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Showing posts from April 21, 2016

Bank consolidation: Merger by size no quick fix

After months of languishing on the bourses and recording new lows, the NSE PSU Bank index, has gained a little over 15 per cent since March, outperforming the benchmark Nifty (up 9.5 per cent). Analysts attribute much of the post-Budget rally in stocks of public sector banks (PSBs) to the government's capital infusion and consolidation plans. Also, that some part could be on account of bottom fishing. The recent formation of the Banks Board Bureau, meant to select heads of state-run banks, help improve their governance and develop innovative financial methods to raise capital and other measures, has added to the sentiment. Investors, however, need to be cautious. The fundamentals of PSBs haven’t changed meaningfully since the December ’15 quarter. Nor will merging these purely on the basis of size (bigger bank acquiring smaller peer) lead to significant gains. Take Punjab National Bank (PNB). In the December quarter (Q3) of 2015-16, it saw a 93 per cent slip in profit due to Rs 3…

Hopes of early passage of GST revive

Five days before the second half of budget session, Cong officially gives support to draft law, but with caveats Prospects of the constitutional amendment bill being passed in the upper House of parliament to allow the introduction of a goods and services tax (GST) were revived on Wednesday after the Congress officially gave the draft law its support. However, the party caveated its support by reiterating its three demands. The ruling National Democratic Alliance (NDA) has signalled its willingness to go along, except for one of the three conditions—writing in an 18% cap into the law. Expectations are that the two sides may find common ground on the potentially deal-breaking demand for the cap to be included in the law, especially since the Congress offer comes just five days ahead of the resumption of the budget session of Parliament on 25 April. “The Congress party says by all means have a GST because we are its ardent supporters but put a cap of 18%. Do not permit a state government or…

Bank consolidation: Merger by size no quick fix

After months of languishing on the bourses and recording new lows, the NSE PSU Bank index, has gained a little over 15 per cent since March, outperforming the benchmark Nifty (up 9.5 per cent). Analysts attribute much of the post-Budget rally in stocks of public sector banks (PSBs) to the government's capital infusion and consolidation plans. Also, that some part could be on account of bottom fishing. The recent formation of the Banks Board Bureau, meant to select heads of state-run banks, help improve their governance and develop innovative financial methods to raise capital and other measures, has added to the sentiment. Investors, however, need to be cautious. The fundamentals of PSBs haven’t changed meaningfully since the December ’15 quarter. Nor will merging these purely on the basis of size (bigger bank acquiring smaller peer) lead to significant gains. Take Punjab National Bank (PNB). In the December quarter (Q3) of 2015-16, it saw a 93 per cent slip in profit due to Rs 3,775…

Withdraw provident fund only for medical emergency

With the government completely rolling back the recent guidelines on the withdrawal of provident fund, employees saving through this instrument would be a relieved lot.
Though the option to dig into your retirement savings has been restored, individuals should only withdraw the provident fund (PF) in case of emergencies, according to financial planners. “We would suggest only touching retirement savings if there’s a medical emergency and the person doesn’t have any other option but EPF. The person should replenish it as soon as he/she can,” says Malhar Majumder, a certified financial planner. The employee provident fund (EPF) subscribers can withdraw money for purchase, construction or renovation of a house, repayment of home loan, and expenses on education, and medical treatment. These are subject to certain conditions. Majumder says buying a house, education or marriage are not emergencies. A person can buy a smaller house or delay construction or renovation if he/she doesn’t have the…

House Panel for Bringing Cos Under Anti-graft Law

BIGGER AMBIT Punishment for companies offering bribes to public servants recommended
A parliamentary panel has favoured the inclusion of companies under the Prevention of Corruption Act, which regulates matters of corrupt practices by public officials. The panel, which examined a bill to amend the act, has finalised its report and will table it in Parliament next week. The bill has specific provisions to deal with the giving of bribes to public servants and the giving of bribes by commercial organisations. Highly placed officials in the government told ET the panel is in favour of including companies under the Pre vention of Corruption Act. The report is one of three that are scheduled to be tabled in the budget session, which resumes from April 25. The other two are from a joint parliamentary committee examining the Insolvency and Bankruptcy Code and from a panel looking into the Enemy Property (Amendment and Validation) Bill. The Prevention of Corruption (Amendment) Bill is aimed at b…

Cos Remitting Pay Overseas to Parent may Face FEMA Heat

Service tax authorities refer matter to RBI, enforcement directorate Multinationals that have challenged service tax levies on salaries paid overseas to expats employed in India may be faced with a more fearsome challenge -scrutiny under the Foreign Exchange Management Act (FEMA), which deals with forex violations. Remitting the salary of anyone employed in India by an entity in the country in foreign currency is not permitted under FEMA, said an official. Service tax authorities have already referred the matter to the Reserve Bank of India and the Enforcement Directorate (ED), the person said. Tax authorities contend that companies may have not declared payments as salaries to their employees in the country while seeking permission from RBI before making fund transfers. “Authorities need to ascertain how these transfers are being made,“ said the official cited above. Typically, companies that employ expats pay a part of the salary in India while the rest is paid by the overseas parent. …

www.caonline.in News...

www.caonline.in News...

1.Small tobacco pouches weighing less than 10 grams not subject to retail sale price based assessment. [CCE, vs. Shakti Zarda Factory (India) Pvt. Ltd. (CESTAT New Delhi)].
2.RBI amends provisioning norms in respect of fraud cases.
3.Facebook friends may be treated as connected for insider trading [In the matter of trading in the shares of Palred Technologies Limited (SEBI)].
4.RBI vide circular dated April 13, 2016 has resolved the ambiguity under section 160 of the Companies Act, 2013, where it is provided that a person who intends to nominate himself or any other person as a director in an Indian company is required to place a deposit with the said company and clarified in this regard that deposits with an Indian Company by person resident outside India, in accordance with section 160 of the Companies Act, 2013 is a current account (payment) transaction and, as such, does not require any approval from Reserve Bank.
5.Today (21.04.16) is the last date for de…