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Forensic audit biz soars as firms head for bankruptcy Forensic departments of large audit firms and independent investigation agencies have been inundated with requests for forensic work following the push to clean up the bad debt mess under the Insolvency and Bankruptcy Code (IBC). According to some estimates, the forensic business linked to the IBC has more than doubled in the past few months, and experts believe it will only increase. The work primarily includes doing background checks on promoters, asset searches, verification of creditors, and forensic monitoring of cash flows. For big accounting firms, this is the icing on the cake as they are already working on bankruptcy cases as insolvency professionals. Checks on promoters Background checks on promoters have surged after the recent amendment to the Insolvency and Bankruptcy Code (IBC). This stems from concerns that promoters or their allies might try to buy back the companies at a discounted value through proxy inve...

IMF forecasts 7.4% growth for India in FY19 On the eve of Prime Minister Narendra Modi's keynote address at the World Economic Forum (WEF) in Davos, the International Monetary Fund (IMF) said India's growth will pick up in FY19. That will see the country regain the tag of fastest-growing major economy, backing the government's revival theme. The IMF also said 2017 saw the best global growth in seven years. India is forecast to grow 7.4% in FY19 against 6.7% this year, gaining pace to 7.8% in FY20, the IMF said in its January update of the World Economic Outlook: Brighter Prospects, Optimistic Markets, Challenges Ahead that was released simultaneously in Davos and Washington. Modi will address the WEF opening plenary session on Tuesday. The global economy is expected to grow 3.9% this year, faster than 3.7% forecast earlier in October. India's growth remains unchanged from the October forecast. "Some 120 economies, accounting for three quarters of world GDP,...

Sebi outlines role of oversight committee for product design To bring uniformity with respect to the role of the oversight committee on 'product design', Sebi today said the panel will be responsible for introduction of new contracts, modifications of existing product and reviewing the design of the already approved and running contracts. The move comes after Sebi observed that the commodity derivatives exchanges have been adopting varied approach both in terms of constitution as well as the functioning of such oversight committees, the regulator said in a circular.Sebi, in November 2015, had asked all national commodity derivatives exchanges to constitute an oversight committee for 'product design', chaired by a Public Interest Director, within three months. To bring uniformity with respect to the role of the committee on product design, Sebi has decided that the functions of the panel will be to oversee the regulator's inspection observation on product des...

Budget 2018: Government may hike agri-credit target to Rs 11 lakh crore The farm credit target is likely to be raised by a whopping Rs 1 lakh crore to a record Rs 11 lakh crore in the Budget 2018-19 to improve credit flow in the agriculture sector, according to sources.In the current fiscal, the government has kept a credit target of Rs 10 lakh crore. Of which, Rs 6.25 lakh crore has already been disbursed in the first six months till September 2017, the government data showed. "The government's priority is agriculture. There is a possibility that the credit disbursal target for the agriculture sector will further be increased to Rs 11 lakh crore for the next fiscal," sources said.Since credit is a critical input in achieving higher farm output, the institutional credit will help delink farmers from non-institutional sources of credit where they are compelled to borrow at usurious rates of interest, they said. Normally, farm loan attracts an interest rate of 9 per...

Budget 2018: Increase tax exemption limit to Rs 300,000, says SBI report The government has periodically increased the income tax slabs from Rs 22,000 in 1990-91 to Rs 2.5 lakh in 2014-15 The rise in personal disposable income post 7th Pay Commission, the income tax exemption limit needs to be raised by Rs 50,000 to Rs 300,000 a SBI report said today.The move will benefit around 75 lakh people, it said. The SBI's Ecowrap report further said that if the exemption limit of interest payments under housing loan is increased to Rs 250,000 for existing home loan buyers, from Rs 200,000 now, it will benefit 75 lakh home loan buyers and cost the government just about Rs 75 billion Finance Minister Arun Jaitley is set to present the fifth and final full budget of the current government on February 1.The government has periodically increased the income tax slabs from Rs 22,000 in 1990-91 to Rs 2.5 lakh in 2014-15."Due to 7th pay commission, the personal disposable income has b...

IMF Report says India Stays Ahead of China in FY17 Growth Rate World Economic Outlook has revised upwards India’s growth forecast to 6.8% from 6.6%, just ahead of China’s 6.7% India will not have to surrender its fastest growing major economy tag to China in the near future and will record slightly higher growth rate than its bigger neighbour for last year despite a slowdown due to demonetisation, International Monetary Fund says. World Economic Outlook (WEO), the fund’s flagship publication, has revised upwards India’s growth forecast for FY17 to 6.8%, just ahead of China’s 6.7% for 2016 calendar. IMF has retained its India growth forecast for FY18 at 7.2% and FY19 at 7.7%, well ahead of its forecast for China. In its January review, the Fund had slashed India’s growth estimate to 6.6% for FY17, below China’s growth rate for 2016, citing demonetisation disruptions. GLOBAL RECOVERY According to WEO, the global economy is expected to do better with 3.5% growth in 2017 agains...

NSE co-location: EY, ISB audits fail to cut ice with SEBI panel The Securities and Exchange Board of India’s (Sebi’s) technical advisory committee (TAC) is not satisfied with the forensic report findings submitted by the National Stock Exchange (NSE) on co-location, said a regulatory official. According to him, Sebi’s expert panel is of the view that the report findings are not matching with the evidences gathered by them. The panel has submitted their views to the market watchdog and has called for an independent probe. In November 2017, the NSE had submitted two separate audit reports to Sebi, prepared by EY and the Indian School of Business (ISB), Hyderabad, relating to the co-location matter. The NSE entrusted EY to carry out a forensic audit into cash markets, currency derivatives, and interest rate futures platforms. ISB’s audit was to determine whether certain brokers made any undue profits by getting preferential access to the exchange’s platform.Sources say the audit...

Cryptocurrency exchanges face the red flag In some cases, RoC is seeking an undertaking The banking system is not the only one keeping a safe distance from the existing cryptocurrency business players. Opening virtual currency exchanges has become equally tough, especially when words like bit, crypto, coin, virtual are part of a company name. The Registrar of Companies (RoC), under the Ministry of Corporate Affairs, has stopped registering cryptocurrency exchanges under the Companies Act, 2013. In some cases, the RoC is asking for an undertaking from software development- or information technology-related companies that it will not deal with cryptocurrencies such as bitcoins, it is learnt. “I tried to register my company in December, but the RoC didn’t accept my request. The company’s name had the term ‘bitcoin’ and the RoC said it wouldn’t support it,’’ an executive with an upcoming cryptocurrency exchange said.Cryptocurrency exchanges are a platform for buying and selling virtu...