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Systems Audit of Mutual Funds - DISA??

Systems Audit of Mutual Funds

Circular No. SEBI/IMD/CIR No. 8/176988/2009, dated 16-9-2009

 

Considering the importance of systems audit in the technology driven asset management activity, it has been decided that mutual funds shall have a systems audit conducted by an independent CISA/CISM qualified or equivalent auditor.

The systems audit should be comprehensive encompassing audit of systems and processes inter alia related to examination of integration of front office system with the back office system, fund accounting system for calculation of net asset values, financial accounting and reporting system for the AMC, Unit-holder administration and servicing systems for customer service, funds flow process, system processes for meeting regulatory requirements, prudential investment limits and access rights to systems interface.

Accordingly, you are advised to get the above systems audit conducted once in two years. You are further advised to place the Systems Audit Report and compliance status before the Trustees of the mutual fund. The systems audit report/findings alongwith trustee comments should be communicated to SEBI.

For the financial years April 2008 – March 2010, the systems audit should be completed by September 30, 2010.

This circular is being issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market.

 

--
CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
           +91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
           vmvsr@yahoo.co.uk

TDS Chart to Refer

TDS RATES FOR ASSESSMENT YEAR 2010 - 11 FROM 01ST OCTOBER, 2009 ONWARDS Basic Particulars Company / Firm etc Individual &  HUF Section Exemption TDS on payment for Rates SC EC Net Rates SC EC Net           5,000 Interest other than interest on securities 10 0 0 10.0 10 0 0 10.0 194A  20000/50000  Payment to Contractors 2 0 0 2.0 1 0 0 1.0 194C  20000/50000  Payments to transporters, where PAN is not available 2 0 0 2.0 1 0 0 1.0 194C  20000/50000  Payments to transporters, where PAN is available 0 0 0 0.0 0 0 0 0.0 194C  20000/50000  Payment to Advertising/Sub Contractor 2 0 0 2.0 1 0 0 1.0 194C           2,500 Commission/Brokerage 10 0 0 10.0 10 0 0 10.0 194H        120,000 Rent of Land / Building / Furniture 10 0 0 10.0 10 0 0 10.0 194I        120,000 Rent of Plant, Machinery or Equipment 2 0 0 2.0 2 0 0 2.0 194I         20,000 Professional / Technical Fees 10 0 0 10.0 10 0 0 10.0 194J  Note:. Higher TDS rate of 20% for not furnishing correct PAN: Requirement to furnish PAN is compulsory to      deductor otherwise TDS shall be deducted @ 20%. W. E. F. 01st April, 2010

Finance for Housing Projects –Disclosure of Information on Mortgage of Property

RBI/2009-10/ 155 RPCD.CO.RRB. BC.No. 21 /03.05.33/2009- 10 September 14, 2009 Chairman All Regional Rural Banks Dear Sir, Finance for Housing Projects – Incorporating clause in the terms and conditions to disclose in Pamphlets/Brochures /advertisements information regarding mortgage of property to Regional Rural Banks (RRBs)   We advise that in a case which came up before the Hon'ble High Court of Judicature at Bombay, the Hon'ble Court observed that the bank granting finance to housing / development projects should insist on disclosure of the charge / or any other liability on the plot, in the brochure, pamphlets etc., which may be published by developer / owner inviting public at large to purchase flats and properties. The Court also added that this obviously would be part of the terms and conditions on which the loan may be sanctioned by the bank. 2. Keeping in view the above, while granting finance to specific housing / development projects, RRBs are advised to stipulate as a part of the terms and conditions that: (i) the builder / developer / company would disclose in the Pamphlets / Brochures etc., the name(s) of the bank(s) to which the property is mortgaged. (ii) the builder / developer / company would append the information relating to mortgage while publishing advertisement of a particular scheme in newspapers / magazines etc. (iii) the builder / developer / company would indicate in their pamphlets / brochures, that they would provide No Objection Certificate (NOC) / permission of the mortgagee bank for sale of flats / property, if required. 3.  RRBs are also advised to ensure compliance of the above terms and conditions and funds should not be released unless the builder/developer/ company fulfils the above requirements. 4. Please acknowledge receipt to our Regional Office concerned Yours faithfully, (C.K.Shah) Deputy General Manager

Non-attestation services under LLP by CS

Resolution under regulation 168 of the Company Secretaries Regulations, 1982 passed by ICSI (Council) allowing members in practice to carry out non-attestation services through the new business structure of Limited Liability Partnership

 

The Council had  at the 156^th meeting held on 19^th - 20^th March, 2005, in exercise of its powers under regulation 168 of the Company Secretaries Regulations, 1982 accorded general permission to  members in practice to become non-executive director/promoter/promoter director/subscriber to the Memorandum  and Articles of Association of a company  the objects of which include areas which fall within the scope of the profession of Company Secretaries irrespective of whether or not the practising member holds substantial interest in that company. 

The Council had also allowed members in practice to become non-executive directors/promoter/promoter director/subscriber to the Memorandum and Articles of Association of a company which is engaged in any other business  or occupation provided that the practising member does not hold substantial interest in the company.

