EquiCorp AssociatesAdvocates & Solicitors

National Pension System- Aggregator Registration

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National Pension System

National Pension System (“NPS”), aninitiative of the sector regulator i.e.,Pension Fund Regulatory andDevelopment Authority (“PFRDA”).

NPS is an easily accessible, low cost,tax-efficient, flexible and portableretirement savings account. Under theNPS, the individual contributes to hisretirement account and also his employercan co-contribute for the socialsecurity/welfare of the individual. NPS isdesigned on a defined contribution basiswherein the subscriber contributes to hisaccount, there is no defined benefit thatwould be available at the time of exitfrom the system and the accumulatedwealth depends on the contributionsmade and the income generated frominvestment of such wealth.

National Pension System (“NPS”), aninitiative of the sector regulator i.e.,Pension Fund Regulatory andDevelopment Authority (“PFRDA”).

NPS is an easily accessible, low cost,tax-efficient, flexible and portableretirement savings account. Under theNPS, the individual contributes to hisretirement account and also his employercan co-contribute for the socialsecurity/welfare of the individual. NPS isdesigned on a defined contribution basiswherein the subscriber contributes to hisaccount, there is no defined benefit thatwould be available at the time of exitfrom the system and the accumulatedwealth depends on the contributionsmade and the income generated frominvestment of such wealth.

NPS Lite

NPS Lite is a model of NPS which islow-cost, feature optimized model,aimed at economically disadvantagedsections of the society. The NPS Litemodel has been developed by PFRDAto provide a uniform platform for oldage income security to all sections ofsociety and facilitate economicallyweaker sections of the society to jointhe NPS platform. NPS Lite is intendedto reach its target population throughspecific entities identified by PFRDA,termed as Aggregators, explained infurther detail below.

NPS Lite is a model of NPS which islow-cost, feature optimized model,aimed at economically disadvantagedsections of the society. The NPS Litemodel has been developed by PFRDAto provide a uniform platform for oldage income security to all sections ofsociety and facilitate economicallyweaker sections of the society to jointhe NPS platform. NPS Lite is intendedto reach its target population throughspecific entities identified by PFRDA,termed as Aggregators, explained infurther detail below.

Aggregators

Aggregators are entities identifiedby PFRDA for making NPSavailable to their constituentsubscriber base and maintain theminto NPS Lite system. Thus,Aggregators shall be the maininterface between the NPS Litesubscriber and NPS architecture.The Regulations for Aggregatorsunder NPS Lite-2010 (hereinafterreferred to as “Regulation”) is theregulatory framework that governsthe NPS Lite model and thefunctioning of Aggregators.

Aggregators are entities identifiedby PFRDA for making NPSavailable to their constituentsubscriber base and maintain theminto NPS Lite system. Thus,Aggregators shall be the maininterface between the NPS Litesubscriber and NPS architecture.The Regulations for Aggregatorsunder NPS Lite-2010 (hereinafterreferred to as “Regulation”) is theregulatory framework that governsthe NPS Lite model and thefunctioning of Aggregators.

Eligibility Criteria to be anAggregator

Entity to be registered (under act of central or state government) and/oradequately regulated by any of the financial sector regulator(s);

Registered entity must be must have been registered under any of thefollowing:-

i. Societies Registration Act 1860 ( or a State amendment of this Act)

ii. Indian Trusts Act, 1862

iii. Charitable and Religious Trusts Act, 1920

iv. Indian Companies Act, 1956 ( section 25, for non profit companies)

v. Indian Companies Act 1956 with necessary certification from RBI (forNBFCs)

vi. Indian Companies Act 1956, for any other company

Entity to be registered (under act of central or state government) and/oradequately regulated by any of the financial sector regulator(s);

Registered entity must be must have been registered under any of thefollowing:-

i. Societies Registration Act 1860 ( or a State amendment of this Act)

ii. Indian Trusts Act, 1862

iii. Charitable and Religious Trusts Act, 1920

iv. Indian Companies Act, 1956 ( section 25, for non profit companies)

v. Indian Companies Act 1956 with necessary certification from RBI (forNBFCs)

vi. Indian Companies Act 1956, for any other company

Eligibility Criteria contd.

