CREDIT GUARANTEE FUND FOR STARTUPS

CREDIT GUARANTEE FUND FOR STARTUPS

Government is formulating a Credit Guarantee Scheme for Startups (“CGSS”) with a corpus contribution of INR 2000 crores that will enable Startups to raise loans without any collateral for their business purposes. The proposed scheme will provide credit guarantee upto INR 500 lakhs per case inclusive of term loan, working capital or any other instrument of assistance extended by Member Lending Institutions (“MLIs”) to finance an eligible borrower i.e. a Startup recognized by Department of Industrial Policy and Promotion (DIPP).

The main norms and preconditions of the CGSS are as follows:

Scheme will provide benefit to a Startup recognized by DIPP as per Gazette Notifications issued from time to time;

For all resident Directors/Partners, Aadhaar shall be mandatory and for non-resident directors/partners, the passport number shall be a mandatory part of KYC norms;

Member Lending Institutions (“MLIs”) under the scheme can be Scheduled Commercial Banks and Financial Institutions, RBI registered Non-Banking Financial Companies (“NBFCs”), SEBI registered AIFs, etc;

The scheme will function under the trusteeship management of the National Credit Guarantee Trustee Company (“NCGTC”);

Scheme shall provide portfolio- based credit guarantee. Each portfolio shall comprise at least 10 eligible start up loans, during a particular Financial Year;

Coverage would be extended to the portfolio and the portfolio loss would be reckoned against the “net cash losses” during the portfolio life;

Instruments of assistance could be in the form of Venture debt, working capital, debentures, Optionally Convertible debt, etc;

MLIs may provide loans to up to any amount required by an eligible borrower. However, under the scheme the exposure for availing credit guarantee shall be limited to Rs.500 lakh per eligible borrower. 

Such loan will be extended by MLIs without any collateral security and/or third party guarantee;

The Management Committee shall be responsible for the overall supervision and monitoring of the Credit Guarantee Scheme for start-ups;

A Risk Evaluation Committee shall also be formed to address conflict of interest issues;

This information was given by the Commerce and Industry Minister  Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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Profile of President Shri Ram Nath Kovind- In short

Profile of President Shri Ram Nath Kovind

A lawyer, veteran political representative and long-time advocate of egalitarianism and integrity in Indian public life and society, Shri Ram Nath Kovind was born on October 1, 1945, in Paraunkh, near Kanpur, Uttar Pradesh. His parents were Shri Maiku Lal and Smt Kalawati.

Before assuming charge of the office of the 14th President of India on July 25, 2017, Shri Kovind served as the 36th Governor of the state of Bihar from August 16, 2015, to June 20, 2017.

Educational and Professional Background

Shri Kovind completed his school education in Kanpur and obtained the degrees of B.Com and L.L.B. from Kanpur University. In 1971, he enrolled as an Advocate with the Bar Council of Delhi.

Shri Kovind was Union Government Advocate in the Delhi High Court from 1977 to 1979 and Union Government Standing Counsel in the Supreme Court from 1980 to 1993. He became Advocate-on-Record of the Supreme Court of India in 1978. He practised at the Delhi High Court and Supreme Court for 16 years till 1993.

Parliamentary and Public Life

Shri Kovind was elected as a member of the Rajya Sabha from Uttar Pradesh in April 1994. He served for two consecutive terms of six years each till March 2006. Shri Kovind served on various Parliamentary Committees like Parliamentary Committee on Welfare of Scheduled Castes/Tribes; Parliamentary Committee on Home Affairs; Parliamentary Committee on Petroleum and Natural Gas; Parliamentary Committee on Social Justice and Empowerment; and Parliamentary Committee on Law and Justice. He was Chairman of the Rajya Sabha House Committee.

Shri Kovind also served as Member of the Board of Management of the Dr B.R Ambedkar University, Lucknow, and Member of the Board of Governors of the Indian Institute of Management, Kolkata. He was part of the Indian delegation at the United Nations and addressed the United Nations General Assembly in October 2002.

Positions Held

2015-17: Governor of Bihar

1994-2006: Member of the Rajya Sabha, representing the state of Uttar Pradesh

1971-75 and 1981: General Secretary, Akhil Bharatiya Koli Samaj

1977-79: Union Government Advocate at the Delhi High Court

1982-84: Union Government Junior Counsel in the Supreme Court

Personal Details

Shri Kovind married Smt Savita Kovind on May 30, 1974. They have a son, Shri Prashant Kumar, and a daughter, Miss Swati. An avid reader, the President has keen interest in reading books on politics and social change, law and history, and religion.

During his long public career, Shri Kovind has travelled widely across the country. He has also visited Thailand, Nepal, Pakistan, Singapore, Germany, Switzerland, France, the United Kingdom and the United States in his capacity as a Member of Parliament.

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GST ACT WILL BE APPLICABLE IN DECEMBER, 2017 FOR CS STUDENTS

GST ACT WILL BE APPLICABLE IN DECEMBER, 2017 FOR STUDENTS (WHETHER EXECUTIVE OR PROFESSIONAL PROGRAMME) APPEARING IN DECEMBER  

BE READY THIS TIME, USE TIME WISELY

READ FOLLOWING ACT BEFORE APPEARING IN YOUR EXAMINATION:

a.) The Central GST Act,2017

b.) The Integrated GST Act,2017

c.) The Union Territory GST Act,2017

d.) The GST(Compensation to States) Act,2017

RULES WILL NOT BE APPLICABLE

https://www.icsi.edu/WebModules/Notification_GST_CS_Professional_Programme.pdf

I WILL SHARE WITH YOU VARIOUS BOOKS ON GST OF VARIOUS AUTHORS SOON.