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Securities Exchange Board of India (SEBI) vide Public notice dated 19th August, 2022has issued Public notice in respect of SEBI-Settlement Scheme 2022. Purpose To provide an opportunity for settlement to the entities who have executed reversal trades in the illiquid stock options segment of BSE between April 1, 2014 to September 30, 2015, and against whom proceedings have been initiated and are pending before any forum or authority, viz. Courts/ Securities Appellate Tribunal ("SAT"), Adjudicating Officer and Recovery Officer (provided an appeal has been filed and the same is pending before the SAT/Court). Commencement The Schemeshall commence on August 22, 2022 and end on November 21, 2022 (both daysinclusive) or such other date as approved by the Competent Authority. Eligibility criteria The Scheme would be applicable in respect of the entities that have executed reversal trades in the illiquid stock options segment of BSE between April 1, 2014 and September 30, 2015 and Against whom proceedings have been initiated and are pending before any forum or authority, viz. Courts/ SAT, Adjudicating Officer and Recovery Officer (provided an appeal has been filed and the same is pending before the SAT/Court). Entities against whom orders have been passed levying penalty that has not been paid and Against whom recovery proceedings have been initiated, may be eligible for the scheme only if an appeal is filed and the same is pending before the Courts/ SAT. Q.1 How to Avail Settlement Scheme An entity desirous of availing settlement under the Scheme would be required to submit a settlement application along with an application registration fee of Rs. 25,000/- + GST @18% in case of body corporates and Rs. 15,000/- + GST @18% in case of individuals in the specified format, available on the respective websites of SEBI and BSE. Q. 2. In case a settlement application has already been filed in respect of the Show Cause Notice issued by the Adjudicating Officer before the Scheme was introduced and is pending, should another application be filed? A. No. Such applicants may visit the link given below, enter their PAN and pay the specified settlement amount to settle the proceedings. They do not need to pay any application fee. Such applicants would however be required to upload the requisite documents as mentioned at Answer 4 below using the following link. https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html Q. 3. Where can one access the information regarding the Scheme? A. Information regarding the Scheme is available at the website of SEBI (www.sebi.gov.in) and may also be accessed using the following link: https://www.sebi.gov.in/media/public-notices/aug-2022/public-notice-in-respect-of-sebi-settlementscheme-2022_62175.html Q. 4. How to file a settlement application under the Scheme? A. An entity desirous of filing a settlement application under the Scheme is required to take the following sequential actions: a) Click on the following link: https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html b) Select "Settlement Scheme" option from the drop down menu of "Type of Category", enter the PAN, Captcha and click on "Go" c) Online submission of the following scanned documents: i) A copy of duly notarised and stamped undertakings and waivers in nonjudicial stamp paper duly paid as per Annexure -2. ii) A self-attested copy of the PAN Card of the applicant. iii) An application for settlement as per Annexure-1. d) Payment of the non-refundable settlement application registration fee of Rs. 25,000/- in case of body corporates and Rs. 15,000/- in case of individuals along with GST @ 18%. e) Payment of the settlement amount as displayed in respect of the applicant. Q. 5. What is the settlement amount applicable for me? Ans: Under the Scheme, the settlement amount applicable, determined on the basis of number of contracts, may be accessed by using the following https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html Q. 6. What shall be the mode of payment of the application fee/settlement amount mentioned above? A. Applicant shall make the online payment of the application fee/settlement amount using the following link: https://siportal.sebi.gov.in/intermediary/AOPaymentGateway.html Q. 7. When will the settlement order be passed under the Scheme? A. Subsequent to the closure of the Scheme, a composite settlement order shall be passed by the competent authority after reconciliation of records. Q. 8. Should one wait till the last day for filing the settlement application under the Scheme? A. It is advisable to file a settlement application under the Scheme at the earliest in order to avoid last minute rush. The Scheme would be operational from August 22, 2022 till November 21, 2022. Q. 9. What action would be taken, if the Scheme is not availed? A. Upon conclusion of the Scheme, 2022, actions as per the relevant provisions of securities laws shall be continued against the entities. In case of any query/technical issues with respect to the Scheme, 2022, you may reach us at scheme2022@sebi.gov.in You may also contact helpline number 022-2644 9333 between 02:00 pm to 04:00 pm between Monday to Friday (excluding public holidays). Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Limited liability partnership ("LLP") is a new concept envisaged for ease of doing business which acts as an advantage compared to Partnership and Company. LLP can be constituted with 2 partners with one being designated partner. Every limited liability partnership shall use word either "Limited liability Partnership" or ‘"LLP" as the last name. Every LLP shall maintain proper books of accounts either on cash basis or accrual basis on double entry system and shall be maintained at the registered office. Every LLP shall file within prescribed time the statement of account and solvency with the registrar every year in form and manner prescribed. Every limited liability partnership within a period of six months from end of each financial year prepare a statement of account and solvency for said financial year. Based on rule notified by MCA LLP is required to get books of accounts audited where by any one criteria is satisfied - Turnover exceeds 40 lakhs or more Networth (capital contribution) exceeds 25 lakhs or more . A foreign LLP shall also establish business in India and file form 27 to registrar within 30 days. LLP taxation Tax audit becomes applicable for profession as defined in 44AA of IT act where by gross receipt exceeds Rs 50 lakhs as on relevant previous year. Tax audit becomes applicable for a business if turnover exceeds Rs 1 crore as on relevant previous year . The limit of 10 crore can be taken provided cash receipts and cash payment does not exceeds 5 % of the total receipts and payment here LLP get covered. If LLP get covered by LLP Audit LLP act 2008 applies if turnover exceeds 40 lakhs or more or capital contribution from partners exceeds 25 lakhs or more then form 3 CA/CD(required to get audited under other statue ) get covered if not 3CB/CD (if not required to get audit under any statue) get covered . Section 44 AD states that in case of the assessee engaged in business and turnover does not exceed 1 crore as on previous year can opt for presumptive scheme . Here a provision is there where by 6% of gross receipt or any other higher sum can be offered in case of digital payments and 8% of gross receipt or any other higher sum in case of cash payments (include bearer cheque) .Section 44 ADA states that in case of assessee engaged in profession as defined under section 44AA 50% of gross receipts or any higher sum declared by assessee can be offered as tax. However presumptive scheme cannot be opted by LLP as definition of the term firm excludes LLP . What tax implication will come if LLP whether in profession or business cannot opt for presumptive scheme? In case off LLP having business less than 1 crore and profession less than 50 lakhs will only do normal computation taking into account all income tax provisions of business income and file ITR 5 before 31st July of relevant assessment year . This is a scenario where by there is neither presumptive scheme nor tax audit. LLP are taxed at 30% flat rate. (Surchage applies if total income exceeds 1 crore at 12%). Education cess at 4% applies irrespective of the amount . There is no old scheme or new scheme applicability for LLP Where by there are international transactions the same need to be reported in form 3 CEB where by due date is 30 th November of the relevant assessment year. Difference between partnership LLP and company in simple terms

