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SEBI  sets up review panel to hear disputes between rating agencies & firms Committee will consist majority of independent directors; Nearly 1,000 companies have challenged ratings assigned by agencies in 2017 The Securities and Exchange Board of India (Sebi) on Wednesday directed rating agencies to set up committees to hear the appeals of issuers aggrieved by the ratings assigned to them. Currently, there is no stipulated mechanism to review such issues. “To ensure transparency and fairness, it has been decided that requests by issuers for review of the ratings will be reviewed by a rating committee that shall comprise a majority of independent members,” Sebi said. The move follows hundreds of complaints filed by companies last year challenging the ratings assigned to their products. However, as there is no proper mechanism, issuers often move to another credit rating agency (CRA). Sebi has issued a new framework for disclosures, which covers the process to be follow...

Income-tax appeal limits may be raised to cut litigation The CBDT is planning to increase the limit for appeals to the Income Tax Appellate Tribunal from Rs 1 million to Rs 2 million . In a move that will lead to more concentrated efforts in resolving tax litigation involving around Rs 5 trillion, the Central Board of Direct Taxes (CBDT) is planning to increase the threshold for filing appeals by income-tax (IT) authorities. The CBDT is planning to increase the limit for appeals to the Income Tax Appellate Tribunal (ITAT) from Rs 1 million to Rs 2 million. It also plans to increase limits for filing income-tax appeals in high courts and the Supreme Court from the current Rs 2 million and 2.5 million, respectively.“It has been observed that the threshold for filing appeals by the tax department against an unfavourable order is inordinately low. This is leading to a significant rise in the number of cases. It is a matter of serious concern that requires attention. Concerted actio...

Govt wants RBI to frame dividend policy; to amend RBI Act This moves comes in the wake of differences between North Block and Mint Road over the dividend that the Centre received from the RBI in 2017-18. The government is nudging the Reserve Bank of India (RBI) to formalise a policy governing the yearly dividends it pays to the Centre.Any such policy is likely to be given statutory backing through amendments in the RBI Act.This moves comes in the wake of differences between North Block and Mint Road over the dividend that the Centre received from the RBI in 2017-18. A senior government official said that the government’s nominees to the RBI board – economic affairs Secretary Subhash Garg and financial services secretary Rajiv Kumar – will take this issue up in the next RBI board meeting.The planned amendments to the RBI Act will mandate the central bank to transfer a certain portion of its annual profits after making provisions for bad debt, depreciation, and other items. RBI’s...

Exporters GST refund: Second phase of fast track clearance drive from Thursday With an estimated Rs 20,000 crore exporters' refund still stuck, the government will launch the second phase of refund fortnight beginning May 31 to fast-track clearances. "Special Refund Fortnight" to be organised from May 31 to June 14 in which Center and state GST officers will strive to clear all GST refund applications received on or before April 30, 2018," GST@GoI, which is the official twitter handle for GST related matters, tweeted. Federation of Indian Export Organisations (FIEO) President Ganesh Gupta earlier in the day said refund of over Rs 20,000 crore is pending on account of IGST (integrated GST) and ITC (input tax credit). "Many exporters have not been able to file the refund of ITC due to technical glitches as input tax credit and exports happened in different months," Gupta said. In the first phase of refund fortnight observed between March 15 to March...

Pharma Freebies Under GST Lens Companies offering schemes such as 1+1 may have to pay tax on the extra quantities Pharmaceutical companies offering buy-one-get-one-free schemes or 20% extra for the same price may have to pay goods and services tax (GST) on the extra quantities, raising prospect of the principle being applied to a broad spectrum of consumer products, said people with knowledge of the matter. The tax heads of firms such as Novartis India, Sun Pharma, Cipla, Lupin have been summoned for meetings with tax officials, they said. The Director General of GST (Intelligence), an arm of the indirect tax department, has begun investigations and sought details of incentives given to distributors, stockists and customers by about 30 companies.  Demand may Lead to Litigation, Say Experts The tax authorities want them to either pay GST or reverse input tax credits on the extra quantities. “We did receive a query from the Director General of GST (DGGST) regarding trade di...

