LODR Checklist

LODR Compliances Checklist as on 15.04.2019

Quarterly Compliances
Sl. No.	Chapter/Regulation	Requirement	Time frame	Applicability
1.	III- 13(3)	A statement containing the number of investor complaints pending at the beginning of the quarter, those received during the quarter, disposed of during the quarter and those remaining unresolved at the end of the quarter. Statement to be also placed before Board on quarterly basis.	Within 21 days from the end of each quarter
2.	IV-27(2)	A quarterly compliance report on corporate governance along with details of all material transactions with related parties. It can be signed either by Compliance Officer or the CEO. Format is Annexure I as given in SEBI  CIR/CFD/CMD/ 5 /2015 dated Sept 24, 2015.	Within fifteen days from close of the quarter	This regulation shall not be applicable to: a.a listed entity having paid up equity share capital not exceeding rupees ten crore and net worth not exceeding rupees twenty-five crore, as on the last day of the previous financial year: However, if it becomes applicable later, such listed entity shall comply with the requirements of those regulations within six months from the date on which the provisions became applicable to the listed entity. b. Listed entity which has listed its specified securities on the SME Exchange. However, if the listed entities are not companies but body corporates subject to other statues, this regulation shall apply to the extend it does not violate their respective statues.
3	31	A statement showing holding of securities and shareholding pattern separately for each class of securities. All entities falling under promoter and promoter group shall be disclosed separately in the shareholding pattern appearing on the website of all stock exchanges having nationwide trading terminals where the specified securities of the entity are listed, in accordance with the formats specified by the Board. Hundred percent of the shareholding of promoter(s) and promoter group should be in dematerialized form.	Within twenty-one days from the end of each quarter	In case of listed entities which have listed their specified securities on SME Exchange, the above statements shall be submitted on a half yearly basis within twenty-one days from the end of each half year
4	29	Intimation about the Board meeting in which quarterly financial results are to be considered	At least five days in advance (excluding the date of the intimation and date of the meeting), and such intimation shall include the date of such meeting of board of directors
5	32	Statement of deviation for public issue, rights issue, preferential issue indicating: a. Deviation of use of proceeds from the objects stated b. category wise variation between projected and actual utilisation of funds	Quarterly basis	In case of listed entity which have listed their specified securities on SME Exchange, the statement  shall be submitted half yearly.
6	33	Quarterly and year-to-date standalone financial results are to be submitted for each quarter except the last quarter. In case of subsidiaries, in addition to the above, the listed entity shall also submit quarterly/ year-to-date consolidated financial results	Within forty-five days of end of each quarter	In case of listed entity which have listed their specified securities on SME Exchange, the statement  shall be submitted half yearly. The requirement of submitting ‘year-to-date’ financial results shall not be applicable for a listed entity which has listed their specified securities on SME Exchange.
	VI-69(1)	Submission of Indian Depository Receipt holding pattern in the specified format	Within fifteen days of end of the quarter
	Regulation 55A of the SEBI (Depositories and Participants) Regulations, 1996,	Reconciliation of share capital audit to be qualified chartered accountant or a practicing company secretary, for the purpose of reconciliation of share capital held in depositories and in physical form with the issued / listed capital.	within 30 days from the end of the Quarter

Half-yearly compliances
Sl. No.	Chapter /Regulation	Requirement	Time frame	Applicability
1.	III -7(3)	Compliance certificate signed by both the compliance officer of the listed entity and the authorised representative of the share transfer agent to ensure that all activities in relation to  share transfer facility are maintained either in house or by Registrar to an issue and share transfer agent registered with the Board.	Within one month of end of each half of the financial year
2	IV – 23(9)	Disclosures of related party transactions on a consolidated basis, in the format specified in the relevant accounting standards for annual results. The same to be published on the website of the company also. (w.e.f 31.03.2019)	Within 30 days from the date of publication of its standalone and consolidated financial results for the half year	This regulation shall not be applicable to: a. a listed entity having paid up equity share capital not exceeding rupees ten crore and net worth not exceeding rupees twenty-five crore, as on the last day of the previous financial year: However, if it becomes applicable later, such listed entity shall comply with the   requirements of those regulations within six months from the date on which the provisions became applicable to the listed entity. b. Listed entity which has listed its specified securities on the SME Exchange. However, if the listed entities are not companies but body corporates subject to other statues, this regulation shall apply to the extend it does not violate their respective statues.
3	29	Intimation about the Board meeting in which quarterly financial results are to be considered	At least five days in advance (excluding the date of the intimation and date of the meeting), and such intimation shall include the date of such meeting of board of directors
4	40(9)	Share transfer agent and/or the in-house share transfer facility, should produce a certificate from a practicing company secretary certifying that all certificates have been issued within thirty days of the date of lodgement for transfer, sub-division, consolidation, renewal, exchange or endorsement of calls/allotment monies. (only for physical shares)	Within one month of the end of each half of the financial year by STA. Simultaneously   to be filed by listed entity.
5	V-52	Submission of un-audited or audited financial results	Within forty-five days from the end of the half year
6	52(4)	While submitting half yearly  financial results, certain line items also needs to be disclosed which should be accompanied by a certificate signed by debenture trustee that it has taken note of the contents.
7	52 (7)	A statement indicating material deviations in the use of proceeds of issue of   non- convertible debt securities and non-convertible redeemable preference shares from the objects stated in the offer document	To be submitted along with the half yearly financial results
8	56(1)(d)	Submission of certificate regarding maintenance of 100% asset cover in respect of listed non-convertible debt securities, by either a practicing company secretary or a practicing chartered accountant	Along with the half yearly financial results	Submission of such half yearly certificates is not applicable in cases where a listed entity is a bank or non banking financial companies registered with Reserve Bank of India or where bonds are secured by a Government guarantee
9	IX-90(1)	Intimation to the recognised stock exchange(s) relating to daily Net Asset Value, monthly portfolio, half yearly portfolio of those schemes whose units are listed on the recognised stock exchange(s) in the format as specified under Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and directions issued there under	Daily, monthly, half-yearly

                                              