In our experience while dealing with corporate clients in representing them in an action for damages, contractual claims etc. in arbitration proceedings or in court of law and in advising them afterwards, we have seen many companies having a question as to whether a receipt pursuant to settlement in a lawsuit or in an arbitration matter or a receipt pursuant to court decree or arbitration award after successful prosecution of claims is taxable under Income Tax Act, 1961("ITA"). We have indeed seen some clients offering such amount under ITA and some settlements prescribing that the payee will raise invoice along with Goods and Service Tax("GST") and payor will consequently remit amount along with GST. Such amount may or may not be liable to be offered as income (although payor may be able to claim reduction in profit treating such payment as revenue expenditure) and may or may not be subject to GST. Broder proposition is that a receipt under decree or settlement towards supply of specific goods or services will be both liable to be offered under ITA and be subject to GST whereas receipt pursuant to settlement of a claim for damages or compensation for loss suffered or a receipt pursuant to decree to that effect may be out of the purview of GST and also may not be liable to be offered under ITA while allowing the payor to deduct such amount from taxable income. We seek to deal with treatment of such amount under GST and under income Tax Act, 1961. A. TREATMENT OF RECEIPT UNDER A DERCEE/ AWARD OR SETTLEMENT AMOUNT UNDER GST Section 7(1) of the CGST Act provides that "supply" includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. The activities speicified in Schedule I, made or agreed to be made without a consideration; and The activities to be treated as supply of goods or supply of services as referred to in Schedule II. Apparently receipt of amount towards damages or compensation for loss is not supply. GST authorities however frequently treat such receipts towards damages / liquidated damages as supply of goods or services considering such receipt to be following within ambit of ‘agreeing to obligation to refrain from an act, or to tolerate an act or a situation, or to do an act’ as appearing in Entry No.5, Clause (e). Sometimes, tax authorities treat such receipts as a consideration for supply of service of ‘tolerating an act’ or breach or non performance. Some advance rulings in favor of department further complicate the situation. We believe that such receipts have to be out of purview of GST and they cannot be treated as any sort of service and they lack the element of mutual consideration as well. There could be further and detailed arguments in support of such proposition; we however refrain from elaborating the arguments in this article. While actual taxability could depend on specific facts, we seek to highlight for our readers that:- The Bombay High Court, in the case of Bai Mamubai Trust, VithaldasLaxmidas Bhatia, Smt. InduVithaldas Bhatia vs. Suchitra, has held that GST is not payable on damages/compensation paid for a legal injury as payment lacking the element of mutuality of consideration. In the case of Southern Eastern Coalfields Ltd. v. Commissioner of Central Excise and Service Tax, CESTAT reversed the decision holding there could be no demand of service tax on amount of liquidated damages or forfeiture of EMD amount. Though the case pertains to pre-GST regime, the analogy will squarely apply to GST. B. TREATMENT OF RECEIPT UNDER A DERCEE/ AWARD OR SETTLEMENT AMOUNT UNDER ITA AT THE END OF RECIPIENT Under ITA, all revenue receipts are taxable unless specifically exempted and all capital receipts are not taxable unless specifically held to be taxable. Broader principles for determination as to whether a receipt is a capital receipt or a revenue receipt is that capital receipts are not obtained in regular course of business whereas revenue receipts are, capital receipts are normally non-recurring ones whereas revenue receipts are recurring ones and also that the nature of receipt is decided by virtue of its character in the hands of person receiving it. Receipt of amount under a decree/ award or settlement, if towards damages/ breach of contract/ compensation for loss, are not in regular course of business but by way of compensation and are capital receipts. Such receipts do not fall within ambit of any sub sections of s.45 and are not therefore subject to capital gains tax. A couple of relevant decisions elucidating the position are Aberdeem Claims Administration Inc., In re [2016] (AAR) 1971 AIR 2129 and DCIT Vs Rishabh Infrastructure Pvt. Ltd. (ITAT Raipur) (2018). C. TREATMENT OF PAYMENT UNDER A DERCEE/ AWARD OR SETTLEMENT AMOUNT UNDER ITA FOR PAYOR The position that receipt of amount under decree/ award or settlement is treated as capital receipt for recipient if it is towards damages/ breach of contract etc., does not necessarily imply that payment of such amount is a capital expenditure for payor and could not be used for reduction in taxable income. Whether a settlement amount is a revenue expenditure or not depends upon the payment being penal or compensatory in nature. While any amount paid for infraction of law and by way of statutory penalty is punitive in nature and is not deductible under section 37 of ITA, settlement amount towards damages arises out of contractual obligations and if the same is by way of normal incidence of business of payor, it is generally treated as revenue expenditure at the end of payor and could be deducted under section 37 of ITA. One of the relevant decisions elucidating the position is of Gujarat High Court in the case of Principal Commissioner of Income Tax v. Mazda Ltd, wherein the Court held that the deduction claimed on account of liquidated damages was allowable as revenue expenditure as damages for delay was an inbuilt feature and inherent part of business of assesee and could not be disassociated from taxpayer’s normal business activities. In practice, nature of receipt shall be determined by extensive scrutiny of pleadings in suit and / or recitals contained in the settlement agreement and careful drafting will be quintessential. *The content of this article is intended to provide general information. No reader or user should act or refrain from acting on the basis of information written above without first seeking legal advice from qualified law practitioner

As you are aware that the MCA has amended Rule 3 of the Companies (Accounts) Rules, 2014 through Circular dated 11th August, 2022. RULE 3 OF COMPANIES (ACCOUNTS) RULE 2014 MANNER OF BOOKS OF ACCOUNT TO BE KEPT IN ELECTRONIC MODE (1) The books of account and other relevant books and papers maintained in electronic mode shall remain accessible in India, at all times * so as to be usable for subsequent reference. [* amended through Circular dated 11/08/2022]. PROVIDED THAT for the financial year commencing on or after the 1st day of April, 2023 , every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. (2) The books of account and other relevant books and papers referred to in sub-rule (1) shall be retained completely in the format in which they were originally generated, sent or received, or in a format which shall present accurately the information generated, sent or received and the information contained in the electronic records shall remain complete and unaltered. (3) The information received from branch offices shall not be altered and shall be kept in a manner where it shall depict what was originally received from the branches. (4) The information in the electronic record of the document shall be capable of being displayed in a legible form. (5) There shall be a proper system for storage, retrieval, display or printout of the electronic records as the Audit Committee, if any, or the Board may deem appropriate and such records shall not be disposed of or rendered unusable, unless permitted by law: Provided that the back-up of the books of account and other books and papers of the company maintained in electronic mode, including at a place outside India, if any, shall be kept in servers physically located in India on a daily basis **.[** amended through Circular dated 11/08/2022]. (6) The company shall intimate to the Registrar on an annual basis at the time of filing of financial statement- (a) the name of the service provider; (b) the internet protocol address of service provider; (c) the location of the service provider (wherever applicable); (d) where the books of account and other books and papers are maintained on cloud, such address as provided by the service provider. (e) where the service provider is located outside India, the name and address of the person in control of the books of account and other books and papers in India. Explanation.