Thursday, 14 January 2016

Daily Updates and News


Company Law

MCA portal to remain close from from 08:00AM to 06:00PM on Saturday, 16th Jan 2016

All our stakeholders are requested to note that services on the www.mca.gov.in portal will not be available from 08:00AM to 06:00PM on Saturday, 16th Jan 2016 due to periodic maintenance activities. While in the past, such activities may have been carried out after office hours, this time the maintenance activities are required to be carried out during the day since collaboration with other offices is required. All stakeholders are requested to plan their filing activities accordingly.     [….] Read more at:

 
 
 
Budget, 2016

Increase in personal income tax exemption limit to Rs.2.5 lakh for savings sought

Increase in exemption limit to Rs.2.5 lakhs for savings under the Income Tax Act, interest rates on small savings schemes to be fixed at five-year government Security yields and an end to the dividend distribution tax — these are among the suggestions the Union Finance Minister Arun Jaitley received on Tuesday at a pre-budget consultative meeting with the representatives of banks and financial institutions (FIs).The experts have also demanded that Corporate Social Responsibility (CSR)    [….] Read more at:



RBI, banks seek higher tax sops under 80C

The Reserve Bank of India and financial sector bosses on Tuesday made a strong pitch for higher incentives for savings, including raising the tax benefit for investing money in fixed deposits and public provident fund (PPF) to Rs 2.5 lakh from Rs 1.5 lakh currently.Sources said RBI deputy governor Urjit Patel kicked off the customary pre-budget consultation with finance minister Arun Jaitley with a suggestion to "significantly" increase savings, which was followed by demands to     [….] Read more at:



Budget 2016: New policy likely to boost 'Make in India' by allowing 100% credit for taxes paid on inputs 

The government is looking to put in place a seamless tax credit system without any restrictions that will make manufacturing more competitive by reducing the burden of taxation on locally made goods. The move could give a big boost to PM Narendra Modi's 'Make in India' initiative and act as a growth booster. The policy, which is being discussed and could be announced in the Budget, could allow 100% credit for taxes paid on inputs. What's regarded as a restrictive input tax credit policy     [….] Read more at:


 
 
 
SEBI

SEBI tweaks de-listing norms for small companies

In exercise of the powers conferred by section 31 read with section 21A of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), section 30, sub-section (1) of section 11 and sub-section (2) of section 11A of the Securities and Exchange Board of India Act, 1992 (15 of 1992),the Board hereby makes the following Regulations to further amend the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, namely:- 1. These regulations may be called the Securities a    [….] Read more at:

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1452662596012.pdf


Sebi contemplating action against commodity manipulators

After Income Tax Department action against commodity traders, including some based in Indore, the Securities and Exchange Board of India (Sebi) may also take action against violators of commodity market rules. "By now, there has been no joint action but we do share information with Sebi officials and other departments," said a senior commercial officer with the markets regulator, speaking on condition of anonymity. Previously, too, Sebi had sought reports of IT raids on commodity t    [….] Read more at:



China growth concerns pose challenge for India: Sebi chief

Sebi Chairman U K Sinha today said the Chinese slowdown concerns have posed a new challenge for India and raised uncertainty over the country's growth.  Certain things have unfolded beginning of this year which have posed some serious challenges for global economy and also India, Sebi chief U K Sinha said here this evening while addressing an Icra function here.  He noted that while previously the challenges were Greece and European Union now the biggest challenge is China.       [….] Read more at:


MFs under Sebi lens for dividend stripping

Mutual funds (MFs) resorting to dividend stripping have again come under the scanner of market regulator Securities and Exchange Board of India (Sebi). In an e-mail to fund houses on Wednesday, it asked them to reply by Thursday if they were doing so or not. According to sources, it was asked to look into the matter by the finance ministry a few days earlier. This, they say, could imply that the government might change the current guidelines to do away with the practice of dividend stripping in the     [….] Read more at:



