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Significant measures by Industry to survive COVID-19 pandemic

  Virtual AGM’s and EGM’s Companies in India are able to conduct the Annual General Meeting   (AGM’s) and Extra Ordinary General Meeting (EGM’s) through video conference/other digital means, thanks to the relaxation/ guidelines provided by the governing body- Ministry of Corporate Affairs. This has ensured that the big names such as TCS and SBI were able to conduct the AGM’s more or less at the same time every year. While there were challenges on digital front in enabling this initiative, the result is so far so good and the company and the investors at large would be accustomed to have meetings virtually. Being first time in history, this initiative is a welcome step towards digital transformation. This initiative would lead to Cost savings for the company and easier access to the investors for gaining future insights of the company.   Business Consolidation and Restructuring Smaller companies with strong fundaments are at a threat of being acquired by larger companies.
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National Pension Scheme- Few Noteworthy Points

NPS is a defined contribution based pension scheme promoted by Government of India. The scheme is regulated by Pension Fund Regulatory & Development Authority (PFRDA). Under the NPS, you can regularly invest your money into your pension account and have an option of taking a part of the corpus as lump sum amount and the balance in form of fixed monthly income. NPS Calculator does help to understand the corpus which can be accumulated at the time of maturity and the approximate amount of monthly pension based on a particular level of investment over a horizon period. The calculator can be searched over Google for usage. Objective: Assured monthly income to ensure dignified life in old age. Advantages The Scheme offers a wide range of features making it a unique investment option. Few of them are – - Portable across jobs and locations. - Online access to investment. - Least cost investment option. Disadvantages NPS does involve quite a long lock-in period, hence might not be attracti
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Formation of Gratuity Trust- Considerable points

  Objective Gratuity is a lumpsum amount paid by an employer to its employees at the time of their retirement, superannuation or death. It is one of the means by which an employer expresses its gratitude to its employees for rendering their services. The Gratuity Act, inter alia, specifies: (i) “Employees” eligible for receiving Gratuity [Sec 2(e)]. (ii) the method for computing the gratuity amount [Sec. 4(2)]. (iii) the time when gratuity becomes payable [Sec. 4(1)]. (iv) the maximum amount which can be paid under the Act [Sec 4(3)].   The Gratuity Act further states the manner in which the gratuity liability of an organization should be provided for. Under section 4A of the Gratuity Act, the following methods have been prescribed: (i) Obtain a Gratuity Insurance from Life Insurance Corporation of India [Sec. 4A(1)] (ii) Establish an Approved Gratuity Fund and contribute periodically [Sec. 4A(2)]   Reference to Accounting Standards, Provisions and Rules under Income Tax Act,1961.   •
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Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015- Analysis

Introduction LODR is one of the most important regulation mandated by Securities and Exchange Board of India to enable transparency and fair disclosures by all listed entities in India. Under regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR Regulations’) a listed entity shall disclose to stock exchange(s) all events or information, which are material, as soon as reasonably possible and not later than twenty four hours from the occurrence of event or information.   Amongst many regulation’s on various topics have been incorporated in this LODR Compliance requirements, one of them which has quite a substantial impact is  Regulation 30 relating to Disclosure of events or information.  The clauses covered under the same are as follows:   30.(1) Every listed entity shall make  disclosures  of any events or information which, in the opinion of the board of directors of the listed company,  is material. Disclosures which are considered as m
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