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The Securities and Exchange Board of India (Sebi) on Thursday issued a concept paper on "green bonds", which would enable corporate groups to raise capital for environment-friendly purposes. Green bonds are like ordinary corporate bonds but with one major difference: They are used to fund projects that help in reducing the carbon footprint. Sebi has proposed ways to monitor the use of funds that have been raised in this way. "An issuer shall have to disclose in the offer document following additional information about the green bonds," stated the Sebi discussion paper. However, experts feel without incentives, companies won't be attracted to the segment. "Though Sebi's initiative seems like a step in the right direction, but without any incentives or differential treatment, there won't be many takers for these bonds. We will have to wait for the ministry and central bank to decide on incentives because currently Sebi discussion paper is more

Repo rate in the Indian context is a blunt instrument, says Bhattacharya The present Reserve Bank of India ( RBI) draft guidelines on computation of the base rate of banks, linked to marginal cost of funds, were not going to work out, and bankers had already given their suggestions to the regulator, said Arundhati Bhattacharya, chairman, State Bank of India (SBI), on the sidelines of an interactive meet with the Ladies Wing, Bengal National Chamber of Commerce and Industry here on Thursday. Bhattacharya also suggested that for banks to pass on the repo rate rate cut to borrowers, on the lines of the fixed tenure and rates on deposits, on the lending side too, lenders should be allowed to immediately charge lower interest only for new loans. On old loans, the new rates could be applicable only after a year, she suggested. Further, repo rate was a “ blunt instrument” in deciding the interest rate, she added. “We need to look at how we can balance the book better. For example, if

As many as 2,690 companies are yet to appoint a woman director on their boards, even as the last date to do so was over eight months ago. The Centre has started the process of serving show- cause notices on such companies. According to the data, 10,328 companies, registered under the CompaniesAct, 2013, shouldhave appointed at least one woman director by April 1, 2015. Only 74 per cent ( 7,638) of them have complied with the law so far. “Show- cause notices are being sent to the companies,” said the government in a reply obtained under the Right to Information Act. However, the law does not prescribe any specific penalty at this stage, said Harish H V, partner – India Leadership team, Grant Thornton India LLP. According to the Act, every public company, having paidup share capital of Rs.100 crore or more or having aturnover of Rs.300 crore or more, should have appointed at least one woman in their board by April 1 “The usual reasons ( behind not appointing women directors) are

Updates Of the Day 1.SEBI issued Circular No. CIR/OIAE/001/2015 on Issue of No Objection Certificate for release of 1% of issue amount as per the extant Listing Agreement with the Stock Exchanges. 2.Services directly or indirectly used in relation to manufacture of final products are eligible for Cenvat Credit. [Punjab and Haryana High Court in the case of Bellsonica Auto Components India Private Limited]. 3.MCA has modified the versions of e-Form DIR-3, DIR-6, FC-4, MGT-14, INC-7, INC-22, SH-7, INC-29, DIR-12 and CHG-1 w.e.f 02.12.2015. 4.Valuation as per deeming provision u/s 50C not applicable on mere transfer of rights in land. [ITAT Jaipur held In the case of ITO vs. Tara Chand Jain]. 5.No addition u/s 68 on account of money received on allotment of shares, once identity of investor company established. [Lotus Integrated Taxpark Ltd. vs. The DCIT (ITAT Chandigarh)]. 6.Government notifies new DTAA with Thailand; old DTAA would cease to have effect from 01.04.2016. For more

As part of cashless economy push, Centre to create a framework for payments -inter-ministerial, vendor transactions or payments for govt services -to be made electronically Feeling hassled about making a paltry payment of Rs.10 or Rs.5 through net banking or a credit card for a government service? Fret not -such transactions can soon be done through mobile wallets such as Paytm and Mobikwik. The government is creating a framework for all financial payments -inter-ministerial, vendor transactions or small payments by citizens for government services -to be made electronically. This is part of a larger initiative by the Modi government for a cashless, or less cash, economy. The Department of Electronics and IT (DeitY) is spearheading the project, which is on its way to become a major leg of the govern ment's marquee Digital India campaign that is aimed at all-round digitisation in the country. Currently, most government payments and receipts are made by cash or cheque, said

Tax clarity on monetisation likely this week The finance ministry’s revenue department is likely to issue a clarificatory note within this week on the taxation issues of gold monetisation scheme ( GMS) investors. The clarifications will include exemptions on income tax and long- and short- term capital gains tax. Standard has learnt a number of state- owned banks are in talks with some of the country’s largest and richest temple trusts, including those managing Sabarimala, Sree Padmanabhaswamy, Tirumala Tirupati, Guruvayur, and Puri Jagannath, among others, to part with some of their massive reserves of idle gold for GMS. These and other issues surrounding the gold schemes were discussed at a meeting, which the finance ministry and the Reserve Bank of India officials held with representatives of various banks in Mumbai on Tuesday. The meeting was chaired by Economic Affairs Secretary Shaktikanta Das. “The income tax department may issue clarifications on the tax treatment for

Securities and Exchange Board of India ( Sebi) on Wednesday sent an email to mutual fund houses seeking information on the commissions paid to distributors. The market regulator has asked fund houses to give details about their commission payout by 3 pm on Thursday. “ We hear informally from Amfi ( Association of Mutual Funds in India) that certain asset management companies are not following the said guidelines ( best practices guidelines for rationalisation of distributor commissions). You are advised to provide the status with respect to the same. Your reply shall reach us by 3 pm tomorrow (Thursday),” said Sebi’s email. The industry body of the mutual fund industry, Amfi, had issued guidelines under its best practices guidelines on March 26 and another lot on June 26, asking fund houses to rationalise fees that are being paid by them to distributors. In the guidelines issued on March 26, fund houses were asked to limit the payment of commission to 100 basis points in the fi