Sebi eases delisting norms for small companies

To weed out a large number of illiquid stocks, markets regulator the Securities and Exchange Board of India (Sebi) has relaxed norms for small companies with thinly traded shares to delist from the stock exchanges.Now, small listed firms where trading has been less than 10% of the total shares in the last 12 months can get delisted from the stock exchanges.At present, Sebi norms allow only those companies whose shares have not been traded for the preceding one year to get delisted. There a    [….] Read more at:



Sebi to strengthen market monitoring system, rope in IT firm

Markets regulator Sebi plans to beef up its market surveillance system with additional resources for which it is looking to rope in an IT firm to provide qualified and experienced workforce. The IT service provider would be contracted by Sebi for a period of three years, which can be later extended for six years. As per information available on its website, the Securities and Exchange Board of India has begun the process to rope in an IT service provider for monitoring of its IMSS (Integrated     [….] Read more at:

http://timesofindia.indiatimes.com/business/india-business/Sebi-to-strengthen-market-monitoring-system-rope-in-IT-firm/articleshow/50560820.cms
 
 
RBI

RBI to come out with 'reasoned response' on IIP decline: Raghuram Rajan

RBI Governor Raghuram Rajan today said the central bank will carefully look into the latest data on industrial production, which registered the sharpest decline in 4 years at 3.2 per cent in November, and come out with a "reasoned response". "I don't respond to questions on macro economy on the fly. You will have a reasoned response in some point. The numbers will be dissected," Rajan said, when asked about his comments on the IIP numbers. He was here to attend the meeting of Financial     [….] Read more at:



Aadhaar not mandatory for DBT scheme, clarifies RBI 

Use of Aadhaar cards and seeding of bank accounts with those numbers are purely voluntary and not mandatory, RBI said in a clarification on the Direct Benefit Transfer (DBT) Scheme. "... in view of the Supreme Court's interim orders dated August 11, 2015 and October 15, 2015... on usage of Aadhaar, it is hereby clarified that use of Aadhaar card and seeding of bank accounts with Aadhaar numbers is purely voluntary and it is not mandatory," RBI said in a communication to banks. In July 201   [….] Read more at:

http://economictimes.indiatimes.com/articleshow/50581650.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

FLCs, banks' rural branches could target different segments: RBI

The Reserve Bank of India (RBI) on Thursday said financial literacy centres (FLCs) and rural branches of banks could adopt a tailored approach for different target groups including farmers, micro and small entrepreneurs, schoolchildren, self-help groups and senior citizens. The regulator also said there should also be adequate synchronisation at the ground level between the different stakeholders like lead district officer of RBI, district and local administration, block-level officials, non-govern    [….] Read more at:



Gold bonds: RBI to issue second tranche

The Reserve Bank of India (RBI) will issue the second tranche of the government's sovereign gold bond scheme on February 8 and will allow applications for the bonds from January 18-22. The bonds will be issued at an interest rate of 2.75 per cent payable on the initial amount of investment, according to the official press releases from the finance ministry and the central bank. The bonds will be sold through banks, the Stock Holding Corporation of India (SHCIL) and designated post offices,    [….] Read more at:

 

Miscellaneous News/Laws

Irdai releases draft on agent commission

The Insurance Regulatory and Development Authority of India (Irdai) on Wednesday released exposure draft on payment of commission or remuneration to insurance agents and intermediaries. These regulations will be effective from April 1, and the regulator will entertain comments on proposed regulations till January 27.According to the insurance regulator, the underlying approach in framing the regulations is to have uniformity as regards the segments of business vis-à-vis expenses     [….] Read more at:


President clears Sugar Cess (Amendment) Act, 2015

BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:— 1. (1) This Act may be called the Sugar Cess (Amendment) Act, 2015. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. 2. In the Sugar Cess Act, 1982, in section 3, in sub-section (1), for the words “twenty-five rupees”, the words “two hundred rupees” shall be substituted. In the Juvenile Justice (Care and Protection of Children) Act, 2015 (2 of 2    [….] Read more at:



10.5% salary rise expected across industries in 2016: Survey

Salaries are likely to increase by 10.5 percent across levels and industries this year mainly due to optimistic economic outlook, a survey has said. "Organisations are expecting to increase base salaries by 10.5 percent across industries and career levels in 2016," according to Mercer's 'All Industries Total Remuneration Survey', released. The salary increase forecast for 2016 is quite similar to the actual salary increase for 2015. Among the industries surveyed, the projected salary increase ran    [….] Read more at:

http://www.moneycontrol.com/news/business/105-salary-rise-expected-across-industries2016-survey_5011941.html?utm_source=ref_article
 
Industry leading, peer beating performance by Infosys: Envision

Against a particularly weak market backdrop, Infosys   came out with a shimmer of hope, posting a stupendous set of  third quarter results , only two days after rival Tata Consultancy Services   (TCS) posted a weak set of earnings. The company beat analyst estimates on each of the key parameters: revenues, EBIT and net profit. Reacting to the numbers, Nilesh Shah, MD and CEO of Envision Capital, dubbed the performance as "industry leading, peer beating", something that has happened af    [….] Read more at:



China growth concerns pose challenge for India: Sebi chief

Sebi Chairman U K Sinha said the Chinese slowdown concerns have posed a new challenge for India and raised uncertainty over the country's growth. Certain things have unfolded beginning of this year which have posed some serious challenges for global economy and also India, Sebi chief U K Sinha said here this evening while addressing an Icra function here. He noted that while previously the challenges were Greece and European Union now the biggest challenge is China. S     [….] Read more at:

http://www.moneycontrol.com/news/economy/china-growth-concerns-pose-challenge-for-india-sebi-chief_5013901.html?utm_source=ref_article
 
 
Renault emissions too high, but no cheating devices found

Shares of French carmaker Renault plunged over 10 percent today as environmental officials revealed its diesel engines exceed emissions limits, although unlike the VW scandal no cheating software had been found in the cars. France's Environment Minister Segolene Royal made the announcement after a commission she appointed submitted test results of French and foreign vehicles, which found carbon dioxide and nitrogen dioxide emissions in Renault cars to be too high, as were those of     [….] Read more at:



Greece backs down on IMF role in bailout

Greece "fully accepted" that the hardline IMF take a role in its massive third bailout, backing away from one of the last battle lines splitting Athens and its eurozone creditors. Eurogroup chief Jeroen Dijsselbloem announced the decision at talks with the 19 eurozone ministers in Brussels and hailed the Greek government for all its "hard work" since agreeing a strict 86-billion-euro (USD 92 billion) bailout programme in July. "(Finance Minister Euclid) Tsakalotos confirmed to me that     [….] Read more at:



Grid-linked solar generation capacity crosses 5,000 MW mark

India's grid-connected solar power generation capacity has crossed the 5,000 MW mark, with Rajasthan on top with 1,264.35 MW capacity followed by Gujarat. As of today, the total grid-connected solar power generation capacity in the country is 5,129.81 MW, a statement by the Ministry of New and Renewable Energy said. According to the statement, Rajasthan has the maximum grid-connected capacity, followed by Gujarat (1,024.15 MW) and Madhya Pradesh (678.58     [….] Read more at:


Cargo traffic at major ports up 3% at 447 mn tones

Cargo traffic handled at the 12 major ports in the country rose by 3 percent to 447.05 million tonnes (MT) between April and December this fiscal helped by pick up in demand. This was against 433.5 MT cargo handled during the same period in 2014-15. Kandla port led the tally with 73.87 MT cargo handled during the April-December period in 2015-16 followed by Paradip Port (55.13 MT), JNPT (48.23 MT), Mumbai Port (46.39 MT), Visakhapatnam (42.24 MT), Ministry of Shipping said.    [….] Read more at:



Japanese investors excited about Modinomics: Mizuho Bank

Japanese investors are excited about 'Modinomics', says the top boss of Mizuho Bank. In an exclusive conversation with CNBC-TV18's Rituparna Bhuyan, in Tokyo on the sidelines of the India-Japan Strategic Energy Summit, Mizuho Bank's Managing Executive Officer TatsuFumi Sakai said that Japanese investors want India to ramp up their infrastructure, before they can take a decision on investing more in India. Below is the transcript of Tatsufumi Sakai’s interview with CNBC-TV18's     [….] Read more at:

http://www.moneycontrol.com/news/business/japanese-investors-excited-about-modinomics-mizuho-bank_5010881.html?utm_source=ref_article
 