The term non-executive director was defined to mean an ordinary director who is required to attend the meetings of the board or its committees only, not paid any remuneration except the sitting fees for attending the board/committee meetings and any remuneration to which he is entitled as ordinary director, and devoting his time for the company only to attend meetings of the board or committee thereof and not for any other purpose.

In line with the aforesaid decisions, the Council has passed the following resolution under regulation 168  allowing Company Secretaries in Practice to become partners of LLP, the objects  of which include areas which fall within the scope of non-attestation services of the profession of Company Secretaries or in any other business or occupation.

"Resolved that under regulation 168 of the Company Secretaries Regulations, 1982, the Council gives general permission to the members in practice to :

(a)       become passive partner of a limited liability partnership (LLP) the objects of which include carrying out non-attestation services which fall within the scope of the profession of Company Secretaries irrespective of whether  or not the practising member holds substantial interest in that LLP;

(b)   become passive partner of LLP which is engaged in any other business or occupation provided that the practising member does not hold substantial interest in that LLP.

For the purposes of the above resolution:

(i) "Attestation Services" include services which require signing any certificate, document, report or any other statements relating thereto on behalf of a Company Secretary in Practice or a firm of such Company Secretaries in his or its professional capacity or which require signing anything that is required to be signed by a Company Secretary in practice.

(ii) Non-attestation Services" means services which are not attestation services.

(iii) A "passive partner" means a partner of LLP who fulfils the following conditions:

(a) he must not be a designated partner;

(b) subject to the LLP agreement, he may make agreed contribution to the capital of LLP and receive share in the profits of the LLP; and

(c) he must not take part in the management of the LLP nor act as an agent of the LLP or of any partner of the LLP;

However, none of the following activities shall constitute taking part in the management of the LLP:

(1) Enforcing his rights under the LLP agreement (unless those rights are carrying out management function).

(2) Calling, requesting, attending or participating in a meeting of the partners of the LLP.

(3) Approving or disapproving an amendment to the partnership agreement.

(4) Reviewing and approving the accounts of the LLP;

(5) Voting on, or otherwise signifying approval or disapproval of any transaction or proposed transaction of the LLP including  -

(a) the dissolution and winding up of the LLP;

(b) the purchase, sale, exchange, lease, pledge, mortgage, hypothecation, creation of a security interest, or other dealing in any asset by or of the LLP;

(c) a change in the nature of the activities of the LLP;

(d) the admission or removal of a partner of the LLP;

(e) transactions in which one or more partners have an actual or potential conflict of interest with one or more partners or the LLP;

(f) any amendment to the LLP agreement;

(iv) a member shall be deemed to have a "substantial interest" in an LLP if he is entitled at any time to not less than 25% of the profits of such LLP."

 

--
CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
           +91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
           vmvsr@yahoo.co.uk

eStamp Facility of MCA

eStamp

State wise stamp duty rules

List of States / UTs

Upload Process

Payment Process

View Public Document

FAQs on eStamp

eStamp

Registrars of Companies have to ensure that proper stamp duty is paid on the instruments registered with their office. As of now, physical submission of documents is mandatory where stamp duty is levied in order to ascertain that applicable stamp duty has been paid. In the present scenario, even though the eForm is submitted instantly, the RoC office has to wait for receipt of physical stamp papers to initiate necessary processing. It results in service delivery time getting longer. Hence, in furtherance of e-governance initiatives, provisions regarding stamp duty applicable on filing of e-forms have been amended and stakeholders shall have facility to pay stamp duty in electronic manner also. As of now, this process shall cover Form 1(including MoA, AoA), Form 5 and Form 44 only, accordingly revised eforms are being introduced w.e.f. 12.09.2009. These provisions shall be applicable to the eforms filed subsequent to this amendment. In case eforms filed earlier are 'Resubmitted' after implementation of this change, e-stamp shall not be applicable.Keeping in view the requirement of stakeholders awareness, process of e-stamp has not been made mandatory, meaning thereby, stakeholders have option to pay stamp duty in electronic manner through MCA21 system or in physical form as per the existing procedure.Further this process shall be applicable only to such States/Union Territories which have agreed to the request of Ministry of Corporate Affairs for collection of e-stamp duty on their behalf.

List of eForms to which eStamping will be applicable

• Form 1, (including MoA, AoA)
• Form 5
• Form 44
• Form 67

 

 

List of States/ UTs List of States/ Union Territories for which eStamp duty payment on Form 1, MoA, AoA, Form 5 and Form 44 is available on line through MCA portal List of States/ Union Territories in which eStamp duty payment is available on line through MCA portal 1.Andaman & Nicobar Islands 2.Andhra Pradesh 3.Arunachal Pradesh 4.Assam 5.Bihar* 6.Chhattisgarh 7.Delhi 8.Jharkhand 9.Gujarat 10.Haryana 11.Karnataka 12.Madhya Pradesh 13.Maharashtra 14.Manipur 15.Meghalaya 16.Orissa 17.Punjab* 18.Rajasthan 19.Tamil Nadu 20.Uttar Pradesh 21.Uttarakhand 22.West Bengal List of States/ Union Territories in which eStamp duty payment is not available on line through MCA portal 1. Chandigarh 2. Dadra and Nagar Haveli 3. Daman and Diu 4. Goa 5. Himachal Pradesh 6. Jammu and Kashmir 7. Kerala 8. Lakshadweep 9. Mizoram 10. Nagaland 11. Puducherry 12. Tripura * eStamp payment services for these states will be available w.e.f. 20-09-2009   State where provisions of Companies Act, 1956 are not extended 1. Sikkim Stamp duty applicable to other states/UTs is to be paid in physical form, as per current process.