Annual Compliances
Sl. No.	Chapter/ Regulation	Requirement	Time frame	Applicability
1.	IV-24A	Every listed entity and its material unlisted subsidiaries incorporated in India shall undertake secretarial audit and shall annex with its annual report, a secretarial audit report, given by a company secretary in practice to be given in MR-3 format [SEBI vide its circular CIR/CFD/CMD1/27/2019 dated Feb 8, 2019]	Annexed to annual report	This regulation shall not be applicable to: a. a listed entity having paid up equity share capital not exceeding rupees ten crore and net worth not exceeding rupees twenty-five crore, as on the last day of the previous financial year: However, if it becomes applicable later, such listed entity shall comply with the requirements of those regulations within six months from the date on which the provisions became applicable to the listed entity. b. Listed entity which has listed its specified securities on the SME Exchange. However, if the listed entities are not companies but body corporates subject to other statues, this regulation shall apply to the extend it does not violate their respective statues.
2	CIR/CFD/CMD1/27/2019 dated Feb 8, 2019]	Secretarial Compliance report in Annex-A format of the circular	Within 60 days of the end of the financial year
3	SEBI  CIR/CFD/CMD/ 5 /2015 dated Sept 24, 2015	A compliance report on corporate governance for the whole financial year. Format is Annexure II as given in SEBI  CIR/CFD/CMD/ 5 /2015 dated Sept 24, 2015.	End of the financial year	This regulation shall not be applicable to the listed entity having paid up equity share capital not exceeding rupees ten crore and net worth not exceeding rupees twenty five crore, as on the last day of the previous financial year: However, if it becomes applicable at a later date, such listed entity shall comply with the requirements of those regulations within six months from the date on which the provisions became applicable to the listed entity.
4	SEBI  CIR/CFD/CMD/ 5 /2015 dated Sept 24, 2015	A compliance report on corporate governance for the whole financial year. Format is Annexure III as given in SEBI  CIR/CFD/CMD/ 5 /2015 dated Sept 24, 2015.	End of 6 months after end of financial year along-with second quarter report of next financial year	This regulation shall not be applicable to the listed entity having paid up equity share capital not exceeding rupees ten crore and net worth not exceeding rupees twenty-five crore, as on the last day of the previous financial year: However, if it becomes applicable at a later date, such listed entity shall comply with the requirements of those regulations within six months from the date on which the provisions became applicable to the listed entity.
5	29	Intimation about the Board meeting in which quarterly financial results are to be considered	At least five days in advance (excluding the date of the intimation and date of the meeting), and such intimation shall include the date of such meeting of board of directors
6	33	Audited standalone financial results to be submitted along with the audit report and Statement on Impact of Audit Qualifications (applicable only for audit report with modified opinion). In case of subsidiaries, while submitting annual audited standalone financial results, it should also submit annual audited consolidated financial results along with the audit report and Statement on Impact of Audit Qualifications (applicable only for audit report with modified opinion). However, if there is no modified opinion on audit report, a declaration to that effect should be submitted.	Within sixty days from the end of the financial year
7	34	a. Submission of Annual report b. Changes in Annual Report along with explanation for changes to be submitted	Not later than the day of commencement of dispatch to its shareholders Within 48 hours of the AGM
8	V-52	If advance intimation is given to stock exchange that the listed entity will submit audited financial results, then un-audited financial results for the last half year need not be submitted. However, if unaudited results are submitted by the listed entity, then it must also submit the audited financial results for the entire financial year	Results to be submitted within 60 days of the end of the financial year Results to be submitted as soon as they are approved by the board of directors
9	52(4)	While submitting  yearly  financial results, certain line items also needs to be disclosed which should be accompanied by a certificate signed by debenture trustee that it has taken note of the contents.
10	57(2)	Undertaking stating that all documents and intimations required to be submitted to Debenture Trustees in terms of Trust Deed and Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 have been complied with	Annual basis
	VIII-84(2)	Information regarding revision in credit rating	Annual basis

Various Committees under LODR

Chapter-IV

Sl. No.	Details	Audit Committee	Nomination and remuneration Committee	Stakeholders relationship committee	Risk Management Committee (applicable to top 500 listed entities, determined on the basis of market capitalisation, as at the end of the immediate previous financial year)
1.	Regulation	18	19	20	21
2.	No. of members	3	3	3	-
3.	Chairperson	Should be an independent director	Should be an independent director The chairperson of the listed entity, whether executive or non-executive, may be appointed as a member of the Nomination and Remuneration Committee but shall not chair such Committee	Non-executive director	Member of BOD
4.	Independent directors	2/3rd of members	½ of the members	Minimum 1 independent director	-
5.	Qualification of members	Financially literate and at least one member shall have accounting or related financial management expertise	Non-executive directors	-	Members of BOD and senior executives
6.	No. of meetings in a year	At least four times in a year and not more than one hundred and twenty days shall elapse between two meetings	At least once in a year	At least once in a year	At least once in a year
7.	Quorum	Either two members or one third of the members of the audit committee, whichever is greater, with at least two independent directors	Two members or one third of the members of the committee, whichever is greater,   including at least one independent director in attendance	-	-
8.	Presence of Chairman at AGM	Shall be present	May be present	Shall be present	-
9.	Power	To investigate any activity within its terms of reference, seek information from any employee, obtain outside legal or other professional advice and secure attendance of outsiders with relevant expertise		To specifically look into various aspects of interest of shareholders, debenture holders and other security holders	-
10.	Role and information	Part C of Schedule II	Part D of the Schedule II	Part D of the Schedule II	The board of directors shall define the role and responsibility of the Risk Management Committee and may delegate monitoring and reviewing of the risk management plan to the committee and such other functions as it may deem fit such function shall specifically cover cyber security]

