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The Voluntary Provident Fund (VPF), also known as the Voluntary Retirement Fund, is the employee's voluntary contribution to his provident fund account. This contribution is in addition to the employee's 12% contribution to his EPF. The maximum contribution is 100% of his Basic Salary and Dearness Allowance. The interest rate is the same as the EPF rate. Employers are not required to contribute to their employees' VPF portfolios. Similarly, an employee is not required to contribute to the plan. Once a contribution has been selected in VPF, it cannot b...

Workmen compensation insurance policy, a commercial insurance policy, provides for an employer's legal authority to compensate its employees in the event of their death or accident. The insurance, also known as employee compensation insurance or labour insurance, allows an employer to demonstrate his capacity to satisfy the duties set by the Workmen Compensation Act. Who is a Workman? Any individual hired for purposes other than the employer's trade or business (other than a person whose employment is casual and engaged for reasons other than the emplo...

SEBI, a statutory regulatory body got established on April 12, 1992. It regulates and monitors the Indian capital and securities markets, ensuring that developing regulations and guidelines protect investors' interests. SEBI's headquarters are in Mumbai's Bandra Kurla Complex. SEBI is responsible for regulating all participants in the Indian capital market. It sought to protect investors' interests and cultivate financial markets by executing SEBI guidelines and standards. Let's get in-depth to understand better what's all incorporated in SEBI guideline...

Although the BSE (Bombay Stock Exchange) was established in 1875, it was not until the 1970s that the investing bug struck the country. However, due to lax rules and numerous loopholes, market operators such as Manu Manek and Harshad Mehta rose to prominence, resulting in a slew of frauds. Before getting too late, the Indian government recognised the critical need for a robust market regulator to eliminate these malpractices and defend the interests of investors. As a result, in 1988, the Securities and Exchange Board of India (SEBI) was established, an...

A partnership is a group of two or more people who agree to divide the revenues from a legal business. It gets administered and carried out by all or any of them or by some acting on behalf of all. The formation of a partnership is basic and transparent. Each member of such a group is known as a 'partner'. And the entire group is known as a 'partnership firm.' Individuals, businesses, interest-based organisations, schools, governments, and combinations can all be partners in a partnership. Organisations may create alliances to increase their chances of ...

A partnership incorporates an agreement between two or more people to share the profits and liabilities of a business. It is an association between two or more people who agree to become business co-owners, distribute responsibilities, etc. As per the Indian Partnership Act, 1932 Section 4, "Partnership" is the relation between persons who agreed to share the business' profits carried on by all or any of them acting for all. When it comes to partnership, a nominal partner is a type of partner in a business having no actual interest in the trade or obta...

When it comes to the difference between agreement and contract, people often use the terms interchangeably. Agreements are formed when two or more persons agree on the same thing in the same sense. This state of the identity of minds is called agreement. The act of agreeing upon the same thing in the same sense is called consensus ad idem. 'Consensus ad idem' is a Latin term. A contract gets defined as "an agreement enforceable by law". In simple terms, a contract is a legally enforceable agreement for performing an act or omission. An agreement inco...

A contract is an agreement that creates a binding obligation on two or more parties entering into it, and the law establishes the obligation in a contract. The Indian Contract Act, 1872 governs a contract in India. According to section 2(h) of the Indian Contract Act 1872, A contract gets defined as "an agreement enforceable by law is a contract". Types of Contracts There are various types of contracts which has their objective to achieve. These are:- Based on creation The types of contracts get divided into three types based on their creation. Let...

A one-person company (OPC) gets managed by a single member (i.e. shareholder of the company). This single director is responsible for the company's functioning, and his liability only extends to the amount of money unpaid on the subscription of shares. A one-person company get considered a separate legal entity apart from its members. The shareholder of this company is a subscriber to the company's memorandum of association. Mostly, it gets considered the same as a sole proprietorship, but in reality, they are both different. A one-person company is a ...

A private entity or private shareholders own a private limited company to achieve more profits. It gets considered as a corporate body that aims to achieve more and profits. It offers limited liability to its members and legal protection for its members. The private property and assets of the company members are free from the legal hassles in case of debts and liabilities in the company's name. The liability of shareholders in this company extends up to the number of shares. The Companies Act Section 2(68) of the companies act 2013 prescribes the defi...