Reference: Reserve Bank of India
Update:
Liquidity Support (LS) Facility – NEFT 24 x 7:
In order to facilitate smooth settlement of NEFT transactions in the accounts of the member banks maintained with the Reserve Bank in a 24×7 environment, RBI has decided to provide an additional collateralised intra-day liquidity facility, to be called Liquidity Support (LS).
The salient features of the scheme are as under:
a) LS facility will be available for facilitating NEFT settlements, on 24×7 basis. The LS facility will operate as per the same terms and conditions as the Intra-Day Liquidity (IDL) facility.
b) All member banks eligible for the IDL facility will be eligible to avail of the LS facility.
c) The limit for LS facility would be set by the Reserve Bank from time to time. Drawings under the LS facility shall be reckoned as part of the eligible IDL limit.
d) The margin requirement on LS facility would be similar to that of IDL facility.
e) Outstanding drawing at the end of the day under the LS facility will be automatically converted into borrowing under the Marginal Standing Facility (MSF).
f) The above MSF borrowing reversal will take place along with other LAF operations as is currently being done.
Implication:
The LS facility will operate as per the same terms and conditions as the Intra-Day Liquidity (IDL) facility.
Reference: Central Board of Direct Taxes
Update:
Revised payment schedules: Income Declaration scheme, 2016:
CBDT has specified that the persons who have made a declaration under section 183(1), but have not made payment of the tax and surcharge payable under section 184 and penalty payable under section 185 of the said Act, in respect of the undisclosed income, on or before the due date notified by the Central Government vide notification number S.O. 1830 (E), dated the 19th May, 2016, (as subsequently amended vide notification number S.O. 2476 (E), dated the 20th July, 2016), may make the payment of such amount on or before the 31st day of January, 2020, along with interest on such amount, at the rate of 1 % for every month or part of a month comprised in the period commencing on the date immediately following the said due date as so notified and ending on the date of such payment.
Implication:
Payment of tax, surcharge and penalty under section 183(1), 184 & 185 of the act relating to undisclosed income to be made before 31st January 2020 along with 1% of interest every month
Reference: Securities and Exchange board of India
Update:
Monetary penalty on M/s Mahaan Impex Ltd.
SEBI has imposed monetary penalty of Rs. 1 lakh on M/s Mahaan Impex Ltd for failure to obtain SCORES authentication within the time specified by the Board, despite being called upon to do so, thus liable for penalty under section 15 HB of SEBI Act, 1992.
Implication:
The Company shall pay the amount mentioned in order within a period of 45 days from the date of service of this order.
Update:
SEBI rejects lenders\’ plea for relief:
SEBI has rejected a plea from the lenders of Karvy Stock Broking that requested depositories to return the securities pledged by the broker to them.
ICICI Bank, IndusInd Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank and Bajaj Finance had granted loans to Karvy on pledged client securities. Their total exposure stands at more than Rs 1,800 crore.
In the absence of corresponding trade instruction, the pledging of securities of such clients is also unauthorised and, hence, in law not treated as a valid pledge.
Reference: Insurance Regulatory and Development Authority of India
Update:
Constitution of Working Group to make recommendations for Loss Prevention and Loss Minimization in General Insurance Industry
IRDAI has constituted a working group on to make recommendations for Loss Prevention and Loss Minimization in General Insurance Industry
The functions of working group are as follows:
- To suggest segment-wise ways and means to improve Loss Prevention and Loss Minimisation in insurance.
- To evaluate current practices followed by insurance industry in the area of Loss Prevention and Loss Minimisation and suggest approach to synergise the activities of the various stakeholders involved in order to ensure better Loss Prevention and Loss Minimisation.
- To give recommendations for promoting research, education and services related to Loss Prevention and Loss Mitigation.]
Implication
The Working Group shall submit a report containing its recommendations within twelve weeks of the date of this order.