Chapter -IV-Regulation 17 of LODR

Board of Directors

Sl. No.	Topic	Requirement
1.	Composition	a. not less than fifty per cent. of the board of directors (BoD) shall comprise of non-executive directors b. at least one woman director Provided that the BoD of the top 500 listed entities shall have at least one independent woman director by April 1, 2019 and the BoD of the top 1000 listed entities shall have at least one independent woman director by April 1, 2020
2.	Independent Directors	a. Chairperson is a non-executive director – at least 1/3rd of BoD should be independent b. No regular non-executive chairperson or where the regular non-executive chairperson is a promoter of the listed entity or is related to any promoter or person occupying management positions at the level of BoD or at one level below the BoD – at least 1/2of BoD should be independent
3.	No. of Directors	The BoD of the top 1000 listed entities (with effect from April 1, 2019) and the top 2000 listed entities (with effect from April 1, 2020) shall comprise of not less than six directors
4.	Age limit of Director	No listed entity shall appoint a person or continue the directorship of any person as a non-executive director who has attained the age of seventy five years unless a special resolution is passed to that effect, in which case the explanatory statement annexed to the notice for such motion shall indicate the justification for appointing such a person.
5.	Chairperson (With effect from April 1, 2020, only for the top 500 listed entities)	(a) Non-executive director; (b) Not be related to the Managing Director or the Chief Executive Officer as per the definition of the term “relative” defined under the Companies Act, 2013. Provided that this sub-regulation shall not be applicable to the listed entities which do not have any identifiable promoters as per the shareholding pattern filed with stock exchanges.
6.	Meetings of BOD	At least four times a year, with a maximum time gap of one hundred and twenty days between any two meetings
7.	Quorum	The quorum for every meeting of the BoD of the top 1000 listed entities with effect from April 1, 2019 and of the top 2000 listed entities with effect from April 1, 2020 shall be one-third of its total strength or three directors, whichever is higher, including at least one independent director. Participation of the directors by video conferencing or by other audio-visual means shall also be counted for the purposes of such quorum
8.	Maximum No. of Directorships including alternate directorships	(a) A person shall not be a director in more than eight listed entities with effect from April 1, 2019 and in not more than seven listed entities with effect from April 1, 2020: Provided that a person shall not serve as an independent director in more than seven listed entities. (b) Notwithstanding the above, any person who is serving as a whole time director / managing director in any listed entity shall serve as an independent director in not more than three listed entities. For the purpose of this sub-regulation, the count for the number of listed entities on which a person is a director / independent director shall be only those whose equity shares are listed on a stock exchange.
9.	Duties and responsibilities of BoD	(a) Periodic review of compliance reports (b) Ensure proper plans for orderly succession for appointment of BoD and senior management (c) Responsible for framing, implementing and monitoring the risk management plan for the listed entity
10.	Fees and compensation	The BoD shall recommend all fees or compensation, if any, paid to non-executive directors, including independent directors and shall require approval of shareholders in general meeting. (b) The requirement of obtaining approval of shareholders in general meeting shall not apply to payment of sitting fees to non-executive directors, if made within the limits prescribed under the Companies Act, 2013 for payment of sitting fees without approval of the Central Government. (c) The approval of shareholders mentioned in clause (a), shall specify the limits for the maximum number of stock options that may be granted to non-executive   directors, in any financial year and in aggregate. (d) The approval of shareholders by special resolution shall be obtained every year, in which the annual remuneration payable to a single non-executive director exceeds fifty per cent of the total annual remuneration payable to all non-executive directors, giving details of the remuneration thereof. (e) Independent directors shall not be entitled to any stock option. (f) The fees or compensation payable to executive directors who are promoters or members of the promoter group, shall be subject to the approval of the shareholders by special resolution in general meeting, if- (i) the annual remuneration payable to such executive director exceeds rupees 5 crore or 2.5 per cent of the net profits of the listed entity, whichever is higher; or (ii) where there is more than one such director, the aggregate annual remuneration to such directors exceeds 5 per cent of the net profits of the listed entity: Provided that the approval of the shareholders under this provision shall be valid only till the expiry of the term of such director.
11.	Code of Conduct	The BoD shall lay down a code of conduct for all members of BoD and senior management of the listed entity and also incorporate the duties of an independent director as per Companies Act, 2013.
12.	Minimum information	The minimum information to be placed before the board of directors is specified in Part A of Schedule II.
13.	Compliance Certificate	The chief executive officer and the chief financial officer shall provide the compliance certificate to the board of directors as specified in Part B of Schedule II.
14.	Evaluation of independent directors	The evaluation of independent directors shall be done by the entire board of directors which shall include - (a) performance of the directors; and (b) fulfilment of the independence criteria as specified in these regulations and their independence from the management: Provided that in the above evaluation, the directors who are subject to evaluation shall not participate.
15.	Recommendation of BoD	The statement to be annexed to the notice as referred to in sub-section (1) of section 102 of the Companies Act, 2013 for each item of special business to be transacted at a general meeting shall also set forth clearly the recommendation of the board to the shareholders on each of the specific items.

Regulation 24

Corporate governance requirements with respect to subsidiary of listed entity

Sl. No.	Topic	Requirement
1.	Independent Director	At least one independent director on the board of directors of the listed entity shall be a director on the board of directors of an unlisted materialsubsidiary, whether incorporated in India or not. Material subsidiary shall mean a subsidiary, whose   income or net worth exceeds twenty percent of the consolidated income or net worth respectively, of the listed entity and its subsidiaries in the immediately preceding accounting year Material subsidiaryshall mean a subsidiary, whose income or net worth exceeds ten percent of the consolidated income or net worth respectively, of the listed entity and its subsidiaries in the immediately preceding accounting year. (w.e.f. 01.04.2019)
2.	Financial statements of unlisted subsidiary	The audit committee of the listed entity shall also review the financial statements, in particular, the investments made by the unlisted subsidiary
3.	Minutes of the unlisted subsidiary	The minutes of the meetings of the board of directors of the unlisted subsidiary shall be placed at the meeting of the board of directors of the listed entity.
4.	Significant transactions of the unlisted subsidiary	The management of the unlisted subsidiary shall periodically bring to the notice of the board of directors of the listed entity, a statement of all significant transactions and arrangementsentered into by the unlisted subsidiary. The term “significant transaction or arrangement” shall mean any individual transaction or arrangement that exceeds or is likely to exceed ten percent of the total revenues or total expenses or total assets or total liabilities, as the case may be, of the unlisted subsidiary for the immediately preceding accounting year.
5.	Disposal of shares by listed entity in its material subsidiary	A listed entity shall not dispose of shares in its material subsidiary resulting in reduction of its shareholding (either on its own or together with other subsidiaries) to less than fifty percent or cease the exercise of control over the subsidiary without passing a special resolution in its General Meeting. Exceptions to the above regulation: 1. Divestment is made under a scheme of arrangement duly approved by a Court/Tribunal 2. Divestment is made under a resolution plan duly approved under section 31 of the Insolvency Code and such an event is disclosed to the recognized stock exchanges within one day of the resolution plan being approved
6.	Selling, disposing and leasing of assets of the material subsidiary	Selling, disposing and leasing of assets amounting to more than twenty percent of the assets of the material subsidiary on an aggregate basis during a financial year shall require prior approval of shareholders by way of special resolution. Exceptions to the above regulation: 1. Sale/disposal/lease is made under a scheme of arrangement duly approved by a Court/Tribunal 2. Sale/disposal/lease is made under a resolution plan duly approved under section 31 of the Insolvency Code and such an event is disclosed to the recognized stock exchanges within one day of the resolution plan being approved
7.	Listed subsidiary is itself a holding company	The regulation shall apply to the listed subsidiary in so far as its subsidiaries are concerned. Company ‘A’, alisted entity has a subsidiary ‘B’ which is also a listed entity. Company ‘B’ has a Subsidiary ‘C’ which is unlisted material subsidiary. Then this regulation is applicable on Company ‘B’.
8.	Secretarial Audit	Every listed entity and its material unlisted subsidiaries incorporated in India shall undertake secretarial audit and shall annex with its annual report, a secretarial audit report, given by a company secretary in practice, in such form as may be specified with effect from the year ended March 31, 2019.

