment rules, 2019 has divide the rule into two parts-

Rule 8A
Rule 8B

What is Rule 8A?

These rule specifies the list of undesirable names, and

What is Rule 8B?

These rules are for the word or expression which can be used only after obtaining a previous approval of central government.

Key Highlights of Company incorporation Fifth amendment, 2019

The following matters are to be disregarded while comparing the names

The words like private, co, Unlimited, Limited, OPC pvt. Ltd, IFSC Limited etc.
The plural or singular forms of words in one or both names.
Use of different tenses in one or both names.
The order of words in the names.
Addition of the name of the place to a current name which does contain name of any place.
addition , deletion, or modification of numerals or expressions denoting numerals or expressions denoting numerals in an existing names, unless the numeral represents any brand.

Provison

Provided that clause (f) to (h) and (I) shall not be disregarded while comparing the names if an existing company has provided a no objection by way of a Board resolution.

May 14, 2019May 14, 2019

Procedure For Mutual Fund Registration in India

For Registration of Mutual Fund Registration in India Form-A is to be submitted.

A mutual Fund is established as a Trust which has sponsors, Trustees, Asset Management Company, and custodian. Sponsors and trustees are there to work as a promoter of a company. And also trustees hold its property for the benefits of the unit holder.

Types of Mutual Funds

Open Ended- It is a collective investment scheme that can issue or redeem shares at any time. An investor will generally purchase share in the Fund directly from the Fund itself, rather than from the existing shareholders.

Close Ended Mutual Funds- It is a collective scheme model based on issuing of fixed number of shares which are not redeemable from the funds. Unlike open ended funds, new shares in a close ended shares are not created by managers to meet demand from investors.

Interval Mutual Funds- It is a Non-Traditional type of closed end mutual funds that periodically offers to buy back a percentage of outstanding shares from the shareholders. Shareholders are not required to sell their shares back to the fund.

Key Points for Mutual Funds Registration

All Mutual Funds should be registered as Trust under Indian trust Act, 1882.
A separate AMC should be registered. The net worth of AMC must be INR 5 Crores.
Investors of Mutual Funds re called as Unit Holders.
Basket of Securities is called as Portfolio.
Managed by Fund Manager.
Value of each unit is called a Net Asset Value (NAV).
An organization that manages the investments is called as Asset Management company.
The sponsor should contribute at least 40% to the Net worth of AMC.
Appointment of custodian in order to secure the securities.
Should be carrying on business in financial services for a period of not less than 5 years and the net worth should be positive.
Applicant has to be fit and proper person with a soundtrack.
The main objects of the MOA of the sponsor company should permit the mutual funds activities.

Prerequisites for investing in Mutual Fund Plan-

Bank Account
Demat Account with Broker
Documents or KYC to be enclosed
Aadhar linkage of the accounts.

Documents required for Mutual Fund Registration

A complete list of all associate companies/ Group Companies/ subsidiaries registered with SEBI in any capacity along with their Registration Numbers.
List of instances of Violation/ non-adherence to any security related regulations enforced by any regulatory agency in India or abroad and whether any measure has been taken by you in this regard.
A Declaration that the sponsor company or the Directors have not been found guilty of fraud/ misconduct etc.
Details of registration of any of the companies with the RBI as NBFC or any other capacity.
Two sets of MOA and AOA of AMC and Trustee Company
A Detailed Business Plan
A detailed note on the infrastructure employed by AMC.
Auditor’s Certificate
RBI/ other Regulators approval for the purpose of sponsoring Mutual Funds
Executed copies of Trust Deed and Investment Management Agreement
Undertaking from sponsor to provide additional capital o AMC, till its operations breakeven in order to protect the interest of Unitholders.

Applicant ha sto provide all the required information within 30 days from a receipt of a communication from SEBI, failing which case may be considered as Closed.