1. SEBI Eases Registration Rules, Puts FPIs Into Two Categories
The Securities and Exchange Board of India on Wednesday relaxed several requirements for foreign portfolio investors (FPIs) in India in a bid to address some of their key concerns.
The registration process for FPIs has been simplified by doing away with the broad-based eligibility criteria. The market regulator has also reduced the number of overseas investor categories to two from three. This along with a raft of decisions such as tweak in buyback norms and tightening of rules for credit rating agencies among others were taken at Sebi’s board meeting on Wednesday.
Besides, KYC (know-your-client) requirements have also been relaxed and FPIs have been allowed transfer off-market securities.
(Source: Economic Times)
2. Direct Tax Collection Sees Dismal Growth; Mid-August Mop-Up Growth Under 5%
Marred by an economic slowdown, direct tax collections have seen dismal growth so far in the current fiscal year, with the mop-up growing by under 5 percent till mid-August. With glaring signs of a slowdown visible across the consumer durables and non-durables segments, tax officials appear underconfident of achieving the growth target of 17.3 percent set for 2019-20 in the Budget, presented last month.
Till August, direct tax mop-up grew by just 4.69 per cent, net of refunds, and 5.69 per cent on a gross basis. Refunds grew by 8 percent during this period.
(Source: Business Standard)
3. Small Startups May Not Get Promised Tax Holiday
Indian startups with turnover in excess of Rs 25 crore may have to pay income tax even though they may be eligible for the three-year tax holiday announced by the government. That’s because under tax laws, the threshold for exemption remains at Rs 25 crore. It has not yet been enhanced to Rs 100 crore in line with the liberalised norms of the Department for Promotion of Industry and Internal Trade (DPIIT).
Startups want the DPIIT and CBDT to remove the ambiguity, said people familiar with the matter.
(Source: Economic Times)
4. Direct Tax Dispute: Revised Limit to Be Applicable to Pending Cases as Well, Says CBDT
In a bid to remove any ambiguity over the withdrawal of direct tax-related litigation, the Central Board of Direct Taxes (CBDT) on Wednesday clarified that the revised higher threshold for filing appeals would be applicable to all pending cases as well. The Board directed the income tax department to withdraw all such pending cases where claim amounts fall below the revised limit from different appellant forums by 31 October.
Just a year after the CBDT had raised the monetary limit of claims for the income tax department to file appeals in higher judicial forums, the board on 8 August again raised the threshold ‘as a step towards further management of litigation’.
(Source: Financial Express)
5. Tata Trusts Face I-T Queries Over ‘Surrender’ of Registration
The income tax department has served notices on a set of Tata trusts, seeking to reopen assessment and questioning their decision to ‘surrender’ registrations in 2015.
The department, which sent the notices last month, is seeking to tax the accumulated income of the trusts for certain years. The department believes the trusts were not in a position to ‘surrender’ their registrations, which can only be ‘cancelled’ by the tax office, three persons familiar with the matter told ET.
(Source: Economic Times)
6. Anil Agarwal, Mukesh Ambani Join Suitors' List for Acquiring RCom Assets
Twin Star Technologies, a company promoted by Anil Agarwal’s Sterlite group, and Mukesh Ambani-owned Reliance Jio have expressed their interest in acquiring assets of Reliance Communications (RCom), currently undergoing insolvency proceedings at the National Company Law Tribunal (NCLT) for loan default.
The billionaire duo will compete alongside other telecom majors such as Bharti Airtel and Vodafone Idea for the assets.
(Source: Business Standard)
7. Gold Hits New High of Rs 38,820; Silver Jumps Rs 1,140
Gold prices on Wednesday appreciated Rs 50 to hit a new high of Rs 38,820 per 10 gram at the bullion market here on account of consistent buying support from jewellers, according to the All India Sarafa Association.
Silver also soared by Rs 1,140 to Rs 45,040 per kg on fresh offtake by industrial units and coin makers.
Traders attributed the gain in gold to increase in the domestic spot market demand. However, a weak trend in the international market restricted the gains, they said.
(Source: Financial Express)
8. Paytm Says Valuation Rose 25% to $15 Bn
Paytm’s valuation has jumped 25% to $15 billion in the latest investment round that saw several employees cash out their shares worth $150 million, founder Vijay Shekhar Sharma said.
“Esops (employee stock ownership plan) worth $150 million were sold by Paytm’s employees to New York-based investors nearly three months ago, valuing the company at $15 billion,” Sharma said in an interview. He, however, did not disclose the names of the investors. Paytm, owned by One97 Communications Ltd, does not aim to raise funds this year.
(Source: LiveMint)
9. For CG Power, the Trouble Started Long Before It Reported Serious Lapses
Shares of CG Power and Industrial Solutions Ltd have tumbled 36% in the last two trading sessions on news of serious accounting lapses at the company. The stock has been languishing at the lower circuit for the past two days because no one knows the extent of the trouble at the company.
It’s important to note that the market had got wind of troubles brewing at CG Power much earlier. The company’s market capitalization has fallen from around Rs 6,000 crore in January 2018 to Rs 1,156 crore earlier this week, even before it reported the unauthorised transactions by certain employees on Tuesday.
(Source: LiveMint)
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