See no -ve impact from tightening of MF debt norms: Indiabulls

Securities and Exchange Board of India’s (SEBI) decision to cut the maximum limit of investments debt mutual funds can make in bonds of non-banking financial companies (NBFCs) is unlikely to have an negative impact on the Indiabulls Housing Finance, its MD Gagan Banga told CNBC-TV18. "We have only about Rs 9,000 crore odd bonds placed with the mutual fund industry which is about 1 percent of the mutual fund debt assets under management (AUM)," he said. Below is the verbatim     [….] Read more at:



Aiming for 65% mkt share in light hair oil segment: Bajaj Corp

FMCG firm Bajaj Corp   Ltd (BCL) plans to pursue acquisitions targeting niche brands and tap rural areas to push growth, particularly in light hair oil segment, where it aims to have a market share of 65 percent. Sumit Malhotra, MD of the company in an interview to CNBC-TV18’s said the company is keenly looking to take the market share in the light hair oil segment to 65 percent from the current 60 percent. He also clarified that the acquisition could be another 12-18 months away and that     [….] Read more at:



Expect margin expansion; 25-30% loan growth ahead: IndusInd

IndusInd Bank   ’s third quarter earnings exceeded expectations. The bank’s net profit grew 29.9 percent to Rs 581 crore boosted by other income, operating profit and net interest income. NII rose 36.2 percent to Rs 1,173 crore year-on-year (YoY). Asset quality remained stable with a 13.5 percent growth in the net non-performing asset (NNPAs) to Rs 681 crore. Romesh Sobti, MD & CEO of the bank expects recognition in asset quality to worsen for the banking sector in coming quarters b     [….] Read more at:

http://www.moneycontrol.com/news/results-boardroom/expect-margin-expansion-25-30-loan-growth-ahead-indusind_4984281.html?utm_source=ref_article
 
 
Economy & News

Make in India: Shipyard industry gets infrastructure status, move expected to bring down costs 

The government has granted infrastructure status to the shipyard industry in a boost to its Make in India initiative. The move is expected to bring down borrowing costs for the industry. At present, companies pay average interest of 14 per cent-15 per cent on their borrowings. "Shipyards industry has been granted infrastructure status. It will create right environment for the growth of shipbuilding industry that would now become globally competitive," a senior shipping ministry official said.    [….] Read more at:



Finance Ministry to nudge state-run banks to look beyond flagship schemes like Start up India 

The finance ministry may nudge state-run lenders to look beyond financing flagship schemes, Start up India & Stand up India. A senior finance ministry official said banks will be asked to help new entrepreneurs by providing financial management services and guidance on other business aspects. Under the 'Stand up India Scheme', the government aims to achieve the target of at least 2.5 lakh approvals in three years from the launch of the scheme, which aims to facilitate at least two proj     [….] Read more at:



Wholesale Price Index falls for 14th straight month, declines 1.99% in November 

Wholesale prices in India fell for the 14th straight month in December, mainly on account of a global crash in crude oil, though the pace of decline eased substantially from a few months ago. The Wholesale Price Index (WPI) fell 0.73 per cent from a year ago, data released on Thursday showed, compared with 1.99 per cent decline in November and 0.5 per cent fall in the corresponding month of the previous year. The government also revised the October WPI inflation upwards to -3.     [….] Read more at:



Gold bond tranche opens on January 18, other scheme nets in 500 kg 

After a moderate first tranche, the second tranche of sovereign gold bond scheme, aimed at reducing demand for physical gold, will open for five days next week even as the other monetisation scheme netted in 500 kg of idle household and temple gold into government fold. The Finance Ministry today said the gold bond scheme will be available for public subscription from January 18-22. The first tranche of the scheme, which was launched in November, had got a subscription for 915.9   [….] Read more at:

 
 
Thanks & Regards,
Meetesh Shiroya 
 

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