CA Online

An American law could limit the universe of institutional investors that may invest in the coming Initial Public Offerings (IPOs) of India’s two major bourses, the BSE and National Stock Exchange (NSE). The law in question is called the ‘Volcker Rule’, as it was enacted on the recommendation of Paul Volcker, a respected central banker. This US federal regulation prohibits banks from conducting certain investment activities with their own accounts, and limits their ownership of and relationship with hedge funds and private equity funds, also called ‘covered funds’. And, it appears both BSE and NSE could be deemed ‘covered funds’ as defined in the Volcker Rule for the coming IPOs. Both exchanges are relying on an analysis that they do not come under the definition of an ‘investment company’ under the US Investment Company Act because of an exception provided under it. However, this means they may be considered a covered fund as defined in the Volcker Rule. A covered fund faces gr

The Securities and Exchange Board of India (Sebi) has penalised seven former officials of Saradha Realty in an illicit money pooling case, in addition to three individuals and the company that have to pay a total fine of Rs.1 crore. The penalty has been slapped on the 11 entities for running collective investment activities without approval of Sebi. In October 2016, Sebi had directed Saradha Realty, Managing Director Sudipta Sen and two other officials, Hemanta Pradhan and Monoj Kumar Nagel, to pay a total fine of Rs.2 crore under two sections. The penalties were for illegal money pooling activities and for failure to wind up such schemes as instructed by Sebi in April 2013. Business Standard New Delhi,13th January 2017

Them in is try of labour & employment has extended the deadline by three months for companies and other commercial establishments to get registered with the Employees’ProvidentFund Organisation(EPFO).“We are asking those companiesor commercial establishments to come forwardand get registered(withEPFO).Now, we have given the deadline to March31,2017(from earlier December 31,2016),”said Ministry of Labour& Employment Secretary MS athiyavathy. ’ Business Standard New Delhi,13th January 2017

The ministry of labour & employment has extended the deadline by three months for companies and other commercial establishments to get registered with the Employees’Provident Fund Organisation(EPFO).“We are asking those companiesor commercial establishments to come forward and get registered (with EPFO).Now, we have given the deadline to March 31,2017(from earlier December31,2016),”said Ministry of Labour & Employment Secretary MS athiyavathy. Business Standard New Delhi,13th January 2017

The income-tax department has started a crackdown on “suspicious” bank lockers after searches and raids revealed that these were being used to stash illegal cash and jewellery. Tax officials were seeking details of lockers operated multiple times, especially in co-operative banks, after the government announced the recall of `500 and `1,000 banknotes on November 8, sources said. “Benami bank lockers are being monitored to check ownership as these have been used for illegal activities and hoarding illegal cash and wealth,” a government official said. “However, it must be re-iterated that it is aimed at addressing the black-money issue and there will be no sealing of bank lockers, as we have already said.” A benami, or ghost, locker is operated by someone other than the person in whose name it is issued. There have been instances when a holder has agreed to keep cash or jewellery for a family member, an acquaintance or even a senior at work. Large quantities of cash — Rs.600

Standard deduction for personal income tax might return after over a decade in the Union Budget for 2017-18, if the finance ministry accepts recommendations of the tax simplification committee chaired by ex-judge R V Easwar. Sources say the panel, in its second report given recently to the ministry, has suggested doing so. Standard deduction was given as a lump-sum benefit towards cost to income till 2003-04. In simple terms, it refers to a deduction allowed in income tax, irrespective of expenses incurred or investment made by assessees. "Standard deduction is simple to administer," said Amit Maheshwari, partner, Ashok Maheshwary & Associates. For the deduction, there was no need for a taxpayer to keep proof of expenses such as bills. Then finance minister P Chidambaram did away with standard deduction for salaried personnel in 2004-05, on the reasoning that there was an equivalent increase in the basic exemption limit and other deductions. It was then abolished af

Imposing service charge on food and drinks at hotels is an unfair trade practice and consumers need not pay it,Consumer Affairs Minister Ram Vilas  Paswan said on Wednesday. Although there is no provision under the existing law to take action against hotels/restaurants,consumers have the freedom to not pay the service charge and can decidet on oteat if they are informed in advance a boutit through the menu card. Paswanal some ntioned that in future,such cases would be addressed effectively, as a provision has been made in the new Consumer Protection Bill to set up a regulator CCPA.The bill is likely to see the passage in the forth coming budget session of Parliament. Addressing the mediaon this issue,Paswan said:“Our Department’s view is that imposing service charge is an unfair trade practice and consumers need not pay.”There is node finitionof‘service charge’ in law but taking service charge without discretion of consumers is an“unfair trade practice”,he said. Paswan als