Regulation 23

Related Party Transactions

Sl. No.	Topic	Requirement
1.	Definitions	(a) Related party means a related party as defined under sub-section (76) of section 2 of the Companies Act, 2013 or under the applicable accounting standards. Provided that any person or entity belonging to the promoter or promoter group of the listed entity and holding 20% or more of shareholding in the listed entity shall be deemed to be a related party. (b) Related party transaction (RPT) means a transfer of resources, services or obligations between a listed entity and a related party, regardless of whether a price is charged and a "transaction" with a related party shall be construed to include a single transaction or a group of transactions in a contract. Provided that this  and above definition shall not be applicable for the units issued by mutual funds which are listed on a recognised stock exchange(s).
2	Policy formulation and review of material RPT	(a) The listed entity shall formulate a policy on materiality of RPT and on dealing with RPT including clear threshold limits duly approved by the board of directors. (b) This policy to be reviewed by the board of directors at least once every three years and updated accordingly. A transaction with a related party shall be considered material if the transaction(s) to be entered into individually or taken together with previous transactions during a financial year, exceeds ten percent of the annual consolidated turnover of the listed entity as per the last audited financial statements of the listed entity. (c) With effect from July 01, 2019,a transaction involving payments made to a related party with respect to brand usage or royalty shall be considered material if the transaction(s) to be entered into individually or taken together with previous transactions during a financial year, exceed two percent of the annual consolidated turnover of the listed entity as per the last audited financial statements of the listed entity.]
3.	Approval	All RPT shall require prior approval of the audit committee.
4.	Omnibus approval	Audit committee may grant omnibus approval for RPT proposed to be entered into by the listed entity subject to the following conditions: (a) The audit committee shall lay down the criteria for granting the omnibus approval which should be in line with RPT policy. (b)  The approval shall be applicable only for repetitive transactions. (c)  The audit committee shall satisfy itself regarding the need for such omnibus approval and that such approval is in the interest of the listed entity. (d) The approval should specify the details of the transactions such as name, nature, time-period, amount, etc. Provided that where the need for RPT cannot be foreseen and aforesaid details are not available, audit committee may grant omnibus approval for such transactions subject to their value not exceeding rupees one croreper transaction. (e)  The audit committee shall review, at least on a quarterly basis, the details of RPT entered into by the listed entity pursuant to each   of the omnibus approvals given. (f) Such omnibus approvals shall be valid for a period not exceeding one year and shall require fresh approvals after the expiry of one year.
5.	Shareholder’s approval	All materialRPT shall require shareholder’s approval. No related party shall vote to approve such resolutions whether the entity is a related party to the particular transaction or not. Exception: This sub-regulation shall not apply in respect of a resolution plan approved under section 31 of the Insolvency Code, subject tothe event being disclosed to the recognized stock exchanges within one day of the resolution plan being approved.
6.	Exemptions	The regulations pertaining to prior approval of Audit Committee, omnibus approval and shareholder’s approval shall not be applicable to transactions entered between: (a) Two government companies (b) Holding company and its wholly owned subsidiary whose accounts are consolidated with such holding company and placed before the shareholders at the general meeting for approval.
7.	Applicability	(a) The provisions of this regulation shall be applicable to all prospective transactions. (b) All existing material related party contracts or arrangements entered into prior to the date of notification of these regulations and which may continue beyond such date shall be placed for approval of the shareholders in the first General Meeting subsequent to notification of these regulations.
8.	Compliance	The listed entity shall submit within 30 days from the date of publication of its standalone and consolidated financial results for the half year, disclosures of related party transactions on a consolidated basis, in the format specified in the relevant accounting standards for annual results to the stock exchanges and publish the same on its website.

Regulation 31A

Conditions for re-classification of any person as promoter/ public

Sl. No.	Topic	Requirement	Applicability
1.	Definitions	(a) Promoters seeking re-classification shall mean all such promoters/persons belonging to the promoter group seeking re-classification of status as public. (b) Persons related to the promoters seeking re-classification shall mean such persons with respect to that promoters seeking re-classification who fall under sub-clauses (ii), (iii) and (iv) of clause (pp) of sub-regulation (1) of regulation 2 of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
2.	Procedure	Request by promoters to listed entity which includes the rationale for the same and how the conditions mentioned are satisfied ↓ BoD to analyse the request and place it before the shareholders for their approval alongwith BoD views* ↓ Approval by shareholders by passing an Ordinary resolution** ↓ Application to be made to the stock exchanges within 30 days of shareholders’ approval * Time gap of minimum 3 months and maximum 6 months between Board meeting and shareholder’s meeting ** The promoter(s) seeking re-classification and persons related to the promoter(s) seeking re-classification shall not vote to approve such re-classification request	Not applicable if re-classification of promoter(s)/ promoter group of the listed entity is as per the resolution plan approved under section 31 of the Insolvency Code, subject to the condition that such promoter(s) seeking re-classification shall not remain in control of the listed entity.
3.	Conditions to be fulfilled by promoter seeking reclassification (Prior to reclassification)	The promoters seeking re-classification and persons related to the promoters seeking re-classification shall not: (i) together, hold more than ten percent of the total voting rights in the listed entity; (ii) exercise control over the affairs of the listed entity directly or indirectly; (iii) have any special rights with respect to the listed entity   through formal or informal arrangements including through any shareholder agreements; (iv) be represented on the board of directors (including not having a nominee director) of the listed entity; (v) act as a key managerial person in the listed entity; (vi) be a ‘wilful defaulter’ as per the Reserve Bank of India Guidelines (vii) be a fugitive economic offender.	Not applicable if re-classification of promoter(s)/ promoter group of the listed entity is as per the resolution plan approved under section 31 of the Insolvency Code, subject to the condition that such promoter(s) seeking re-classification shall not remain in control of the listed entity.
4.	Conditions to be fulfilled by the listed entity	The listed entity shall: (i) be compliant with the requirement for minimum public shareholding as required under regulation 38 of these regulations; (ii) not have trading in its shares suspended by the stock exchanges; (iii) not have any outstanding dues to the Board, the stock exchanges or the depositories.	Not applicable if re-classification of promoter(s)/ promoter group of the listed entity is as per the resolution plan approved under section 31 of the Insolvency Code, subject to the condition that such promoter(s) seeking re-classification shall not remain in control of the listed entity.
5.	Conditions to be fulfilled by promoter seeking reclassification (Post reclassification)	(a)  The promoter shall continue to comply with conditions mentioned in (i), (ii), (iii) of Pt. 3 as specified above at all times from the date of such re-classification (b) The promoter shall comply with conditions mentioned at sub-clauses (iv) and (v) of clause (b) of sub-regulation 3 for a period of not less than three years from the date of such re-classification Failure to comply with the above conditions shall automatically lead to him being reclassified as promoter/ persons belonging to promoter group	Not applicable if re-classification of promoter(s)/ promoter group of the listed entity is as per the resolution plan approved under section 31 of the Insolvency Code, subject to the condition that such promoter(s) seeking re-classification shall not remain in control of the listed entity.
6.	Death, transmission, succession, inheritance and gift of shares held by a promoter/ person belonging to the promoter group	(a) immediately on such event, the recipient of such shares shall be classified as a promoter/ person belonging to the promoter group, as applicable. (b) subsequently, in case the recipient classified as a promoter/person belonging to the promoter group proposes to seek re-classification of status as public, it may do so as per the conditions and procedure mentioned above. (c) in case of death of a promoter/person belonging to the promoter group, such person shall automatically cease to be included as a promoter/person belonging to the promoter group.
7.	Listed entity with no promoters	A listed entity shall be considered as ‘listed entity with no promoters’ if due to re-classification or otherwise, the entity does not have any promoter.
8.	Compliance	The following events shall deemed to be material events and shall be disclosed by the listed entity to the stock exchanges as soon as reasonably possible and not later than twenty four hours from the occurrence of the event: (a) receipt of request for re-classification by the listed entity from the promoter(s) seeking re-classification; (b) minutes of the board meeting considering such request which would include the views of the board on the request; (c) submission of application for re-classification of status as promoter/public by the listed entity to the stock exchanges; (d) decision of the stock exchanges on such application as communicated to the listed entity.	Not applicable to (a) and (b) if re-classification of promoter(s)/ promoter group of the listed entity is as per the resolution plan approved under section 31 of the Insolvency Code, subject to the condition that such promoter(s) seeking re-classification shall not remain in control of the listed entity.
9	Public shareholder seeks to re-classify itself as promoter	If any public shareholder seeks to re-classify itself as promoter, it shall be required to make an open offer in accordance with the provisions of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
10	Situations where promoters may desire to reclassify their holding as public	(a) Acquisition by another company (b) Marriage of a female promoter (c) Entry of a strategic investor (d) Family separation agreement (e) Exit of family members and entry of professionals

https://www.thehindubusinessline.com/companies/announcements/others/innovassynth-investments-ltd-reclassification-of-promoter-to-public-category/article26854850.ece

https://www.thehindubusinessline.com/companies/announcements/others/patel-engineering-ltd-approval-of-reclassification-of-promoter-under-regulations-31a-of-sebi-listing-obligations-and-disclosure-requirements-regulations-2015/article25971344.ece

