7th sem notes
7th sem notes
03/09/2024
SCRA
- Contracts
- Section 2(e)(a) - Ready delivery contract - Full Payment for securities.
- Section 2(h)(a) - Specific delivery contract - put and option
- Section 2(i) - Spot delivery contract - timeline & place
- Section 2(k) - Transferable specific delivery contract
09/09/2024
10/09/2024 -
13/09/2024 -
- Definitions
-
20/09/2024 -
- Deceitful Manner - Yes/No - Both will result in fraud - If it includes dealing with
securities. Whether fraud has happened or not, is decided, currently, based on impact.
Read the latest judgment to be updated.
Mid-Sem questions -
SCRA mcqs -
1. SEBI introduces a settlement third scheme on illiquid stock option cases in terms of
Section 15Jb of the SEBI 1992 Act.
2. When did SEBI come into existence? 1988.
3. It is correct that one of the objectives of setting up SEBI is to protect the interests of the
shareholders.
4. SEBI’s skin in the game rule is applicable to mutual funds and not Merchant bankers,
Financial Advisors and Brokerages.
5. In which year was SAT established? 1992, only one bench which sits in Mumbai, under
SEBI Act 1992.
6. When did SEBI become a statutory body? 1992.
7. Chairman of SEBI - Madhabi Puri Buch
8. Minimum Contract Size in equity derivatives segment in India is Rs. 5 lakhs.
9. SEBI issued guidelines for individual investor applying in public issues of equity shares
and convertibles. Up to what amount individuals can use UPI for application amount? -
Rs. 5 Lakhs.
10. As a regulatory norm in India, a listed company in ordinary course is required to report
quarterly results within how many days of the end of the quarters? 45
11. Which sectionof the SCRA enlists grant of recognition to stock exchanges? Section 4
12. Which term refers to actual delivery of securities and the payment of a price therefor
either on the same day as the date of the contract or on the next day, as per SCRA - Spot
delivery contract.
13. What can be restricted by SEBI while approving the corporatisation and demutualisation
- the voting rights of the shareholders who are also stock brokers of the recognized stock
exchange, the right of shareholders, the maximum number of representatives of the stock
brokers of the recognized stock exchange to be appointed on the governing board of the
exchange.
14. Which section of the SCRA enlists withdrawal of recognition of stock exchanges?
Section 5
15. What is the maximum strength of stock broker in the governing council, as per the SCRA
- 0.25
16. SCRA,
17. Headquarters of SEBI - Mumbai
18. Who appoints SEBI Chairman - Union Government of India
19. It is true that SEBI undertakes registration of brokers and sub-brokers.
20. Mutual Fund Advisory Com. is a sebi com. Not financial standing com./public accounts
com./estimates com.
21. Two types of brokers - Discount and Merchant brokers
22. Rolling cycle of SEBI is T + 1. All the trades are settled within one day of them taking
place.
23. When was the depositories act passed? 1996
24. What is the current application limit for retail investors? Rs 200000.
25. Who was the regulatory authority before SEBI came into existence? Controller of Capital
Issues.
26. What is the number of departments under SEBI? 20
27. SEBI does not provide a platform for - Hedge Fund investors
28. What kinds of operations are regulated under SEBI? - Depositories, Participants,
Custodians of securities.
29. Insider trading is prohibited by SEBI.
30. What is not true for authority of SEBI? Quasi authoritative.
31. Mutual Funds are managed by Asset Management Companies.
32. What is AMFI? Association of Mutual Funds in India.
33. One member of RBI is a part of governing council of SEBI
34. What is the maximum period for which the SEBI chairman is appointed? 5
35. What is the current status of the regulations of SEBI? Statutory
36. How many board members form a part of SEBI? 9
37. The securities and Exchange Board of India overlooks the need of Investors, Market
Intermediaries, Issuer of securities.
03/10/2024-
07/10/2024 -
LODR
1. 3,6,9,10,11,12,14-18,20-23,24A,25-27,29,31A,32,33,34,41A,43,43A,44,45,48,98,99,99A
and 102.
2. Applicability - Securities listed on NSE,BSE and CSE.
3. Once u become listed, even if there is no public issue, the provisions will apply on you
always.
4. PMLA - Black money, Illegal gains,
5. Pupose of LODR, Related to compisition of Borad of directors, KMP to be read with
directors.
08/10/2024 -
1.
09/10/2024 -
ICDR -
1. To get securities listed on stock exchange, ICDR gets triggered. To becomes a public
company simply. LODR is triggered.
2. Four types of listings -
a) IPO and FPO - General public
b) Rights issues - existing shareholders
c) Bonus Issue - kind of rights issue
d) Merger/De-merger of company.
Regulation 6 -
- Regulation 7 -
- General Conditions
- LODR
- Important topics for exams w.r.t LODR - Applicability of LODR (3,4), Grievance
redressal mechanism (13), various committees (audit, remuneration etc.) (18-22),
composition of directors (17), obligations of a compliance officer (6,5), in-principal
approval (28) and disclosures required for Related Party Transactions (23).
- Part 1 - Short answers - There will be 5 questions of 5 marks each. We have to attempt
any 4.
- Part II – Long answers - There will be 5 questions of 10 marks each. We have to attempt
any 3.
- You can make flow-chart, diagram, paragraphs, bullet points - just convey that you have
understood the concept using key words.
- If you are dicey about two questions you can answer both of them. You will be marked
for the best out of the two.
