Bureaucracy tries to erode RBI governor’s powers: Raghuram Rajan

  Former Reserve Bank of India (RBI) governor Raghuram Rajan has reiterated his concerns over the bureaucracy impinging on the powers of the central bank. He has also said it should be made clear that the RBI chief is not just another bureaucrat. “There is a danger in keeping the position (of the RBI governor) ill defined, because the constant effort of the bureaucracy is to whittle down its powers,” the 23rd RBI governor has written in his book, I Do What I Do. “This is not a recent phenomenon…” the former governor has written. “The RBI risks becoming dangerously weakened, as successive governments and finance ministers have misunderstood its role.” “The RBI governor, as the technocrat with the responsibility for the nation’s economic risk management, is not simply another

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DBS gets RBI approval to set up banking subsidiary

  Singapore-based DBS Bank has received in-principal approval by the Reserve Bank (RBI) of India to set up a wholly-owned subsidiary (WOS) in India. It is the second bank to get this approval, preceded by Bank of Mauritius. DBS Bank was among the first to apply for WOS when the RBI had issued guidelines in 2014. DBS Group Chief Executive Officer Piyush Gupta welcomed the delay saying that it gave them time to clear up their books and improve asset quality.  The bank expects to get the final approval within six-eight months, well within the one-year limit. DBS Bank India’s total advances stood at Rs 21,838 crore and total deposits were Rs 26,990 crore as on March 31, 2017.  It wrote off Rs 1,396 crore during the year and the

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GDR manipulation: Sebi bars 19 companies from securities markets

  Cracking the whip, Sebi on Tuesday barred 19 domestic and foreign entities from securities markets for manipulation in issuances of global depository receipts and warned several others including FIIs. The regulator has imposed a ten-year ban on K Sera Sera and Asahi Infrastructure and Projects, which figured among the six companies whose GDR issuances were manipulated, while at least 26 entities including European American Investment Bank AG (Euram) have been warned that all their future dealings in Indian markets should be strictly as per regulations. Sebi has been probing misuse of GDRs (Global Depository Receipts) for routing black money back to India for which role of more than 50 individuals and companies was under scanner. The modus-operandi typically involves creating an intricate web of entities in offshore locations for

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Sebi to detoxify derivatives market; brokers say NSE data overstated

  As Sebi looks to detoxify the ‘high-turnover, high-risk derivatives trading’, brokers have petitioned the regulator that the NSE data showing 15-times higher volumes than cash market is “grossly overstated” and this segment is rather burdened with high taxes. The capital market regulator is currently in the process of overhauling its rules for derivatives trading amid concerns over the suitability of these ‘complex and risky’ products for individual investors. Sebi had initiated a public consultation in July for framing the new rules, while noted that the trading turnover in these products has seen a sharp surge of over ten-fold over the past decade and the ratio of trades in equity derivatives to that of equity cash market has risen to over 15-times. Replying to the consultation call, the Association of

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Wage limit under Payment of Wages Act increased to Rs 24000 P.M.

  MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 28th August, 2017 S.O. 2806(E).—In exercise of the powers conferred by sub-section (6) of section 1 of the Payment of Wages Act, 1936 ( 4 of 1936), the Central Government, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organization, hereby specifies rupees twenty four thousand per month as the wages under said sub-section (6). [F. No. S-31018/3/2007-WC] N. K. SANTOSHI, Dy. Director General

IRDA Clarification on Aadhaar based e-KYC

    Ref. No: IRDA/SDD/MISC/CIR/204/08/2017 Date: 31-08-2017 Clarification on Aadhaar based e-KYC Authority vide circular dated 21st October, 2013 and AML Master Circular dated 28th September, 2015 allowed Aadhaar based e-KYC service offered by UIDAI for KYC verification. 2. It is hereby clarified that for accessing the details of the client from UIDAI for identification and authentication shall be with the consent of the client on a voluntary basis. 3. UIDAI has issued Aadhaar (Authentication) Regulations, 2016 inter alia prescribing the procedure for e-KYC authentication of Aadhaar Number. 4. In view of the above Regulations, Insurers shall perform the verification of the client through “e-KYC authentication facility” provided by UIDAI i.e. authentication through biometric authentication (fingerprint or iris scanning) and/or through One Time password (OTP) received on client’s mobile number or on e-mail address registered with UIDAI.

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Certain Unlisted public companies need not appoint Independent Directors

  General Circular No 09/2017 No.1,/22/2013-CL-V Government of India Ministry of Corporate Affairs 5th Floor, ‘A’ Wing, Shastri Bhawan, Dr. R. P. Road, New Delhi Dated: 5th September, 2017 To All Regional Directors, All Registrar of Companies, All Stakeholders. Subject: Exemptions given to certain unlisted public companies under the companies (Appointment and Qualification of Directors)Rules,2014 from the appointment of independent directors – reg. Sir, This Ministry, vide notification number G.S.R. 839(E) dated 5th July, 2017 issued the Companies (Appointment and Qualification of Directors) Amendment Rules, 2017 inter-alia amending rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014. The said amended Rule 4 inter-alia provides that an unlisted public company which is a joint venture, a wholly owned subsidiary or a dormant company will not be required to

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Due dates of GSTR 1, GSTR 2 and GSTR 3 for the month of July & August extended

  [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Notification No. 29/2017 – Central Tax New Delhi, the 5th September, 2017 G.S.R. …..(E).— In exercise of the powers conferred by the second proviso to sub-section (1) of section 37, first proviso to sub-section (2) of section 38 and sub-section (6) of section 39 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and in supersession of notifications No. 18/2017-Central Tax, dated the 8th August, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 994 (E) dated the 8th August, 2017, No. 19/2017- Central

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Indian Advance Pricing Agreement regime moves forward with signing of four APAs by CBDT in August, 2017 

  Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 04th September, 2017. PRESS RELEASE Indian Advance Pricing Agreement regime moves forward with signing of four APAs by CBDT in August, 2017 The Central Board of Direct Taxes (CBDT) has entered into 4 more Advance Pricing Agreements (APAs) during August, 2017. Out of these 4 Agreements, 3 are Unilateral and 1 is a Bilateral. The Bilateral APA is for international transactions between an Indian company and a UK-based company. This is the 8th Bilateral APA with the United Kingdom and 13th overall (the other 5 being with Japan). With the signing of these 4 Agreements, the total number of APAs entered into by CBDT has reached 175. This includes 162 Unilateral APAs and

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Exposure Draft of Revised Guidance Note on Report under Section 92E of the Income-tax Act, 1961 (Transfer Pricing)

  In an era of liberalization and globalization of trade and investment and the emergence of e-commerce, the perceptible results have been – increase in the number of cross-border transactions, the complexity, speed and lack of transparency with which global business can be transacted. There is a general belief that multi-national corporations, in an effort to manage and minimize their global tax outflows, have employed creative transfer pricing approaches in the context of flow of goods, services, funds, intangibles, etc. When transactions are entered into between independent enterprises, the consideration therefore is determined by market forces. However, when associated enterprises deal with each other, it is possible that the commercial and financial aspects of the transactions are not influenced by external market forces but are determined based on internal factors.

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