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Tougher rules for share pledging on cards
NHPC plans to raise Rs 2,000 cr
Iran ‘warns’ it could halt oil supplies to India
Fitch scales down growth forecast to 7.7 pc
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Ist indigenous aircraft prototype soon
Chennai, July 3 The country's first indigenous aircraft prototype, developed at a cost of $11.2 billion by Mahindra and Mahindra, will be launched soon, a top official said.
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Tougher rules for share pledging on cards
New Delhi, July 3 At the same time, the market watchdog is also considering making it mandatory for company promoters to disclose the amount of funds raised by share pledging and the utilisation of such proceeds, a senior official said. After the Satyam scam, which revealed the promoters having pledged almost all their shares, SEBI had made it mandatory in January, 2009, for promoters of all listed companies to disclose their share pledging activities. However, these norms require only the disclosure of the number and percentage of shares pledged and not the amount of debt or funds raised by keeping shares as collateral. In the recent past, various cases have surfaced when investors have resorted to panic selling after coming to know about the huge amount of funds raised by promoters through share pledging, as also by indirect pledging of shares, to avoid SEBI’s disclosure norms. Sources said the regulator has received complaints of promoters resorting to informal and private financing arrangements with shares as collateral to avoid the disclosure norms. In many cases, these arrangements are entered into with entities outside the banking system and promoters do not pledge the shares of the listed companies themselves, but use the shares of unlisted Special Purpose Vehicles (SPVs), which are created solely for the purpose of financing. In its initial investigation, SEBI has found that the promoters generally turn to NBFCs (non-banking financial companies) and brokerage firms to raise funds with shares of some holding companies or SPVs as collateral, rather than using the shares of directly listed companies. SEBI is also concerned by the allegations of promoters resorting to fund-raising activities of huge scale through formal and informal pledging without revealing either the size of the funds or the end-use of these proceeds, sources said. As per the share pledging disclosed by the companies, promoters of about 800 companies have pledged shares worth an estimated Rs 1,50,000 crore. However, the current disclosure norms do not provide any estimate of the funds raised through such pledging and it is feared that the actual cases of pledging could be much wider. While a high interest rate regime is giving rise to the new fund-raising methods, the promoters are wary of share pledging details becoming public as they fear it to indicate a bad financial health. — PTI
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NHPC plans to raise Rs 2,000 cr
New Delhi, July 3 The proceeds would be utilised for existing as well as upcoming projects, NHPC Chairman and Managing Director ABL Srivastava said. "We are planning to raise about Rs 2,000 crore from the markets in the current fiscal. It could be through term loans or bonds, among others. "We would be mostly looking at domestic markets to raise the funds, since borrowing domestically is cheaper," Srivastava told PTI. NHPC, which has an installed capacity of more than 5,300 MW, has a cash surplus of over Rs 4,000 crore.
— PTI |
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Iran ‘warns’ it could halt oil supplies to India
Tehran, July 3 "We have seriously warned the Indian side of the possibility to halt oil exports if a solution is not found to clear its arrears," Fars news agency quoted National Iranian Oil Company
MD Ahmad Ghalebani as saying. Iran's state-run company, however, said it was working to maintain its trade with India, which as its second largest client after China, absorbs about 20 per cent of its crude exports. These warnings "do not mean supplies have been halted and we have no plans to stop exports to the Indian market," said NIOC director of international affairs Mohsen Ghamsari. India has been struggling for six months to pay Tehran for the oil supplies, through various Asian and European banking channels, Germany in particular, which have been successively closed one
after another. On Friday, reports cited unnamed executives at two Indian refinery companies as saying Iran's state-run company had warned them that it could stop oil supplies from August if New Delhi failed to clear its long-pending debt.