Regulation 33

Financial results (FR)

Sl. No.	Topic	Requirement
1.	Basis for preparation of FR	(a) FR to be prepared on the basis of accrual accounting policy. (b) It should be in accordance with uniform accounting practices adopted for all the periods. (c) The quarterly and year to date results shall be prepared in accordance with the recognition and measurement principles laid down in AS 25 or AS 31, as applicable. (d) The standalone FR and consolidated FRshall be prepared as per Generally Accepted Accounting Principles in India. Provided that in addition to the above, the listed entity may also submit the financial results, as per the International Financial Reporting Standards notified by the International Accounting Standards Board. (e) Disclosures specified in Part A of Schedule IV are to be made in the FR.
2.	Approval and authentication	(a) The FR(quarterly and annual) submitted shall be approved by the board of directors alongwith a certification from the CEO and CFO that the FR do not contain any false or misleading statement or figures and do not omit any material fact which may make the statements or figures contained therein misleading. (b) The limited review report shall be placed before the board of directors, at the same meeting which approves the financial results, before being submitted to the stock exchanges.
3.	Signing of the FR	The FR(quarterly and annual)submitted to the stock exchange shall be signed by the chairperson or managing director, or a whole time director or in the absence of all of them; it shall be signed by any other director of the listed entity who is duly authorized by the board of directors to sign the financial results.
4.	Submission of quarterly and year-to-date FR	The listed entity shall submit quarterly and year-to-date standalone financial results to the stock exchange within forty-five days of end of each quarter, other than the last quarter. In case the listed entity has subsidiaries, it should also submit consolidated FR in addition to the standalone.
5.	UnauditedQuarterly and Year-to-date FR and limited review report	(a) The quarterly and year-to-date FR may be either audited or unaudited. (b) In case of unaudited FR, it should be subjected to limited review by the statutory auditors of the listed entity and shall be accompanied by the limited review report. (c) The listed entity shall ensure that the limited review or audit reports submitted to the stock exchange(s) on a quarterly or annual basis are to be given only by an auditor who has subjected himself to the peer review process of Institute of Chartered Accountants of India and holds a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India. (d) The limited review report shall be placed before the board of directors, at the same meeting which approves the financial results, before being submitted to the stock exchanges. (e) The listed entity shall ensure that, for the purposes of quarterly consolidated financial results, at least eighty percent of each of the consolidated revenue, assets and profits, respectively, shall have been subject to audit or in case of unaudited results, subjected to limited review. (f) The statutory auditor of a listed entity shall undertake a limited review of the audit of all the entities/ companies whose accounts are to be consolidated with the listed entity as per AS 21 in accordance with guidelines issued by the Board on this matter.
6.	Audited Quarterly and Year-to-date FR	In case the listed entity opts to submit audited financial results, they shall be accompanied by the audit report.
7.	Annual audited FR	(a) The listed entity shall submit audited standalone FR within sixty days from the end of the financial year along with the audit report and Statement on Impact of Audit Qualifications (applicable onlyfor audit report with modified opinion). (b) In case the listed entity has subsidiaries, it should also submit audited consolidated FR along with the audit report and Statement on Impact of Audit Qualifications (applicable onlyfor audit report with modified opinion)in addition to the audited standalone FR as mentioned above. (c) In case of  audit reports with unmodified opinion, the listed entity shall furnish a declaration to that effect to the Stock Exchanges while publishing the annual audited financial results. (d) The listed entity shall also submit the audited (or limited reviewed)FR in respect of the last quarter along-with the results for the entire financial year, with a note stating that the figures of the last quarter are the balancing figures between audited figures in respect of the full financial year and the published year-to-date figures upto the third quarter of the current financial year. (e) The listed entity shall disclose, in the results for the last quarter in the financial year, by way of a note, the aggregate effect of material adjustments made in the results of that quarter which pertain to earlier periods. (f) TheStatement on Impact of Audit Qualifications (for audit report with modified opinion)and the accompanying annual audit report submitted shall be reviewed by the stock exchanges.
8	Statements to be submitted along with the FR for the half year	(a) The listed entity shall also submit as part of its standalone or consolidated financial results for the half year, by way of a note, a statement of assets and liabilities as at the end of the half-year. (b)The listed entity shall also submit as part of its standalone and consolidated financial results for the half year, by way of a note, statement of cash flows for the half-year.
9	Securities listed on SME	(a) Any reference to “quarterly/quarter” in case of listed entity which has listed their specified securities on SME Exchange shall be respectively read as “half yearly/half year”. (b) The requirement of submitting ‘year-to-date’ financial results shall not be applicable for a listed entity which has listed their specified securities on SME Exchange.

The entire contents of above document have been prepared on the basis of Information exist on  dated 15.04.2019­.  Whereas deep care has been taken by author to ensure the correctness and completeness of the information provided.This is nothing but a knowledge sharing initiative by author and author do not intend to accost any business or profession.

Judiciary and threat _ Apex Court.

Judiciary  and threat _ Apex Court.

The Supreme Court has appointed former Chief Justice of the Apex Court AK Singh to investigate allegations of conspiracy in connection with sexual harassment against Chief Justice Ranjan Gogoi. Patnaik has been entrusted with the task of investigation. Patnaik, Advocate Uddhav Singh will investigate the allegations of Bains, which said that trying to trap the Chief Justice is being tried.

Bench of three judges including Arun Mishra, Rohinton Nariman and Deepak Gupta have been instructed to cooperate with Justice Patnaik on the need for the Central Bureau of Investigation (CBI) and IB and the Delhi Police Commissioner.

The court said that after completion of the investigation, Justice Patnaik will file a test report in a sealed envelope.

The Supreme Court has clarified that Patnaik will only take cognizance of the matter of corruption in the judiciary. They will have no relation with the sexual harassment case of the Chief Justice.

Matter Related to Issue

The Supreme Court has vowed to investigate allegations of sexual harassment against Chief Justice of India (CJI) Ranjan Gogoi.

The Court believes that such allegations are part of a big conspiracy created by dissident employees, corporate personalities and fixers gangs.

