Skip to main content

Posts

Showing posts from October 20, 2015

Don't have Aadhaar? You Can't Register Your Startup

Aspirants can't even `fill' new online form launched last month for registering new cos unless promoters' Aadhaar credentials are validated online Even though the Su preme Court has only allowed Aadhar to be used `voluntarily for a few social welfare schemes the Modi government has made it compulsory for any budding en trepreneur to submit her or his Aadhaar number in order to reg ister a new business. In fact, aspiring startups can't even `fill' a new online form for registering new enterprises intro duced last month unless the Aad haar credentials of their promo ters (sought in the first column of the form) are validated online The ministry for micro, small and medium enterprises had last month notified Udyog Aadhaar taking a cue from the prime minis ter's radio show Mann Ki Baat where he had talked about simpli fying procedures to start a busi ness with a single-page registra tion form. Experts said this move is a violation of the Supreme Court order on Aadhaa…

Sebi Wants E-tailers to Sell Funds Also

LOG ON Move likely to reduce cost of buying MFs and attract more investors who can save on fee to the intermediary The Securities and Exchange Board of India (Sebi) is eyeing India's booming ecommerce segment to make mutual funds schemes available to a wider section of investors at a cheaper cost. The capital market regulator has sounded out e-commerce companies about the possibility of these firms selling financial products on their platforms. Sebi chief UK Sinha met Nandan Nilekani -former chairman of Unique Identification Authority of India (UIDAI) -who heads the regulator-appointed committee to suggest measures to reduce cost structure of mutual funds, and representatives of e-commerce companies such as Flipkart, Scripbox, FundsIndia.com and Paisabazar.com, among others, in Bengaluru on Thursday in this regard. “Sebi wants automation of mutual fund sales architecture including e-KYC (know your client) which will reduce the cost of buying mutual fund schemes. This will make it eas…

Rajan Calls for a Transparent Tax Regime

RBI guv wants an environment that would enable `Make in India' to succeed Reserve Bank of India (RBI) Governor Raghuram Rajan called for a “transparent and predictable“ tax regime as part of an “enabling environment“ for business, setting the broader economic context needed for Prime Minister Narendra Modi's `Make in India' initiative to succeed. “Let's create the framework, let's make business easier.Let's make taxation more transparent, more predictable. Let's do all the things necessary to allow our businesses to create what is needed,“ Rajan said on the sidelines of a conference in Mumbai on Monday. “I say Make in India, but do not restrict making in India to just a few industries,“ the governor said. He also expanded on his criticism of loose-money policies practised by the majority of the world's central banks without regard for what they are doing to the global economy. Global multilateral agencies such as the International Monetary Fund (IMF), wher…

Outbound Payments Hint at Bid to Escape US Tax

Surge in money sent for `maintenance of close relatives' & `studies abroad' There is a sudden, inexplicable surge in money that Indians are sending abroad for “maintenance of close relatives“. Such fund transfers typically add up to $10-20 million a month. But in July 2015, according to the latest available data, total remittance under this head crossed $124 million. Also, money remitted in July to students studying in foreign colleges and universities rose more than six times in one year to $113.9 million. What has caused the spurt in remittance? Tax experts suspect this could be an attempt to escape the American tax authorities. Two senior financial services professionals ET spoke to believed that a large part of fund flow -particularly, remittance to relatives -could have been triggered by USbased Indians trying to escape the American tax authorities. Ever since the US government passed the Foreign Account Tax Compliance Act (FATCA) to unearth black money of US residents ou…