Tuesday, Sep 03, 2019

Mergers of Banks- An Ill-timed move

“The whole idea that the consolidation of banks will solve the problem of public sector banking is not correct. If the problem is structural, if the problem is governance, it does not matter whether banks are large or small,” - Dr. Y V Reddy, while delivering the Professor D T Lakdawala Memorial Lecture on “Future of Public Sector Banking”, 2017
Thursday, Aug 29, 2019

Transfer of Surplus from RBI to the Government of India- Desperate measure at a critical time

" On August 14, 2019, The Bimal Jalan Expert Committee of the RBI submitted its report to the Governor. The RBI in turn accepted the recommendations of the Committee and transferred a sum of INR 1,76,051 crores to the Government comprising of INR 1,23,414 crores of surplus for FY 2018 – 19 and extra ordinary provisions of INR 52,637 crores identified as per revised Economic Capital Framework approved by the RBI Board. "
Monday, Jun 17, 2019

Modified Government - will the corporates have more-Acche Din

" The seven phased General elections concluded on 19th May, 2019. 23rd May, 2019 witnessed the return of the incumbent government with a larger majority.
Based on the work done in its previous tenure, we expect renewed focus on certain major policy areas in the next five years.
Few of the main areas have been Digitization, ease – of doing business, strengthening of the MSME sector, encouraging the start-ups, and streamlining of the Taxation regime. The expected impact on each of these sectors have been discussed further in this Article. "
Monday, Jun 18, 2018

Bond ETF – A New Tool of Investment

Bond exchange traded funds (ETF), similar in structure and intent to the stock ETF, could debut soon in India, where the government is seeking to enhance liquidity in debt investments and expand the scope for retail savings.

Bond ETFs permit both retail and institutional investors to take exposure in a larger pool of fixed income securities than they normally could have access to. Multiple bonds are clubbed in smaller chunks defined by the ETF price and size, catering to all appetites. Bond ETFs, perceived to be helping enhance debt-market liquidity, have gained currency in G-7 countries.
Monday, Jun 18, 2018

IBC-New Amendments Strengthning The Spirit Of The Law

The Cabinet has approved a promulgation of an ordinance to amend the 16-month-old Insolvency and Bankruptcy Code (IBC).
The present amendment is based on recommendations of a 14-member government appointed committee that had last month suggested a slew of measures, including addressing difficulties of home buyers and making recoveries easier for lenders plus disqualifying certain classes of promoters from back door entry into the resolution process.
Tuesday, May 15, 2018

Fugitive Economic Offenders (FEO) Ordinance, 2018 – Apprehend The Defaulters

“Fugitive Economic Offenders Ordinance preamble states - A Bill to provide for measures to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts. ”
Monday, May 14, 2018

Angel Tax Abolished – Partial Relief for Start Ups

“ Department of Industrial Policy and Promotion has announced “waiver conditions” for “Angel tax”. Start-ups from now on may avail of the tax concession only if total investment, including funding from angel investors (those who make the initial equity investment) does not exceed Rs.10 crores. ”
Monday, Apr 16, 2018

RBI Regulations on Cross Border Mergers

“This notification could boost foreign direct investment into the country. The notification of FEMA (Cross Border Merger) Regulations, 2018, is the last leg of legal provisions which allows both inbound and outbound mergers of companies in India. The real beneficiaries of these regulations would be MNCs which in many cases want to consolidate the business of a region and require mergers involving an Indian company with other companies in foreign jurisdictions ”
Monday, Apr 16, 2018

Role of National Financial Reporting Authority

“Union Cabinet has now approved the proposal for establishing the National Financial Reporting Authority (NFRA), intended to serve as an independent regulator for the auditing profession.
We believe establishment of NFRA as an independent regulator for the auditing profession will improve the transparency and reliability of financial information presented by listed and unlisted companies in India. ”
Monday, Mar 12, 2018