In the Special Bench headed by Justice Arun Mishra, a young lawyer, Utsav Singh Bains, filed an affidavit in a sealed envelope claiming that the he was offered to 1.5 crore rupees to entrap CJI in a false case.

Bains has claimed with significant evidence that a lobby is active in defaming the Chief Justice and the Judiciary.

It is worth noting that the dismissed woman on April 19, 2019 wrote a letter to 22 judges of the Supreme Court, in which it was accused of sexual harassment by the CJI in October 2018.

Law: Insult of Court

According to the law of contempt, if a person or media house accuses the judges or the justice system, so that the judiciary gets involved in a dispute, then the judiciary has power to  punished for this insult.

This type of contempt of the media is termed as creative contempt. It is included in the definition of criminal contempt under the contempt of court of India, (Section 2 (c) (iii) of 1971).

While the judges need protection against the motivated charges, because the demand for the due process is that the investigation of any case should be prompt, complete, fair and fair.

Such extraordinary developments in the country's highest judicial body provide an opportunity to reconsider some of the big questions about judicial accountability.

The Constitution of India provides judges protection from the wishes of the people, parliament and powerful executive. Impeachment is a political process in which MPs vote with party lines.

In 1993, the impeachment proceedings against Justice V. Ramaswamy failed due to the Congress voting against impeachment.

Last year, the chairman of the Rajya Sabha had rejected the opposition's move to run the impeachment on the CJI Deepak Mishra.

The Constitution does not define 'misbehavior' and 'incompetence'.

Judge (Enquiry Bill)], 2006 in which the National Judicial Council was set up to investigate allegations of incompetence or misuse of the High Courts and Supreme Court judges. 'Abuse' has been defined.

According to this, a deliberate behaviour which is to humiliate or defame the judiciary, or failure to full fill the duties of a judge, or misuse of judicial post, corruption, lack of integrity or crime related to moral constraints (misbehaviour) Come under category.

The Supreme Court in Bhattacharjee and others (1995) said that there can not be a definite definition of 'misbehaviour'. But if the judge's conduct is questioning the credibility of the judiciary, then it should be treated as abuse.

The Judicial Standards and Accountability Bill, 2010

This bill provides for maximum judicial independence and judicial increase of accountability.

It also provides for a judicial system to investigate complaints about the misdeeds and to regulate the process of investigation.

There is a provision to keep the power of impeachment against the Supreme Court or a judge of the High Court only with the power of the Parliament.

In this, there is a proposal to change the existing system and simultaneously set up more accountability to investigate complaints of malpractice or inability of the Supreme Court or High Court Judge.

For consideration of the Bill's complaints and for the culprits, which can be imposed upon completion of the investigation, apart from providing a comprehensive system, raises the judicial standards and also promotes the posting judges for their assets / liabilities. Declare.

Process of complaining of criminal case against CJI.

In the case of Ramaswamy (1991), the Supreme Court has clarified that the judicial post is constitutional, so they can not be removed under criminal cases.

It is necessary to get the consent of the Chief Justice of India before registering a criminal case against a High Court Judge or Chief Justice of the High Court or a Judge of the Supreme Court.

For the case against CJI, the government is required to seek advice from the senior-most judges of the Supreme Court, after which, decision will be taken in respect of advance proceedings.

In-house-mechanism is a system for complaints of criminal abuse against the CJI or the Supreme Court judges.

Under this, a committee of judges is constituted to investigate the matter and the report related to the investigation is handed over to the Chief Justice.

After this the decision of the Chief Justice is taken after consultation with the other judges.

If the charges against the judge are proved, there is a provision of impeachment only in the Constitution, there is no provision for punishment.

Judicial accountability and rule of law

Although the independence of the judiciary is a part of the basic structure of the constitution, but it is not infinite in itself.

but Keeping judicial performance beyond check will be impartial, because liberty without accountability is silly freedom.

Without responsibility, power is against constitutionalism. Accountability of public servants, including judges, is the essence of a mature democracy.

Judicial accountability promotes at least three separate values, rule of law, public trust in judiciary and institutional responsibility.

Judicial independence and judicial accountability are purposeful tools designed to meet constitutional objectives.

The rule of law demands judicial accountability. Responsiveness makes performance of power more efficient and effective.

Conclusion

The crisis on India's judiciary has come about its credibility and reliability. The matter is more alarming because the last hope of justice for the common citizen of the country is rich and poor and the power establishment is done only by the Supreme Court. Legitimate justice obtained from here is considered to be final, as well as beyond doubt. If such things are found in the public about this supreme institution of justice then doubts arise about its credibility. If judges who are judging serious charges, then this important pillar of democracy can not be worse than this. The allegations are true or false, it should be investigated. It should also be checked whether any conspiracy is being made to destabilize the judiciary

  

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This is nothing but knowledge sharing initiative of author and not intend to accost any one in any manner or for any other purpose whatsoever. 

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Foreign Trade Policy

Foreign Trade Policy (2015-20)

 The new Foreign Trade Policy 2015-20 was unveiled by Commerce & Industry Minister, Mrs. Nirmala Sitharaman on 1st April 2015. It provides a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country, in keeping with the “Make in India” vision of Prime Minister. The focus of the new policy is to support both the manufacturing and services sectors, with a special emphasis on improving the ‘ease of doing business’.

The new foreign trade policy aims at increasing exports of goods and services to 900 billion by 2019-20, from $466 billion in 2013-14. It seeks to raise India’s share in world exports from existing 2% to 3.5% in near future.

Highlights

The foreign trade policy, 2015-20 may be categorized into following three parts for better understanding:

A. Simplification and Merger of Reward Schemes

The existing reward schemes have been merged into two new schemes as under:

1. Merchandise exports from India scheme (MEIS)

The earlier 5 schemes (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) for rewarding merchandise exports with different kind of duty structure with varying conditions have now been replaced by a single scheme called Merchandise Export from India Scheme (MEIS). Objective of MEIS is to offset infrastructural inefficiencies and associated costs involved in export of goods and products, which are produced and manufactured in India.

It seeks to enhance India’s export competitiveness of these goods and products having high export intensity, employment potential. In this scheme, the incentives are to be provided in the form of duty scrips as percentage of FOB {free on board} value of exports. A scrip literally means a “chit” and refers to a form of credit. The Duty free scrips are provided to the exporters under various export promotion schemes of the government. Free on board (FOB) is a trade term that indicates whether the seller or the buyer has liability for goods that are damaged or destroyed during shipment between the two parties.

The Union Government has extended support to certain new products and the rate of incentives for

certain other specified products under the Merchandise Exports from India Scheme (MEIS). Decision

in this regard was taken by Department of Commerce (DoC) under the Ministry of Commerce & Industry in backdrop of the continued decline in growth of Indian goods exports.

2. Service Export from India Scheme (SEIS)

SEIS has replaced earlier “Served from India Scheme” and aims to encourage export of notified services from India. The SEIS applies to ‘service providers located in India’ instead of ‘Indian service

providers’. Thus, it provides for incentives to all service providers of notified services who are providing services from India, regardless of the constitution or profile of the service provider. The rates of incentivization under the SEIS are based on net foreign exchange earned. The incentive issued as duty credit scrip, will no longer carry an actual user condition and will no longer be restricted to usage for specified types of goods but be freely transferable and usable for all types of goods and service tax debits on procurement of services/goods. It is proposed to extend befits of both the reward schemes (MEIS and SEIS) to units located in SEZs.

