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Public and private banks are readying themselves to handle collection, accounting, and money transfers under the goods and services tax (GST) structure by December. The Reserve Bank of India (RBI) and the finance ministry have started holding monthly meetings with banks to check their preparedness. The new tax structure may be implemented from April 2017. Banks also need to send their status reports to the RBI and the government. Sources said the technology teams are trying to identify “teething problems” that could arise in the next couple of months. Banks that mostly follow automatised systems will have to further upgrade their IT management to ensure the GST is implemented smoothly. The individual bank boards have also been monitoring the situation. “Most public sector banks are almost ready with the systems, we are confident we would be able to move towards the seamless implementation of the new structure,” K Raghu, former president, Institute of Chartered Accountants o

THE REGULATOR has also asked its non-executive members to meet separately to evaluate its performance, and intends to appoint a woman director on its board The Securities and Exchange Board of India (Sebi) plans to reduce the listing timeline after an initial public offer (IPO) further to four days from six days, a move that would further bring down investors' exposure to market volatility . “We have been able to bring down the issue timing from T+12 to T+6 and I would like to mention that all of us have to start working now to further reduce the issue timing,“ Sebi chairman UK Sinha said while addressing the annual capital market conference by Federation of Indian Chambers of Commerce and Industry . “Can we perhaps bring it to T+4 days for example and reach the best global standards? I am sure we can do this with co-operation of market, government, Reserve Bank and the bankers.I have already asked my team to start working in that direction.“ Last year, Sebi reduced the lis

Declarations under the black money scheme could top Rs 71,000 crore, the Institute of Chartered Accountants of India (ICAI) said, an assessment that exceeds the government's provisional estimates. The finance ministry initially pegged the declarations made under the Income Declaration Scheme at ` . 65,250 crore and said the amount could be revised upwards after tabulation. The fourmonth scheme closed on September 30. The Central Board of Direct Taxes (CBDT) is expected to announce the final figures soon. “More than Rs. 71,000 crore has been disclosed under the IDS as per latest available information,“ ICAI President M Devaraja Reddy said at a press conference here. The government's initial estimates showed 64,275 declarations. The ICAI was involved in spreading awareness about the scheme. Reddy said a big percentage of people who declared income were those who hadn't filed their income-tax returns.“By observation of my friends who have been doing taxation, 40-60%

The Securities and Exchange Board of India ( Sebi) has proposed curbs on compensation agreements between promoters of a listed entity and private equity ( PE) funds. In a discussion paper, the markets regulator proposed that certain arrangements between listed entities and PEs would need prior approval from shareholders. "No employee, including key managerial personnel, director or promoter of a listed entity shall enter into any agreement with any individual shareholders or any other third party with regard to compensation or profit sharing unless prior approval has been obtained from the board ( of directors), as well as shareholders by way of an ordinary resolution,” Sebi proposed in a paper titled ‘ Corporate Governance Issues in Compensation Agreements’. The proposals were approved by the Sebi board on September 23 ( public comments have been invited till October 18). “Provided that all such existing agreements entered into prior to the date of notification and whic

The final tally of disclosure might be Rs. 10,000 crore more than reported so far under the recently concluded scheme in this regard for hitherto undisclosed money, tax officials said. “The total figures could go well beyond Rs. 75,000 crore. A final report will be submitted by the Central Board of Direct Taxes ( CBDT) by next week,” an official said. Devaraj Reddy, president of The Institute of Chartered Accountants of India, said at least Rs. 71,000 crore was declared under that Income Declaration Scheme ( IDS). Finance Minister Arun Jaitley had given a figure of Rs. 65,250 crore but said this was provisional. As many as 64,275 declarants disclosed black money but this figure could be revised upward, he had said. Central Board of Direct Taxes head Rani Singh Nair met regional heads on Tuesday and sources said IDS and its aftermath were discussed. Business Standard New Delhi,05th August 2016

In its maiden review on Tuesday, the Monetary Policy Committee ( MPC) decided to cut policy rate by 25 basis points, as the recent fall in inflation seemed more durable than just an outcome of a positive base effect. All six members of the committee, including newly appointed Reserve Bank of India ( RBI) Governor Urjit Patel, met and deliberated for two days before unanimously voting in favour of a cut in the repo rate, which now stands at 6.25 per cent. “The decision of the MPC is consistent with an accommodative stance of monetary policy, in consonance with the objective of achieving Consumer Price Indexbased inflation at 5 per cent by Q4 of 2016- 17 and the medium- term target of 4 per cent within a band of +/- 2 per cent, while supporting growth,” the fourth bi- monthly monetary policy statement read. “The accommodative stance of monetary policy and comfortable liquidity conditions should support a revival of credit to the productive sectors.” Patel, conducting his first mo

LAST WEEK, the interest rate on Public Provident Fund (PPF), and a number of other deposit schemes run by the government (Kisan Vikas Patra, the girl child scheme, senior citizens deposit etc) were cut by 0.1% per annum. PPF went down from 8.1 to 8.0%.  There were some protesting noises on social media and from some of the usual suspects, but they were mostly just murmurs, probably because of the marginal quantum of the cuts. In fact, a lot of people wondered what was the point of such a small cut. This shows that the idea that these rates are now market-linked is not widely known. They are reset every quarter, depending on the interest yield on government securities. Give how things are going, it won’t be too surprising if these rates fall further. PPF rates are already at a historic low and if they go below 8% then the psychological impact of hearing 7-point-something will be huge on savers. The KVP is already down to 7.7%. It’s also worth noting that there’s a maths trick to this 0