Definition and Scope Employees State Insurance (ESI) is a health insurance scheme instituted by the Government of India to provide medical and financial assistance to Indian workers. This comprehensive scheme offers various benefits, including medical aid, disability compensation, maternity support, and other related services, thus ensuring social security for employees. As mandated by the ESI…
In India, obtaining a Tax Deduction Account Number (TAN) is imperative for businesses. Issued by the Income Tax Department, this unique identifier is designated for individuals or entities responsible for tax deduction or collection at the source. It must be included in all TDS returns and other income tax-related documents, with penalties for non-compliance. IndiaFilings…
A public issue refers to the offering of securities by a company to the public to raise capital. In India, public issues are governed by a comprehensive regulatory framework that ensures transparency, fairness, and protection of investors. There are different types of public issues, including Initial Public Offerings (IPOs) for unlisted companies, public issues for…
GST registration is a procedure where a taxpayer registers under the Goods and Services Tax (GST) regime. Post-registration, businesses receive a unique 15-digit Goods and Services Tax Identification Number (GSTIN) assigned by the central government. This identification number is essential for all tax-related transactions. Additionally, you can verify the GST number to access complete business…
A partnership firm stands as a significant business structure, widely embraced within India. This form of organization necessitates a minimum of two individuals to initiate. Essentially, a partnership firm materializes when multiple parties unite to establish a business, subsequently dividing its profits according to a prearranged ratio. The spectrum of partnership business encompasses various trades,…
Debt restructuring is a financial strategy used by private or public companies, or even sovereign entities, that are experiencing cash flow problems and financial distress. This process involves renegotiating and modifying the terms of existing debt agreements to reduce the financial burden and restore liquidity, allowing the entity to continue its operations. When an entity…
Distressed assets refer to financial instruments or properties that are under significant financial or operational distress, usually due to their inability to meet financial obligations. These assets typically belong to companies facing bankruptcy, default, or severe financial hardship. The primary characteristic of distressed assets is that they are sold at a significantly lower value than…
One Time Settlement (OTS) is a legal contract between a financial institution (bank) and its borrower to resolve a Non-Performing Loan (NPL) at a reduced amount. This arrangement benefits both parties: the bank reduces its bad loans, and the borrower eliminates associated legal and financial issues. After successfully completing an OTS, the bank improves its…
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), enacted by the Indian Parliament in 2002, is a landmark law. It empowers banks and financial institutions to reclaim non-performing assets (NPAs) efficiently without court or tribunal intervention. This act was introduced to address the burgeoning NPAs that were crippling…
Non Banking Financial Companies (NBFC): A Detailed Overview A Non-Banking Financial Company (NBFC) is a financial institution that provides various banking services without holding a full banking licence. Unlike traditional banks, NBFCs are restricted from accepting demand deposits, such as savings accounts and checks, from the public. These entities, also known as Non-Banking Financial Institutions…