- For the purposes of this rule, the expression “electronic mode” includes “electronic form” as defined in clause (r) of sub-section (1) of section 2 of Information Technology Act, 2000 (21 of 2000) and also includes an electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) and “books of account ” shall have the meaning assigned to it under the Act. LET'S ANALYSE 1. The amendment says that if books of account are kept in electronic form , then business entity mandatorily to take backup on server situated in India with the business entity on daily basis. 2. If books of account of an entity is maintained by CA/Tax Consultants etc., then such business entity should received accounts details from CA/Tax Consultants on daily basis and keep in the server or computer system maintained by it. 3. If books of accounts of an entity is maintained by a foreign service provider not having place of establishment in India, then name and address of person ,in whose control books of account are kept in India should be disclosed with the ROC. 4. The business entity or company is required to intimate the ROC at the time of filing financial statement following details;e provider is located outside India, the name and address of the person in control of the books of account and other books and papers in India. (a) the name of the service provider; (b) the internet protocol address of service provider; (c) the location of the service provider (wherever applicable); (d) where the books of account and other books and papers are maintained on cloud, such address as provided by the service provider. (e) where the service 5. Rule 3 of Companies (Accounts) Rule 2014 ,MCA has recently added a proviso stating that accounting software used by the Companies should have a feature of recording audit trail of every transaction i.e, create and edit log of each change made in the books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The applicability of the proviso is effective from 1 April 2021( same has been extended to 1st April,2023). DISCLAIMER: The article presented here is only for sharing information with readers. The views are personal and should not be considered as a professional advice. The article has been prepared on the basis of available information at various forums and author has taken all steps to share correct information with readers. In case of necessity do consult with professionals.

After the 31st July rush of filing the IT returns, the department of Income Tax has provided 120 days from filing of the return to e verify the return. The Central Board of Direct Taxes (CBDT) in the recent notification has cut down the time limit from 120 days to 30 days for ITRs filed on or after August 1st 2022. Various ways of Verification of the ITR Aadhaar Verification To verify using Aadhaar, the Aadhaar of the taxpayer's mobile number should be registered as per details in the Unique Identification Authority of India (UIDAI) to the linked PAN. Steps to verify using Aadhaar: Open www.incometax.gov.in On the left hand corner select the e verify tab Enter PAN, Assessment Year, Acknowledgement Number and Mobile Number. Select 'I would like to verify using OTP on the mobile number registered with Aadhaar' and click 'Continue'. A pop-up will appear on your screen. You will be required to select the tick box saying 'I agree to validate my Aadhaar details' and click on 'Generate Aadhaar OTP'. A SMS with the 6-digit OTP will be sent to your registered mobile number. Enter the OTP received in the box where it is required and click on submit. On successful submission, your ITR will be verified. OTP is valid only for 15 minutes. Net Banking On the 'e-Verify' page, select 'Through Net Banking' and click on 'Continue'. Select the bank through which you want to verify your ITR and click on 'Continue'. A pop-up will appear on your screen containing a disclaimer. Read and click on 'Continue'. Next, you will be required to login to Net Banking of your bank account. Select the 'e-Verify' option which is usually under the 'Tax' tab. You will be redirected to the e-filing website of the income tax department. Go to the respective ITR form and click on e-Verify. Your tax return will be e-verified successfully. Demat The process of verifying ITR via demat account is similar to verification via bank account as mentioned above. On the e-Verify page, select 'Through Demat Account' and click 'Continue'. The EVC will be generated and sent to your mobile number and email ID registered with your pre-validated and EVC-enabled demat account. Enter the EVC received on your mobile number and email ID registered with your Demat Account and click e-Verify. Bank ATM The EVC can also be generated via bank ATM card. This facility is available only for a few banks like - Axis Bank, Canara Bank, Central Bank of India, ICICI Bank, IDBI Bank, Kotak Mahindra Bank and State Bank of India. Visit your bank's ATM and swipe your ATM card; enter your ATM PIN and select Generate EVC for Income tax filing. An EVC will be sent to your mobile number and email ID registered with the e-filing portal. The taxpayer's PAN should be registered with the Bank. Go to the 'e-verify returns' option. Select the ITR to verify it and select the option 'I already have an Electronic Verification Code (EVC). Enter the EVC code and click on e-Verify. Posting of the Physical ITR Acknowledgement E Verification can also be done by using DSC. DSC is mandatory for some services / user categories such as e-Verification of returns filed by companies and political parties as well as other persons whose accounts are required to be audited under Section 44AB of the Income Tax Act. In other cases, it is optional. Taxpayer should verify the identity by downloading the emsigner utility Click on the check box and click continue. Enter the details and input the password of the DSC Click on 'sign' to complete the verification. Preconditions before E verification

The MCA vide notification dated 18/08/2022 has notified Companies (Incorporation) Third Amendment Rules, 2022 to insert a new rule in Companies (Incorporation) Rules, 2014, which pertains to physical verification of the registered office address of the Companies. This rule 25B is added to make the existing sub-section (1) and sub-section (9) of section 12 fully functional. Following new rule 25B shall be inserted after the existing rule 25A 25B. Physical verification of the Registered Office of the company 1. The Registrar, based upon the information or documents made available on MCA 21, shall visit the address of the registered office of the company and may cause the physical verification of the said registered office for the purposes of sub-section (9) of section 12, in presence of two independent witnesses of the locality in which the said registered office is situated and may also seek the assistance of the local Police for such verification if required. 2. The Registrar shall carry the documents as filed on MCA 21 in support of the address of the registered office of the company for the purposes of physical verification and to check the authenticity of the same by cross verification with the copies of supporting documents of such address collected during the said physical verification, duly authenticated from the occupant of the property whereat the said registered office is situated. 3. The Registrar shall take a photograph of the registered office of the company while causing physical verification of the same. 4. The report of the physical verification shall be prepared in the following format namely: Name and CIN of the company: Latest address of the registered office of the company as per MCA 21 record: Date of authorization letter issued by the Registrar of Companies: Name of the Registrar of Companies: Date and Time of Visit for physical verification of the registered office: Location details along with Landmark: Details of the person available if any at the time of the visit- Name: Father's Name: Residential address: Relationship with the company, if applicable: Remarks if any: Documents attached: Copy of the agreement/ownership/rent agreement/No Objection Certificate of the registered office of the company from owner/tenant/lessor: Photograph of the registered office: Self-Attested ID - Card of the person available, if any: Any other document(s): 5. Where the registered office of the company is found to be not capable of receiving and acknowledging all communications and notices, the Registrar shall send a notice to the company and all the directors of the company, of his intention to remove the name of the company from the register of companies and requesting them to send their representations along with copies of relevant documents, if any, within a period of thirty days from the date of the notice before taking further actions in