Skip to main content

Updates of the Day

1. SEBI issues a circular under regulation 101(2) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 in relation to regulation 30 which deals with "Continuous Disclosure Requirements for Listed Entities" -
http://www.sebi.gov.in/…/sebi_…/attachdocs/1441799529193.pdf
Annexure-I of this circular indicates the details that need to be provided while disclosing events given in Para A and Para B of Schedule III. The guidance on when an event / information can be said to have occurred is placed at Annexure II.

2.  I-T dept to file court case if illegal foreign assets detected
Delhi : Taking a tough stance against black money, the CBDT has directed the Income Tax department to mandatorily launch court cases against people found to be holding stash funds and tainted assets abroad and consider "compounding" of such offences only at a later stage.The apex policy-making body of the tax department has recently issued a directive in this regard to all I-T offices in the country after the latter raised "doubts" over the applicability of the provisions of the "Compounding of Offences" under the Income Tax Act, 1961 in these cases.

3. Li Ka-shing's CKI to buy out Hong Kong utility in $11.6 bln all-share deal
Intl : Cheung Kong Infrastructure Holdings Ltd (CKI), part of billionaire Li Ka-shing's business empire, offered on Tuesday to buy all the shares it doesn't already own in Hong Kong utility Power Assets Holdings Ltd in an all-stock transaction valued at $11.6 billion.CKI will issue 1.36 billion new shares to buy the 61 percent of Power Assets it doesn't already own, the companies said in a joint securities filing. At Tuesday's closing price of HK$66.15 per CKI share, the deal would be valued at HK$89.7 billion ($11.6 billion).

4. Cabinet approves 100%FDI for White Label ATM Operations subject to riders
Union Cabinet has given its approval to permit FDI up to 100%, under automatic route, in the activity of White Label ATM (WLA) Operations subject to riders; The riders include maintenance of minimum net worth and compliance of the RBI guidelines; States that the decision will ease and expedite foreign investment inflows in activity, thereby giving a fillip to Govt.’s effort in promoting financial inclusion in the country and enhancing ATM networks in semi-urban and rural areas: PIB

5. Upholds SEBI order directing share divestment, terms acquisition post-SEBI clarification as ‘gross violation’
SAT upholds SEBI order directing target co.’s promoters to divest 27,633 shares by sale to parties not connected/related to them, in tranches on BSE and NSE by ensuring that such disinvestment does not disturb market equilibrium; Notes the fact that promoters collectively acquired such shares after SEBI Circular and such acquisition was in excess of prescribed threshold; Further notes that such clarification was issued by SEBI in August 2009, wherein benefit of doubt was given to acquirers for their shareholding in target co. even though such acquisition was in violation of Reg. 11(2) of Takeover Regulations; Rejects acquirer’s contention that shares were purchased through open market in normal segment and same was disclosed to stock exchanges, holds that acquisition post-SEBI circular was gross violation of Takeover Regulations and SEBI directions; Peruses Takeover Regulations, observes that person contravening regulations is required to either make public announcement or share disinvestment:SAT
Order was passed by Justice J.P. Devadhar (Presiding Officer) & Jog Singh (Member).

6. Bombay High Court rejects NSE petition against Moneylife
The high court (HC) here has ruled in favour of defendants Sucheta Dalal and Debashis Basu, founders of Moneylife magazine, in a defamation notice of motion filed by the National Stock Exchange (NSE).
On Wednesday, it said NSE’s refusal to answer repeated queries from Dalal, prior to publication of the articles in question, either amounted to egregious arrogance or meant there was truth in the allegations put forth.
The court told NSE to pay Rs 1.5 lakh each to Dalal and Basu and another Rs 47 lakh as punitive damages to Tata Memorial Hospital and Masina Hospital in this city.
In June, Moneylife published a whistleblower's account that alleged various irregularities in the high-frequency trading (HFT) systems of NSE. It also published online the whistleblower's letter dated January 2015, addressed to the Securities and Exchange Board of India (Sebi). Dalal had got a copy of this (anonymous) letter in the post.
Dalal and Basu had given proof of e-mails and text messages sent to seek responses from NSE's managing director and chief executive officer, Chitra Ramkrishna, and the vice-chairman, Ravi Narain. Dalal had sent a mail addressed to U K Sinha, chairman of the Securities and Exchange Board of India (Sebi), with copies marked to Ramkrishna and Narain on June 11. She followed this with a reminder mail on June 15 and a text message on June 16. The article was published on June 19. Moneylife then published a second article on July 8, seeking a detailed probe into HFT at the exchange.

7. Sebi bars Popular Agro Farms from raising funds from public
Taking action against illegal investment schemes promising returns on 'growing trees', Sebi has barred Popular Agro Farms from raising funds from the public with immediate effect.
The move follows a complaint received by Sebi alleging that the company failed to refund the amount invested by the complainant in one of its schemes.
The Securities and Exchange Board of India (Sebi) found that the company was raising money from investors through collective investment schemes (CIS) without obtaining requisite registration from the market regulator.
It had launched a 'teak tree' scheme in 1993. It called for an investment of Rs 1,000 per unit from investors and claimed that they would fetch Rs 70,000 at the end of 20 years for every Rs 1,000 invested for one unit.
In addition, the firm had also launched two similar schemes comprising of payment plans with varying term period of five years (Casurina) and eight years (Eucalyptus).
The money collected was pooled towards setting up of plantations.
In an order dated September 8, Sebi has asked the company and its directors -- Usman Pasha Usman Fayaz and Niyaz Hyder Ali -- "not to collect any fresh money from investors for its existing schemes" as well as "not to launch any new schemes/plans or float any new companies to raise fresh money".
They also have "to immediately submit the full inventory of the assets including land obtained through money raised".
Besides, the company and its directors have been barred from disposing of or alienate any of the properties or assets owned or acquired through the money raised.
Further, they cannot divert any funds raised from public at large which are kept in bank account of the company. They have to furnish all details of its investors, among other information, to Sebi.
These directions would take effect "immediately and shall be in force until further orders".

8. ITAT tone down its Remarks Against Chartered Accountants and ICAI
Vijay V. Meghani vs. ACIT (ITAT Mumbai) on Miscellaneous Application made by Institute of Chartered Accountants of India (ICAI), Misc. Application No.72 and 73/Mum/2015 arising out of I.T.A. No.5418 and 5419/Mum/2011, Date of Pronouncement – 4th Septemebr,2015
The ITAT Mumbai disposing off miscellaneous application of ICAI held that the observations made by ITAT were not offensive, thus, cannot be deleted in totality. The same has been misunderstood by ICAI and ,therefore, modified suitably to ensure that the clear message that there is a need of improvement in the overall design of CA course , which ITAT wants to convey reach to ICAI after modification.

Comments

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm

Credit card spending growth declines on RBI gaze, stress build-up

  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and