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Showing posts from July 20, 2017

Where are the Pink Notes ? That's a Rs 2,000 Question

Shortage of Rs 2,000 notes after supply from Reserve Bank dips in recent weeks A shortage of Rs 2,000 notes in recent weeks and months has stumped bankers and ATM operators who are already grappling with cash shortage in some parts of the country due to heavy usage and hoarding. Bankers and ATM service providers say that there has been a sharp drop in number of ` . 2,000 notes in circulation. Supply of new notes from the central bank has plummeted in recent weeks leading to speculation that it could be a deliberate strategy to restrict the flow of high-value notes in the economy . “Presently we are receiving currency notes from the Reserve Bank in denomination of Rs 500 in high-va lue currency,“ said Neeraj Vyas, chief operating officer of State Bank of India. “The 2,000 denomination notes are coming over the counters by way of recirculation.“ There are around 58,000 ATMs of SBI out of the 2.2 lakh deployed in the country. The country's biggest bank has also moved a step ahead of its…

Delhi HC Questions The Legal Sanctity Of Finance Ministry’s Press Release On GST On Legal Services

The Delhi High Court, on Tuesday, asked the Centre to clarify the “legal sanctity” of the Press Release issued by it earlier this week, wherein the Ministry of Finance had clarified that legal services provided by an individual Advocate, including a Senior Advocate and a Firm of Advocates, is liable for payment of GST under reverse charge(RCM) by the business entity. The question was posed by a Bench comprising Justice S. Muralidhar and Justice Pratibha M. Singh, after Mr. Sanjeev Narula, Central Government’s Standing Counsel presented before it the Press Release issued by the Ministry of Finance.  Several queries on the release cropped up during the hearing, pursuant to which, Mr. Narula sought time to seek instructions on the following questions in particular: (i) Whether there were any further recommendations of the GST Council on ‘legal services'after the recommendations made at the 14th Meeting of the GST Council held on 19th May, 2017. (ii) What is the legal sanctity of the Pre…

Sebi planning to tighten depository receipt regulations

The Securities and Exchange Board of India (Sebi) is planning to clamp down on depository receipts (DRs) as part of efforts to check the flow of black money into the stock market. Sources said Sebi planned to make it mandatory for foreign depositories to reveal details of endbeneficiaries holding DRs issued by Indian companies. The new framework will align knowyourcustomer (KYC) requirements for DRs with provisions to prevent money laundering. Many Indian companies issue DRs to raise capital abroad. DRs have shares as an underlying asset and are typically issued byabank, known as the depository bank, on behalf of a company. Sebi has proposed DRs can be exercised by the issuer only if information on beneficial ownership is available. Further, all acquisitions made through DRs resulting inachange in control inalisted company are expected to be governed by Sebi´s takeover rules. For unlisted companies, DRs are permitted only in sectors eligible for investment by registered foreign venture capit…

Cabinet clears draft bill to replace GST ordinances for J&K

The Cabinet today approved a draft bill to replace ordinances that were promulgated to introduce the Goods and Services Tax (GST) in Jammu and Kashmir, a senior government official said.  The Central government had earlier this month promulgated ordinances to make the Central GST (CGST) and Integrated GST (IGST), which deals with inter-state commerce, applicable to the state.  The Cabinet headed by Prime Minister Narendra Modi approved the bill, which will be introduced in Parliament during the current monsoon session.  The Economis Times, New Delhi, 20th July 2017

Pledged assets can be auctioned by insolvency professionals: NCLT

A recent National Company Law Tribunal (NCLT) order has sent corporate lawyers and promoters intoatizzy. The NCLT´s Mumbai Bench has asked for the personal properties of promoters to be auctioned off even when the process of insolvency is pending before the insolvency professional. The petition was filed by Schweitzer Systemtek India, invoking the Insolvency and Bankruptcy Code (IBC) with the NCLT, after it defaulted onaloan of Rs 4.5 crore given by Dhanlaxmi Bank. The suit was initiated by the promoter himself against the asset reconstruction company (ARC) after Dhanlaxmi Bank sold the loan to Phoenix ARC. The NCLT Mumbai Bench said the promoters cannot be granted any relaxation under the IBC and appointed an insolvency professional to go ahead with the auction of the property. “This Code of 2016 has prescribed certain limitations, which are inbuilt and must not be over looked. The ´moratorium´ indeed is an effective tool, sometimes being used by the corporate debtor to thwart or frustrat…