ITL
06/06/2024 -
1. Article 1 -
- Life products - Later on
09/06/2024 - GATT
- Question 2) Are the like imported products being internally tagged or internally charged
in excess of domestic products? Two criteria-
1. 1) The internal tax/charge must not be in excess of domestic products.
2. 2) The internal tax/charge must not be applied in a manner that distorts conditions
of competition and consequently affords protection to domestic products.
- Read US Automobiles Case.
- Question 3) Concept of like products vis a vis directly competitive or substitutive product
—---------
12/09/2024 -
Mid-Sem questions -
- Answer :
Introduction
Defining "Likeness"
● Management of negotiations
● Limited discrimination against free riders
Thesis
● Internal measures (like taxes, subsidies, regulations) should be evaluated based on competition
between products rather than just their physical characteristics.
Key Points
Conclusion
Thesis
● Internal measures (like taxes, subsidies, and regulations) should be evaluated based on the
competitive relationships between products rather than just their physical characteristics.
Key Points
Conclusion
—---
1/10/2024 -
End Sem Paper pattern - one 30 mark question with 10 marks each sub-questions.
Anti-Dumping Measures -
1. Countries started getting decolonized in a political manner, i.e. there was a shift of
political power but economic power/trade power still rested with first world countries.
They were also controlling global doors and hegemony was there. Shift from political to
economic colonization.
2. There were different measures to this - to keep them dependant -
● Giving them cheap products s that there domestic industry is not able to compete
with international markets. For example - Chinese Lights being dumped in India.
Because of mass production, cheap labor etc. This does not let Indian producers
compete with imported items. This is good in short term from consumer
perspective but in the long run this goes against the country’s interests. When you
become dependent, they can increase prices. And if the domestic market hasn't
been able to compete, they will not flourish and lead to unemployment.
3. Article 6 of GATT -
2. Features -
- Investigation to find if there has been dumping - Find out change in prices - in
exporting countries, prices are v low. In importing countries, princes are high.
- Establishment of a material injury - has to be material injury not just injury.
- Establishment of a causal link - between exporting country and importing country.
3. Ascerting dumping -
- No internal body decides, investigation not possible by international body. If
sanctioned country has problem, approach WTO under MFN and NTP.
- Domestic investigation agnecy decides - India - DG of Anti Dumping and Allied
duties. China - MOFCOM. US - ITAD.
08/10/2024 -
1. Anti-dumping agreement :
2. Article 3 - injury - tells you manner in which injury should be determined.
Article 3.2 -
3. Difference between absolute and relative increase - relative might not be a significant
amount but absolute is sheer volume
4. Objectivity and verifiability of material injury - if it is able to be verified, then evidence
is posititve evidence. There is objective data.
5. Comparable prices explanation - 3.2 -
a) Price undercutting - Price of the product at issue is set below the domestic like
product.
b) Price suppression - Domestic prices of the product in issue are inhibited or
suppressed from rising. Or the increase is less than what would have been
otherwise. Stagnancy is there.
c) Price depression - DP of the product in issue are pressed down or reduced.
- Determination of injury -
- Fundamental substantive obligation to objectively examine and ascertain the positive
evidence :
- Article 3.2 - determination of volume and price effect by the like domestic dumped
imports in the importing country.
- Article 3.3 - Cumulation that is requirement ot investigate imports from more than one
country.
- Article 3.4 - Evaluation of relevant economic factors to assess the impact of dumped
products on the domestic industry.
- Article 3.5 - Determination of causal link between imported goods and injury. Non-
attribution analysis - to assess the impact of the factors - is not aattributed to the
dumped imports.
- Article 3.6 - effect sof dumped imports shall be assessed in relation to the domestic
production of the like product ……….
- 3.7 and 3.8 - determination of threat of material injury and special care while assessing
the same.
09/10/2024
Article 3.3 -
1. If anti dumping investigation happening on products from more than one country, there
are two ways to determine injury -
a)
b)
Cases -
● EC Pipe Fitting case - There is no particular rule/order in which harm can be ascertained.
They can look into any/all of these factors.
Article 3.5 -
Determination of causation -
- Shall examine any known factor other than the dumped imports which at the same
timemare injuring the domestic industry, and the injuries must not be attributed to the
dumped imports.
Article 3.6 -
- Effect of dumped imports shall be assessed in relation to the domestic production of the
like product when available data permit the separate identification of that production on
the basis of such criteria as the production process, producer’s sales and profits.
Article 3.8 -
11/10/2024 -
- Article 5.8 -
- Article 5.9 - anti dumping should not hinder procedures of customs clearance.
- 5.10 - in one year in general or maximum 18 months.
Article 6 - Evidence
- All interested parties will be issued notice, ample opportunity to provide all in writing all
evidence.
- Summary paragraph needs to be given b y parties who do not want to disclose
cobfedential information about prices.
- Applied when? Investigation starter, public notice issued, adequate opportunity to submit
information, dumping should be satisfied and injury should have been caused.
-
- Forms -
- Provisional duty
- Security or cash deposit equal to amount of estimated duty, not more than anti dumping
margin.
- Provisional measures shall not applied sooner than 60 days.
- If IA thinks effects of dumping is gone, then they have to conclude investigation and no
duty will be imposed on exprting company.
Question will be on if the process was taken in the correct manner. Just see what is broadly there
in the article.
Article 10 - Retroacitivyt
- Only apply to products entering after decision under article 7 and 9 is in force.