accordance with the provisions of section 248 of the Act. Existing provisions of sub-section (1) of section 12 are as under A company shall within thirty days of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it. Existing provisions of sub-section (9) of section 12 are as under If the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company in such manner as may be prescribed and if any default is found to be made in complying with the requirements of sub-section (1), he may initiate action for the removal of the name of the company from the register of companies. Our Opinion on the implications of the newly inserted Rule 25B If ROC has reasonable cause to believe that the company is not carrying any kind of business or operations or does not have an updated registered office or correspondence address capable of receiving and acknowledging all communications and notices for whatsoever reason it may cause a physical verification of the address provided by the company. After conducting physical verification, if ROC is of the opinion that the company is not capable of receiving and acknowledging all communications and notices as may be addressed to it, then they will send a notice to the company and all the Directors specifying its implication to remove the name of the company from the Registrar. Before proceeding with the removal of the name of the Company from the registrar the ROC will give a reasonable opportunity of being heard by the opponent and it may allow its authorized representatives to submit their statement/documents within 30 days of issuing Notice, falling to which the company may strike off the company under Section 248 of the Act. This amendment by MCA will enable ROCs an absolute and unconditional power to physically verify the registered office address of the Companies registered with the MCA. Although sub-section (9) of section 12 was inserted vide the Companies (Amendment) Act, 2019, however, the same was not fully functional as specific rules in this regard were missing. However, post to this amendment, ROCs can now freely verify the registered office address of those companies which are believed by the concerned ROC to be not carrying on any business or operations and initiate proceedings under sub-rule (5) of rule 25B where the registered office of the company is found to be not capable of receiving and acknowledging all communications and notices. This move will enable the stakeholders such as banks, creditors, or other government authorities, etc. to reach the authenticated registered office or correspondence address of the Company or to timely send the communication/notice to the Company and curb the practice of giving fake addresses or non-operational office addresses and reduce the chances of excuses relating to non-receipt of notice or documents, etc. Disclaimer: This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. This article cannot be relied upon to cover the specific situation and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Affluence Advisory Private Limited to discuss these matters in the context of your circumstances. Affluence Advisory Private Limited, Its Partners, Directors, Employees, and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.

In the recent days, we witnessed that the markets are widely affected by the macroeconomic factors like inflation, supply chain issues and geo-political tensions because of which stock prices are looking unstable. We have to stay alert while picking stocks. For that we should know how a stock behaves. So, what if there is an indicator to find the sensitivity of stocks in relation to markets? Yes, there is. We can measure the volatility of stocks with the help of a statistical measure called Beta. Here, we are going to discuss about beta, what it indicates, how it can be used and its limitations. What is Beta? How it is calculated? There are two types of risk in the market – Systematic Risk and Unsystematic risk. Unsystematic risk is the company specific risk like management inefficiency, fraud, litigation etc., which can be mitigated through Diversification. Whereas systematic risk arises due to macroeconomic factors and cannot be mitigated. Such non-diversifiable risk can be calculated using a statistical measure called Beta. Beta measures the change in return of stock in relation to the change in market return. It can be calculated using: 1. Regression method This model postulates that there is linear relationship between stock and market returns and the Beta is the slope of the equation. In this method, we can simply calculate the beta in excel using SLOPE formula where the known variables of X will be historical stock returns and known variable of Y will be historical market returns 2. Correlation method Correlation measures the extent to which two variables i.e., stock returns and market returns are related. Using this method, the beta can be calculated from historical returns using formula- β = Correlation Coefficient b/w market and stock return * Std. Deviation of Stock Std. Deviation of Market Index In all the below examples w.r.to Indian context, Nifty 50 returns are taken as market returns. Beta Indicator It is not important how we calculate beta as it is instantly available in many public domains. The critical part is our understanding of what beta indicates and how to interpret it for decision making. A beta of 1.0 indicates that the stock has same risk as that of market i.e., if the market rises by 1%, then price of the stock also increases by 1%. Mostly blue-chip stocks will have beta close to 1. For example, Reliance Industries has a long-term beta of 1.03 which indicates the stock will move in line with market. Beta greater than 1 indicates that the stock has above average risk than markets. Tata Motors Stock has a beta of 1.66 which means if market moves up by 5%, then the stock will go up by 8.3% (5% X 1.66) and vice versa. A stock with beta less than 1 will have below average market risk and will be less volatile in relation to market. E.g., Asian Paints, Britannia, Dabur has beta ranging between 0.5 to 0.6. Negative beta indicates that the security will move on opposite direction in which market moves. It is rare for stocks to have negative beta. But assets like gold may have negative beta as gold is seen as an alternate investment when market falls. Industry Beta and Portfolio Beta Industry beta is measured as the average of individual company beta in that industry. IT stocks, early-stage companies, small cap stocks and other cyclical sectors like consumer discretionary and Industrials will have high beta and risk. Whereas defensive sectors like Consumer staples, Health Sector and utilities will have low risk and low beta. Portfolio beta is the weighted average beta of the securities in the portfolio. In mutual fund, Beta is widely used measure of fund’s performance in relation to that of market. Using Beta for Decision Making Primarily, Beta is a measure of risk and is one of the metrics to look into while doing asset allocation. If you are an aggressive investor, you can look for investing in high beta stocks to earn higher returns that that of market while a conservative investor can look for low beta stocks to play on safer side. More than stock beta, industry beta will come in hand for a long-term investor to allocate portfolio between different sectors. Besides, Calculation of beta for alternative investment options like gold, real estate etc., in relation to market return will give clearer picture for our risk allocation. Further, Beta can be used by traders to time the markets by investing in high beta stocks in a bullish market and low beta stocks on a bearish market. Indices NSE has designed Nifty High Beta 50 Index and NIFTY Low Volatility 50 Index to measure the performance of high beta stocks and low volatility stocks respectively. As discussed above, FMCG and auto sector tops in low volatile index while high beta index comprises of financial services and metal sectors on top. Here are the top 10 constituents in both the index – Source: NSE website Limitations of Beta As the other side of the coin, Beta also suffers from few limitations. First, it is based on historical data and can only be indicative for the future outlook. Second, it measures systematic risk only and hence company specific risk factors should be considered before making any decision. It is more used as a tool for technical analysis than fundamental analysis. Conclusion To conclude, Beta should not be used as distinct factor, rather to be used along with other fundamental tools to identify stocks. Yet, beta is a valuable input in decision making as it standardizes the measure of volatility making it comparable across stocks. Happy Investing!

