������Ƶ

A Nominee Agreement creates a legal arrangement where one person (the nominee) holds assets or rights on behalf of another person (the beneficial owner) in India. This setup is common in stock market investments, property holdings, and corporate shareholding structures where the true owner wants to remain behind the scenes while giving someone else the authority to act as the face of ownership.

Under Indian law, these agreements must clearly outline the nominee's duties, the actual owner's rights, and the terms for transferring assets back to the beneficial owner. While nominee arrangements offer flexibility in asset management, they must comply with SEBI regulations and the Companies Act to prevent misuse in money laundering or tax evasion schemes.

Consider using a Nominee Agreement when you need a trusted person to hold assets or manage investments on your behalf while maintaining your beneficial ownership. This arrangement proves valuable for NRIs investing in Indian property, businesses managing multiple shareholdings, or investors seeking privacy in their market transactions.

The agreement becomes essential when structuring corporate holdings, especially for foreign investors navigating India's investment regulations. It's particularly useful for succession planning, portfolio management, and situations where direct ownership might face regulatory hurdles. Just ensure the arrangement aligns with SEBI guidelines and maintains transparency in beneficial ownership reporting.

• Stock Market Nominee Agreements: Used by investors for securities and mutual fund holdings, allowing designated persons to manage trading accounts while maintaining beneficial ownership
• Property Nominee Agreements: Common in real estate transactions where a trusted party holds property title, especially useful for NRI investments in Indian property
• Corporate Shareholding Nominees: Used in company structures to manage complex shareholding patterns or meet regulatory requirements while maintaining actual control
• Bank Account Nominee Arrangements: Enables account holders to designate someone to access funds in specific circumstances, particularly important for estate planning

• Beneficial Owners: The actual owners of assets who want to maintain privacy while delegating control, including NRIs investing in Indian property or investors managing market portfolios
• Nominees: Trusted individuals or entities who legally hold and manage assets on behalf of beneficial owners, often family members or professional trustees
• Legal Advisors: Lawyers who draft and review Nominee Agreements to ensure compliance with Indian regulations and protect both parties' interests
• Financial Institutions: Banks, brokerages, and investment firms that facilitate nominee arrangements and maintain records of beneficial ownership
• Regulatory Bodies: SEBI and other authorities that oversee nominee arrangements to prevent misuse and ensure transparency

• Identity Details: Gather complete KYC documents of both nominee and beneficial owner, including PAN cards, address proofs, and identification papers
• Asset Information: Document specifics of assets being placed under nomination - property details, share certificates, or investment portfolio particulars
• Rights Definition: Clearly outline the nominee's powers, limitations, and responsibilities in managing the assets
• Duration Terms: Specify the agreement's timeframe and conditions for termination or transfer back to the beneficial owner
• Compliance Check: Ensure alignment with SEBI guidelines, Companies Act requirements, and relevant regulatory frameworks before finalizing

• Identification Section: Full details of beneficial owner and nominee, including addresses, PAN numbers, and relationship status
• Asset Description: Precise details of properties, shares, or investments covered under the agreement
• Rights and Powers: Clear outline of nominee's authority, limitations, and responsibilities in managing assets
• Duration Clause: Specific term of the agreement and conditions for termination or transfer
• Indemnification: Protection clauses for both parties against potential losses or legal issues
• Governing Law: Clear statement of Indian jurisdiction and applicable regulatory frameworks
• Declaration: Confirmation of beneficial ownership and nominee's acknowledgment of their role

A Nominee Agreement differs significantly from an Agency Agreement in both purpose and legal implications. While both involve one party acting on behalf of another, their scope and authority levels vary considerably.

• Legal Authority: A Nominee Agreement creates a relationship where the nominee holds assets in their name but has limited decision-making power, while an Agency Agreement grants broader authority to act and make decisions on behalf of the principal
• Asset Ownership: Under a Nominee Agreement, the nominee appears as the legal owner but cannot claim beneficial ownership. In contrast, an Agency Agreement involves no transfer of ownership rights
• Regulatory Oversight: Nominee arrangements face stricter SEBI scrutiny and beneficial ownership reporting requirements, whereas agency relationships follow simpler regulatory frameworks under the Indian Contract Act
• Duration and Termination: Nominee arrangements typically involve longer-term commitments tied to specific assets, while agency relationships can be more flexible and task-specific