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The Securities and Exchange Board of India announced a series of measures for strengthening and upgrading of risk management in commodity derivatives markets. Some new concepts were also introduced to deal with liquidity problems in stressed situations.For instance, upto two days of risk coverage by initial margin, concentration margin, tool store gain matched book and ‘default waterfall’. An exchange’s accountability in a defaulth as also been increased, to match those at equity exchanges. Business Standard New Delhi,02th September 2016

In a bid to improve the sale of bad loans by lenders, the Reserve Bank of India has allowed banks to sell these assets to other banks, nonbanking financial companies ( NBFCs) or financial institutions. It has also made banks’ boards more accountable for stress resolution. “Prospective buyers need not be restricted to SCs/ RCs ( securitisation companies/ reconstruction companies). Banks may also offer the assets to other banks/ NBFCs/ FIs, etc, who have the necessary capital and expertise in resolving stressed assets,” said RBI. The RBI believes this will lead to better price discovery, and to attract more buyers lenders have been asked to follow the e- auction process. Prospective buyers should also be given a minimum of two weeks for due- diligence and in case the exposure is above ? 50 crore, then banks need to get at least two external valuation reports. The head of banking and finance practice with an international advisory firm said while the intent was good, it was more...

The Reserve Bank of India (RBI) on Thursday directed credit information companies (CIC) to provide free credit reports in full to individuals whose credit score is maintained with the agency, effective January 1. The electronic report should be provided upon request and after due verification about the authenticity of the customer, any time during the calendar year, RBI said.  “This report must show the latest position of the credit institutions’ exposure to the individual as per records available with the CIC,” RBI said in its notification, adding, the contents of the report should be the “same as appearing in the most detailed version of the reports on the individual provided to credit institutions, including the credit score”. An RBI-appointed committee headed by HDFC Bank Managing Director Aditya Puri had recommended that each customer of a credit institution be provided one base-level consumer credit information report free of cost every year by each credit information...

The Goods and Services Tax ( GST) Constitutional amendment Bill crossed an important landmark on Thursday with Odisha becoming the 16th state to ratify the Bill, paving the way for it to get Presidential assent. Aware of the challenges that still lie ahead before the GST regime could be rolled out by April 1, 2017, Finance Minister Arun Jaitley and senior bureaucrats were measured in their response. The Bharatiya Janata Party (BJP), lest it is yet again painted as ‘ suit- boot ki sarkar’, or a government of moneybags, as Congress vice- president Rahul Gandhi termed it when he criticised the government’s land Bill, was wary of extolling the virtues of the GST regime as a boon for ease of doing business. Instead, the BJP spokespersons insisted that the reform will be poor friendly since it will reduce corruption. The BJP line is consistent with Prime Minister Narendra Modi who recently implored party chief ministers, leaders and Members of Parliament to showcase the Union governm...

Small traders having an annual turnover up to Rs.25 lakh will be exempted from goods and services tax and the Centre and states are likely to agree to this limit, Revenue Secretary Hasmukh Adhia said on Thursday. “There will be an exemption limit for small traders and the limit is likely to be fixed at Rs. 25 lakh. The states and the Centre are now involved in an intense discussion on this. More or less, we have reached an understanding that the limit will be up to Rs. 25 lakh,” Adhia said in a post on the finance ministry’s YouTube channel. States have been demanding that GST should not be imposed on businesses with an annual turnover of less than Rs.10 lakh. The same limit should be Rs. 5 lakh for special category and Northeastern states. Currently, the threshold for value- added tax is Rs. 10 lakh in most states. Adhia said GST will ensure ease of doing business for traders, and compliance will be better as tax evasion would be difficult. He said the incidence of tax on most items...

www.caonline.in News... 1. Last date for MEF 2016-17 is 10/09/16. Members are requested to apply at www.meficai.org. 2. SEBI has directed Commodity Exchanges to offer price dissemination facility to subscribers through SMS or any other electronic comm. facility for all commodities on a daily basis. 3. Use latest version of e-Forms DIR-3, INC-2, SH-11, CHG-4 and INC-4 which are likely to be revised on MCA21 portal W.e.f. 2nd SEP 2016. 4. Extension of due dates of Form 15G/H received during 1.10.2015- 31.3.2016 & for Q1 of 2016-17, to 31.10.2016; & for Q2 of 2016-17, to 31.12.2016. CBDT notification no 10/2016. 5. Income Tax Authorities must mention official e-mail Ids & phone/fax no in all notices/letters issued to taxpayers. F No 225/214/2016/ITA.II of 30-8-2016.