Reference: Reserve Bank of India
Update:
RBI increases banks\’ loan exposure limit to single NBFC from 15% to 20% of its capital base:
The Reserve Bank of India has decided that a bank’s exposure to a single NBFC (excluding gold loan companies) will be restricted to 20 per cent of that bank’s eligible capital base.
Implication:
Bank finance to NBFCs predominantly engaged in lending against gold will continue to be governed by limits prescribed in circular, it clarified.
Update:
Reduction in risk weight for Consumer Credit except credit card receivables:
RBI has reduced the risk weight for consumer credit,including personal loans, but excluding credit card receivables, from 125% to 100%. Other stipulations remain the same.
Implication:
The relaxed requirement would not be applicable to credit cards.
Reference: Central Board of Direct Taxes
Update:
CBDT releases synthesised text for MLI modified India-Serbia DTAA:
General disclaimer on the Synthesised text document
This document presents the synthesised text for the application of the Convention between the Government of the Republic of India and the Council of Ministers of Serbia and Montenegro (which applies to the Republic of Serbia) for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital signed on 8th February 2006 (the “Convention”), as modified by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting signed by the Republic of India (India) and the Republic of Serbia (Serbia) on 7th June 2017 (the “MLI”).
Reference: Security Exchange board of India
Update:
Schemes of Arrangement by Listed Entities and (ii) Relaxation under Sub-rule (7) of Rule 19 of the Securities Contracts (Regulation) Rules, 1957:
SEBI has made amendment to the Circular No. CFD/DIL3/CIR/2017/21 dated March 10, 2017, in relation to payment of outstanding dues of SEBI, Stock exchanges and the Depositories as provided in the Annexure of the Circular dated September 12, 2019
Implication:
All listed entities shallensure that all duesto, and/or fines/penaltiesimposed bySEBI, Stock Exchanges and the Depositories have been paid/settled before filing the draft scheme with the designated stock exchange.
Reference: Ministry of Corporate Affairs
Update:
Additional commodities as Eligible Liquid Assets for Commodity Derivatives Segment:- SEBI has decided to include Diamond, Base metals and Alloys in the list of permissible liquid assets, subject to concentration limits for non- bullion collateral as specified vide SEBI Circular dated October 14, 2016 and Minimum Haircut as mentioned below:-
Base metals and Alloys* at 30%
Diamond at 40%
*Steel being an Alloy, minimum haircut stipulated for Steel stands revised from current applicable level of 60% to 30%.
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Implication:
All commodities to be accepted as collateral should be of same quality specification which is deliverable under the contract specification of commodity derivatives being traded on the Exchange
Reference: General
Update:
Biggest ever pan-India joint operation by Directorate General of GST Intelligence and Directorate General of Revenue Intelligence against fraudulently claiming refund of IGST by exporters
In the biggest ever joint operation by Directorate General of GST Intelligence (DGGI) and Directorate General of Revenue Intelligence (DRI) against exporters who were claiming refund of IGST fraudulently, pan-India searches were carried out at 336 different locations across the country yesterday. The operation covered entities in the states of Delhi, Haryana, Uttar Pradesh, Gujarat, Maharashtra, Tamil Nadu, West Bengal, Karnataka, Madhya Pradesh, Telangana, Punjab, Rajasthan, Himachal Pradesh, Uttarakhand and Chhattisgarh. The joint operation of the two premier intelligence agencies of Central Board of Indirect Taxes and Customs (CBIC), was a first of its kind in the history of CBIC which involved about 1200 officers from both the agencies.
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