Category: SEBI

Rs 3,400-crore tax evasion’: I-T probing over 21,000 entities

The probe follows an investigation by the Securities and Exchange Board of India (Sebi) on 14,720 entities in a case related to alleged trading irregularities in that segment. THE INCOME-TAX (I-T) Department is probing at least 21,900 entities that have traded through 193 brokers and allegedly evaded taxes of about… – Continue reading

Tax evasion: I-T deptment, SEBI begin crackdown on penny stock firms

The I-T department and SEBI are working on a two-pronged approach that involves action against tax evaders and tightening of norms for scrips prone to price manipulation Tightening the noose around companies invloved in tax evasion, the Income Tax department and market regulator SEBI have launched a crackdown on penny… – Continue reading

Cairn moves international arbitration panel against dividend freeze

Cairn Energy has petitioned an international arbitration tribunal against billionaire Anil Agarwal-led Vedanta Ltd withholding its dividend for last three years New Delhi: UK’s Cairn Energy plc has petitioned an international arbitration tribunal against billionaire Anil Agarwal-led Vedanta Ltd withholding its dividend for last three years despite tax authorities saying… – Continue reading

U.S. tax hunt overseas causes global headaches

There is little that can be done about FATCA and the change has to come from within the U.S. Death and taxes, life’s two certainties according to Keynes, sometimes have a causal relationship. One dies and some taxes are often associated with that event. Alternatively, one encounters so much regulation… – Continue reading

Working group to examine issues on Mauritius DTAA

NEW DELHI: The government has constituted a working group to examine the “consequential issues” arising out of the changes in India’s tax treaty with Mauritius.The India-Mauritius Double Taxation Avoidance Convention was amended last month to introduce a levy to prevent investors from using the island nation as a shelter to… – Continue reading

The IBFM tax regime: A non-starter

Despite best intentions of the government, there have been little or no takers for India-based fund managers In 2015, the Indian government took a commendable step by introducing a new provision in the Income-tax Act, 1961 (i.e. section 9A), to promote India as a fund manager jurisdiction, and to encourage… – Continue reading

Budget 2016: 9% tax rate regime for India’s first International Financial Centre

The pet project of Prime Minister Narendra Modi – the International Financial Services Centre (IFSC) – housed in the Gujarat International Finance Tec City – has received a boost in the Union Budget 2016/17. The long pending tax issue has been decided with 9 per cent minimum alternate tax (MAT),… – Continue reading

Sebi bars 22 brokers for ‘tax evasion’ trades of Rs 8,100 crore

NEW DELHI: Continuing its crackdown on misuse of stock exchange system for tax evasion, regulator Sebi on Wednesday barred 22 brokers from securities market for executing ‘reversal trades’ worth over Rs 8,100 crore to generate fictional profits or losses. However, these trading members would be allowed to function as stock… – Continue reading

Start-up investment in India to get capital gains tax exemption

PM Narendra Modi also announces a Rs.10,000 crore fund to provide support to innovation driven enterprises New Delhi:In an effort to give a fillip to the start-up ecosystem in the country, the government on Saturday announced its intention to exempt capital gains tax on investments in start-ups and a Rs.10,000… – Continue reading

India: Swiss Apex Court Denies Treaty Benefits For Dividend On Securities Acquired For Hedging Derivative Contracts

Federal Supreme Court of Switzerland denies treaty benefits in case of dividend paid on shares acquired for hedging derivative contracts. Court stated that due to the fully hedged nature of ownership, there was economic nexus and interdependency between two independent transactions and therefore, the “intermediary” bank did not have beneficial… – Continue reading

380 market members violated anti-money laundering rules in FY15

MUMBAI: As many as 380 market entities, most of them stock brokers, faced action for failing to prevent possible money laundering and terror financing activities during the last fiscal. Discrepancies related to Anti-Money Laundering and Combating Financing of Terrorism (AML and CFT) regulations were observed against brokers and depository participants… – Continue reading

Shriram AMC gets Sebi nod for offshore fund management

Shriram Asset Management Company gets Sebi nod for offshore fund management Shriram Asset Management Company Ltd today said it has got market regulator Sebi’s approval to manage offshore funds. “The company has recently got the go-ahead from Securities and Exchange Board of India (Sebi) to undertake ‘offshore fund management’,” Shriram… – Continue reading

Better global rankings underline India’s potential

The World Bank has placed India twelve notches higher than last year in its Ease of Doing Business rankings for 2016. This comes close on the heels of the country’s sixteen place leap on the World Economic Forum’s Global Competitiveness index. These rankings underline the impact of the recent spate… – Continue reading

Make note of new disclosure requirements

Towards compliance with tax information sharing laws put in place in recent times, all financial intermediaries are mandated to seek information from account holders. They are also obliged to share information of your account with relevant authorities. SEBI too has issued guidelines on identification of beneficial ownership and mandated all… – Continue reading

DYK: You have to update your KYC details for mutual fund investments

Fund houses and R&T agents have already started alerting investors to furnish Fatca and KYC details Mutual fund (MF) investors have to submit declarations to their fund houses to comply with the Foreign Account Tax Compliance Act (Fatca), which was passed in the US in 2010 (read more on this… – Continue reading

Beyond the Black Money Bill

No focus on stock markets and other money-laundering machines After all the noisy assertions, only Rs4,147 crore of unaccounted wealth was declared during the special 90-day compliance window of the The Undisclosed Foreign Income and Assets (Imposition of Tax) Act, 2015 (Black Money Bill). Of this, just Rs2,488 crore will… – Continue reading