Fixed deposits basically mean putting a certain amount of money for a fixed period. You can earn interest on the principal sum throughout the tenure on a cumulative basis. The interest earned gets added to the principal amount after every specific interval. The investor will get interest up to 6% of simple interest at the end of the financial year. Senior citizens are eligible for additional benefits, usually 0.25% to 0.65% more than the existing rate. Where To Open A FD Account You can open a term deposit account with a bank where you already have a savings account. Apart from this, there are several banks that let you open an FD account even if you don't have savings account with them after having a KYC process where you must present relevant documents, including ID proof, address proof, passport size photographs, among others. Types Of Fixed Deposit Accounts There are various types of Fixed deposits depending upon the objectives behind them Standard Fixed Deposits: It is the standard FD scheme available at all banks where a certain sum of money is deposited for a fixed tenure and the rate of interest is pre-determined by the bank. The tenure of these deposits can range from 7 days to 10 years and interest rates are higher than a savings account Tax Saving Fixed Deposits: These types of deposits are instrumental in saving tax where you can claim tax exemption up to Rs. 1.5 lakh in a year These FDs have a lock-in period of 5 years during which you cannot withdraw the amount and only one-time lump sum deposits are allowed in these types of Fixed deposits. Special Fixed Deposits: These are like the standard FDs where the funds are invested for specific time periods. The only difference is if you don't withdraw the money for the specified period, you will earn higher interest on it than Standard FDs. Senior Citizen Fixed Deposit: The senior citizens' fixed deposit scheme allows benefits to the citizens who are above the age of 60 years. These FD schemes provide an additional interest rate of around 0.50% over the regular interest rates with flexible Tenures Flexi Fixed Deposit: These are the types of FDs that are linked to your savings account whereby you can start with an initial deposit of your choice and get it linked with your savings account. Types Of FDs For Non-Resident Individuals (NRI) There are two types of fixed deposit accounts that are allowed for Non-resident Indians in Indian Banks, NRE fixed Deposits: NRE FDs are made for those individuals who earn in foreign currency and wish to get the amount converted to Indian currency value. The interest earned on the deposit is tax-free and both principal and the interest amount are completely repatriable. However, these funds are volatile to the market rate fluctuations in currencies. NRO Fixed Deposits: NRO FDs can be best suited to individuals who want to manage their funds within India. The interest earned on the deposit is tax-free and both principal and the interest amount are completely repatriable within a certain bracket or set limit. However, the advantage of NRO fixed deposits is they are unaffected by the risk of market rate fluctuation. The interest income earned through NRO fixed deposit is taxable at 30%. Benefits Of Fixed Deposits Guaranteed Returns Fixed deposit: (FD) accounts are relatively risk-free when compared to other forms of investments as the investors receive a fixed rate of interest on the amount they have invested. Higher Interest Rates Fixed Deposit: These Deposit schemes offer a comparatively higher rate of interest than other forms of traditional investments such as savings accounts and recurring deposits. Tax Benefit Fixed deposits can also provide tax benefits under section 80C of the income tax act. Investors can benefit from up to Rs. 1.5 lakh, as prescribed under Section 80C of the Income Tax Act 1961. The author Sushant Gangurde is a legal analyst who aims to educate people about various tax laws and financial planning.

Inter Corporate Loan,Investment and Guarantee (Sec 186 of Companies Act 2013) This Article will discuss about the provisions of Section 186 Loan and Investment made by the companies (like layer of investment, limits, exception, approvals) and applicable rules thereof. INTRODUCTION Applicable Section and Rules Section 186 of the Companies Act, 2013 Rule 13 of Companies (Meetings of Board and its Powers) Rules, 2014 Meaning of the term 'Investment' and 'Investment Company' The word 'Investment' in everyday discourse would include any property or right in which money or capital is invested, like an investment of money in equity shares, debentures, mutual funds or other securities (except the making of loans or advances or any other financial transactions such as lease, purchase of receivables, or other credit facilities). An 'Investment Company' means a company whose primary business is acquisition of shares, debenture and other securities_ "and a company will be deemed to be principally engaged in the business of acquisition of share, debenture or other securities, if its assets in the form of investment in the share, debenture or other securities constitute not less than fifty per cent of its total assets or if its income derived from investment business constitutes not less than fifty per cent as a proportion of its gross income. SCOPE OF SECTION 186 Sec. 186 is attracted in the following cases; Give any loan to any person or other body corporate Give any guarantee, or provide security, in connection with a loan to any other person body corporate or person Acquire by way of subscription, purchase or otherwise the securities of any other body corporate ANALYSIS ON SECTION 186 What is the meaning of the word 'Person' used in the section? The word 'Person' has not been defined in the Act. Section 2(42) of General Clauses Act 1897 provides that 'Person' shall include any company, association or body of individuals, whether incorporated or not. Whether Various advances and deposits will also be covered under the section? . There is difference between advance and loan. Loan is lending of money with absolute promise to repay whereas advances is to be adjusted against supply of goods and services. Genuine trade advances given to suppliers against orders for supply of goods will not be considered as loan and hence will be out of purview of Section 186. Similarly, advances given to employees against current month's salary will also not be in the nature of loans. Sale on Credit is also not a loan. [Bombay High Court in Fredie Ardeshir Mehta v. Union of India (1991)]. Whether book debts will also be considered as loans? Courts have held in various judgments that credit extended beyond normal credit period may be considered in the nature of loans and hence provisions of the section may get attracted to such book debts also. Whether investment in mutual funds are also covered under the section? As per SEBI regulations, most of the mutual funds are managed by trusts which are not body corporates. Hence investment in mutual funds are not covered under the Section. However, Unit Trust of India is an exception since it has been constituted under UTI ACT and is a body corporate. REQUIREMENT OF MAKING INTER CORPORATE LOAN AND INVESTMENT BY COMPANY Approval of Board Approval of Members Approval of P.F.I Approval of Board Approval of all the directors at the Board Meeting [Sec 186(5)] The approval of Board is required for making intercorporate loan, Investment, Guarantee or Security of any Amount. Conditions for Board Approval The approval of Board must be obtained prior to making any Intercorporate Loan, Investment, guarantee or security Unanimous Resolution is Required under this section The Unanimous resolution shall be passed in Board Meeting only, (which means resolution by circulation is not allowed for this ) (All Directors present at meeting must