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The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have received approval from the Securities and Exchange Board of India (Sebi) to launch electronic book mechanism for issuance of debt securities on a private placement basis. The mechanism will increase efficiency, transparency of the price-discovery mechanism and improve liquidity in the secondary market. It will come into effect from July 1, 2016. Hindustan Times New Delhi, 22th July 2016

Firms like DLA Piper, Baker & McKenzie keen on mapping local corp legal professionals As the Indian executive debates and formulates laws to allow foreign lawyers to practice here, big foreign law firms are scoping the market for talent and acquisition targets. Global recruitment firms that have so far remained fringe players in the area are beefing up their legal practices as firms like DLA Piper, Baker & McKenzie, Allen & Overy, Linklaters, Jones Day and Gibson Dunn show interest in mapping Indian corporate legal professionals. Foreign law firms at the moment are keen on identifying talent in niche areas synergistic to their existing clients with Indian presence or little law firms with low cost structures and small presence in major cities, said recruitment experts contracted by foreign firms almost on a quarterly basis for updated reports on Indian lawyers. “Foreign law firms seem to be looking at lean operations and would not be looking to compete for domestic ...

Capital markets regulator Securities and Exchange Board of India ( Sebi) has issued a consultation paper proposing changes to regulations regarding portfolio managers to enable fund managers to handle foreign money from Indian shores. The amendments were approved by Sebi’s board at a meeting held on June 17. Within the consultation paper, Sebi has proposed to insert offshore fund managers (OFMs) or eligible fund managers ( EFMs) as a new chapter in the existing norms. The change may allow Sebi registered portfolio managers to act as offshore fund managers with prior intimation to Sebi. Eligible fund managers/ offshore fund manager acting on behalf of an eligible investment fund ( EIF) can register under the PMS regulation, subject to conditions. Sebi has said in the paper, issued on Tuesday, offshore fund manager will be required to have a minimum networth of Rs. 2 crore apart from appointment of a principal officer and a minimum of two employees with requisite qualificatio...

During the tax filing season, many of our investments in property or instruments get tax exemption, leading to considerable savings. In fact, many investors rush to make investments at the end of the financial year only to get these exemptions. However, simply buying a property or investing does not ensure exemption. Other guidelines need to be followed lest the Income Tax Department comes back with queries or even withdraws the exemptions. Here are a few examples that will help understand this: Property: If you purchase a property on a home loan, you can claim exemption on the principal up to Rs. 1.5 lakh and up to Rs. 2 lakh on the interest amount. However, if you sell the house within five years of buying, you will lose the exemption on the principal in the following year. There is no mechanism for tax authorities to know, as filing is self- declaration. But, since there is one per cent tax deduction at source for any transaction above Rs. 50 lakh, the information will go to t...

In stricter measures on tax defaulters, the department of revenue has decided to block their Permanent Account Number (PAN), cancel their cooking gas subsidy and ensure non- sanction of loans by banks, among others. The measures are contained in the income tax department’s Central Action Plan for 2016- 17, presented at the recent conference of tax officials. The department also aims at augmenting collection from tax deduction at source (TDS), by identifying focus areas such as large companies and the ecommerce segment. The department aims to collect Rs. 54,000 crore in taxes from arrears in 2016- 17. The paper also asked tax recovery officials to use the provisions of arrest and detention contained in the Income Tax Act against defaulters. However, the finance ministry on Tuesday issued a clarification that no such statement had been authorised by the I- T department. “ Though the provisions for arrest and detention in respect of defaulters are contained in the Act, these are u...