- Only apply to products meant for domestic consumption not others.
-
-
-
-
14/10/2024 -
- Article 13 -
- The IA has to have a judicial function, like a tribunal. Basically there should be an
appellate power, or local courts should have jurisdiction. Arbitral tribunal will also
suffice.
- Article 14 -
- Anti-dumping action on behalf of a third country -
- Article 17.6 -
- Article 17.7
23/10/2024 -
- RTAs formed due to Custom Unions and their own sanitary rules
- Not the same duty but substantially the same duty
- Custom unions means two or more territories coem together to have same tariff system.
- Another methods apart from CU can be FTAs.
Article 24(8) -
—--------------
PIL
06/09/2024 -
09/09/2024 -
- Mid sem syllabus - Until we finish the second module. No first module.
- Subjects of International Law -
- Pope or The Holy See - Till 1807, Pope had both sovereign rights as well as head of the
roman church. Since there was no separation of power, the pope was considered head. So,
he was also subject to international law. Then, there was separation of power by an act
called the Law of Guarantee. The Italian government took away sovereign powers of the
pope but could still represent the country in international organizations. In 1929, there
was a treaty signed called the Lateran Treaty clarified that position of holy see. His power
was taken and financial compensation was given to build the Vatican city after annexing
papal estate. Then he was made head of the Vatican state.
- International Organizations -
- Example - reparation case of Norwegian national. It was re-confirmed that International
organizations also are subjects of international law.
- Three conditions to satisfy - 1) Permanent association of states - for common objectives
and having its own administrative organs. 2) they must exercise some power that is
distinct from the sovereign powers of its member states. 3) Competencies must be
exercisable on an international level and not confined exclusively to the national system
of its member state.
- These conditions are not part of law, it is part of the advisory opinion of ICJ . Example -
ICJ Advisory opinion on legality of a threat or use of nuclear weapons 1996.
- Immunities and privileges -
- Capacity to enter into international arrangements.
- Binding on these international organizations.
- The right one exmoo id 19992, Geneva Convention law of war.
- NGOs and Transnational Organizations.
- A lot of NGOs are recognized as
- TransNational Organisation - Eg - Taliban. JP Morgan, World Bank etc.
- Case name - Texaco Overseas Petroleum Company vs. The Libyan Arab Republic.
- MNCs are also recognized as subjects of international law. They have to prove they are
doing more than profit earning.
- Government is also a subject, for example, in Tibet.
10/09/24 -
UN Charter -
- Article 3
- Article 4
12/09/2024 -
1. Article 6 - Recognition is unconditional and irrevocable.
2. Article 7 - Recognition of a state may be expressed or tactic.
7. Forms of recognition -
- De-facto recognition - When the act of one state recognizes another state. What
could be these factors - Not trades,
- De-Jure recognition - By law. By passing legislation or by declaring. Example -
Jerusalem-Palestine, Bangladesh.
- Premature recognition - States do not have basic essentials to recognize other
states but are still recognized. Ex- premature acceptance of Hong-Kong, Partial
recognition of Tiber.
- Explicit or Implicit recognition - Whenever any state declares - that is explicit.
Implicit - getting into a treaty etc. Great Britain recognizing Latin America as a
state - example of implicit and premature recognition.
- Collective recognition - Group of Countries/regional organizations recognising
the state. Example - OIC recognizing Syria etc.
10. Can there be de-recognition of state? As per montevideo, nope. Otherwise, yes. Example
- UK recognizing Ethiopia after capture by Italian government.
11. Non- Recognition of States - When we are talking about rules and mandates, obligations
may exist but rules and mandates are not enforceable.
20/09/2024
- Mid Sem -
- State Succession - This important topic, specially after the 18th century because more
than 100 nations getting de-colonized. The rapid formation of states has led to the
discussion over state succession.
- A lot of attempts have been made to codify state succession because there were disputes
relating to borders etc. Types and method of state succession -
- Methods - annexation, amalgamation, subjugation, merger, disintegration. No fixed
method was decided or demarcated.
- Reasons - De-colonization, Self-determination.
- Hence, it has not been codified. But why exactly? - Sovereignty. How can another state
provide for a framework for the sovereignty of another state?
-
- Vienna Convention definition -Replacement of one state by another in responsibility for
the international relation of territory.
- Types -
Mid-Sem questions -
Introduction -
1. Monistic Theory
● The Monistic Theory, articulated by Hans Kelsen and influenced by H. Lauterpacht,
posits a unified legal system encompassing both International and Municipal Law.
● Proponents argue that there is no significant distinction; both are viewed as parts of a
single legal framework, with International Law holding superiority.
● Lauterpacht's Perspective
● Lauterpacht emphasized the individual as a key component of society, allowing for the
transference of rights and obligations from Municipal to International Law.
● He contended that while the two systems serve the same fundamental purpose—
promoting human welfare—they are not equivalent.
● Critique of Monistic Theory
● Critics argue that Municipal Law often operates independently of International Law,
particularly in instances where historical contexts hinder alignment.
3. Dualist Theory -
● The **Dualist Theory**, championed by H. Triepel, maintains a clear distinction
between International and Municipal Law.
● This theory suggests that both operate as separate legal systems, with no inherent
hierarchy.
● Key Features
● - Dualism argues against the automatic transference of rights and obligations between the
two systems.
● - Municipal Law governs internal matters, while International Law pertains to relations
between states.