Implementation of new IFRS Revenue Recognition Standard

" India will have a new revenue recognition standard outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This supersedes most current revenue recognition standard.
In brief, the new standard seeks to streamline, and remove inconsistencies from, revenue recognition requirements; provide a more robust framework for addressing revenue issues; make revenue recognition practices more comparable; and increase the usefulness of disclosures. "
Monday, Mar 12, 2018

Unregulated Deposit Schemes And Chit Funds Bill-2018

" Recently, the Union cabinet has given its nod to table The Banning of Unregulated Deposit Schemes and Chit Funds (Amendment) Bill, 2018 in the Parliament, in order to curb, fraudulent deposit/ Ponzi schemes which had collected and laundered huge amounts of money from large section of people, exploiting their finances and greed for quick and high return. "
Monday, Feb 12, 2018

E-Way Bill – A new Opportunity for Easy Transit

" An e-way bill is a document that a person in charge of a conveyance carrying any consignment of goods of value exceeding Rs 50,000 is required to carry. It is a mandatory document that is generated from the GST Common Portal by registered persons or transporters who undertake movement of goods. A transporter needs to generate the e-way bill before the movement of goods commences. "
Monday, Feb 12, 2018

Budget 2018 – Game Changer or lacking vision

" The Budget 2018-19 has primarily focused agriculture, rural development, health, education, employment, MSME and infrastructure sectors. It came against the backdrop of a raft of reforms, economic slowdown and fiscal stress.
These series of structural reforms will propel India among the fastest growing economies of the world. the Budget seems rather lacklustre for the investor community, especially global investors as their long standing demands such as clarity over indirect transfer tax, General Anti-Avoidance Rules (“GAAR”) and reforms for start-up investments have remained unfulfilled.
Thursday, Jan 11, 2018

A Paradigm Shift in Insolvency & Bankruptcy Code, 2017

“The Parliament approved amendments to the Insolvency and Bankruptcy Code Bill to bar owners of defaulting firms from bidding to buy back assets when they are auctioned as part of bankruptcy proceedings.
The code proves to be a learning experience as it is the first time that such jurisprudence has been introduced in India. Overall, the Bill broadly appears to be clarificatory in nature. Although the intentions are laudable, it remains debatable if the imposition of a blanket ban on the existing promoters, without taking into account the causes of failure of an enterprise, is effective. It ca
Thursday, Jan 11, 2018

Financial Resolution and Deposit Insurance Bill, 2017- Government as an Effective Overseer

“The Financial Resolution and Deposit Insurance (FRDI) Bill proposes to create a framework for overseeing financial institutions. The 'Resolution Corporation', proposed in the draft bill, would look after the process and prevent the banks/ financial institutions from going bankrupt. The draft bill empowers Resolution Corporation to cancel the liability of a failing bank or convert the nature of the liability which has become a controversial issue.”
Thursday, Dec 14, 2017

Brief Overview On The India’s Ranking In World Bank’s Doing Business Report 2018

“India ranked 100th out of 190 countries after it implemented reforms in most macro indicators viz, starting a business, obtaining credit, paying taxes and resolving insolvency. For the first time, India jumped 30 positions to be counted the top 100th in terms of ease of doing business ranking.
The World Bank's Ease of Doing Business index ranks the nation based on the 10 indicators. These indicators are: Starting a business, Dealing with construction permits, Getting electricity, Registering property, Getting credit, Protecting minority investors, Paying taxes, Trading across borders, Enforc
Thursday, Dec 14, 2017

Registered Valuer And Valuation Rules Provisions Notified By Mca- Rules Laid Out

“MCA has notified the provisions governing valuation by registered valuers [section 247 of the Companies Act, 2013 (the Act)] and the Companies (Registered Valuers and Valuation) Rules, 2017 (the Rules), both to come into effect from 18 October, 2017. In addition, the MCA has specified the Insolvency and Bankruptcy Board of India (IBBI) as the responsible authority.
The notified Rules lays down the criteria for individuals, partnership entities and companies to be eligible to be registered as valuers under the Act. Apart from this, the Rules contain other aspects pertaining to registered valu
Friday, Nov 17, 2017

Real Estate- GST to Streamline Transactions

The Government from quite a time is considering to bring the real estate sector under GST.
The sector is unique because it is an immovable property and is also bound by State laws.