 

 

FAQs on eStamp

 

1. Please specify the services for which Stamp Duty can be paid through MCA21 system?

2. Am I required to fill the details of stamp duty in eform manually?

3. Can I pay Stamp Duty in electronic manner with respect to all States / UTs?

4. Whether payment of stamp duty through MCA21 system is Mandatory?

5. What are the modes of payment of stamp duty through MCA21 system?

6. Whether Challan of MCA21 service fee shall include details of stamp duty also in case of off line mode? 

7. What shall be the validity of challan for payment of stamp duty?

8.: In whose favour should I draw the check / DD to pay the stamp duty in case an offline challan has been generated?

9. What is the procedure to pay for the challan generated for stamp duty?

10.Is it necessary to pay both the challans (i.e. challans for stamp duty and for MCA21 service fees) simultaneously?

 

1. Please specify the services for which Stamp Duty can be paid through MCA21 system?

Stamp Duty payable on Filing of e-form 1 (including MOA & AOA), 5 and 44 can be paid through MCA21 system.

 

2. Am I required to fill the details of stamp duty in eform manually?

No, when user selects option to pay stamp duty through MCA21 system, the system itself prefills relevant details in the eform. In case user opts to pay stamp duty in physical manner, details of the same shall have to be provided in the eForm by the user.

 

3. Can I pay Stamp Duty in electronic manner with respect to all States / UTs?

• List of States/ Union Territories in which eStamp duty payment on Form 1, MoA, AoA, Form 5 and Form 44 is available on line through MCA portal:

1.Andaman & Nicobar Islands 2.Andhra Pradesh 3.Arunachal Pradesh 4.Assam 5.Bihar* 6.Chhattisgarh 7.Delhi 8.Jharkhand 9.Gujarat 10.Haryana 11.Karnataka	12.Madhya Pradesh 13.Maharashtra 14.Manipur 15.Meghalaya 16.Orissa 17.Punjab* 18.Rajasthan 19.Tamil Nadu 20.Uttar Pradesh 21.Uttarakhand 22.West Bengal
* eStamp payment services for these states will be available w.e.f. 20-09-2009
List of States/ Union Territories in which eStamp duty payment is not available on line through MCA portal 1. Chandigarh 2. Dadra and Nagar Haveli 3. Daman and Diu 4. Goa 5. Himachal Pradesh 6. Jammu and Kashmir 7. Kerala 8. Lakshadweep 9. Mizoram 10. Nagaland 11. Puducherry 12. Tripura
State where provisions of Companies Act, 1956 are not extended 1. Sikkim
Stamp duty applicable to other states/UTs is to be paid in physical form, as per current process.

 

4. Whether payment of stamp duty through MCA21 system is Mandatory?

Payment of stamp duty through MCA21 system is OPTIONAL till 31.12.2009. User may pay stamp duty either through MCA21 system or in the same manner as was prevailing till now. But w.e.f. 1st January, 2010, stamp duty shall have to be paid only through electronic mode for the states which have agreed for e-stamping. Please refer notification SO S.O. 2276 (E) issued by Ministry of Corporate Affairs in this regard.

 

5.What are the modes of payment of stamp duty through MCA21 system?

There are two modes, stamp duty can be paid through MCA21 system either off-line or on –line.

 

6. Whether Challan of MCA21 service fee shall include details of stamp duty also in case of off line mode?

There shall be separate SRN / challan for stamp duty, in addition to SRN / challan for MCA21 services.

 

7. What shall be the validity of challan for payment of stamp duty?

Validity of challan for payment of stamp duty shall be the same as that of the challan for MCA21 service fees.

 

8. In whose favour should I draw the check / DD to pay the stamp duty in case an offline challan has been generated?

An Information note has been provided on the challan of stamp duty regarding payment of stamp duty. Please refer to the same.

 

9. What is the procedure to pay for the challan generated for stamp duty?

Challan generated for stamp duty is to be paid in the same manner as challan for MCA21 services fees is deposited in an authorized bank.

 

10. Is it necessary to pay both the challans (i.e. challans for stamp duty and for MCA21 service fees) simultaneously?

It is not necessary to pay these two challans simultaneously but these should be paid within the validity period mentioned on the challan. It is suggested to make payment of both of these challans simultaneously as processing of the eForm shall not start unless both of these i.e. the MCA21 Service fees and stamp duty is paid and payment is confirmed."

 

 

--
CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
           +91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
           vmvsr@yahoo.co.uk