Now One Person Company (OPC) to be registered as a stock broker/sub-broker
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Definition: As defined in Section 2(63) of the Companies Act, 2013, means a company which has only one person as a member.
Condition for OPC: (1) Only a natural person who is an Indian citizen and resident in India-
(a) shall be eligible to incorporate a One Person Company;
(b) shall be a nominee for the sole member of a One Person Company.
Explanation.- For the purposes of this rule, the term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one calendar year.
(2) No person shall be eligible to incorporate more than a One Person Company or become nominee in more than one such company.
(3) Where a natural person, being member in One Person Company in accordance with this rule becomes a member in another such Company by virtue of his being a nominee in that One Person Company, such person shall meet the eligibility criteria specified in sub rule (2) within a period of one hundred and eighty days.
(4) No minor shall become member or nominee of the One Person Company or can hold share with beneficial interest.
(5) Such Company cannot be incorporated or converted into a company under section 8 of the Act.
(6) Such Company cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporates.
(7) No such company can convert voluntarily into any kind of company unless two years have expired from the date of incorporation of One Person Company, except threshold limit (paid up share capital) is increased beyond fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees.
Further Conditions are Imposed by Circular Ref.No.: 247/2016 of NSE: OPC is eligible to:-
a. be registered as a stock broker, provided it satisfies the condition of minimum two directors, as stipulated under Rule 8 (4A) (v) of Securities Contract (Regulation) Rules, 1957;
b. be registered as a stock broker, however, such entity shall not be permitted to trade in their proprietary account;
c. be registered as a sub-broker subject to fulfilling the eligibility criteria as specified under Regulation 11 A (5) of SEBI (Stock Broker and Sub-Broker) Regulations, 1992.
Further, the entity shall ensure compliance with the provisions of the SEBI Act, 1992, Regulations, Circulars/ Guidelines/ Directives/ Instructions etc. as may be issued from time to time by SEBI or the Government of India relating to the activities carried on by it.
Ref:
1. Companies Act, 2013
2. Companies. (Incorporation) Rules, 2014
3. Circular Ref.No.: 247/2016 of NSE
CA. Mayank Agarwal
+91-7879084121
camayankagarwal1006@gmail.com
Indore
Category : Shares & Stock | Comments : 0 | Hits : 833
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