Newsletter dated 25th May,2015
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The newsletter provides updates on economic, regulatory, and market news. It notes that the Reserve Bank of India will set up a fraud registry to help banks fight bad loans. It also reports that the number of companies registered in India last year was the lowest in six years due to increased compliance under the new Companies Act. Additionally, the Income Tax department sent notices to foreign portfolio investors regarding hearings on MAT disputes.
Newsletter dated 25th May,2015
- 1. PGC NEWSLETTER 1 PGC NEWSLETTER 25th May, 2015 THOUGHT OF THE DAY “ Success occurs when opportunity meets preparation ...” ECONOMIC UPDATES Reserve Bank of India (RBI) will soon set up a Central Fraud Registry as part of an early warning system. The idea is to set up a structure for quick sharing of information about unscrupulous borrowers and help banks fight bad loans. The industry body of mutual fund houses, the Association of Mutual Funds in India, has advised its members to stop offering the bonus option as part of their schemes. While fund houses helping institutional investors with ‘bonus stripping’ to avoid taxes is now less common than it used to be, instances do still crop up occasionally. SEBI/CORPORATE UPDATES According to MCA data, the number of private and public companies registered in the last financial year (2014-15) has been the lowest in the past six years. Around 64,000 companies registered in 2014-15 compared to 98,029 the previous year - a drop of 35 per cent. Companies Act, 2013 - which came into force from April 1, 2014 - has increased the compliance requirements for any public or private company. Businesses are concerned about issues around internal financial controls, mandatory auditor rotation, and stricter watch over related party transactions. Vide Notification issued by MCA dated 18.05.2015, Govt. withdraws old Indian Accounting Standards notified in 2011. IRDA unveils report of expert committee on health insurance. RBI/TAX LAW UPDATES In Idea Cellular Ltd. v. Union of India (2015) 57 taxmann.com 293 (Punjab & Haryana), it was held that Where collection of VAT from assessee was without authority of law and Service Tax department had raised service tax demand upon assessee for period for which Assessing Authority had levied and collected VAT, Assessing Authority was to be directed to transfer amount of VAT to Service Tax department. Overseas investors, soothed by FM Arun Jaitley's bid to reassure them about the retrospective levy of MAT, got an unexpected jolt at the end of last week. The Dispute Resolution Panel (DRP) of the income-tax department sent notices to foreign portfolio investors (FPIs) on Friday, telling them that the hearing of MAT disputes would start soon. MARKET UPDATES SENSEX 27,816.56 -140.94 CNX NIFTY 8,425.65 -33.30 DOLLAR/ RUPEE 63.63 0.11. MCX SILVER 38,980.00 52.00 MCX GOLD 27,128.00 46.00 MCX CRUDE OIL 3,818.00 5.00 Dow Jones Industrial average 18,232.02 -53.72 Nasdaq Composite 5,089.36 -1.43 http://www.proglobalcorp.com