B. Boost To “Make In India”

Specific Export obligation under EPCG scheme, in case capital goods are procured from indigenous manufactures which is currently 90% of the normal export obligation (six times at the duty saved amount) has been reduced to 75% in order to promote domestic capital goods manufacturing industry.

Higher level of rewards under MEIS for export items with high domestic content and value addition as compared to products with high import content and less value addition.

C. Trade Facilitation and Ease of Doing Business

 Online filling of documents/ application and paperless trade in 24*7 environment.

 Landing document of export consignment as proofs for notified market would be digitally uploaded by exporters/ status holders.

Simplification of procedures/processes, digitization and e-governance

 Resolving Complaints: In an effort to resolve quality complaints and trade disputes betweenexporters and importers, a new chapter on Quality Complaints and Trade Disputes has been incorporated into the Foreign Trade Policy.

FTP to be aligned to Make in India, Digital India and Skills India initiativesExport promotion mission to take on board state Governments

Higher level of support for export of defence, farm Produce and eco-friendly products.

Unlike annual reviews, FTP will be reviewed after two-and-Half years.

In this FTP, focus has been on simplicity and stability. Further, the policy on one hand seeks to realign multiple schemes with the objective of reducing the complexities, on the other hand it wants to promote increased use of technology to reduce the transaction cost and manual compliances. By extending benefits under EPCG on domestic procurements and offering them to more products under MEIS, the policy seeks to further incentivise the exports. The policy seeks to address the trade facilitation obligations of the country under the WTO. The policy is drafted in consonance with other initiatives of the government like Digital India, Skill India, improving ease of doing business and Make in India. While the measures proposed in the policy are not radical, they appear to be in the right direction.

FDI in E Commerce

Electronic commerce (ecommerce) is a type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet. Electronic commerce operates in all four of the major market segments: business to business, business to consumer, consumer to consumer and consumer to business. It can be thought of as a more advanced form of mail-order purchasing through a catalog. Almost any product or service can be offered via e-commerce, from books and music to financial services and plane tickets.

From the point of view of business, there are two models of e-commerce. First model is known as

i) Inventory based model of e-commerce- Inventory based model of e-commerce means an ecommerce activity where inventory of goods and services is owned by e-commerce entity and is sold to the consumers directly.

ii) Marketplace based model of e-commerce- Marketplace based model of e-commerce means providing of an information technology platform by an e-commerce entity on a digital & electronic network to act as a facilitator between buyer and seller.

E-Commerce Guidelines

Department of Industrial Promotion and Policy (DIPP) has come up with new rules in March 2016 aimed to regulate the e-commerce marketplaces.

Under the new rules 100% FDI under automatic route is permitted in marketplace model of e-commerce and no FDI is permitted in inventory based model of e-commerce. At present, 100 per cent FDI is permitted in B2B (business-to-business) transactions under the automatic route.

 As per the new norms, an e-commerce entity will not be permitted to sell more than 25 per cent of total sales through its marketplace from one vendor or their group companies. New guidelines mandate the e-commerce entities to refrain from indulging in predatory pricing and directly or indirectly influencing the price of goods and services.

The new policy also mandates such e-commerce companies to display contact details of the sellers online. The warranty/guarantee of products or services sold online will also be borne by the sellers, not the e-commerce company.

Review of policy on Foreign Direct Investment (FDI) in e-commerce

26-December-2018

i) 100% FDI under automatic route is permitted in marketplace model of e-commerce.

ii) FDI is not permitted in inventory based model of e-commerce.

iii) E-commerce marketplace may provide support services to sellers in respect of warehousing, logistics, order fulfillment, call centre, payment collection and other services.

iv) E-commerce entity providing a marketplace will not exercise ownership or control over the inventory i.e. goods purported to be sold. Such an ownership or control over the inventory will render the business into inventory based model. Inventory of a vendor will be deemed to be controlled by e-commerce marketplace entity if more than 25% of purchases of such vendor are from the marketplace entity or its group companies.

v) An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity.

vi) In marketplace model goods/services made available for sale electronically on website should clearly provide name, address and other contact details of the seller. Post sales, delivery of goods to the customers and customer satisfaction will be responsibility of the seller.

vii) In marketplace model, payments for sale may be facilitated by the e-commerce entity in conformity with the guidelines of the Reserve Bank of India.

viii) In marketplace model, any warrantee/ guarantee of goods and services sold will be responsibility of the seller.

ix) E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field. Cash back provided by group companies of marketplace entity to buyers shall be fair and non-discriminatory. For the purposes of this clause, provision of services to any vendor on such terms which are not made available to other vendors in similar circumstances will be deemed unfair and discriminatory.

x) e-commerce marketplace entity will not mandate any seller to sell any product exclusively on its platform only.

xi) e-commerce marketplace entity will be required to furnish a certificate along with a report of statutory auditor to Reserve Bank of India, confirming compliance of above guidelines, by 30^th of September of every year for the preceding financial year.

xii) Digital & electronic network will include network of computers, television channels and any other internet application used in automated manner such as web pages, extranets, mobiles etc.

xii) Marketplace e-commerce entity will be permitted to enter into transactions with sellers registered on its platform on B2B basis.

Advantages of FDI in the sector

(i) Boost to the infrastructural development: Increased capital will help to establish supply chain, distribution system and warehousing.

 (ii) Impetus to manufacturing sector: Growth in retail sector will have cascading effect in the manufacturing sector which will positively contribute to overall growth of economy and job creation.

(iii) More efficient supply chain management: Will reduce the need for middlemen leading to lower transaction costs, reduced overhead and reduced inventory and labour costs.

(iv) Adopting best global business practices: Will lead to better work culture and customer service.

(v) Increased outreach: Will provide increased access to buyers/sellers, allow MSMEs and artisans to reach out to customers far beyond their immediate location, both locally within India and abroad.

(vi) Traceability and transparency & Improved customer service.

(vii) Reduced costs: On marketing and distribution, travel, materials and supplies will benefit businesses.

Disadvantages of FDI in the sector

(i) Small time businesses/kirana stores remain the largest source of employment in the country. Opening of B2C e-commerce on inventory based model is likely to seriously impact these shopkeepers leading to large scale unemployment.

(ii) Indian market is not yet ready for opening up e-retail space to foreign investors. It will seriously impair small time trading of brick and mortar stores. Small time shopkeepers are not highly qualified and will not be able to compete with sound e-retail business format.

(iii) Because of scale of economic operations, e-commerce players in the inventory based model will have more bargaining power than standalone traders and will resort to predatory pricing.

(vi) Inventory based e-commerce competes directly with MSMEs. Indian e-commerce B2C is growing in an eco-system with Indian owned/led companies offering open marketplace models which provide a technology platform to help MSME reach across India and even globally.

