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Foreign portfolio investors (FPIs) are seeking clarity on the circular on participatory notes (p- notes) or offshore derivative instruments (ODIs), issued by the Securities and Exchange Board of India  (Sebi) in July. Investors are unclear whether the hedging position needs to be looked at, at the issuer level or at  the subscriber level, and whether the derivatives positions can be taken against equity investments  indirectly through foreign currency convertible bonds (FCCBs) or American depository receipts/global  depository receipts (ADRs/GDRs). FPIs have told the regulator it would be difficult for issuers to discern between speculative and  hedging positions of individual investors, and to ascertain the exact number of open positions held by  investors. This will especially be the case if the investors deal with multiple p-notes issuers. Sebi is expected to come out with clarifications on some of these issues. “The language of the circular seems to suggest that it is a

The scrutiny of the functioning of angel networks by the Securities and Exchange Board of India (Sebi)  could pave the way for crowd funding regulations. Sebi has reportedly written to several angel networks in recent weeks, seeking details about their  fund raising business and whether they operate within the contours of the securities market law. Angel networks areakey link between the startups looking to raise money and the investors. The capital markets regulator fears that these platforms are acting like stock exchanges and might be  violating the rules of private placement by offering shares to more than 200 investors. Some investors share Sebi´s concerns. "Angel networks are mushrooming, and Sebi´s concerns are genuine. There are public market processes and private placement processes. Sebi wants to understand how these platforms are operating, and if due process is being followed, and  if investor protection processes are being followed,´´ said Alok Mitta

The government crackdown against companies” has hit several investors, funds and small investors, who worth nearly Rs 9,000 crore in these companies. In a late circular on Monday, market Securities and Exchange Board of (Sebi) directed stock exchanges to immediately restrict trading in 331 companies identified as  “shell companies” by the Ministry of Corporate Affairs in consultation with the Serious Fraud Investigation Office (SFIO) and the incometax (IT) department. While, by definition,a shell company is one without any business operations or assets, several companies with active business dealings too were part list with 331  names. At least five companies list have market capitalisation (Rs 500 crore each, with diverse shareholding as retail investors.) These companies placed in the surveillance measure where trading in only onceamonth deposit” of three times the trade value. Companies, includingJKumar Infraprojects (mcap of Rs 2,150 crore), Prakash Industries (Rs 2,1

Banks to shut out builders without RERA listing   Builders who have been thinking of ways to beat the new Real Estate Regulation Act are fast running  out of time as banks, in consultation with the Reserve Bank of India, have decided not to extend loans  to those projects which have not been registered under RERA.  "We have to look for some security mechanism, and since RERA is designed to weed out fly-by-night  operators, we have decided not to extend credit to projects not registered with it," said a bank  official who did not wish to be identified. "Adhering to the regulations will safeguard our interests,  it's better to be safe now than regret later."  Banks have also sought additional collateral, including on personal properties of promoters, as  guarantees while disbursing loans to a few real estate developers.  "We are very apprehensive because even if we disburse loans as prescribed under the law, the way it is  designed, it does not prot

DeMo Impact : Individual I-T Returns Up 25% With the Centre tightening the screws on black-money holders, the number of income-tax returns (ITRs)  filed this fiscal year has risen nearly 25 per cent. According to official data released on Monday, the total number of ITRs filed till August 5 grew 24.7  per cent to 2.82 crore, as against 2.26 crore during the corresponding period of 2016-17. The number of returns filed by individuals rose 25.3 per cent to 2.79 crore, as against 2.22 crore in  the previous fiscal year. “This clearly shows that substantial number of new tax payers have been brought into the tax net  subsequent to demonetisation,” said the Finance Ministry. August 5 was the last day for filing income-tax returns after the deadline was extended from July 31. The Income-Tax Department had launched ‘Operation Clean Money’ to look into suspicious cash deposits  during the note-ban period. Taxpayers also had to declare cash deposits of over ?2 lakh made in their

Over one million pan cards deleted by the government. PAN card is an identifier of taxable entity for all financial transactions undertaken by one  person. As per the government of India, a person is not eligible to register with more than one  PAN number. The government of India traced fake PAN cards which have not been allotted to  existing individuals or people who have submitted false information about them. More than one million permanent account numbers have been deleted or de-activaed by the  government, in a move to check of the fake identities. In the current fiscal year the income tax department researched on the same and launched an  operation clean money where the results came out to be that near about 1.8 million people's  transactions did not appear in the line with their tax profile and they were approaced by the  government. There have been about 5.56 lakhs new cases. Besides this about 200 high risk persons were  indentified for appropriate action. Also

Sebi today directed bourses to initiate action against 331 suspected shell companies that are  listed and these scrips will not be available for trading this month, according to a  communication. The regulator's directive came after the corporate affairs ministry shared a list of 331 listed  companies that are suspected to be shell entities and could even face "compulsory delisting". Stepping up the surveillance measures, these entities would be subject to independent audit and  if required, forensic audits could also be initiated to check their credentials. In a communication sent to the BSE, the NSE and the Metropolitan Stock Exchange, the markets  regulator has asked them to keep the 331 shares in stage four of the Graded Surveillance  Mechanism (GSM) with immediate effect. Securities coming in stage four are permitted to trade only once a month under trade to trade  category. Since these shares would be moved to stage four from tomorrow, these securities