vote in favor of resolution) FOR EXAMPLE: ABC ltd has 9 Directors in its Board and 6 directors are Present in the Board Meeting which is held for approval of Intercorporate Loan, investment, guarantee or security so approval of Board must be obtained by passing a Unanimous resolution i.e. all 6 Directors present at meeting must vote in favour of resolution. If any 1 Director from 6 Directors vote against the resolution, Resolution will be considered not passed. Restriction on Inter-Corporate Transactions Sec 186(2) No company shall, directly or indirectly: 1 Give any loan to any person or other body corporate; 2. Give any guarantee, or provide security, in connection with a loan to any other person body corporate or person; and 3. Acquire, by way of subscription, purchase or otherwise the securities of any other body corporate; Exceeding 60% of its paid-up share capital, free reserves and securities premium account OR 100% of its free reserves and securities premium account, Whichever is more. Explanation: - for the purpose of this sub section the word 'person' does not include any individual who is in the employment of the company. APPROVAL OF SHAREHOLDERS [sec 186(3)] Where the aggregate of the loan and investment so far made, the amount for which guarantee or security so far provided to or in all other bodies corporate along with the investment, loan, guarantee or security proposed to be made or given by the Board, EXCEED the limit specified under sub section (2) i.e. [60% of its paid up share capital and free reserve and Securities premium account OR 100% of its free reserve and securities premium account, whichever is higher. ] No investment or loan shall be made or guarantee shall be given or security shall be provided unless previously authorised by a SPECIAL RESOLUTION passed in a general meeting. For example: ABC LTD has PSC - 40 LAC, F/R - 10 LAC, S/P - NIL Company proposed to give loan of 35 lac rs to Y Ltd. What company needed? Company will pass Unanimous Board Resolution and For shareholders approval we will check limit 60% of its PSC, FR, SP i.e. 60%(40L + 10L+0) = 30Lac OR 100% of its FR, SP i.e. 100% (10Lac + 0) = 10lac Higher is 30LAC IN THIS CASE COMPANY WILL PASS SPECIAL RESOLUTION ALSO, AS COMPANY PROPOSED TO GIVE LOAN OF RS 35LAC WHICH CROSS THE LIMIT. Exception of sec 186 (3) Exemption to Non - Government Company Where a loan or guarantee is given or where a security has been provided by a company to its WHOLLY OWNED SUBSIDIARY COMPANY OR JOINT VENTURE company , or acquisition is made by a holding company, by way of subscription, purchase or otherwise of, the securities of its wholly owned subsidiary company, the requirement of this sub section shall not apply. Exemption to Government Company The requirement of seeking members approval has been relaxed for Government company engaged in defense production and, Other unlisted government companies which seek prior approval of their administrative Ministry or Department for the proposed transaction. Special Point A resolution passed at General Meeting under sub section (3) of section 186 shall specify the total amount up to which the board of directors are authorized to give such loan or guarantee, to provide such security or make such acquisition. The company shall disclose the details of such loans or guarantee or security or acquisition in the financial statement as provided under sub section (4) of section 186. No Blanket S/R is allowed, Board shall specify the exact Amount. Disclosure in financial statement Sec 186(4) The company shall disclose to the members in the financial statements the full particulars of the loan, investment, guarantee or security provided and the purpose for which the loan or guarantee or security is proposed to be utilised by the Recipient of the loan or guarantee or security. APPROVAL OF PUBLIC FINANCIAL INSTITUTION SEC 186 ( 5) PROVISO If any term loan from Public Financial institutions is subsisting, then No prior approval of PFI is required if the Inter corporate loan, investment and other loans is only up to 60% OR 100%, as the case may be ; Provided there is no default in repayment of loan installments or payment of interest thereon ( If company makes any default then prior approval of PFI is required irrespective of loan amount ) If the Inter - Corporate loans, investments and the other loan is beyond 60% OR 100% as the case may be, then Prior approval of the PFI is required in all cases. For Example: There is a Company ABC LTD its PSC - 50Lac F/R - 10 lac ABC LTD has taken loan of RS 10 lac from PFI- 1, 20 lac from PFI-2, and 30 lac from MR. SONU . Company has made default in payment of installment with PFI - 2 and with Mr. SONU . Company is proposed to give loan of RS. 20LAC to Y LTD. In the above example 60% of its PSC and FR is 60%(50lac +10lac) = 30lac 100% of its free reserve is 10 lac Higher is 30 LAC So In this company will Pass Unanimous Board Resolution No requirement of Special Resolution as company is not crossing the limit Approval of PFI -1 is not required as Loan taken is within limit and there is no default with PFI-1. Approval of PFI-2 IS REQUIRED, Because company has made default with PFI-2 Approval of Mr. SONU is NOT REQUIRED , because he is individual not PFI. RESTRICTION ON TAKING LOAN SEC 186(6) No company, which is registered under section 12 of the SEBI Act, 1992 and covered under such class or classes of companies as may be prescribed ( Capital Market Intermediaries like: Merchant Banker, Debenture Trustee, Stock Broker in the form of company) shall take inter- corporate loan or deposits exceeding the prescribed limit and such company shall furnish in its financial statement the details of the loan or deposits. INTEREST RATE SEC186(7) No loan shall be given under this section at a rate of interest lower than the prevailing yield of one year, three year, five year or ten year Government Security closest to the tenor of the loan. Exception Nothing in this sub section shall apply to a company in which 26% or more of the Paid up share capital is held by the CG or one or more SG or both, in respect of loans provided by such company for funding Industrial Research and Development projects in furtherance of its objects as stated in its memorandum of association. Restriction on providing loan, guarantee or security in case of default Sec 186 (8) Section 186(8) provides that no company which is in default in the repayment of any deposits accepted before or after the commencement of this Act or in payment of interest thereon, shall give any loan or give any guarantee or provide any security or make an acquisition till such default is subsisting. Register of Loan, Investment, guarantee or security Sec 186(9) (10) Every Company giving loan or giving a guarantee or providing security or making an acquisition of securities shall, from the date of its incorporation, maintain a register in the FORM MBP-2 and enter therein separately, the particulars of loans and guarantees given, securities provided and acquisitions made as aforesaid. Entries to be made in the register within 7 days Entries in the register shall be made chronologically in respect of each such transaction within seven days of making such loan or giving guarantee or providing security or making acquisition. Place of keeping and preservation of the Register The Register shall be kept at the registered office of the company. The register shall be preserved permanently and shall be kept in the custody of the secretary of the company or any other person authorised by the Board for the purpose. Inspection of the Register The register referred in section 186(9) shall be kept at the registered office of the company and Shall be open to inspection at such office ; and Extracts may be taken there from by any member, and copies thereof may be furnished to any member of the company on payment of such fees as may be prescribed. Non-Applicability of Sec 186 Sec 186(11) 1. This section 186 ( Except sub - section 1) does not apply to loans made or guarantee or security provided or investment by ·A Banking Company ·An Insurance Company ·A Housing Finance Company ·A company engaged in the business of Financing of companies or of providing infrastructural facilities. 