These marketplaces do not compete with MSME or retailers and allow everyone to trade. On the other hand, allowing the entry of inventory based large foreign e-tailers may shrink Indian entrepreneurship and the MSME sector.

Conclusion

Overall, e-commerce including online retail in India constitutes a small fraction of total sales, but is set to grow to a substantial amount owing to a lot of factors such as rising disposable incomes, rapid urbanization, increasing adoption and penetration of technology such as the internet and mobiles, rising youth population as well as increasing cost of running offline stores across the country.

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The entire contents of above document have been prepared on the basis of Notification then exist.  Whereas deep care has been taken by author to ensure the correctness and completeness of the information provided.This is nothing but a knowledge sharing initiative by author and author do not intend to accost any business or profession.

Reservation: The Nuances

Reservation: The Nuances

The Union Cabinet on Monday January 8, has approved Constitution Amendment Bill for giving 10 % reservation to economically backward section in the general category and bill will be extended to Muslim, Sikh, Christian, Buddhist and other Minorities Community. For this, the government has increased the session of the Rajya Sabha.

Logic behind the Government's decision many political analysts are assessing the recent elections for the three state assemblies (Rajasthan, Madhya Pradesh and Chhatisgarh. The ruling BJP in the center believes that due to the anger of the upper castes, they lost in these elections; And this verdict is being seen as an attempt to turn the attitude of the upper caste to its own.

Reservation Policy in India :- It is form of alternative action where % of seats are for people belonging to socially and educationally backward community and SC, STs who are inadequately represented in institution of Government Job and education.

Rational Behind the Reservation Policy in India:

To provide equality and opportunity to section which has been discriminated over the years hence to correct the historical injustice and to give effect to redistributive agenda of state reservation was introduced.

Criteria for Economically Backwardness under general categories:

·         Family income less than 8 lakh rupees annually (Creamy Layer Concept of OBC)

·         Whose agricultural land less than 5 acres

·         Residential house with less than 1000 square feet

·         Plot less than 100 yards in notified municipality

·         Residential plot limit in non-notified municipal area is 200 yards

Current Moment of Reservation:

At present there is a provision of 49.5 percent reservation and its cant beyond as per Apex Court. In this, the Scheduled Castes (SC) are given 15 percent, Scheduled Tribe (ST), 7.5 percent and 27 percent reservation for OBC.

Legal Test of Bill: Required 124^th Constitutional Amendment (The bill must be passed in each houses by an absolute majority and a two third majority of members present and voting required as per article 368 of Constitution of India).

The government has proposed to amend the Article 15 and 16 of COI through 124th Constitution Amendment Bill.

Article 15 and 16 of the Constitution

Article 15 gives equal rights to all citizens. According to Article 15 (1), the State shall not make any difference against any citizen on the basis of religion, ethnicity, caste, gender, birthplace or any of them.

As per Article 15 (4) and 15 (5), special provision has been provided for social and educationally backward classes or Scheduled Castes and Scheduled Tribes. But here the economic term has not been used anywhere. Therefore, in order to give reservations to the upper castes, the government will need a constitution amendment to add economically weaker words to this article (Insert Article 15(6).

Article 16 talks about providing equal opportunities in government jobs and services. But in the 16(4) 16(4)(a), 16(4)(b) and Article 16(5), the state has been empowered to give reservation to any sections of backward people in government jobs. There is no mention of economic also here. Therefore, in order to give reservations to poor upper caste, the government has to amend these two paragraphs of the Constitution.

Facts about the reservation:

In 1979, the Central Government formed the 6-member Backward Class Commission Under the chairmanship of the former Bihar Chief Minister BP Mandal also known as Mandal Commission. This commission gave its report in 1980.

Commission take the help of 1931 caste census to form caste for reservation. It included 3743 castes and communities, which were given the status of OBC and suggested 27 percent reservation to OBC.

On the basis of the recommendations of the Commission on August 13, 1990 a notification for giving 27 percent reservation in government jobs to backward classes was issued. The matter reached the Supreme Court among all the protests, where the Constitutional Bench with 9 judges finally upheld the decision of the Mandal Commission's recommendations on November 16, 1992. After this, the Central Government issued notification of providing 27 percent reservation to the backward classes in the jobs of the Central Government on September 8, 1993.

The Supreme Court on reservation

MR Balaji (1963): In this case of 1963, the Supreme Court ruled that the classification of backward classes was unconstitutional. The person's caste can not be the only criterion for determining whether a particular class is a backward class or not. To determine this, financial condition, poverty, occupation, housing, etc. should also be addressed.

T. Devdasan (1963): In this regard, the Supreme Court dismissed an order of government in Balaji vs. Mysore State case more than necessary in 1963. It provided reservation of 68 percent for Scheduled Castes, Scheduled Tribes and Other Backward Classes. The Supreme Court gave the order that the total reservation limit should not exceed 50 per cent.

Indira Sahni (1992): On the issue of reservation, the judgment of the Supreme Court given in this case is considered as a milestone. Supreme Court upheld the implementation of separate reservation for other backward classes in central government jobs in this case.

In this case, it was arranged for the first time that reservation in promotion for Scheduled Castes, Scheduled Tribes officers and employees would not be permissible.

The Parliament considered this and amended 77th amendment in the Constitution. In this amendment the provision was made that the State Government and the Central Government have the right to give reservations in promotions. But this case again went to the Supreme Court. Then the court gave the arrangement that reservations can be made, but seniority will not be found. After this, the 85th Constitutional Amendment was amended and it was said that the consequential seniority would also be given. In this case, the Constitutional Bench of 11 judges in the Supreme Court did not consider reservation in promotion for government services for Scheduled Caste and Scheduled Tribe under Article 16 (4) of the Constitution and ordered that the reservation in promotions to these sections would be only next It is only for 5 years.

M. Nagraj (2006): In this matter, the 77th and 85th constitutional amendments in the Supreme Court were challenged. The court considered these constitutional amendments in its decision as right, but also said that if the government wants to give reservation to the Scheduled Castes and Scheduled Tribes in the promotion, then for this backwardness of these sections, inadequate representation in the state services and the government In order to influence the work efficiency of the work, the basis should be laid by mobilizing the data.

If the state government and the central government have to give reservations in the promotion, then three things have to be taken care of –

1.  Are the people of these classes still backward or not?

2.  Is the people of this class active in the services or not?

3. If reservation is given to Scheduled Castes, tribal officials and employees in promotions, then it has to be seen that the administration will not have adverse effects?

This is not new for the government to issue of reservation in government services to economically weaker section but this is the first time when economic status of a class has been linked to the reservation.  Indeed, reservations are considered as a 'tool' for empower and uplift the socially suppressed, discriminated Dalits, Adivasis and other backward classes and get them social status and better life. since 1951 government proposed reservation as demanded and required but situations of Now and Statistics of many International Organisations shows only providing  Reservation is never considered to be a 'tool' to eliminate economic backwardness. Now the Government has taken a new initiative in this direction, then this step will be considered as fulfilling the long standing demand of a large section of society almost 90 % of the Population.