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EASE OF DOING BIZ CBEC will issue a directive to speed up refunds of service tax to BPO, IT &ITES sectors; buoyant tax mopup has given finmin room to clean up process For many years, muted revenue collections meant delayed or no tax refunds for India Inc., especially exporters. Facing a revenue shortfall in the first half of every financial year, North Block would issue an unwritten instruction to field officials to hold back refunds. This year, there will be a break from the past, with a directive going out to the field to release all refunds amid preparations to start on a clean slate for the goods and services tax, which the government hopes to implement from April 1, 2016. The Central Board of Excise and Customs, the apex indi rect taxes body, is also working on a comprehensive overhaul of the refund mechanism for the BPO, IT and ITES sectors. “We want to ensure there are no pending refunds in the system,“ a senior finance ministry official said, adding that the idea is

Asks exchanges to speed up efforts in attracting new- age companies The Securities and Exchange Board of India ( Sebi) is keen on having companies list under the new start- up regulations before the end of the calendar year. The market regulator has asked stock exchanges to speed up their efforts in attracting new- age companies to the stock markets for their funding requirements. Exchanges have also been tasked to spread awareness and get market feedback on the new regulations. Given the regulatory push, the exchanges have already started their drive. BSE has already launched an institutional trading platform (ITP) — BSE Hi- Tech for start- up listings. The exchange, which had achieved considerable success in SME listings, has set up an office in Bengaluru, where most of the technology start- ups are based. “We have announced a hitech platform for start- ups. Tomorrow ( on Wednesday), we are opening our branch office in Bengaluru. We already have offices in Chennai, Hydera

The Securities and Exchange Board of India (SEBI) wants credit rating agencies to avoid suspending ratings if a company stops providing adequate information, the regulator told them at a recent meeting. At a meeting on 8 October, the markets regulator asked raters for suggestions on ways to continue evaluating an instrument based on publicly available information and avoid suspending an existing rating, according to two people familiar with the discussions. Both of them declined to be named. “The regulator wanted to know why at all a suspension should happen. The need for the same was explained by the agencies, where during the tenure of a rating, it is possible that the issuer may not share information when not favourable. So the question is, how do you deal with this? At the end, the regulator has asked agencies to articulate and come out with a white paper on a uniform practice that could be adopted,” said one of the people. Rating agencies have been asked to submit this white

After merger with FMC, Sebi likely to bring the regulations in line with those that govern commodity bourses Securities and Exchange Board of India (Sebi) may have to relax shareholder norms for stock exchanges to bring them in line with those that govern commodity bourses following the capital markets regulator’s merger with its commodity markets counterpart, according to three people, including one who is familiar with Sebi’s policymaking processes. They requested anonymity because of the confidential nature of these discussions. The commodity markets regulator Forward Markets Commission (FMC) was merged with Sebi last month. “Sebi is working on ways to harmonize the norms for both classes of exchanges especially in terms of the ‘fit and proper’ criteria laid down by the regulator for securing a licence for running an exchange,” said the person familiar with the regulator’s policymaking processes. The difference in shareholding norms is a critical issue that needs to be add

As the capital markets gear up for more listings of start- ups, the chairman of the Securities and Exchange Board of India (Sebi) assured willingness to consider suggestions that could make fund raising easier for such companies. UK Sinha, the chairman, emphasised their effort was to create a conducive climate for such entities, and to ensure these raised money domestically through the markets, rather than from places such as Singapore or America. To attract new- age companies into the capital market, Sebi, in August, notified relaxed listing norms for such entities. Participating at an event here on start- ups, organised by the PHD Chamber of Commerce and Industry, he said the regulator was willing to consider suggestions for possible changes in the listing norms. Business Standard, New Delhi, 13th Oct. 2015

Plans to prune offer documents to 10 pages The Securities and Exchange Board of India ( Sebi) has indicated it will not allow wordy or incomprehensible Initial Public Offering ( IPO) documents. (IPO is the act of offering the stock of a company on a public stock exchange for the first time.) "Very soon, we will come out with ( rules for an) abridged prospectus... It will be really understandable for investors. Whatever ( information) is required to take well informed decisions will be available in 10 pages," said P K Nagpal, executive director, Sebi. He was speaking at an event here, organised by the PHD Chamber of Commerce and Industry. As a rule, IPO documents run into hundreds of pages and investors often find it difficult to comprehend the key information. What Sebi appears to be planning is to have a rule that the entire offer document only be available on a soft copy format on the websites of Sebi, the company in question and the investment bankers to an IPO

The Centre and states have completed the drafting of model Goods and Services Tax ( GST) law as well as an integrated- GST ( iGST) law, which will be put up in public domain by early November. According to a government official, the Empowered Committee of state Finance Ministers is likely to meet this month to discuss the legislations —Central GST ( CGST), State GST ( SGST) and iGST. “The model GST law and iGST law has been circulated among the states. The Empowered Committee would meet soon to discuss them,” a senior official told PTI. The CGST will be framed based on the model GST law. Also the states will draft their own SGST based on the draft model law with minor variation incorporating state based exemption. “Trade and Industry should also be a part of the law because ultimately they would pay the tax. Hence their views are essential. The drafts will be put up on website by first week of November,” the official added. The drafts of the proposed legislations are based