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The Securities and Exchange Board of India, which took charge of regulating the commodities derivatives market on Monday , said it is open to allowing foreign portfolio investors to trade in this segment. The capital market regulator also wants to introduce options trading in commodities. “There is no reason why participants like banks and foreign portfolio investors that are not allowed today should not be allowed,“ said Sebi chairman UK Sinha at an event in Mumbai to mark the merger of Forwards Market Commission(FMC) -India's commodity market regulator-with Sebi that was attended by finance minister Arun Jaitley . “There is no reason why options trading should not be allowed in commodity derivatives market“. Sinha declined to comment on when Sebi planned to allow foreigners to trade in commodities derivatives on local bourses. “I would like to mention that our immediate priority will be to take stock of the and ensure that there is trust in the market about the way regulato...

The government plans to impose heavy penalty on importers dealing in mobile phones, electronic items and garments who are evading valueadded tax (VAT). An analysis of 1,000 importers has shown a mismatch between information provided by the Customs department and VAT returns filed by the traders. A senior official said these importers had a turnover of Rs.2,000-5,000 crore. A number of dealers have been issued notices to furnish details of their returns. The trade and taxes department entered into an agreement with Customs to share details of such traders. “A number of importers in Delhi import goods from a number of countries and to evade tax they don’t file returns. Those who do so don’t mention the volume of goods they have imported in order to evade tax. We have entered into an agreement with the customs department to share information. They provided us details of the top 1,000 importers and we are scrutinising their records,” said a senior Delhi government official. The o...

Round tripping, changing shell company names, becoming NRIs are favourite methods to avoid declaring the cash The promoter of a Delhi-based, mid-sized, listed company has a Rs.700-crore problem. The cash is in various overseas accounts but the businessman has no plans of declare it before the black money deadline of September 30. Instead, he plans to invest it in the Indian capital markets by opening new intermediary or shell companies in the coming year or so. He's not alone. Many promoters of listed companies are working overtime with chartered accountants to devise ways of utilising unaccounted funds. These include shutting old intermediary companies, starting new ones with fresh records, transferring funds to newer safe harbours and round-tripping funds into the Indian capital markets through participatory notes and even applying for non-resident Indian (NRI) status. “Despite government assurances, many promoters of listed firms fear that if they declare their unaccou...

The Insurance Regulatory and Development Authority of India ( Irdai) said for a public issue of shares by health, reinsurance and non- life insurers, they will consider the applicant company’s overall financial position, its regulatory record and its capital structure post issue, prior to giving approval. In its draft guidelines on issue of capital by non- life insurers, reinsurers and standalone health insurers, Irdai said it may direct an Indian insurance company transacting the non- life insurance business or standalone health insurance business or reinsurance business to go for public issue if the circumstance so warranted. The period for which the applicant company has been in the non- life insurance business or in standalone health insurance business or in reinsurance business, will also be taken into consideration. Its record of policyholder protection will also be looked into. Business Standard, New Delhi, 28th Sept. 2015