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Govt likely to give Sebi powers to regulate private placements The government is planning to relax a few key norms in the Companies Act to give Sebi more powers over private placements so that there's no conflict with the proposed crowdfunding norms. The government is likely to give the Securities and Exchange Board of India (Sebi) the power to regulate private placements by any Indian entity at a time when the capital markets regulator is finalizing norms for crowdfunding, said two people with direct knowledge of ongoing discussions between the regulator, the ministry of corporate affairs (MCA) and the ministry of finance. At present, private placements by unlisted firms are regulated by the MCA, while Sebi regulates fundraising activities by listed firms.Private placement means raising funds from less than 200 investors in a financial year. Funds raised from more than 200 investors automatically becomes a public offering and the issuer has to list these securities. Foll

Revenue concerns may push back further GST cuts With revenue concerns surfacing,areduction in goods and services tax (GST) rates for consumer durables in the 28 per cent slab may take longer than expected.With almost three months to go for the fiscal year to end, pruning the 28 per cent slab again may not happen in the next GST Council meeting in January. The reduction in rates for more than 200 items in the November meeting had raised expectations that white goods would be taken out of the 28 per cent slab.According to officials, the January meeting will not discuss rate reduction and the focus will be on stabilising revenue collection “The meeting in January is unlikely to look at reducing rates.A decision will be taken after the Union Budget is presented in February.The revenue position will become clear after that,”asenior official in the Council told Business Standard The focus was to meet the revenue collection target, he added.The Centre and the states should collect R

Divestment 2018: Some Profitable PSUs Too May Be Put On The Block With Rs. 52,500 crore coming in from disinvestment so far this fiscal, the government has exceeded Rs. 45,500 crore raised through PSU stake sale last fiscal The government may include some profitable Central Public Sector Enterprises (CPSEs) - which are not of much strategic importance -- in the the list of entities targeted for disinvestment in 2018, along with sick and loss-making units, a top official has said.The government was so far focused on strategic sale of sick and loss-making CPSEs. "This (privatisation) process will continue because Niti Aayog has been mandated to see how we can get rid of loss-making CPSEs, and may be even some profit-making CPSEs where we can find a very good buyer or government's interest is not so relevant," the official told PTI. The Niti Aayog, the official said, has already recommended a list of 23 PSUs for privatisation which are being looked at by the Depart

Govt says no question of closing any PSB Dismissing rumours, both the government and the Reserve Bank said on Friday there was no question of closing any public sector bank (PSB). The decision of the Reserve Bank to initiateaPrompt Corrective Action (PCA) against large stateowned Bank of India led to rumours that the government may close down some banks.The RBI said it has come across some "misinformed communication" in some section of media, including social media, about closure of some PSBs in the wake of their being placed under the PCA. The government, too, dismissed the rumours, saying on the contrary, it is planning to strengthen stateowned banks."The government is strengthening PSBs by Rs 2.11 lakhcrore recapitalisation plan.Do not believe rumour mongers.Recap, Reforms road map for PSBs firmly on track," said financial services Secretary Rajeev Kumar inatweet. The RBI said, "the PCA framework is not intended to constrain normal operations of th

Agency banks must be prompt with govt instructions: RBI  The Reserve Bank of India has asked agency banks, banking entities engaged in government business, to promptly execute instructions from central and state governments.They should not wait for RBI directives.“It has been brought to the government´s notice that some agency banks are not adhering to instructions/notifications issued by the government promptly. Banks have often say they have not received further communication from RBI.” it noted.Senior bank executives said beside tax related work, banks are also involved in managing assignment like payments for various programmes.The governments are concerned about implementing programmes in an efficient and timebound manner. Hence, they are looking for prompt response and cooperation from the banks to ensure an ease in execution.Banks should directly approach concerned governments for queries related to such instructions.They can reach out to RBI only for the queries are rel

Better rated firms moving to bond mkt, says RBI report Better rated companies are moving to the bond market, even as bank loans continue to remain an efficient financing tool for lower rated firms, the Reserve Bank of India’s financial stability report said. Better rated companies can easily tap the bond market, and their borrowing costs are usually nearer the risk-free rate of sovereign treasury bills, rather than banks’ marginal cost of funds-based lending rate (MCLR). And, there is a significant differential, about 185 basis points between risk-free rates and the bank MCLR. One basis point is a hundredth of a percentage point If the risk-free rate (govt securities) is 6.57 per cent for five-year money, AAA-rated companies, on an average, raise their fund at 7.39 per cent from the market. The bank MCLR is 8.41 per cent for the tenure If a company with A rating has to raise funds from the market, the coupon it has to pay would be 10.2 per cent, according to the RBI. This sho

HC notice to govt on double taxation The Delhi High Court has issued notices to the Union government, the GST Council and the Central Board of Excise and Customs (CBEC) over the issue of double taxation on imported goods sold from one Customsbonded warehouse to another. The matter would come up for hearing on March 8.Abhishek ARastogi of Khatian &Co said the issue relates toaCustoms circular that has raised fears of the government imposing integrated goods and services tax (GST) twice on these kinds of transaction. Also, the company paying the taxes will not be able to get input tax credit, he said.Suppose a company imports goods and keeps it in its Customs bonded warehouse.It then sells it to another company which keeps the goods in its own bonded warehouse.The second company will have to pay integrated GST (IGST) twice and Customs duty. Also since the first company has not paid duties, the second one will not get the credit.Petitioner Aditya Mody of Devashish Polymers said, “