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How is an NGO, a Trust and a Foundation Different?

From a legal standpoint, there is hardly any difference. An NGO or a Foundation cannot be registered. The legal viewpoint is that an NGO has one of three entities; its either a Public Trust or a Society or a not-for-profit organization or foundation. Under the Income Tax Act, all 3 entities are tax-exempt entities.Both trust and society alike are two types of a non-profit or non-government organization in India. Therefore if anyone intends on doing social work and for this purpose needs a legal entity, then either a trust or a society can be registered. One can also register a company under section 25 but in most cases, a registered is a norm or society for benevolent work.Trust is a comparatively simpler entity and can be easily registered and operated. Such organizations are fundamentally rooted in trust. Donations are purely based on trust that the donated funds would be fully utilized to serve the purpose mentioned in one’s trust deed. Trustees do not owe any explanation to anyone other than the Charity Commissioner and the applicable laws. Any tax breaks u/s 80g and 12a can be revoked if trustees do not abide by the rules, laws, and regulations of the Income Tax department. Analyzing NGO Registration people seem to think that even with lack of funds if NGO registration is done then their goals and objectives can be attained. Truth is as quickly as some NGOs are being registered they are also winding up quickly or even leaving it in the middle. If NGOs are registered with the intention or mindset of obtaining external grants and donations then such NGOs would not be sustainable in the long run. A company donating a chunk of funds to charity on a regular basis, then in such cases an NGO can be registered with enhanced sustainability planning.  In India, there are many registered NGOs only on paper and only about a little over half of NGOs are actually working for the betterment of society. NGOs can be formed in no time at all. However, when project funds from local government schemes or contributions from foreign countries are on hold indefinitely then the entire NGO comes to a screeching halt. Rather than looking for easier options for forming an NGO, for NGO registration its imperative to analyze the actual requirement and the strength to form, manage and maintain such NGO is far more important.Call 7604047601 for consultation with a registered expert Trust and Society NGO lawyers on Vidhikarya.

Posted By

Avik Chakravorty

1 month ago

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Why is RTI Amendment Bill So Controversial?

Although the Lok Sabha has passed and ratified The Right to Information Amendment Bill 2019 the Opposition is dead against it. Invectives like ‘dangerous’ and ‘dark day for democracy’ have been hurled against the bill. Changes have been suggested in regard to the terms and conditions of appointment of information commissioners at the center and state levels. The three provisions of the RTI amendment bill have been challenged by the members of Opposition in Parliament and by protesters in the field.Nonetheless, prior to going forward, the basic things that the RTI Act of 2005 does is based on the existing law which says that the public authorities are required to disclose on·        their organization, functions, and structure·        rights and duties of its officers and employees·        financial dataIf the public authorities do not provide the required information of their own volition, then, in that case, its citizen’s right to demand it from them based on the RTI Act. "Public authorities" refer to ministers and government servants among others.The head of the central information commission is the chief information commissioner and other information commissioners appointed by none other than the President representing the Central Government for a fixed term of five years with the salary of the chief election commissioner’s, as well as the election commissioner's salary respectively. The intent and purpose of this initiative were granting autonomous powers to the central information commission as well as provide protection from government surveillance. The amendments ` ` ` `The RTI amendment bill of 2019, excludes the five years tenure of the chief information commissioners and the information commissioners. The payouts on account of salary have been revised. Separate notifications will be sent by the government to both. Politically, what this means is that the government can and will pose a threat or entice the chief information commissioner and information commissioners with random removal or extension and curtailment or increase in salary depending upon their suitability for the ruling dispensation.Call 7604047601 for consultation with a registered expert right to information lawyer on Vidhikarya.

Posted By

Avik Chakravorty

1 month ago

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Consult Top Financial Markets and Services Lawyers in India

Shreedhar Ramesh Das

Shreedhar Ramesh Das

Advocate
Exp
Bagalkot , Karnataka

Specialization

  • Financial Markets and Services
  • Cheque Bounce
  • Debt And Lending Agreement
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Practicing since 2004 View Full Profile
Sunil  Jain

Sunil Jain

Lawyer
Exp
Ghaziabad , Uttar Pradesh

Specialization

  • Financial Markets and Services
  • Criminal
  • Bankruptcy And Debt
  • Contracts And Agreements
  • Customs, Excise
I am a criminal lawyer by profession based in Ghaziabad with appearance before all Courts and Tribunals in Delhi / NCR including Allahabad High Court and adjoining Districts of Western Uttar Pradesh like Meerut Moradabad Bulandshahr Muzzafarnagar Hapur Noida. View Full Profile
Johnson  Thangiah

Johnson Thangiah

Advocate / Trial Advocate
Exp
Tirunelveli , Tamil Nadu

Specialization

  • Financial Markets and Services
  • Civil
  • Cheque Bounce
  • Consumer Protection
  • Child Custody
Actively practicing before the District sessions courts of Tirunelveli and Tuticorin of Tamilnadu state India past more than 17 years.Also appearing before the Madras High Court Madurai Bench.Mainly concentrating on "TRIAL" works.( "Expert in Economic Offences") Mobile 9443194559 View Full Profile
Total Answers Given : 282
Sunil Kumar  Singh

