Compliance & Regulatory Framework

Our commitment to transparency, regulatory adherence, and investor protection under Indian law.

Sections

  • Platform Status
  • SPV Framework
  • KYC/AML Compliance
  • Securities & Regulations
  • Investor Protection
  • Governance

Platform Regulatory Status

PaySquares operates strictly as a technology provider and marketplace intermediary under Indian law. We facilitate the discovery and evaluation of real estate opportunities offered by third-party Special Purpose Vehicles (SPVs).

What We ARE:

  • Technology platform provider
  • Marketplace intermediary
  • Information disseminator
  • Compliant marketplace operator

What We ARE NOT:

  • Stock Exchange or SEBI-registered entity
  • REIT, CIS, or AIF
  • Broker-dealer or investment adviser
  • Fund manager or custodian

SPV Framework & Asset Structure

What is an SPV?

A Special Purpose Vehicle (SPV) is a legally separate entity incorporated under the Companies Act, 2013. Each SPV is created for a specific real estate project and holds legal title to the property.

  1. Asset Ring-fencing
    The property is legally isolated within the SPV, protecting creditors’ interests.

  2. Defined Capital Structure
    SPV issues specific securities (equity, CCDs, debentures) with defined rights and priorities.

  3. Transparency & Accountability
    SPVs must maintain audited financial statements and disclosures.

  4. No Pooling
    Each SPV is independent; your investment is not pooled across multiple projects (not a CIS).

KYC/AML Compliance

PaySquares complies with all Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations prescribed by FEMA, PML Rules, and RBI guidelines.

KYC Documents Required

  • PAN Card
  • Aadhaar / Passport
  • Address Proof
  • Bank Account Verification
  • PEP / Sanctions Screening

Ongoing Compliance

  • Periodic re-verification
  • Transaction monitoring
  • Enhanced due diligence for HNIs
  • Beneficial ownership verification
  • Suspicious transaction reporting

Securities & Regulatory Framework

Nature of Tokens
Tokens issued on PaySquares represent securities in accordance with the Securities Contracts (Regulation) Act, 1956 and rules thereunder. They are not cryptocurrencies or speculative instruments.

Applicable Regulations

  • Companies Act, 2013: Governing SPV incorporation and governance
  • Securities Contracts (Regulation) Act, 1956: Definition and treatment of securities
  • Prevention of Money Laundering Act, 2002: AML/CFT compliance
  • Foreign Exchange Management Act, 1999: For foreign investor participation
  • Income Tax Act, 1961: Taxation of real estate holdings and income
  • Stamp Act: For registration and stamp duty on agreements
  • Real Estate (Regulation and Development) Act, 2016 (RERA): Where applicable

Investor Protection Measures

Platform Level

  • Secure authentication and data encryption
  • Segregation of customer data
  • Regular security audits
  • Incident response protocols
  • Document retention for 7+ years

Transaction Level

  • Direct fund transfer to SPV escrow
  • Legal documentation review
  • Disclosure of all material risks
  • Cap on fund concentration
  • Mandatory lock-in periods

Internal Governance & Controls

Board Oversight
PaySquares is overseen by a Board of Directors with expertise in fintech, real estate, and legal compliance.

Compliance Committee
Dedicated committee for monitoring regulatory adherence, risk management, and investor protection.

Independent Audit
Regular internal and external audits to ensure operational integrity and regulatory compliance.

Whistleblower Policy
Safe channel for reporting concerns related to compliance, fraud, or misconduct.

Regulatory Disclaimer

This compliance framework is subject to evolving regulations in India. While PaySquares strives to maintain the highest standards, we cannot guarantee compliance with all future regulatory changes. Users should stay informed about regulatory updates and consult qualified legal and tax professionals regarding their investments.