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Sebi mulls continuous listing norms for stricter oversight

Sebi mulls continuous listing norms for stricter oversight Sebi is looking to set up a working group to study the various aspects of creating a framework for continuous listing norms Working on ways to bolster its surveillance measures, the Securities and Exchange Board of India (Sebi) has plans to put in a framework for continuous listing norms for listed entities, according to a regulatory official. The move also comes at a time when multiple agencies and regulators are clamping down on suspected shell companies as part of larger efforts to curb the black money menace. Sebi already has strict norms for listed entities and are updated on a continuous basis. The person in the know said the regulator is looking to further strengthen the surveillance mechanism and weed out “paper- compliant companies”. In this regard, the proposal to float an agenda paper to introduce the “initial and continuous listing norms” was discussed during a recent meeting of the secondary market advisory

Exporters seek e wallets & GST exemption

Exporters seek e wallets & GST exemption Exporters have suggested the idea of instituting an ewallet mechanism for small and medium enterprises (SMEs) and complete exemption for merchant exporters, who have been hit by an unavailability of working capital in the goods and services tax (GST) regime. In a meeting with Finance Minister Arun Jaitley on Thursday, the Federation of Indian Export Organisations (FIEO) said the system may be instituted sinceasignificant number of firms are still disproportionately affected byacapital crunch. "Government may consider introduction of e-wallet for exporters in which, based on the preceding year´s exports and an average GST rate, ecurrency is credited to exporters´ accounts. Like a running account, money may be debited from the e-wallet when dutypaid supplies have to be undertaken and the amount may be credited when the proof of export is made available from ICEGATE," FIEO said inastatement to finance ministry officials. E

Govt wants early warning system on shell companies: How it will work

Govt wants early warning system on shell companies: How it will work The term is used to refer to a company without active business operations or much of assets. This by itself isn't illegitimate but they could be used as a manoeuvre for financial operations of a suspect or illegitimate nature. Currently, there is no way to check shell companies systemically, an official said. Chartered accountants (CAs) do come out with qualified accounts of such companies but these come in a random way on the ministry's MCA21 portal. Qualified accounts refer to bits of information about which CAs have doubts or disagreement with the audited entity's management. After the hoped-for early warning system comes, qualified accounts would be flagged on the ministry's portal, helping it and other regulators to check on such entities. "We are yet to work out the nitty gritty of this system but are on the job," another official said. He said this would do away with the curr

Deadline for obtaining Aadhaar for govt schemes, subsidies extended to Dec 31

Deadline for obtaining Aadhaar for govt schemes, subsidies extended to Dec 31 As many as 135 schemes including LPG to poor women, kerosene and fertiliser subsidy, targeted PDS and MGNREGA will be covered by the extension. The Centre on Wednesday extended the deadline for obtaining Aadhaar for availing government schemes and subsidies by three months to December 31. The extension is, however, only for those who are yet to apply of Aadhaar, an order issued by the ministry of Electronics and Information Technology said. As many as 135 schemes (of 35 ministries) including the free cooking gas (LPG) to poor women, kerosene and fertiliser subsidy, targeted public distribution system (PDS) and MGNREGA will be covered by the extension. The government had previously made quoting of Aadhaar necessary for availing government benefits and subsidies like those on cooking gas LPG. Those who did not have Aadhaar were asked to procure the unique identification number by September 30. This deadli

Sebi may tighten MFs’ risk monitoring practices

Sebi may tighten MFs’ risk monitoring practices AMCs could be asked to form independent committees overseen by trustees to mitigate risks     Increasing fears of debt default in Corporate India may prompt the Securities and Exchange Board of India (Sebi) to nudge the trustees and sponsors of asset management companies (AMCs) to play a more active role in managing risks. The regulator is deliberating on making it mandatory for fund houses to form internal risk assessment committees comprising key AMC personnel and external consultants, according to two people familiar with the matter. The functioning of the committee will be monitored by the trustees. The need for better risk monitoring was discussed in a recent meeting between the mutual fund advisory committee and the regulator. This follows rising concerns over the exposure taken by debt schemes to lower-rated debt papers, which run the risk of sudden downgrades or defaults. “An independent committee will be better able to carr

Taxmen slap big penalty to check evasion of GST

Taxmen slap big penalty to check evasion of GST A fine of 100,000 per cent is something few people would have heard of, or even thought about. A trader in Andhra Pradesh was recently asked to cough up more than that for not paying the goods and service tax. In a show cause notice, an Andhra Pradesh tax officer has asked the said trader to pay Rs 20,000 in fines after he omitted Rs 15 GST in a bill. “It’s clearly established that you wilfully violated the provisions (of GST law)…a punishable offence,” the notice said. This comes about two months after the government had asked almost 200 government officials across the country to go on a shopping spree and identify traders and shopkeepers who were flouting GST norms. ET was the first to report on July 8 that the government has deputed 200 senior IAS, IPS and IRS officers across cities and small towns as sleuths to identify businessmen, wholesalers and retailers violating the norms of GST. It seems these officers have now starte

MCA plans to ease process for starting biz

MCA plans to ease process for starting biz The Ministry of Corporate Affairs plans to simplify the existing processes for setting up a company, according to a public notice. In this regard, the ministry -- which is implementing the Companies Act - has sought views from the stakeholders. The government has already centralised name reservation and incorporation services. There were more than 11.34 lakh active companies at the end of August. The Business Standard, New Delhi, 28th September 2017