Sebi widens black money probe; offshore arbitrage under lens

NEW DELHI: Widening its probe into suspected tax evasion and laundering of black money through stock markets, regulator Sebi is looking into illicit ‘arbitrage’ through derivatives trading from offshore locations. Also under the scanner are manipulation through ‘client code modifications’ in the past, although there has been a complete clampdown… – Continue reading

Sebi asks market entities to follow I-T Department norms for FATCA

NEW DELHI: To ensure compliance with FATCA — the new US law to check offshore tax evasion — regulator Sebi today asked all market intermediaries to follow reporting requirements prescribed by Income Tax Department in this regard. Under Foreign Account Tax Compliance Act (FATCA), foreign financial institutions that fail to… – Continue reading

Big UK companies halve provisions for disputed tax bills

The amount big companies set aside to cover disputed tax bills has more than halved over the past three years to £1.7bn this year, reports the Financial Times. Even though businesses fear more disputes as tax authorities become increasingly tough, they are showing reluctance to be drawn into conflicts that… – Continue reading

Implementation Of The Multilateral Competent Authority Agreement And Foreign Account Tax Compliance Act

SEBI on August 26, 2015 released a notification on the captioned head. It informed the intermediaries that India has joined The Multilateral Competent Authority Agreement (MCCA). Further on July 09, 2015, the Governments of India and United States of America signed an agreement to improve international tax compliance and to… – Continue reading

Sebi steps up black money fight; busts gains through ‘losses’

MUMBAI: As it steps up its crackdown on tax evasion and laundering of black money through stock markets, regulator Sebi has busted an ‘innovative’ scheme wherein HNIs were incurring ‘bogus losses’ to offset tax liabilities. The probe, which has resulted in an interim ban on 59 entities, including HNIs and… – Continue reading

Singapore bankers rattled by Asian moves to chase hidden wealth

Singapore-based wealth managers, already under pressure from a global move towards tax information sharing, face a more immediate threat as Asian countries including Indonesia and India look to chase undeclared money in the low-tax city state. A global crackdown on tax evasion launched during the 2008 financial crisis has already… – Continue reading

BSE takes measures to plug tax evasion, money launderingq

The Bombay Stock Exchange (BSE) is putting in place a series of measures to prevent use of its exchange platform by various unscrupulous entities to evade taxes and launder money. These measures include putting additional circuit filters on stocks that are susceptible for price manipulation and reducing the number of… – Continue reading

Top FPIs raise concerns with Sebi over Mauritius Treaty, GAAR and participatory notes

MUMBAI: Large foreign portfolio investors (FPIs) have voiced concerns before Indian capital market regulator Sebi about the fate of the Mauritius treaty which the government is renegotiating with the tax haven. Officials of more than 20 offshore asset managers, belonging to top banking groups and fund houses, met Sebi chairman… – Continue reading

Sebi probing UBS on round-tripping : Companies in mining, liquor, and real estate also being investigated, it appears, with ED asked to have a look

In the midst of the Special Investigative Team (SIT) on undisclosed money flagging concern on participatory notes (p-notes), the Securities and Exchange Board of India (Sebi) says it is probing a case of alleged round tripping. The term refers to transactions between companies that bolster their revenue but, in the… – Continue reading

Mauritius & P-notes: Any proposed change in rules may spook Dalal Street

Just as every new government fiddles around with high school history text books, it also dabbles in Mauritius and P-notes. Both actions have a sharp, short-lived impact, leaving behind a trail of conspiracy theories. Mauritius and P-notes are ghosts that New Delhi and regulators could never quite exercise. They unfailingly… – Continue reading

P-note crackdown may weigh heavy on markets : This route accounts for Rs 2.75 lakh crore of FPI holdings

The Supreme Court-appointed special investigative team’s (SIT’s) recommendation of stricter norms for participatory notes (P-notes), to check the flow of unaccounted money, is likely to be viewed negatively by the market. The SIT had last week suggested the Securities and Exchange Board of India (Sebi) put in place regulations to… – Continue reading

Sebi busts billion-dollar ‘tax evasion shops’ in stock market

MUMBAI: Suspecting tax evasion of at least Rs 5,000-6,000 crore, regulator Sebi has clamped down on a large number of organised syndicates who had set up ‘shops’ to convert black money into legitimate-looking funds through the stock market platform. While more than 900 entities have been banned from capital markets… – Continue reading

I-T department launches investigation against 90 companies for money laundering

The tax department has launched an investigation against 90 companies for possible evasion, money laundering and for converting black money into “white” through a series of transactions in little-known shares, commonly called penny stocks. Sources said this is a massive scam which the department is probing and is the latest… – Continue reading

Modi government may soon clarify tax rules for permanent establishment

MUMBAI: The government may soon clarify tax rules making it easier for fund managers operating large India-dedicated funds to set up an office in the country, four months after finance minister Arun Jaitley announced in the budget about the government’s intentions to do so. The finance ministry and the central… – Continue reading

Sebi cracks down on Rs 420-cr tax fraud, bars 178 entities

After finding them guilty of manipulation in the stock market for making illegal gains, Sebi has restrained the 178 entities, including Pine Animation, from accessing the securities market. In a fresh clampdown on misuse of stock market platform for suspected money laundering activity, Sebi today banned Pine Animation and 177… – Continue reading

Sebi keeping tabs on exchange misuse for tax evasion: Sinha

New Delhi: Market regulator Securities and Exchange Board of India (Sebi) has asked bourses to take immediate action against entities involved in misuse of stock exchange system for tax evasion, Parliament was told Friday. Preliminary enquiries conducted by the regulator in the recent past, inter alia, indicate that certain persons/companies… – Continue reading