CA Online

Sebi may tighten AIF regulations to better monitor the source of funding The regulator may also conduct regulatory audits on the AIFs to examine the fund sourcing arrangements it has entered into with its investors to ensure that the present regulations are not violated The Securities and Exchange Board of India (Sebi) plans to tighten present Alternative Investment Funds (AIF) regulations to better monitor the source of funding and their end use. According to sources, Sebi may check the anti-money laundering policies implemented by AIFs and examine the sanctity of any back-end arrangements an AIF may have with its investors, whereby money raised in AIFs is invested back in entities owned by the investors. The regulator may also conduct regulatory audits on the AIFs to examine the fund sourcing arrangements it has entered into with its investors to ensure that the present regulations are not violated. AIFs can raise money from both domestic and overseas investors. Unlike mutual

SEBI plans safeguards for overseas investors taking private bank route The Securities and Exchange Board of India (Sebi) is planning checks and balances on overseas investors taking the ‘private bank route’ to invest in domestic markets. The move comes after several industry players expressed concerns that the new route allowed by the Sebi could be misused by investors, such as participatory notes (p-notes). Last week, the Sebi – through a circular titled “Easing of access norms for investment by foreign portfolio investors – allowed clients of private banks to trade in the Indian equities without having to register with the market regulator. While the Sebi has only given an in-principle nod to the proposal, regulatory sources said a fine print of the framework will be released by Sebi in the next one month. “I want to assure that the Sebi will put enough safeguards so that the route is not exploited. Only the banks which are ready to forego their client confidentiality agreeme

MSCI will continue to get data for ETFs: NSE The National Stock Exchange (NSE) plans to continue to provide data to global index providers, including the MSCI, to enable overseas investors to take exposure to the Indian market through their exchange-traded funds (ETFs). There were concerns among market participants on whether the domestic exchanges would provide data to index providers for creation of indices based on Indian securities or indices where Indian securities had weight of more than 25 per cent. “The MSCI will continue to get data as long as it is not used to trade Indian derivatives offshore,” said Vikram Limaye, chief executive officer, NSE. “There have been concerns on liquidity building offshore. Some of the arrangements were not in best interests of Indian markets in the long term.” Limaye delivered the opening remarks at a conference organised by the Asia Securities Industry & Financial Markets Association, an industry lobby for foreign investors. On Februa

Loans will be disbursed based on data, says Nandan Nilekani Nilekani said the data available in the GST system could be the basis of credit. Nandan Nilekani on Wednesday said India was moving in a direction where lenders will use data such as the goods and services tax (GST)-based “business flows” or credit payment history, instead of collaterals to provide loans to businesses and consumers. He said the data available in the GST system could be the basis of credit“When you file your GST return, you are actually filing it at the invoice level. You can then ask for the data that you can give to your lender. All 10 million businesses will have deep digital footprints that they can use to get loans from their banks or non-banking financial companies,” Nilekani said.  The Business Standard, New Delhi, 22nd February 2018

5.5 million GST returns filed in January The last date for filing initial GSTR-3B returns for a month is the 20th of the subsequent month As many as 5.5 million goods and services tax (GST) returns have been filed for January so far, Goods and Services Tax Network Chairman Ajay Bhushan Pandey said on Wednesday. The last date for filing initial GSTR-3B returns for a month is the 20th of the subsequent month. Hence, the sales returns for January had to be filed by February 20. However, businesses can continue to file returns with a late fee.“The total number of 3B GST returns filed in January till date is 55 lakh (5.5 million),” Pandey told reporters here. The number is expected to go up when the government releases the GST collection figure later in the month as more businesses continue to file returns. According to official data available, in December 5.63 million GSTR-3B were filed, which fetched Rs 867.03 billion to the exchequer. In November, 5.31 million returns were file

Stock exchanges try to assuage concerns after MSCI warning Say will engage with various stakeholders to address any fears of the move to end data-feed tie-up with foreign exchanges Domestic stock exchanges on Wednesday tried to assuage concerns over the fallout of the move to snap with their foreign counterparts. “This is to reassure all stakeholders that the Indian exchanges will work with them to facilitate an orderly transition that is not disruptive to the markets and stakeholders. This engagement with various stakeholders will continue in the coming weeks to address any concerns,” said the exchanges in a joint statement. On February 9, the National Stock Exchange, BSE and Metropolitan Stock Exchange announced termination of data-feed and licensing agreements with overseas bourses to put an end to offshore trading of domestic securities and indices. The move was slammed by global index provider MSCI and also the Futures Industry Association (FIA), a trade association of e

EPFO cuts interest rate to 8.55% for 2017-18 from 8.65% for 2016-17 Retirement fund body Employees’ Provident Fund Organisation (EPFO) has reduced interest rate on deposits to 8.55% for 2017-18 following a general decline in interest rates. The decision was taken by EPFO’s central board of trustees at its 220th board meeting on Wednesday, labour minister Santosh Kumar Gangwar said. EPFO had announced an interest rate of 8.65% for 2016-17 and 8.8% in 2015-16.The move will affect around 6 crore subscribers and leave EPFO with a surplus of Rs 586 crore against Rs 695 crore in the previous financial year. The interest rate decided by the central board of trustees will have to be vetted by the finance ministry, following which it would be notified.EPFO had earlier this year sold Rs 3,700-crore equity shares in the market, earning a profit of Rs 1,100 crore as a result of which it was felt that the retirement fund body could retain the interest rate for the current financial year at