Entity must have been in business of financial services or commoditydevelopment for last three (3) years with proven track record and befinancially viable;

Entity must satisfy the following net worth criteria:-

i. INR 1 Crore for being in business for last 3 – 5 years;

ii. INR 50 lakhs for being in business for more than 5 years;

iii. the net worth criteria can be relaxed completely/partly at the discretionof PFRDA for entities having exceptional track record and more than10 years of experience;

Entity must have been in business of financial services or commoditydevelopment for last three (3) years with proven track record and befinancially viable;

Entity must satisfy the following net worth criteria:-

i. INR 1 Crore for being in business for last 3 – 5 years;

ii. INR 50 lakhs for being in business for more than 5 years;

iii. the net worth criteria can be relaxed completely/partly at the discretionof PFRDA for entities having exceptional track record and more than10 years of experience;

Aggregators- Role &Responsibilities

Promotion of NPS and awareness about the need for old age income securityamong its constituent group members;

Meeting the ‘Know Your Customer’ requirements in respect of potential NPSsubscribers as mandated under AML/CFT requirements. KYC requirements incase of NPS Lite subscribers shall be governed by provisions of RBI MasterCircular no RBI/2008-09/72 dated July 01, 2008 and as amended from time totime till separate orders on this aspect are issued by PFRDA;

Discharge of responsibilities relating to fund and data upload within prescribedtime limits;

Collection of contributions from subscribers and ensuring its passage to TrusteeBank.

Ensuring availability of services including distribution of Annual Statement ofTransactions and showing online statements to its underlying subscribers asmandated under NPS-Lite;

Handling grievances received from subscribers and their resolution

Promotion of NPS and awareness about the need for old age income securityamong its constituent group members;

Meeting the ‘Know Your Customer’ requirements in respect of potential NPSsubscribers as mandated under AML/CFT requirements. KYC requirements incase of NPS Lite subscribers shall be governed by provisions of RBI MasterCircular no RBI/2008-09/72 dated July 01, 2008 and as amended from time totime till separate orders on this aspect are issued by PFRDA;

Discharge of responsibilities relating to fund and data upload within prescribedtime limits;

Collection of contributions from subscribers and ensuring its passage to TrusteeBank.

Ensuring availability of services including distribution of Annual Statement ofTransactions and showing online statements to its underlying subscribers asmandated under NPS-Lite;

Handling grievances received from subscribers and their resolution

Aggregator Registration

The NPS Lite model has a three tier architecture as per which eachAggregator has to register one of its offices as oversight office (“NL-OO”) in NPS Lite to monitor and control the operations being performedby its underlying offices. Aggregator is also expected to designateoffice(s) as collection centers (“NL-CC”) for performing the functions ofcollection and processing of contributions of underlying subscribers. Thebroad roles of designated offices of the Aggregator and the sequence ofregistration of these offices are as under:

a. Registration of NL-OO - NL-OO is expected to undertake monitoring & controllingfunctioning of its underlying offices (NL-AOs i.e., uploading office and NL-CCs) towardsdischarging services as per the service standards defined by PFRDA. NL-OO is required tofill up the registration form (N1 form) and submit the same to Central RecordkeepingAgency (“CRA”). The NL-OO is required to self-authorize the form before submission ofthe same to CRA (NSDL, Mumbai);

The NPS Lite model has a three tier architecture as per which eachAggregator has to register one of its offices as oversight office (“NL-OO”) in NPS Lite to monitor and control the operations being performedby its underlying offices. Aggregator is also expected to designateoffice(s) as collection centers (“NL-CC”) for performing the functions ofcollection and processing of contributions of underlying subscribers. Thebroad roles of designated offices of the Aggregator and the sequence ofregistration of these offices are as under:

a. Registration of NL-OO - NL-OO is expected to undertake monitoring & controllingfunctioning of its underlying offices (NL-AOs i.e., uploading office and NL-CCs) towardsdischarging services as per the service standards defined by PFRDA. NL-OO is required tofill up the registration form (N1 form) and submit the same to Central RecordkeepingAgency (“CRA”). The NL-OO is required to self-authorize the form before submission ofthe same to CRA (NSDL, Mumbai);

Aggregator Registration contd.

b. Registration of NL-AO - Upon successful registration of the NL-OO, registration of NL-AO shall commence. The NL-AO is expected to undertake contribution upload on CRALite system and fund transfer to Trustee Bank for its underlying subscribers. NL-AO isrequired to fill up the registration form (N2 form) and submit the same to NL-OO forauthorization. Upon authorization, NL-OO shall send the form to CRA for registration.