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday. While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace. Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping compani...

India may have to End Export Promotion Plans If WTO Objects Panel set up by WTO’s Dispute Settlement Body to look expeditiously into US complaint on subsidies India’s export promotion programmes have come under the global trade watchdog’s scanner and would need to be stopped if found prohibited as per the World Trade Organisation (WTO) norms. The WTO on Monday referred a US complaint against India’s export promotion schemes to the Dispute Settlement Body (DSB) by establishing a panel to look expeditiously into the matter. Failing to find a mutually agreed solution in the stipulated 30 days to India’s export promotion programmes, which Washington claims harm American workers, the US had requested the establishment of a panel more than 10 days ago.“A panel has been established in the DSB under accelerated timelines of the agreement on subsidies and countervailing measures (SCM) on our export-related measures,” an official privy to the details told ET. The SCM agreement provides...

SGX delays launch of new India products as NSE gets injunction order Will continue offer SGX Nifty contracts till August 2018 The Singapore Exchange (SGX) has put on hold the launch of its new India derivatives products following the injunction order obtained by the National Stock Exchange (NSE) from the Bombay High Court.Through a circular dated April 11, SGX had announced the launch of three new India products—SGX India Futures, SGX India Bank Futures and SGX Options on India Futures. As the new products were strikingly similar to licensed Nifty products, NSE’s index providing arm India Index Services and Products (IISL) moved Bombay HC on May 21. On May 29, the court granted an interim injunction against the launch of SGX’s new India derivatives products. “In view of the uncertainty caused by IISL’s action, and after consultation with key stakeholders, we have decided to continue listing SGX Nifty contracts until August 2018, as contractually provided for under our licence...

A number of GST amendments likely in Monsoon Session: Official According to GST Council special secretary Arun Goyal, the GST e-way bill system will be rolled out across the country by 3 June. Several amendments to the Goods and Services Tax (GST) law is likely to be placed before Parliament in the Monsoon Session, a senior official said in Kolkata on Monday. “There are several amendments to the GST which is proposed to come up during the Monsoon Session of Parliament,” GST Council special secretary Arun Goyal said at a seminar organized by the Merchants’ Chamber of Commerce. Over a dozen pending GST amendments are aimed at easing operational functioning of the indirect tax reform, he added. According to Goyal, the GST e-way bill system will be rolled out across the country by 3 June. A total of 20 states have already implemented the e-way bill system, dates of which has seen several deferments in the recent past The Mint, New Delhi, 29th May 2018

MCX shares continue to surge, up over 4% amid merger talks with NSE Shares of Multi Commodity Exchange of India had surged 14 per cent on Friday also. Shares of Multi Commodity Exchange of India (MCX) continued to gain for the second straight session on Monday, rising over four per cent amid reports of merger with National Stock Exchange (NSE). The stock soared 4.25 per cent to end at Rs 853.60 on the BSE. During the day, it jumped 6.49 per cent to Rs 872. On NSE, shares of the company surged 4.53 per cent to close at Rs 854.85. In terms of equity volume, 244,000 shares of the company were traded on BSE and over 2,200,000 shares changed hands on the NSE during the day.  Shares of Multi Commodity Exchange of India had  surged 14 per cent on Friday also. In a clarification to the BSE on Friday, MCX said, “We would like to state that as part of the corporate strategy, the company continuously evaluates various opportunities for enhancing shareholders’ value. If and when...

No major change in number of MF schemes post Sebi rationalisation Drop in the number of schemes is less than 3%, despite merger of 38 schemes between Sept 2017 and May this year The Securities and Exchange Board of India's (Sebi's) move to categorise and rationalise mutual fund schemes has resulted in a reduction of less than three per cent in the number of schemes in the MF universe. Between September 2017 and May this year, 38 schemes have been merged, the majority of which are in the debt domain, data collated from Value Research shows. The fund count in the equity category has declined by one and that in the debt category has reduced by 26. Open-ended schemes today number 977, about three per cent lower than the figure before Sebi issued its October circular. Experts believe the number of categories under the new directive provides enough options for fund houses to continue with existing schemes under a different category, which effectively reduces the scope for l...