New Delhi, February 27, 2017
In a bid to deepen capital markets, Sebi today notified new norms allowing Foreign Portfolio Investors (FPIs) to invest in unlisted corporate debt securities and securitised debt instruments.
The decision follows the board of Securities and Exchange Board of India (Sebi) approving a proposal last November in this regard.
In a notification, the regulator said it has amended FPI regulations to allow overseas investors to invest in unlisted non-convertible debentures and securities debt instruments.
Mumbai, February 27, 2017
Amid mounting bad loans and dip in profits, financial services regulators of several countries where Indian banks operate have sought assurance from bank managements about the readiness of parents, shareholders to chip in capital when required.
Meeting senior officials of local banks and the Reserve Bank of India, officials of these financial market authorities emphasised the need to spot early signals of stress in loans books and make necessary provisions before it’s late.
More than a dozen Indian banks run branches abroad.
Bengaluru, February 27, 2017
Karnataka stands No. 1 in the country in terms of preparedness for the new tax regime of Goods and Services Tax (GST) expected to be rolled out on July 1. Karnataka has seen 96% of its traders enrolling themselves to migrate from the existing Value Added Tax (VAT) system to GST.
The multiple levies, including VAT, service tax, central sales tax (CST), central exci se duty, entry tax, entertainment tax and luxury tax will be subsumed under the unified tax and the traders registered separately under VAT, CST, and service tax have to register afresh under the GST. The GST enrolment started on January 1, 2017 across India with an objective of covering over 86 lakh traders on or before March 15, 2017. Anyone with a business turnover of Rs 20 lakh and beyond will be covered by GST.
February 23 2017
Implementation of the Financial Accounting Standards Board’s current expected credit loss standard is well underway at major banks, according to a survey by Deloitte, though the new standard could show how risky many of the loans really are.
The new standard could expose a much greater extent of loan impairments than previously shown, the survey indicated. Most of the 31 U.S. banks surveyed by Deloitte last summer said that if the CECL standard were in place today, their impairment number would increase by more than 10 percent for consumer loans (75 percent of banks), mortgages (71 percent) and commercial loans (54 percent). As a result, most banks anticipate a decrease in their capital ratios. Over 80 percent of the banks surveyed also expect their profit and loss to become more volatile under CECL.
New Delhi, February 26, 2017
The Reserve Bank is expected to formulate standard operating procedure (SOP) for approval of FDI proposals by ministries following the government decision to phase out FIPB. The proposal for setting up norms for foreign direct investment (FDI) approvals in sensitive sectors, which are currently under government approval of the FDI policy, was discussed at a recent inter-ministerial meeting.
According to sources, several options came up for discussions at the meeting. In order to further improve ease of doing business, the government has decided to abolish Foreign Investment Promotion Board and form a new mechanism for expeditious clearance of foreign investment proposals.
New Delhi, February 26, 2017
An association representing indirect tax officers has sought Prime Minister Narendra Modi’s intervention to reverse certain decisions taken by the Goods and Services Tax (GST) Council.
In a memorandum submitted to the Prime Minister’s Office (PMO), the officers’ body has also highlighted the serious security and financial concerns raised by the Comptroller and Auditor General (CAG) and the Home Ministry against the Goods and Services Tax Network (GSTN).
Ahmedabad, February 24, 2017
It was an intricate web of financial transactions that seemed perfect — tax returns shown at the end of financial year for some 40 firms, regular transactions in over 120 bank accounts and even a paper trail showing transactions from one firm to another, linked with a dealer-supplier or buyer-seller relationships. There was just one problem. None of them existed physically.
CID (crime) sleuths investigating the fraud of Rs 100.29 crore by evasion of commercial tax have yet to identify the beneficiaries of the elaborate scheme. Investigators got seven day remand of the prime accused, Jignesh Mehta, on Thursday, to identify other players in the case and how the scam worked for years before anybody could notice.
New Delhi, February 24, 2017
Cos with annual turnover of less than Rs.50 crore exempt from POEM: CBDT
In a relief to small companies, the Income Tax Department has clarified that provisions of place of effective management (POEM) will not apply to firms with an annual turnover of up to Rs.50 crore.
“It is clarified that existing provision …shall not apply to a company having turnover or gross receipts of Rs.50 crore or less in a financial year,” said the Central Board of Direct Taxes in a circular.
February 22, 2017
The American Institute of CPAs’ Auditing Standards Board has revised its standard for going concern opinions.
The new standard, Statement on Auditing Standards No. 132, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern (AICPA, Professional Standards, AU-C sec. 570), supersedes SAS No. 126 of the same title. SAS No. 132 says the auditor’s objectives include separate determinations and conclusions on the use of the going concern basis of accounting, when relevant, in preparing financial statements. The determinations and conclusions should also be based on the audit evidence on whether substantial doubt exists about an entity’s ability to continue as a going concern for a reasonable amount of time.
Mumbai, February 24, 2017
Market regulator Securities and Exchange Board of India (Sebi) has decided to revamp the grievance redressal mechanism at stock exchanges and depositories after reviewing the existing framework with the concerned stakeholders.
As per the modified mechanism, stock exchanges/depositories will have to disseminate information with regards to brief profile, qualification, areas of experience/expertise, number of arbitration matters handled, pre-arbitration experience, etc. of the arbitrators on their website.
New Delhi, February 23, 2017
The income tax department is seeking to remove any ambiguity about sharing of taxpayer information with other government agencies
The income-tax department has paved the way for seamless exchange of information between various government agencies to check illegal wealth.
This is significant given the government’s plan to rope in various departments to crack down on shell companies who are suspected to have laundered massive amounts of money following the cancellation of the legal tender of high value currency.
New Delhi, February 23, 2017
CBDT has laid down detailed SOPs on how assessing officers will scrutinise suspicious deposits
The income tax (I-T) department will soon be asking people who have made large cash deposits in the wake of the demonetisation measure to furnish documents like bank statements, passbooks, sales and land records, to crosscheck their claims, LiveMint reported on Thursday. The enhanced tax scrutiny is part of 'Operation Clean Money'.
The I-T sleuths will be looking to verify if the deposits were made from tax-exempt agricultural income, or from cash previously withdrawn from the person's bank account, or, in the case of a business, from income received from unidentifiable persons, the report added.
February 23, 2017
Debt mutual funds can now invest up to 15 per cent of their total net assets in housing finance companies with Sebi easing the regulations in this regard.
The norms have been relaxed as part of efforts to channelise more funds towards affordable housing activities.
Debt mutual funds were allowed to have an exposure of only up to 10 per cent to housing finance companies. This has been increased to 15 per cent with immediate effect subject to certain conditions.
Mumbai, February 23, 2017
Implement the existing one properly to clean up the mess
The proposal, announced on Tuesday, to float two asset management companies to tackle bad debt in banks is not seen as a new idea.
Instead, bankers and analysts say the system can’t afford yet another plan for this. Rather, the existing ones should be implemented speedily. If the new ideas, discussed by Reserve Bank of India deputy governor Viral Acharya, could be implemented with minor modifications and quickly enough, everyone will welcome it.