● International Law requires formal incorporation into Municipal Law for application,
typically through legal notice.
● Application
● - The theory emphasizes that states do not require third-party consent to enter agreements
with one another.
● - For example, the UN Charter mandates that states must adhere to its principles without
external interference.
5. Incorporation Theory
● - The **Incorporation Theory** asserts that International Law automatically becomes
part of Municipal Law when recognized by domestic legal frameworks.
● - Article 103 of the UN Charter stipulates that obligations under the Charter take
precedence over other international commitments.
● Judicial Considerations
● - Domestic courts may consider International treaties when interpreting national law,
particularly regarding human rights issues.
● Definition: Customary law is the oldest source of international law, binding on all States
without being codified in writing.
● Elements: Requires two key elements:
● 1. **State Practice**: Widespread and consistent behavior among States.
● 2. Opinio Juris: The belief that such practice is obligatory.
● Examples: The rule granting immunity to visiting Heads of State illustrates both
elements.
● Persistent Objector Principle: Allows States that consistently reject a rule before its
acceptance to avoid its application.
Treaties
● - **Nature**: Treaties are agreements that create obligations for the parties involved but
do not constitute a source of law per se.
● - **Pacta Sunt Servanda**: A customary rule that mandates States honor their treaties.
● - **Codification**: Many treaties serve to codify existing customary law (e.g., Vienna
Convention on the Law of Treaties, 1969).
● - **Impact**: Treaties can influence customary law when widely accepted and practiced,
becoming part of the law even for non-signatories.
General Principles
Judicial Decisions
Writings
● - **UN Acts**: Acts from UN organs significantly influence international law, even if
not explicitly mentioned in Article 38.
● - **General Assembly Resolutions**: While not legally binding, resolutions can shape
customary law and influence treaty negotiations.
● - **Security Council**: Decisions under Chapter VII of the UN Charter are legally
binding and take precedence over other agreements.
A Hierarchy of Norms?
1) Independent Sovereign States: The primary subjects with full rights and responsibilities.
2) Political Settlements: Entities like the Free City of Danzig established by treaties (e.g.,
Treaty of Versailles, 1919).
3) Condominiums: Joint sovereignty arrangements between states (e.g., Vanuatu).
4) Belligerents and Insurgents: Recognized in conflicts, with distinctions from terrorists.
5) Individuals: Acknowledged through international conventions and declarations.
4. Additional Subjects
● The Holy See: Historically held sovereign rights; its position was clarified through the
Law of Guarantee and the Lateran Treaty.
● International Organizations: Must meet specific criteria to be subjects, including:
1. Permanent Association: For common goals with distinct administrative organs.
2. Distinct Power: Authority beyond member states' sovereign powers.
3. International Competency: Ability to act at an international level.
● NGOs and Transnational Organizations: Entities like the Taliban and multinational
corporations (e.g., JP Morgan, World Bank) can be recognized as subjects if they meet
certain criteria.
6. Recognition Articles
7. Theories of Recognition
8. Forms of Recognition
● Non-recognition can lead to obligations that are not enforceable under international law.
04/10/2024 -
- 1911 - To be tried in india. He jumped off the ship and swam to france. French police
handed him to britishers. They reliase they have not followed extradition process. France
writes a letter to UK, saying give us savarkar back and request for extradition, then we
will send. Britishers went for arbitration. Arbitral ward was in favour of france, there was
breach of international law, proper procedure was not followed. But savarkar was not
returned to france. There was no sovereign duty on britain to return a fugitive and due to
lack customary law there was no mandate.
RENDITION -
- It is no compulsory to have treaty with a state. Its a bigger concept than extradition.
REFUGE/ASYLUM -
18/10/2024 -
Geneva Convention - this convention is to help, POW, sick and wounded, civilians.
23/10/2024 -
- Article 34 - Legal status of waters forming straits used for international navigation -
- Regime of passage through straits used for international navigation established in this
part shall not in other respects affect the legal status of the waters forming such straits.
- The sovereignty or jurisdiction of the states bordering the straits is exercised subject to
this part and to other rules of international law.
-
- Transit Passage (may be question on difference between transit passage and
innocent passage)
- Only available in contagious zone.
- Section 37 - Straits which are used for internal navigation between high sea/eez and
another high sea/eez.
- Archipelagic States -
- A.47 - Archipelagic baselines
- A.48 - Measurement of the breadth of the territorial sea, the contiguous zone, the
exclusive economic zone and the contiguous zone.
- A.49 - Legal status of archipelagic waters, of the air space over archipelagic waters and
of their bed and subsoil.
—------------------------------------------------------------------------------------------------------------------
Labour Law II
09/09/2024 -
- After superannuation, in the Organized sector, the government feels that people are too
infirm to work anymore. Hence, the Provident fund system.
19/09/2024
Mid-sem questions -
Additional Notes -
● - If certain payments exceed half of the total remuneration, the excess will be counted as
wages.
● - To ensure equal wages across genders, certain allowances (like travel and house rent)
will be included in wage calculations.
● - If an employee receives part of their wages in kind (non-cash), the value of that benefit
(up to 15% of total wages) is considered part of their wages.
Question 2) EPF
**1. Establishment of the Board**- The Central Government can create a Board of Trustees for
the Employees' Provident Fund, called the Central Board, through a notification. This Board will
manage the fund as outlined in the law.
**2. Membership Composition**:
**3. Legal Status**- The Central Board is a legal entity, able to sue and be sued, with a
perpetual existence and a common seal.