As Tehran refuses to be paid in rupees, Indian companies have accumulated a debt of about $2 billion since April, according to figures provided by the Oil Ministry to Iranian media. The possibility of India paying in gold for Iranian crude is one of the
solutions under consideration, according to Iranian media. — AFP |
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Fitch scales down growth forecast to 7.7 pc
Mumbai, July 3 "The growth has clearly hit a soft patch, as GDP grew only 7.8 per cent in the first quarter of 2011 (Q4 of FY'11), down from 8.4 per cent in Q4, FY'10, and 8.9 per cent in Q3, FY'10," said Fitch Ratings in its global economic outlook report. "A breakdown of GDP by expenditure shows that the slowdown can be largely attributed to a downturn in fixed investments, which grew by only 0.4 per cent in Q1 of 2011. Private sector investment activity not only appears to be affected by higher borrowing costs, but has also been affected by other factors like rising input costs, thin profits and rising bureaucratic red tape," the report notes. Fitch joins other major agencies like the IMF and World Bank that have projected sub-8 per cent growth for the domestic economy this fiscal, in a major drop from 8.5 pc last year.— PTI
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Ist indigenous aircraft prototype soon
Chennai, July 3 This will make India one of the select few countries that manufacture aircraft. "Yes, our very first prototype that is designed in India and manufactured in Australia will be coming out soon... We are not rushing it," said Karthik Krishnamurthy, the Chief Technology Officer of Mahindra Aerospace, the aviation division of the Mahindra Group. He told PTI that Mahindra and Mahindra has entered into a joint venture with National Aeronautics Laboratory to manufacture aircraft and aero components. It is setting up a facility at Bangalore with an investment of over $60 million. With the association of NAL and GippsAero, Mahindra would soon manufacture aircraft at the GippsAero facility in Melbourne, while design would be done in Bangalore India, he said. — PTI
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Tax Advice
NRIs not eligible for purchasing NSCs Q. I am an NRI and employed in the UK for the last 10 years. Prior to my leaving India, I had opened a Post Office Monthly Scheme Account in India which is still continuing as I keep on depositing amounts in the said account as and when I visit India. The account is jointly held with my wife. I have been informed that there is some prohibition with regard to such accounts for NRIs. Can I continue with such joint account? — Raj Kumar A. Non-Resident Indians are not eligible to open savings account with Post Office or purchase Kisan Vikas Patras or National Saving Certificates. Accounts opened prior to July 25, 2003 are allowed to continue up to the date of their maturity. It is not clear from the facts given in the query whether the maturity period is over or not. In case the maturity period is over, it would be advisable to close such an account. TDS
Q. I filed e-return, AY 10-11, PNB R/PHUL issued me 16-A, having 4 entries of TDS, in Form 26 as only 2 entries are shown. Repeated requests to bank to rectify, failed. I have written to GM, PNB, but to no avail. Kindly guide me whom to contact. The IT deptt. served notice u/s 143 to pay tax. — Ravi Dutt Sharma A. The rectification has to be done at the level of the bank. In case the bank is not responding, you will have to tender the original Form 16A as received from bank to prove the tax deduction at source as and when the tax department raises a query in this regard. Reassessment of IT return
Q. What is the time bar limit for reopening of the income tax assessment cases for reassessment of an assassee by the IT department. — Deepak Marwaha A. An assessment can be reopened under Section 147 of the Act by issue of notice under Section 149 of the Act. The time limit for such reopening is as under:- a) Four years from the end of the relevant assessment year, if the income chargeable to tax which has escaped assessment amounts to or is likely to amount to less than Rs 1 Lakh for that year; b) Six years from the end of the relevant assessment year if the income chargeable to tax which has escaped assessment amounts to or is likely to amount to Rs 1 Lakh or more for that year. IT return
Q. Two confusions have cropped up for AY 2011-12 return. Please advise. 1) Which return form to fill this year - For self Due to “Encashed IDR gain” (Standard chartered) of Rs 17,978. (The gain otherwise I will be adding completely into income and paying tax as per Slab - in ITR -1
(Saral) - I can show this income under “Income from other sources” along with bank interest or do I need to Fill ITR-2 because of it. Sources of Income are: Salary Bank interest Minor's bank interest (There is no STCG from Securities except above stated IDR gain, In which no STT is applicable) + Exempt incomes like: L.I.C maturity LTCG - Securities (STT paid) Equity dividend For wife Which return form — Due to census work payment recieved from Govt is Rs 4,450/-. Can it be added along with salary or income from other sources in ITR -1
(SARAL) or ITR-2 needs to be filled (otherwise there is zero tax liability after deductions). Sources of income are: Salary Bank interest Census work payment as stated above (Securities STC Loss and IDR gain is squared off equally. Thus nothing left to mention in Return) + Exempt incomes like: L.I.C money back LTCG - securities (STT paid) Equity dividend Gift from her parents by cheque 2) While adding minor's bank interest income in my income, has Rs 1500 income to be subtracted while adding this income to my income and while reporting in return or 100% minor bank interest is to be added to my income (in this minor's account, I have never given him anything nor deposited any money from my income. This interest is coming from money collected by minor since birth (9 years) through gifts from all near and dear ones, except me and bank interests on that income and every year I had been adding this interest in my income and paying tax on it and never claimed this 1,500 exemption, if it exists). Please advise. — Anshu Narula A. a) ITR-1 is now known as SAHAJ Indian individual income tax return. The gain on the realisation of Depository Receipts would be in the nature of a capital gain as a Depository Receipt is construed to be a security. The taxability of such a gain would depend upon the holding period of Depository Receipts. In case the gain is taxable you will have to file the return of income in Form No. 2. b) Income from census work would be reflected as income from other sources. c) The amount to be added should be after deducting Rs 1,500. I may add that in case there is an income arising to a minor which is required to be clubbed with your income, you will be required to file the return in Form No. 2. |
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