2. This Section 186 (except sub - section 1) does not apply to any Investment Made by ·A Company whose principal business is the acquisition of shares, stock Debentures or other securities (Investment Company) ·A Non - Banking Financial Company (NBFC) ·While making investment in the 'Right shares' under sec 62(1)(a) of the companies Act 2013, However, at the time of further Investment, Investment already made in Right shares will be taken into account (Investment in Right issue always beneficial for companies, as shares under right issue is always in less price so it is beneficial for company) RESTRICTION ON MAKING INVESTMENT THROUGH NOT MORE THAN 2 LAYERS SEC 186(1) Sec 186(1) A company shall, unless otherwise prescribed, make investment through not more than two layers of investment companies. The provisions of this sub-section shall not affect A company from Acquiring any other company incorporated in a country outside India if such other company has investment subsidiaries beyond two Layers as per the laws of such country.(COMPANY CAN TAKEOVER ANOTHER COMPANY OUTSIDE INDIA) A Subsidiary company from having any investment subsidiary for the purpose of meeting the requirements under any law or under any rule or regulation framed under any Law for the time being in force. (IF ANY OTHER LAW PROVIDES) For Example: If a company XLTD is the holding company of 'S' and 'S' is the holding company of 'SS' means company 'SS' is the subsidiary of 'S' . Then the Investment layers will be as follows:- From company XLTD to company 'S' (Layer 1) and from company 'S' to company 'SS' (layer 2). There is an indirect investment of company XLTD in company 'SS' . So, In the above example 2 layer is exist and it is allowed. Sec 186(12) The Central Government may make rules for the purpose of this section . PENALTY SEC 186(13) Company: If company Contravene the provisions of this section, The company shall be punishable with fine not less than 25000 but which may extend to 5 lakh. Officer in default: Shall be punishable with Imprisonment for a term which may extend to 2 years and with fine which shall not be less than 25000 but which may extend to 1 lakh.

Weekends are reserved for reading and occasionally I dabble in reading fiction. And last weekend was no exception. As I lazily moved my fingers over my bookshelf, unable to decide what one to read, my fingers rested on "Harry Potter and the Philosopher's Stone". Satisfied with my choice, I started reading the book and lost myself in the story of Harry Potter living a life of misery with his relatives and joining Hogwarts, the School of Magic, the friendships he builds and the adventures he has there. One of the fascinating stories hidden in the book is about the "Mirror of ERISED", a magical mirror that shows "the deepest, most desperate desire" of the hearts of those who see their reflection in it, but one person can't see those of others even if they are looking at the same time. Harry ended up seeing himself with his parents in the mirror. Ron ended up seeing himself with his brothers and as the Quiddich captain. And that set me thinking, what a CFO would see in the ‘Mirror of Erised' if they had access to one today? Before we get into that, let us step back and look at what businesses are expecting from CFO's today. They are expected to play a more proactive role in enabling change in the company. They are expected to take the lead on driving long term performance. They are expected to embrace digitalization to enable better decision making and thereby help steer the companies through tough times. Now that is the kind of pressure even Harry Potter did not have when he entered Hogwarts. While the digitization of the Finance function would definitely help them meet these expectations, would CFO's want to see, in the Mirror of Erised, a digital platform that helps them meet business expectations? I would think no because CFO's being detailed oriented, they would want to see something more specific. And I am sticking my neck out to say that they would want to see a digital platform that helps them with the following: The ability to compare crucial financial information across various dimensions - periods, entities, divisions, cost-centres, geographies, etc. Collection of visual widgets - each of which will communicate an important piece of information, like KPI's, margins, ratios, sales, ageing, etc. Graphical charts that can drill-down to the lowest level of information Completely customizable MIS reports, as each business is unique and so are their requirements Worry free compliance reporting - whether it is statutory financial statement preparation, bank reporting, or regulatory returns Seamless consolidation of accounts - whether is for legal reporting or management analysis, consolidation of accounts across entities has always been tricky and challenging As a CFO what would you like to see in the Mirror of Erised?

We have always discussed in length about the capital gains and its taxability. But, how many of us have noticed that Computation of capital gain and its taxability is different for listed shares and unlisted shares? Through this article let us compare both-

1. Where should I file Company forms effective from 31st August 2022? Set 1 forms covering 9 forms are being migrated to V3 while remaining Company forms are still in the V2 portal. This phased migration is done to enable smooth transition of the portal. Both Version2 and Version3 are now working seamlessly. Effective from 31st August 2022, Director KYC, Charge & Deposit forms (For complete list of Set 1 forms please refer question no. 02 below) for Company are required to be filed in Version 3 post log in on the MCA21 V3 Portal and other remaining company forms will be continued to be filed in the same manner as earlier in Version 2. You can download the other company forms from <> and proceed with the filing of the same as per previous process. 2. What are the form IDs included in Set 1 forms? Forms covered in Set 1 forms are: CHG-1 CHG-4 CHG-6 CHG-8 CHG-9 DIR-3 KYC Eform DIR-3 KYC web DPT-3 DPT-4 3. When will Set 1 Company forms be rolled out in V3 portal? Set 1 forms will be rolled out on 31st August 2022 on MCA21 V3 Portal and will be available post log-in. 4. What is the process of login to file Set 1 Company forms in V3? Users must click on Sign In/Sign up and then select 'Login for V3 filings' as mentioned in the below screen shot. If you are an already existing LLP user of V3, same user id/password can be used to login for filing V3 Company forms. No need to create a fresh login id for accessing V3 Company If you are existing Business user of V2, please use the same user id/password and click on button 'Login for V3 filing'. If you are existing Registered user of V2, please use the same user id/password and click on button 'Login for V3 filings' for the first time. Now upgrade your profile to Business user in V3 and then start filing V3 Company forms. 5. What is the process to file remaining Company forms in V2 ( Except these 9 forms)? For remaining Company Form filing (except these 9 forms), please click on button 'Login for V2 filing' and use your already existing V2 credentials. 6. When will remaining Company forms be rolled out in V3? Remaining company forms excluding Set 1 forms to the new V3 will be intimated in due course. 