CA Online

Fixed-term contract staff to get gratuity benefits like permanent employees Under the Gratuity Act of 1972, employees completing five years of continuous service are eligible to get a gratuity payment when they leave the organisation In a first, workers hired under fixed-term contracts will be entitled to gratuity at any time of leaving the job. Till now, no one hired on a contract for a fixed period was entitled to any gratuity. Those in permanent employment were entitled to it only after they had completed five years. Under recently notified rules, workers hired through a fixed-term contract will get all the statutory benefits that permanent workers in the same establishment are entitled to. This includes employees’ provident fund and employees’ state insurance benefits, bonus, gratuity and other compensation in case of accidents or death while at work. Under the Gratuity Act of 1972, employees completing five years of continuous service are eligible to get a gratuity payme

US Fed rate hike: Indian exports may take small hit in long-term While high global demand may sustain export growth, continued investments into India can make trade uncompetitive India’s export earnings are expected to remain stable or at the most take a small hit in the wake of the US Federal Reserve raising interest rates. Experts and exporters alike say this will happen as global demand continues to remain high, thereby cementing the rise of exports. However, at the same time, India continues to attract global investments, thereby strengthening the Indian rupee, which may lead to exports becoming more expensive and thereby less competitive in the global market. Hopes on high demand The US Fed on Wednesday raised interest rates by 0.25 per cent, the sixth time since December 2015. Even as fourth quarter gross domestic product (GDP) growth in the US was revised downwards to 2.5 per cent, US policymakers now believe that economic growth will remain steady in 2018. As a resu

SEBI to focus on big bang market reforms at board meeting Sebi to consider proposals such as making algorithmic trading cheaper and more accessible, and reducing fees charged by mutual funds to unit holders Capital markets regulator Securities and Exchange Board of India (Sebi) will consider closely supervising the work of auditors, independent valuers and compliance secretaries and penalize them for lapses at its board meeting on 28 March, three people with direct knowledge of the matter said. The Sebi board will also consider proposals such as making algorithmic trading cheaper and more accessible, and reducing fees charged by mutual funds to unit holders. Norms for companies admitted to bankruptcy court related to their trading, delisting, and disclosures will also be discussed, the people said, requesting anonymity. The proposal to increase auditor oversight comes amid a move by the government to set up the National Financial Reporting Authority (NFRA) as an independent r

Govt asks NBFCs to report details of clients to FIU-IND NBFCs have been asked to register with the financial intelligence unit FIU-IND and report details of clients under the Prevention of Money Laundering Act The government on Thursday asked non banking financial companies (NBFCs) to register with the country’s financial intelligence unit (FIU-IND) and report details of clients as per the requirements under the Prevention of Money Laundering Act. As unregistered NBFCs remain outside the reporting ambit of FIU-IND, they pose a risk to the integrity of the country’s financial system, the government said. Last month, FIU-IND had put out a list of nearly 9,500 NBFCs who were non-compliant. The list has been published by FIU-IND to enable the bankers to conduct enhanced due diligence of the transactions carried out by such NBFCs, the statement said, adding that the companies’ names would be deleted from the list once they register with the agency. The Mint, New Delhi, 23rd March

  Market volatility seen affecting IPO plans of smaller companies With small-cap and mid-cap stocks declining in recent months, IPOs of small companies may attract lower valuations, say analysts The volatility in Indian stocks in the past few weeks is expected to impact the valuations of small and medium-sized companies that are preparing to launch their initial public offerings (IPOs). Since 2015, a majority of the 94 companies that have launched IPOs for listing of their stocks on the main boards of exchanges are small and medium-sized companies, data from stock exchanges shows.I n the secondary markets, small-caps and mid-caps have been the biggest losers in the recent months, resulting in depressed sentiment for IPOs from these segments, industry experts said. Year-to-date, the BSE Midcap index has lost 10.73% and the BSE Smallcap index 11.27%, underperforming the 3.08% loss in the benchmark Sensex. “The mood has been down in the last couple of weeks in the secondary mark

Deadline to re-verify mobile numbers through Aadhaar extended till SC judgement  The telecom department on Wednesday has extended the time limit for re-verifying mobile numbers through Aadhaar till the time the Supreme Court decides on an ongoing case on the validity of the identification number and its enabling law.  “In compliance with the directions of the SC...the last date of reverification of existing mobile subscribers through Aadhaar-based E-KYC process, is further extended till the matter is finally heard and the judgement is pronounced by the Hon’ble Supreme Court,” the telecom department said in a notification dated March 21.  It added that as per the changes, all communications including voice or text messages sent by carriers to their subscribers should not include any last date for re-verification.  The directions were issued on the back of SC’s March 13 order, where it extended the March 31 deadline for mandatory linking of Aadhaar to avail of various services and

Environment ministry eases rules for construction companies The government has eased environmental clearances for buildings and construction sector, with the environment ministry more than doubling the threshold for construction projects requiring environmental clearances from the Centre to 50,000 square metres of built-up area from 20,000 sq metres.  As a result, developers of an average sized mall with three floors or an apartment complex with 300 three-bedroom flats would be able to start construction with online submission of a self-certification that all environmental obligations would be met.  The onus has therefore shifted to urban local bodies in the cities. A developer would fill a form online to the local authority and then a building permit would be issued for construction.  So far, this was followed by all projects with less than 20,000 sq metres of built-up area. Now, the ministry of environment, forests and climate change has issued a draft notification amending