c. Registration of NL-CC – NL-CCs or collection centers are expected to interface withsubscribers and perform key functions relating to collection of registration forms,undertaking KYC, contribution collection and passing the contribution information andfunds to NL-AO for further processing. Registration of NL-CCs will be undertaken uponcompletion of registration of NL-AO in NPS Lite. The NL-CCs registration form (N3form) shall be authorized and forwarded by the respecting NL-AOs to which they arelinked.

b. Registration of NL-AO - Upon successful registration of the NL-OO, registration of NL-AO shall commence. The NL-AO is expected to undertake contribution upload on CRALite system and fund transfer to Trustee Bank for its underlying subscribers. NL-AO isrequired to fill up the registration form (N2 form) and submit the same to NL-OO forauthorization. Upon authorization, NL-OO shall send the form to CRA for registration.

c. Registration of NL-CC – NL-CCs or collection centers are expected to interface withsubscribers and perform key functions relating to collection of registration forms,undertaking KYC, contribution collection and passing the contribution information andfunds to NL-AO for further processing. Registration of NL-CCs will be undertaken uponcompletion of registration of NL-AO in NPS Lite. The NL-CCs registration form (N3form) shall be authorized and forwarded by the respecting NL-AOs to which they arelinked.

NPS Architecture

Consult the Experts

Complete assistance for making the necessary filings,applications etc. for obtaining PFRDA approval.Informal discussion with contact personnel withinPFRDA so as to perfect the application before thesame is submitted.Follow up support at various points in time duringand after the pendency of the application so as toensure that any additional documents/recordsrequested by the PFRDA is submitted in a systematicand timely manner. Updating Company on a regular basis as to thestatus of the pending application.

Complete assistance for making the necessary filings,applications etc. for obtaining PFRDA approval.Informal discussion with contact personnel withinPFRDA so as to perfect the application before thesame is submitted.Follow up support at various points in time duringand after the pendency of the application so as toensure that any additional documents/recordsrequested by the PFRDA is submitted in a systematicand timely manner. Updating Company on a regular basis as to thestatus of the pending application.

About Us Equi Corp Associates (ECA) is a mission driven, start-up law practice based in New

Delhi, India and founded in 2012 for providing affordable access to legal counselbenefitting start-ups, small and growing businesses, social business enterprises, impactinvestors and non-profit organizations. Our boutique service offerings are primarily at theintersection of start-up, sustainable development, social enterprise and investmentsectors, designed to help clients wade through laws that were not originally designedwith them in mind.

The basic idea behind starting ECA was to be a part of India’s growth by reaching out tonovel start-ups and established businesses, and helps them adapt best globalpractices/technologies in local conditions and in advising them about legal aspectsinvolved in modern markets in order to keep our clients in pace with the dynamiccompetitive environment.

ECA is instrumental in advising various social enterprises and start ups in setting uptheir business in India.

ECA not only having some of the best legal minds, but the best business minds too:lawyers are intimately familiar with the business environment, and know the emergingrisks and opportunities of their industries and practice groups.

Equi Corp Associates (ECA) is a mission driven, start-up law practice based in NewDelhi, India and founded in 2012 for providing affordable access to legal counselbenefitting start-ups, small and growing businesses, social business enterprises, impactinvestors and non-profit organizations. Our boutique service offerings are primarily at theintersection of start-up, sustainable development, social enterprise and investmentsectors, designed to help clients wade through laws that were not originally designedwith them in mind.

The basic idea behind starting ECA was to be a part of India’s growth by reaching out tonovel start-ups and established businesses, and helps them adapt best globalpractices/technologies in local conditions and in advising them about legal aspectsinvolved in modern markets in order to keep our clients in pace with the dynamiccompetitive environment.

ECA is instrumental in advising various social enterprises and start ups in setting uptheir business in India.

ECA not only having some of the best legal minds, but the best business minds too:lawyers are intimately familiar with the business environment, and know the emergingrisks and opportunities of their industries and practice groups.

ECA’s Network Presence

Delhi/NCR

Dehradun

Jaipur Allahabad Guwahati

Mumbai

Bangalore

Our AssociatedOffice

Kolkata

Hyderabad

Chennai

ECA

WHY Equi Corp Associates??

• ECA is a multispecialty law firm, with its founding partners having a vastexperience for providing legal services to a variety of domestic & internationalclients, corporations, financial entities & government agencies.

• Our respected clients - from individuals to small businesses to Fortune 500companies -- turn to us for trusted legal counsel.

• ECA is equipped with required professional setup of Qualified, Experienced andKnowledgeable members.

