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SEBI, stock exchanges to step up vigilance on eve of results Similar additional safeguards have been effectively used during polls in Gujarat, Uttar Pradesh and other states in the recent past as well as the time of 2014 general elections Market regulator, the Securities and Exchange Board of India (Sebi) as well as stock exchanges have stepped up surveillance to keep a close tab on possible manipulations and excessive volatility in the markets ahead of assembly elections results in Karnataka.The results of the single-phase assembly elections will be declared on May 15. However, before the formal announcement of the results, several agencies conducted exit polls, predicting the outcome. The exit poll results for the election were announced after voting ended on May 12.A senior official said the markets regulator and stock exchanges have beefed up surveillance and risk management systems to check any manipulative activities and excessive volatility risks on Monday and Tuesday.

RBI’s KYC Norms Burn a Hole in Mobile Wallet No of transactions via mobile wallets fell 13% to 269 m in March from 310 m in February India’s mobile wallet industry saw a sharp fall in usage in March as new Reserve Bank of India regulations kicked in, although not as drastically as had been feared. The number of transactions through mobile wallets fell 13% to 268.79 million in March from 310.01 million in February, and the value of money settled through wallets dropped 23% to ?10,000 crore from ?13,100 crore, RBI data show. With the country showing higher adoption of digital payments overall, the fall in transactions through mobile wallets is likely because of customers moving out of the wallet ecosystem after RBI made full Know-Your-Customer requirements mandatory from March.While the industry had expected an 80-90% fall in wallet usage after February 28, when the new rules became effective, the numbers do not show such a drastic fall. “The only possible explanation could be

Sebi to Make Life Easier for FPIs; to Look at Grey Areas, Rework Rules MARKET REGULATOR FORMS PANEL to rationalise investment norms for offshore funds to trade in India The regulations for foreign portfolio investors (FPIs) — the dominant club in the country’s capital market — will be recast to make it easier for these offshore funds to trade in India.Capital market regulator Sebi has constituted a high-profile team led by a former deputy governor of Reserve Bank of India (RBI) to redraft the rules. The committee will delve into multiple grey zones and ambiguities to come out with a new policy regime without altering the broader framework. Some of the areas that could be examined are: a possible relook at rules for foreign institutional investors, which are otherwise registered with in matured jurisdictions like the US, but pool their money in a tax haven like Cayman Islands; should FPIs be given more time to make their funds broad-based — which require a minimum number of 20 i

Government Tightens Norms for Import of Pulses A quota system has been introduced only for millers and refiners for the import of tur, moong and urad, says DGFT The government has tightened norms for the import of pulses to ensure that its domestic prices don’t fall below the minimum support price. The prices of most pulses have been below the minimum support price levels, leading to farmer unrest in the main pulses-growing areas. The government has also introduced a quota system only for millers and refiners for the import of tur, moong and urad, according to a notification by the Directorate General of Foreign Trade (DGFT). To avail this quota, dal millers have to submit applications between May 15 and 25. The allocation of quota for each beneficiary will be notified on June 1 and millers have to complete their imports by August 31, the DGFT said Suresh Aggarwal, president of the All India Dal Mill Association based out of Indore, said the move will benefit Indian farmers as

15th Finance Commission to meet advisory council on May 17 Sources said the council might be asked to do research and study on terms of reference The 15th Finance Commission (FFC) will hold a meeting on next Thursday and it will be attended by members of the newly constituted advisory council on the contentious terms of reference (ToRs). Under pressure from states not ruled by the BJP to withdraw or amend some vexed ToRs, the FFC on Wednesday announced the setting up of the council. Its members include Arvind Virmani, former chief economic advisor; Surjit Bhalla, part-time member of the Economic Advisory Council to the Prime Minister; J P Morgan Chief India Economist Sajjid Chinoy; and Credit Suisse India Economist Neelkanth Mishra. Sources said the council might be asked to do research and study on ToRs. This is probably the first time that a Finance Commission has set up a council on ToRs. Meanwhile, former finance minister P Chidambaram tweeted that the council could not a

Banks under taxman scanner for GST refund on ATM transactions   The indirect tax department’s investigation arm is scrutinising the GST credit availed by banks on taxes paid by their ATM vendors and could soon ask banks to cut the credit availed by them, two people with direct knowledge of the matter said.  The taxmen are examining whether banks are eligible to avail 100% of Goods & Services Tax (GST) credit on services provided by vendors such as ATM withdrawal when a majority of such transactions are not charged to consumers.  The scrutiny started after banks claimed 100% input tax credit on the amount paid to ATM vendors who are responsible for maintenance and cash supply to the machines.  The vendors charge per withdrawal and add GST on the bills submitted to banks. Now, the banks have claimed input tax credit on the amount paid to vendors but this practice has come under the scanner.  The tax officials believe that since banks don’t charge on many withdrawals which are

Falling rupee to take FY19 trade deficit to 4-year high of 6.4 percent: Report  Continuing fall in the rupee will push trade deficit up to a four-year high of USD 178.1 billion or 6.4 per cent of GDP this fiscal year, says a report.  "Trade deficit will widen to a four-year high of 6.4 per cent of GDP in FY19," India Ratings said in a report today and blamed higher crude and gold imports.  In FY18, trade deficit had stood at USD 156.8 billion or 6 per cent of GDP.  The estimate comes amid a depreciation in the rupee against the dollar, wherein it has shed over 5 per cent to breach the Rs 67-mark to the dollar.  The agency said apart from the risk of wider trade deficit, escalation in commodity prices, particularly crude, coupled with expectation of the US Fed raising its rates further, is exerting pressure on the rupee.  The agency said contribution of trade as a percentage of GDP has slid to 40.6 per cent in FY18 from a high of 55.8 per cent in FY13, blaming sluggish