**4. Executive Committee** - The Central Government can create an Executive Committee
from Board members to help carry out its functions.
Overview of Rule 7 from the Draft of the Code on Social Security (Central) Rules, 2020
● Chairperson: Appointed by the Central Government from the Central Board members.
● Government Officials: Two members appointed from among five government officials.
● State Representatives: Three members appointed from among the fifteen state
representatives.
● Employer Representatives: Three members elected by the Central Board from employer
representatives.
● Employee Representatives: Three members elected by the Central Board from employee
representatives.
● Central Provident Fund Commissioner: Serves as a member by position.
● The Chairperson of the Central Board will organize a meeting to elect employer and
employee representatives.
● Members can propose and second candidates.
● If the number of candidates does not exceed available positions, they are automatically
elected.
● If there are more candidates than positions, members will vote using ballot papers.
● Candidates with the highest votes will be declared elected.
3. Validity of Elections:
● Any disputes regarding the election will be referred to the Central Government for
resolution.
4. Term of Office:
**5. Committees** - The Central Board can set up additional committees as needed to assist in
its duties.
**6. Delegation of Powers**- The Board can delegate some of its powers to the Chairperson,
Executive Committee, or officers, under certain conditions, for efficient management.
**7. Member Terms**- The Central Government will set terms, conditions, and tenure for Board
members. Members will stay in their roles until successors are appointed, even if their term has
expired.
**8. Additional Functions**- The Central Board can also perform other functions as directed by
the Central Government.
● The ESI Act is a key social security law for workers in India, providing health-related
protections such as benefits for sickness, maternity, and disability.
● Applicability: Covers establishments with 10 or more employees (20 in Maharashtra and
Chandigarh), with a wage limit of Rs. 21,000 per month.
● Coverage Areas: The ESI Scheme is implemented in 526 districts, but is not yet
operational in Arunachal Pradesh and Lakshadweep.
● The Central Government can create the Employees' State Insurance Corporation (referred
to as "the Corporation") through a notification, effective from a specified date.
2. Composition of the Corporation: The Corporation will include the following members:
3. Legal Status:
● The Corporation is a legal entity (body corporate) with perpetual existence, capable of
suing and being sued.
4. Standing Committee:
● The Central Government can create a Standing Committee from among the Corporation's
members to oversee operations.
● The Standing Committee will manage the Corporation's affairs and exercise its powers as
directed by the Central Government.
● It will present cases and matters for the Corporation's consideration and may also submit
additional matters for decision.
The Standing Committee of the Employees' State Insurance Corporation will be formed with the
following members:
● The Central Government may establish a Medical Benefit Committee to assist the
Corporation and Standing Committee with medical benefits administration.
● This committee will perform duties and exercise powers as prescribed by the Central
Government.
3. Additional Committees:
● The Corporation can create additional committees to help with its functions as needed.
● The Central Government will set the terms, conditions, and tenure for members of the
Corporation and the Standing Committee.
● Members will continue to serve until their successors are appointed, even if their term has
expired.
● The Medical Benefit Council is an advisory body that helps manage medical benefits
under the Employees' State Insurance (ESI) Scheme.
● It is formed by the Central Government for a specific term and includes:
○ Director General, Central Health Services (ex-officio Chair).
○ Deputy Director General/Addl. Director General, Central Health Services.
○ One member representing each State Government.
○ Three members each representing employees, employers, and the medical
profession.
○ Medical Commissioner of the ESI Corporation (ex-officio member).
● Advisory Role: It advises the Corporation on how to set up and manage Local
Committees for medical benefit administration.
● Recommendations: It makes recommendations on:
○ The scale and nature of medical benefits at hospitals and clinics, including
necessary medicines, staff, and equipment.
○ The medical formulary for benefits provided under the Code.
○ Procedures for medical certification and related records.
○ Health improvement measures and rehabilitation for insured persons who are
disabled or injured.
● Professional Conduct: It advises on matters related to the professional behavior of
medical practitioners providing these benefits.
● Members of the Corporation, except for specific officials, serve a term of four years,
starting from when their appointment is officially notified.
● Members continue to serve beyond this period until their successors are appointed.
● Non-official members can serve a maximum of two terms.
● Certain officials (as specified in the rules) hold office at the discretion of the Central
Government.
Question 5) National Social Security Board and State Unorganized Workers’ Board
● Establishment: The Central Government will create a National Social Security Board for
unorganized workers.
● Membership:
○ Chairperson: Union Minister for Labour and Employment.
○ Vice-Chairperson: Secretary, Ministry of Labour and Employment.
○ Forty nominated members:
■ 7 representing unorganized workers.
■ 7 representing employers.
■ 7 from civil society.
■ 2 members from the Lok Sabha, 1 from the Rajya Sabha.
■ 10 from relevant Central Government Ministries.
■ 5 from State Governments.
■ 1 representing Union territories.
○ Member-Secretary: Director-General of Labour Welfare (ex officio).
● Membership Criteria: Members, except the Chairperson, should be eminent in fields like
labour welfare, management, finance, and law, with representation from marginalized
groups.
● Term: Members serve for three years.
● Meetings: The Board will meet at least three times a year.
● Functions:
○ Recommend schemes for unorganized, gig, and platform workers.
○ Advise on administrative matters.
○ Monitor social welfare schemes.
○ Review state-level record-keeping and expenditure.
● Advisory Committees: The Central Government can form committees for additional
advice on unorganized worker matters.