• We advise and assist NRI’s/PIO’s, Foreign Investors and Indian entrepreneurswith legal services that enables them to compete with best in world in themodern economy characterised by technology based, venture capital funded,futuristic businesses governed by complex and ever evolving legal andstatutory framework.

• ECA is also effective in providing match making partner/locating strategicalliance, follow up and representation with Government of India or any otherincidental work related to investment or legal guidance in India.

• ECA is a multispecialty law firm, with its founding partners having a vastexperience for providing legal services to a variety of domestic & internationalclients, corporations, financial entities & government agencies.

• Our respected clients - from individuals to small businesses to Fortune 500companies -- turn to us for trusted legal counsel.

• ECA is equipped with required professional setup of Qualified, Experienced andKnowledgeable members.

• We advise and assist NRI’s/PIO’s, Foreign Investors and Indian entrepreneurswith legal services that enables them to compete with best in world in themodern economy characterised by technology based, venture capital funded,futuristic businesses governed by complex and ever evolving legal andstatutory framework.

• ECA is also effective in providing match making partner/locating strategicalliance, follow up and representation with Government of India or any otherincidental work related to investment or legal guidance in India.

The Verticals

• Corporate & Commercial

• Banking & Finance

• Real Estate

• Infrastructure & Project Finance

• Employment & Labour

• Media, Sports & Entertainment

• Litigation & Arbitration

• Tax & Consulting

• Intellectual Property

• Corporate & Commercial

• Banking & Finance

• Real Estate

• Infrastructure & Project Finance

• Employment & Labour

• Media, Sports & Entertainment

• Litigation & Arbitration

• Tax & Consulting

• Intellectual Property

The Firm specializes in verticals suchas IT, ITES, Bio-tech, Power, Water,Retail Trade, Education, Mining,Aviation, Tourism, Insurance,Telecom, Media & Entertainment

Our CommitmentValue

One stop legal boutique where assignments carried out at a fraction ofthe cost of clients staff

Reduce client staff management time and overhead costs, and increaseclients profitability

Enable clients staff to concentrate on more interesting and value-addedwork

Service Robust management and procedures to ensure delivery on time and on

budget Dedicated one-to-one communication with client, to ensure every

project is right first time Full service delivery is achieved by synergies of subject matter

expertise of our in-house Lawyers, Chartered Accountants, CompanySecretaries and Tax Consultants

Quality Two-level file review and signoff by expert Lawyers, even for the

smallest assignment

Value One stop legal boutique where assignments carried out at a fraction of

the cost of clients staff Reduce client staff management time and overhead costs, and increase

clients profitability Enable clients staff to concentrate on more interesting and value-added

workService

Robust management and procedures to ensure delivery on time and onbudget

Dedicated one-to-one communication with client, to ensure everyproject is right first time

Full service delivery is achieved by synergies of subject matterexpertise of our in-house Lawyers, Chartered Accountants, CompanySecretaries and Tax Consultants

Quality Two-level file review and signoff by expert Lawyers, even for the

smallest assignment

Our Core Strengths

Dedicated team of legal professionals with strong deal exposure andknowledge of regulations of various sectors.

Proactive and structured approach

Well defined processes

Well defined Project methodology tailored to suit the needs of clients forservice delivery

Talented team with experience of working with some of the largestcompanies in India exposure to leading cross border transactions in India

Experience & proven capabilities to handle Diversified Multi-national Clientsi.e. Information Technology, Energy, Manufacturing, Consultancy, Oil & GasSector, Retail Trading, Hospitality, Restaurant and related sectors.

Competitive advantage of costing by virtue of expertise and experiencedresources.

Dedicated team of legal professionals with strong deal exposure andknowledge of regulations of various sectors.

Proactive and structured approach

Well defined processes

Well defined Project methodology tailored to suit the needs of clients forservice delivery

Talented team with experience of working with some of the largestcompanies in India exposure to leading cross border transactions in India

Experience & proven capabilities to handle Diversified Multi-national Clientsi.e. Information Technology, Energy, Manufacturing, Consultancy, Oil & GasSector, Retail Trading, Hospitality, Restaurant and related sectors.

Competitive advantage of costing by virtue of expertise and experiencedresources.

For further informationContact :

Aashish SrivastavaPartner

Equi Corp AssociatesAdvocates & Solicitors

W-86, Classic House, GK-II, New DelhiT: +91 11 40573261

Mobile : +919958709189E-mail :admin@equicorplegal.com

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