7. What are the "main" differences between V2 and V3? In the V2, forms are required to be filled and uploaded in the portal while in V3 the forms are to be filled online. This enables user convenience including the ability to save a half- filled form and file it later. Further in V2, there was only a My Workspace which had a list of notices from MCA and circulars issued by them. In V3, there is a personalised "My Application" feature which allows one to view all the forms filed by them till date along with the status of the forms such as pending for DSC upload and Payment, Under Processing, Pay fees, Resubmission etc. When a user logs in to V3, the login is through the email id whereas in V2 it was possible with the user id. When a business user logs in to the MCA system, an OTP will be sent to your mobile and e mail address to ensure the authenticity of the user. 8. Who is a Business User in V3? what is the process of new user registration? Please refer the link for FAQs on user registration: 9. How is the associating of the DSC done? Please refer the link for FAQs on DSC association: 10. What are the high-level changes done in Set 1 forms in V3 as compared to V2? All Set 1 forms excluding DIR-3 KYC web are required to be filed through Business users accounts only. Filing of the SET 1 forms through registered user account has been All Forms have been made Web-based. Few attachments have been removed and the required information is either captured in machine readable format within the form itself or in the form of Signing by IRP/RP/liquidator of Charge Forms for companies under liquidation/Under Automatic notification to RoC of CHG-8 form filed to RD and removal of hardship of filing the same manually / through GNL-2 Functionality for online payment of cost (if imposed by RD in order made pursuant to CHG-8). System based email and automated reply in case of CHG-1/CHG-9/CHg-4 filing is done by the charge holder (i.e., form not signed by the company or its representative). Addition of few new charged assets under the head "Type of Charge" in CHG-1 and CHG-9 forms. DPT-3 form filed with purpose 'Onetime Return' will be processed in STP DPT-4 form will be processed in STP Other miscellaneous enhancements like pre-filling of data, repositioning of fields, declaration changes 11. Is there any change happened in processing type or Due date of filing of Set 1 forms? Except the changes mentioned in above FAQ, no other changes have been made in processing type or due date of filing. 12. One of my Set 1 form is under RSUB in V2 portal now. Can I resubmit the form in V3 portal once Form is made available effective from 31st August 2022? Yes. Users will be able to resubmit the form in V3 as per the new notified form layouts. They should file the V3 webform, download the PDF and then upload in V3. Once resubmitted, form will get routed to V3 Back-office portal for processing. 13. Few of my Set 1 forms filed in V2 portal are pending for processing in V2 portal. What will happen to these SRNs post Set 1 forms roll out? All the pending SRNs of Set 1 forms in V2 will be moved to V3 system as is and processed in V3 system. 14. Where can I access Set 1 forms on MCA portal? Hover on 'MCA services', 'Company e-Filing' and then hover on the relevant module which is displayed in the below screenshot. Then click on the relevant form which the user desires to file. 15. Who is required to file DIR-3 KYC form? For Financial year 2022-23 - Any person who has been allotted "Director Identification Number (DIN/DPIN)" on or before 31st March 2022 and the status of such DIN is 'Approved', needs to file form DIR-3 KYC to update KYC details in the system on or before 5th October 2022. For Financial year 2021-22 onwards - Every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is 'Approved', would be mandatorily required to file form DIR-3 KYC before 30th September of the immediately next financial year. After expiry of the respective due dates, system will mark all non-compliant DINs against which DIR-3 KYC form has not been filed as 'Deactivated due to non-filing of DIR-3 KYC'. 16. Who can file eForm DIR-3 KYC? Any DIN holder who is filing his KYC details for the first time with MCA, must file all KYC details only through eForm DIR-3 KYC. There is no option for such a person to access the web-service for his KYC. Further, any DIN holder who wants to update any information of his KYC details must update the same through filing of eForm DIR-3 KYC only. Please note that no update in details can be made by accessing the web-service for DIR-3 KYC. 17. Who can file KYC through DIR-3 KYC web-service? Any DIN holder who has already submitted eForm DIR-3 KYC in any of the previous financial years and who does not require update in any of his KYC details as submitted, may perform his annual KYC by accessing DIR-3 KYC web service. No fee is payable up to the due date of each financial year. After the due date, a fee of Rs.5000 shall be payable. 18. Dates to be kept in mind to comply with Annual compliance of KYC? As per the provisions of Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, every individual who is allotted DIN as on 31st March of a financial year must submit his KYC on or before 30th September of the immediately next financial year. If the DIN holder does not file his annual KYC within the due date of each financial year, such DIN shall be marked as 'Deactivated due to non-filing of DIR-3 KYC' and shall remain in such Deactivated status until KYC is done with a fee of Rs.5000. 19. Is it mandatory to enter a unique mobile number and email ID in form DIR-3 KYC? Yes. It is mandatory to enter your personal mobile number and personal email ID in the form DIR-3 KYC and the same must be verified by an OTP process. Further, the mobile number and email ID must be unique such that it is not already linked with some other person in the DIN holders' database. 20. I am a disqualified director, am I required to file form DIR-3 KYC? Yes. Any person who has been allotted DIN and where the status of such DIN is 'Approved', is required to file form DIR-3 KYC. Hence, disqualified directors are also required to file form DIR-3 KYC. 21. What is the fee for form DIR-3 KYC? No fee is payable if Form DIR-3 KYC is filed within the due date of the respective financial year. However, if filed after the due date, for DIN status 'Deactivated due to non-filing of DIR-3 KYC' a fee of Rs.5000(Rupees Five Thousand Only) shall be payable. 22. My DIN status is 'Deactivated'. Can I file form DIR-3 KYC? Form DIR-3 KYC can be filed for status 'Deactivated due to non-filing of DIR-3 KYC' on payment of fee as above. 23. Why is the 'Send OTP' button disabled? What is the validity of OTP? Send OTP button remains disabled till successful validation of the form. After successful validation, the form must be saved and only after saving the form, the 'Send OTP' button gets enabled. Further, please note that, once OTP is successfully sent to the valid mobile number and email ID entered in the form, 'Send OTP' button gets disabled. OTP is valid for 30 minutes. If user wants to get OTP again, please click on Resend OTP button. 24. OTP not received on email. Why is it so? You may check the Spam folder in your mailbox for the OTP received. 25. Whether multiple filing of form DIR-3 KYC is allowed? System will not allow multiple filing of form DIR-3 KYC for an applicant. In case KYC is already filed for a DIN, and such DIN is entered again, system throws an error that the form is already filed. 26. I have registered as business user with category 'Directors/Designated Partner' and later changed my email id through DIR-3 KYC form. Which email id should I use to login as business user? Users shall login using the original email id through which the user got registered on MCA portal as business users. However, all emails and OTP communications will be sent to the new email Id entered in the DIR-3 KYC eform that is available in the DIN master.