2. State Unorganized Workers’ Board
● Establishment: Each State Government will form a State Unorganized Workers' Social
Security Board.
● Membership:
○ Chairperson: Minister of Labour and Employment of the State (ex officio).
○ Vice-Chairperson: Principal Secretary or Secretary (Labour).
○ One member from the Central Government.
○ Thirty-one nominated members:
■ 7 representing unorganized workers.
■ 7 representing employers.
■ 2 from the State Legislative Assembly.
■ 5 from civil society.
■ 10 from relevant State Departments.
○ Member-Secretary: As notified by the State Government.
● Membership Criteria: Similar to the National Board, emphasizing expertise and
representation from marginalized groups.
● Term: Members serve for three years.
● Meetings: The Board will meet at least once a quarter.
● Functions:
○ Recommend schemes for unorganized workers.
○ Advise on administrative matters.
○ Monitor state welfare schemes.
○ Review district-level record-keeping and registration progress.
● Advisory Committees: State Governments can establish committees for guidance on
unorganized worker issues.
2. Removal of Members
The Central or State Government can remove a member from a Social Security Organization if
they:
● Members must be given a chance to explain why they should not be removed.
3. Resignation
Members can resign by submitting a written notice to the appointing government. Upon
acceptance, their position becomes vacant.
4. Removal by Opinion
5. Disclosure of Interests
1. Meeting Procedures
● A Social Security Organization or its committees will meet at intervals determined by the
Central Government.
● Rule 12 outlines the following:
○ (a) Meetings are to be held at times and places decided by the Chairperson.
○ (b) The Central Board and Corporation will meet at least twice a year.
○ (c) The Executive Committee of the Central Board and the Standing Committee
of the Corporation will meet at least four times a year.
○ (d) The National Social Security Board will meet at least thrice a year.
2. Authentication of Decisions
● Orders and decisions must be authenticated by specified officials, such as the Central
Provident Fund Commissioner or the Director-General.
3. Validity of Actions
● Members of the Social Security Organization are entitled to fees and allowances as
prescribed by the Central Government.
5. Notice of Meetings
● (a) A minimum of 15 days' notice is required for ordinary meetings, detailing the agenda
and business to be transacted, which must be sent to all members.
● (b) For emergency meetings, reasonable notice is at the Chairperson's discretion.
● (c) No other business may be discussed unless permitted by the Chairperson.
6. Meeting Leadership
● The Central Provident Fund Commissioner and Director-General are full-time officers of
their respective bodies, prohibited from engaging in unrelated work without prior
approval from the Central Government.
2. Process of Supersession
3. Interim Arrangements
4. Reporting Requirements
● The Government must report any supersession actions and their context to Parliament or
the State Legislature within three months.
● The Central Government may establish a State Board after consulting the relevant State
Government.
● The Corporation can appoint Regional Boards and local committees to perform
designated functions and exercise specific powers.
● The Central Government may assign additional duties to a Social Security Organization,
including administering other Acts or schemes related to social security.
● Any expenses incurred in carrying out these functions will be covered by the Central
Government, subject to prior approval.
This section ensures that Social Security Organizations operate efficiently, transparently, and
within their designated powers, while also allowing for the addition of new responsibilities as
needed.
Question 1)
EPFO Overview
The Employees' Provident Fund Organisation (EPFO) is one of the largest social security
organizations globally, managing approximately 28.77 crore accounts as of the 2022-23 Annual
Report. It was established on November 15, 1951, through the Employees' Provident Funds
Ordinance and later formalized by the Employees' Provident Funds Act, 1952.
The Employees’ Pension Scheme (EPS) was introduced in 1995 to provide various pension
benefits to employees in establishments covered by the EPF Act.
4. (1)
The Central Government can form a Board of Trustees, known as the Central Board, for
managing the provident fund. It consists of:
4. (2)
The Central Board is a corporate body with perpetual succession and can sue or be sued.
4. (3) - (7)
The Central Government can create an Executive Committee to assist the Central Board and
delegate functions. The Board may also perform additional functions as prescribed by the
Government.
The Central Government appoints a Central Provident Fund Commissioner as the Chief
Executive Officer and other key officers to help manage the EPFO.
Appointments for certain positions require consultation with the Union Public Service
Commission, while the Central Government specifies recruitment methods and salary conditions
for officers.
15. (1)
● Employees' Provident Fund Scheme: For establishing provident funds for employees.
● Employees' Pension Scheme: For providing various pension benefits.
● Employees' Deposit Linked Insurance Scheme: For life insurance benefits.
● Additional schemes for self-employed workers and modifications to existing schemes.
These schemes may cover specific matters and can take effect on specified dates, either
prospectively or retrospectively.
The Provident Fund Scheme may include provisions on the following matters:
1. Eligibility and Exemptions: Guidelines on who must join the Fund and conditions for
exemptions.
2. Contributions: Details on the timing and method for making contributions.
3. Recovery of Contributions: How employee contributions may be collected by
contractors.
4. Committees: Establishment of committees to assist the board of trustees.
5. Account Management: Procedures for maintaining accounts and investing Fund money as
directed by the Central Government.