Sunil Kumar Singh

Lawyer,Attorney,Solicitor
Exp
Kanpur , Uttar Pradesh

Specialization

  • Financial Markets and Services
  • Contracts and Agreements
  • Commercial
  • Consumer Protection
  • Advertising
Prominent Lawyer,Experience to Assit Court of Justice , He has been providing services in various fields of law, including, but not limited to Civil, Criminal, Arbitration, Labour & Service Matters, Intellectual Property Rights, Trademark, matters relating to Property Law, Copyright, inter Thank View Full Profile
Total Answers Given : 242
Ramalingaiah  Mulakatte

Ramalingaiah Mulakatte

Senior Lawyer
Exp
Mumbai City , Maharashtra

Specialization

  • Financial Markets and Services
  • Arbitration and Mediation
  • Consumer Protection
  • Civil
  • Cheque Bounce
Advocate/Senior legal adviser/Legal Counsel handling all types of legal matters both litigation and non-litigation and corporate legal adviser View Full Profile
Total Answers Given : 91
sistla  ramakrishna

sistla ramakrishna

Senior Lawyer
Exp
Vijayawada , Andhra Pradesh

Specialization

  • Financial Markets and Services
  • Civil
  • Divorce
Civil Cases Handle View Full Profile
Total Answers Given : 76
Shailesh  Kumar

Shailesh Kumar

Advocate
Exp
Ranchi , Jharkhand

Specialization

  • Financial Markets and Services
  • Civil
  • Advertising
  • Animal Laws
  • Aviation
I am a highly educated in different fields and experienced advocate providing online and offline Legal Consultancy/Support/Services to my national and international client on almost all aspects of law. View Full Profile
Total Answers Given : 21
N  Shekhar

N Shekhar

Advocate
Exp
Patna , Bihar

Specialization

  • Financial Markets and Services
  • Criminal
  • Advertising
  • Animal Laws
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Best Lawyer View Full Profile
Total Answers Given : 16
 Shuchei  Agarwal

Shuchei Agarwal

Advocate
Exp
Gautam Buddha Nagar , Uttar Pradesh

Specialization

  • Financial Markets and Services
  • Family
  • Domestic Violence
  • Advertising
  • Animal Laws
Total Answers Given : 11
Dr Vedula  Gopinath

Dr Vedula Gopinath

senior lawyer and arbitrator
Exp
Visakhapatnam , Andhra Pradesh

Specialization

  • Financial Markets and Services
  • Civil
  • Arbitration and Mediation
  • Privacy
  • Corporate And Incorporation
Senior Lawyer View Full Profile
Total Answers Given : 9
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  • What is Financial Market?
  • What is Financial Service?
  • Who are the primary regulators of the financial sector in India?
  • What is the aim of regulating the financial sector globally?

Vidhikarya will help you find a most suitable lawyer, for you in your city, who will be able to answer all your Financial Market and Service Laws related queries, and also guide you on how to resolve this matter with ease.

About the Financial Market and Service Laws


As per Black’s Law Dictionary, Financial Markets refer to the market for stock, bonds, bills of exchange, commodities, futures, and options. They are exchanges for capital or credit. Refer to capital market and money market.

As per Black’s Law Dictionary, Financial Services refer to the skills and offers that are offered by a bank or financial institution. It can be a savings account, checking account, confirming, leasing, or money transfer.

Indian Capital Markets are managed and checked by the Ministry of Finance, The Securities and Exchange Board of India and The Reserve Bank of India.

The Ministry of Finance manages through the Department of Economic Affairs - Capital Markets Division. The division is in charge of detailing the arrangements identified with the systematic development and improvement of the securities markets (i.e. offer, obligation and subordinates) and in addition ensuring the enthusiasm of the financial specialists. Its primary aim is reformation in the securities market on an institutional level, the building of a regulatory framework, bolstering investor protection mechanism, provision for the efficient legal framework for securities markets.

Regulators of Financial Market and Service Laws


The primary regulators of the financial sector in India are:

  • The Securities and Exchange Board of India (SEBI) which sets up regulatory policy, carries out implementation as well as has the power of enforcement of the regulatory rules. Complaints regarding decisions of SEBI are adjudicated by the Securities Appellate Tribunal
  • Reserve Bank of India which looks into the aspect of implementation of monetary and credit policies. RBI is the banker to the government. RBI has several policies which affect the financial sector. These policies also influence the rates of inflation.
  • National Stock Exchange (NSE) – it provides specific regulations for the domain of securities market.

Need of regulating the financial sector


The goal of regulating financial sector is to protect the de facto principles of regulation which include things like protection of stability in pricing, safeguarding of the small investors, prevention of market misconduct, and so on.

Regulation of financial sector universally is comprehensively guided by two aims: prudential regulation and direct of business regulation, including consumer protection. The four key institutional frameworks for regulation of the financial sector globally – Institutional Approach (element based regulation), Functional Approach (movement based regulation), Integrated Approach (all-inclusive controller model) and Twin Peaks Approach (division of prudential regulation and lead of business regulation) – all endeavour to address the above destinations through various formal structures. Post-crisis, another measurement of 'systemic stability' is being tried to be included as another goal of financial sector regulation yet the correct shapes in such manner are still in progress.

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