6. Administration Costs: Employer contributions necessary for Fund administration.
7. Withdrawals: Conditions for allowing withdrawals from the Fund.
8. Interest Rates: The rate of interest payable to members.
9. Employee Information: The format for employees to provide personal details.
10. Nomination: Process for nominating a person to receive benefits.
11. Records Maintenance: Registers and records that employers must maintain and submit.
12. Identity Cards: Design specifications for identity cards or tokens.
13. Fees: Any fees to be charged for specific purposes.
14. Defaults: Provisions regarding contraventions or defaults.
The Employees' Deposit-Linked Insurance Scheme may include provisions on the following
matters:
Withdrawal Rules
Case Law
● Regional Provident Fund Commissioner v. ABS Spinning Orissa Ltd (2009): The holding
company is not liable for dues under the scheme for its subsidiary, as they are separate
legal entities.
● The Central Government will establish a Pension Fund into which contributions will be
made for each employee under the Pension Scheme:
○ Up to 8.33% of wages from the employer's contribution.
○ Additional sums may be specified by the government.
Fund Management
● The Provident Fund, Pension Fund, and Insurance Fund will be managed by the Central
Board as specified in the respective schemes.
● Employer Contribution: No deductions from employee salaries; the employer covers the
entire contribution.
● Claim Amount: 35 times the average monthly salary (up to a maximum of ₹7 lakh).
● Average Salary Calculation: Based on Basic + Dearness Allowance.
● Bonus: A bonus of ₹1.75 lakh is also applicable.
● Opt-Out Option: Employers can opt out if they provide a higher-paying life insurance
scheme.
● EPF:
○ Employee: 12% of Basic + DA
○ Employer: 3.67% of Basic + DA
● EPS:
○ Employee: N/A
○ Employer: 8.33% of Basic + DA
● EDLI:
○ Employee: N/A
○ Employer: 0.5% of Basic + DA (capped at ₹75)
1. Employer Contributions:
○ Employers can recover contributions (both theirs and the employees') from
contractors through deductions or as a debt.
2. Contractor Deductions:
○ Contractors may deduct employees' contributions from their wages but cannot
deduct employer contributions or administrative charges from employee wages.
● Contributions due under this Chapter are prioritized over other debts, as per the
Insolvency and Bankruptcy Code, 2016.
Case Law:
1. Exempt Establishments:
○ Co-operative societies with fewer than 50 employees.
○ Establishments under government control providing similar benefits through other
schemes.
○ Employees receiving Provident Fund benefits under different laws prior to the
new Code.
2. Government Discretion:
○ The Central Government can exempt certain establishments from this Chapter
based on financial assessments.
Case Law:
1. Authorization:
○ Employers of establishments with 100 or more employees may apply to maintain
their own provident fund accounts.
○ No prior defaults in contribution payments are allowed for authorization.
2. Compliance:
○ Authorized employers must maintain accounts, submit returns, and comply with
other specified conditions.
3. Cancellation of Authorization:
○ The Central Government can cancel authorization if compliance fails, providing a
chance for the employer to respond.
● When an employee changes jobs, their provident fund or pension account balances will
be transferred according to the Provident Fund or Pension Scheme.
● Revised Form 13
● Valid ID proof
● Current PF account details
● Active UAN and employer-approved e-KYC
1. Filing Appeals:
○ Appeals against authority decisions on dues or damages can be made to the
Central Government's Tribunal.
○ Employers must deposit 25% of the determined dues before appeals are
entertained.
2. Timeline:
○ The Tribunal aims to resolve appeals within one year.
Appeal Documentation:
Landmark Judgments
This summary encapsulates key points from Sections 17-23 along with significant case law
relevant to the Employees' Provident Fund and associated regulations.
Cyber Law
06/09/2024 -
1. IT Act -
- Section 43(b)
Cloud Computing -
1. It can run from galaxy of computers connected through real time communication network
such as internet.
2. It is a synonym for distributed computing over a network.
3. So u need only an internet connection, no accessory, no apps, no updates, no applications,
no suits.
03/09/2024 -
Code of Conduct -
Nominee Directors -
Non-Mandatory Recommendations -
1. Qualified and Unqualified Reports/Opinion - Recommendation was - reporting should
always be as it is.
2. Training of Board members.
3. Evaluation of performance of board members.
4. Whistle blower policy.
5. MCA set up NFCG - PPP Model - Objectives for NFCG - Capacity building, research
and scholarship, culture of good governance, create framework of best practices.
JJ Irani Committee -
04/09/2024 -
11/09/2024 -
1. Mid-sem syllabus - Unit 1 and Unit 2 - 2*10 marks. Answer the question in parts.
12/09/2024 -
13/09/2024 -
20/09/2024 -
Mid-sem questions -
3. Japanese Model:
- Characteristics:
● - Keiretsu system (interlocking business relationships)
● - Main bank system
● - Lifetime employment
● - Focus on long-term relationships
- Advantages:
● - Long-term stability
● - Strong business networks
- Disadvantages:
● - Less flexibility
● - Potential for insider dominance
4. Indian Model:
● - Characteristics:
● - Mix of Anglo-Saxon and German models
● - Family-owned businesses common
● - Government involvement in some sectors
● - Evolving regulatory framework
- Advantages:
● - Adaptability to local conditions
● - Family businesses can provide stability
- Disadvantages:
● - Potential for family dominance
● - Challenges in implementing best practices
Each model has its own unique features, reflecting different cultural, legal, and economic
contexts. The effectiveness of each model depends on the specific environment in which it
operates.
1. Agency Theory:
Explanation: This theory focuses on the relationship between principals (shareholders) and
agents (managers). It assumes that managers may act in their own self-interest rather than in the
best interests of shareholders.
Example: The Enron scandal in 2001 is a classic example of agency theory problems. Executives
at Enron acted in their own self-interest by hiding debt and inflating profits, ultimately leading to
the company's collapse and significant losses for shareholders.
2. Stakeholder Theory:
Explanation: This theory argues that companies should consider the interests of all stakeholders,
not just shareholders. Stakeholders include employees, customers, suppliers, local communities,
and the environment.
Example: Patagonia, the outdoor clothing company, exemplifies stakeholder theory in action.
They prioritize environmental sustainability, fair labor practices, and community involvement
alongside profitability.
Example: When Facebook (now Meta) appointed Sheryl Sandberg to its board, it gained not just
her expertise but also her connections in the tech industry and government circles.
4. Stewardship Theory:
Explanation: This theory posits that managers are essentially good stewards of corporate assets
and will act in the best interests of shareholders without the need for strict oversight.
Example: Companies like Berkshire Hathaway under Warren Buffett's leadership exemplify
stewardship theory. Buffett is known for his long-term focus and alignment with shareholder
interests.
Explanation: This theory suggests that businesses have an implicit social contract with society
and must operate in a way that benefits society as a whole.
Example: The Body Shop, founded by Anita Roddick, built its business model around ethical
sourcing, opposition to animal testing, and support for social causes, reflecting a strong sense of
social contract.
Explanation: This theory proposes that companies need to operate within the bounds of what
society deems acceptable to maintain their legitimacy and "license to operate."
Example: After the Deepwater Horizon oil spill, BP had to work hard to regain its legitimacy.
This included cleanup efforts, compensation payments, and changes to its safety procedures.
7. Political Theory:
Explanation: This theory recognizes the influence of political factors on corporate governance,
including how political decisions and connections can shape governance practices.
Example: The varying corporate governance practices between countries (e.g., the stakeholder-
focused approach in Germany versus the shareholder-centric model in the US) reflect different
political and legal environments.
In practice, effective corporate governance often involves balancing insights from multiple
theories. For instance, a company might:
● Ancient Indian Concepts: The concept of good governance in India dates back to the
third century B.C., with Chanakya's fourfold duties of a king, which are comparable to
modern principles of protecting and enhancing shareholder value.
● Pre-1990s: Corporate governance wasn't a priority for Indian companies until the early
1990s.
● Economic Reforms (1991): The fiscal crisis and the resulting reforms initiated
liberalization, marking the beginning of improvements in governance standards.
● 1999-2003 Reforms: The Companies Act was amended multiple times to improve
corporate governance, followed by initiatives through SEBI and the Ministry of
Corporate Affairs.
● CII Task Force (1998): Developed the “Desirable Corporate Governance” code,
recommending reduced government stake in companies.
● Kumar Mangalam Birla Committee (1999): SEBI accepted its recommendations,
integrating them into Clause 49 of the Listing Agreement, promoting higher governance
standards.
● Naresh Chandra Committee (2002): Focused on auditor-client relationships and the
role of independent directors.
● Narayana Murthy Committee (2002): Reviewed the corporate governance code for
listed companies, introducing new norms on audit committees, risk management, and
independent directors.
● Clause 49 (2005): SEBI's Clause 49 of the Listing Agreement set out requirements
for board independence, audit committees, and financial disclosures.
● Companies Act, 2013: Introduced provisions for board structure, independent
directors, related party transactions, corporate social responsibility (CSR), and
transparency in company operations.
● Ethical Conduct: Governance must be based on ethical business practices, which are
crucial for sustaining stakeholder trust and long-term success.
● Board Accountability: Senior management and boards of directors need to
demonstrate ethical leadership by "walking the talk," as credibility is essential for
organizational morale.
● Global Competition: Indian corporations must adhere to international governance
standards to access global capital markets and attract top talent.
● Technology and Labor Mobility: Companies face challenges due to rapid
globalization, where capital, technology, and labor move across borders, creating a
complex governance landscape.
01/10/2024 -
● Comparison US vs. UK -
● US is comply, no chance to explain
● UK is comply or explain
● India is same as UK
03/10/2024 -
● OECD -
- OEEC earlier - administer the US -financed Marshall Plan for the reconstruction
of a continent ravaged by war.
- By making individual governments recognise the interpdependance of their
economics.
- These are certain principals that signatories are expected to follow.
- Council, Committees and Secretariat constitute Policy makers and policy shapers
- Functions
UNIT - 4
Internal Control -
04/20/2024 -
TABLE - ACTIVITY
Operation Risks Name
ISI Standard
Licensing
Grivience Redressal
HR Training
Recruiting
Retention
08/10/2024 -
- Listed companies
- All companies
16/10/2024 -
1. Business should conduct and govern themselves with integrity and in manner which is
ethical, transperacy
2. Business should provide goods and services in a manner that is sustainale and safe
3. Business should protect
4. Respect and promote human rights
5. influe……
6. 9.
21/10/2024
MDGs
- Developed countries were given less time, developing countries were give more time to
comply.
- There should be more compliance on developed.
- MDGs were not a success. Although there was more time for 3rd world countries, the
issues remained.
SDGs
- Fixed deadlines
- Broken down into 17 key goals and sub-goals
- Interface with many sectors, holistic vision
- SDGs mapped against NGRBC
- Essential Indicators and Leadership Indicators of Principles 1-9. (NGBRC)
- Do all companies need to conduct impact assessments?