If GST is applied on land and immovable property, the buyer has to pay one tax at uniform rate across states (eg stamp duty varies state wise). Implemented efficiently and effectively, one GST for real estate across the country will streamline the transaction and, increase income transparency, lower the cascading effect of taxtaion. How the states will agree to this and what changes have to be made to compensate
Wednesday, Nov 15, 2017

Crowdfunding – A Concept to be Gauged

Crowdfunding — is finally gaining traction in India. It’s a big opportunity for individuals for new company trying to raise small amounts of money who can’t get funded by traditional means, either because of their credit score or the high interest rates. The amounts they are interested in may be too small for traditional lenders. Crowdfunding is a great way to get a small project through.
Crowdfunding can be divided into donation-based (charity/personal causes), debt-based (peer to peer) and equity-based. Crowdfunding is still in a nascent stage in India. However, its market potential is huge
Wednesday, Oct 11, 2017

Bitcoins – A Disruptor Or Portent For Future

“Bitcoins are intended to be digital currency, where buyers and sellers use them and eliminate all the other mediums such as credit cards, ATM Machines etc. Bitcoins will prove to be safer than carrying plastic cards and which shall be an international currency with no exchange transaction fees.”
Wednesday, Oct 11, 2017

Insolvency and Bankruptcy Code - IBC-BOON OR BANE

“The IBC has been a real game changer in the Indian economy’s business reform initiatives in the last twenty five years. Ease of doing business is ironically the base premise for enacting the comprehensive Code to exit from the business.”
Thursday, Sep 14, 2017

Cash Transactions – New Curbs & Initiatives

The Government has taken several steps for discouraging cash transaction and promoting digital payments. Proposed Initiatives: -

Restriction on receiving Cash above Rs. 2 Lakhs [Section 269ST & 271DA of the Income Tax Act, 1961], Restriction on Capital Expenditure for Business in Cash above Rs. 10000/- [Section 32 of the Income Tax Act, 1961], Reduction in the limit of Cash Payment to Rs. 10000/- in a Day [Section 40A(3) & 40A(3A) of the Income Tax Act, 1961], Lower Presumptive Profit of 6% for Cheque/ Digital Receipts by small businesses [Section 44AD of the Income Tax Act, 1961] and est
Thursday, Sep 14, 2017

Companies (Amendment) Bill 2017 – Simplification of Procedures

The Companies (Amendment) Bill, 2017 first introduced in March 2016 in the Lok Sabha, the Bill seeks to make important changes to the Companies Act of 2013 in relation to the structuring, disclosure, and compliance requirements for companies. The Bill has now been approved by Lok Sabha in July 2017 and is awaited to be passed in Rajya Sabha.

Major amendments proposed in the Companies (Amendment) Bill, 2017- simplification of the private placement process, rationalization of provisions related to loan to directors, omission of provisions relating to forward dealing and insider trading, doing
Friday, May 12, 2017

RERA Implementation – How Effective

“The much-awaited Real Estate Act has come into force from May 1st, 2017 but only 13 states and Union Territories have so far notified rules under the Act. The Real Estate (Regulation and Development) Bill, 2016 was passed by Parliament in March last year and all the 92 sections of the Act come into effect from May 1. ”
Wednesday, May 10, 2017

Cross Border Merger and Acquisition – An Accelerative Approach

"Ministry of Corporate Affairs (MCA) has recently vide notification dated 13th April, 2017 has notified Section 234 of the Companies Act, 2013 (‘Act’) which deals with Merger or amalgamation of company with foreign company now allowing the merger or amalgamation of Company with foreign company. The corresponding rules have also been notified in consultation with Reserve Bank of India (RBI) for implementation of the said section. MCA has issued the Companies (Compromise, Arrangements and Amalgamation) Amendment Rules, 2017 inserting Rule 25A and Annexure B in prescribing rules in the Companies
Tuesday, May 09, 2017

The Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) Regulations, 2017

"Telecom Regulatory of India (TRAI) had rolled out a draft telecom tariff order (TTO) in October 2016. Post final approval from supreme court of India TRAI rolled out Tariff Order and New Interconnection regulation on 03 March 2017. This time TRAI have attempted to ensure transparency, non-discrimination, consumer protection and create an enabling environment for orderly growth of the sector. "
Wednesday, Aug 16, 2017

Green Bonds – A new concept for Indian Securities Market

“Green Bonds are the one of the kinds of debt instruments, wherein the issuer gets capital from the investors only if the investment (capital) is being raised to fund green projects relating to renewable energy or emission reductions etc. In order to regulate the Green Bonds market in India the Securities Exchange Board of India (SEBI) in May, 2017 came out with a circular stating the disclosure requirements for issuance and listing of Green Debt Securities in India. Such guidelines demonstrates SEBI’s recognition of the increasing need of dedicated funds for clean energy projects”
Wednesday, Aug 16, 2017

Final Rules on Valuation of Unquoted Shares Notified – An Analysis

“CBDT has notified the final rules prescribing ‘fair market value’ method for valuation of unquoted shares. The amended rules are called the Income-tax (20th Amendment), Rules, 2017 for Sections 56(2)(x) and 50CA, are broadly in line with the draft rules released by the CBDT in May. The amended rules shall come into force from April 1, 2018 and shall apply in relation to assessment year 2018-19 and subsequent years.”
Friday, Jul 14, 2017

Digital Economy- A New area in a State of Formation

“Digital economy is about transforming the many facets of business interactions and transactions and also enabling economic innovations. For example, the digital
economy both is enabled by and has given rise to the advent of new digital currencies and payment processes, for example Bitcoin and the digital wallets.”
Friday, Jul 14, 2017

GST – A Brief Outlook

“GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. ”
Thursday, Jun 08, 2017

Draft ICDS on Real Estate Transactions – An Analysis

Post introduction of RERA, the government has published the draft Income Computation and Disclosure Standards (ICDS) on Real Estate Transactions to streamline accounting standards in Real Estate. ICDS are a set of accounting policies and standards used for computing taxable income and not for maintaining books of accounts The main highlights of the draft ICDS –
• Defining how revenue and costs are to be recognized;
• Defining components of project costs for computation of taxes;
• Defining valuations of inventories;
• Treatment of Transferable Development Rights; and
• Other items crit
Thursday, Jun 08, 2017

Socially Responsible Investing – An Overview

"Socially Responsible Investing (SRI) is a concept where investors invest in companies working in socially and environmental responsible ways. The focus is on sustainable, socially conscious, green and ethical investing. SRI seeks to balance financial return and social good at the same time. SRI investors apply various environmental, social and governance (ESG) criteria in their investment analysis and selection. It is observed that, while globally SRI has emerged as one of most powerful trends among the investment community of the developed world, the concept is still in a nascent stage in In
Monday, Apr 10, 2017

Insolvency and Bankruptcy Code 2016 – Role of Professionals under the Code

“The Insolvency and Bankruptcy Code 2016 seeks to address the issues faced currently in the context of insolvency and winding up. The code simply aims to revamp the prevailing bankruptcy laws and replace them with more simpler and time bound closure of business.
This area of law has given an opportunity to the professionals like CA/CS/LLB/CWA to act as Insolvency Professionals / Insolvency Professional Agencies.”
Monday, Apr 10, 2017

Finance Act 2017 – An Overview

“The Finance Act has come into force w.e.f. 1 st April, 2017 while providing some relief to lower income groups by way of lower tax slabs. The Act has introduced stringent amendments in taxation laws. Continuing on its endeavour for a transparent system the government has also made AADHAR mandatory for tax filing from 1 st July, 2017 and mandatory disclosure of cash transactions for the demonetization period. Various other amendments has been taken up in the Finance Act, 2017 which shall keep an overall track of the taxation provisioning for all types of assessees.”
Thursday, Mar 09, 2017

Affordable Housing – An opportunity for both buyer and seller

In the recent Budget of 2017, the Government has accorded infrastructure status to affordable housing and taken other steps, including a pledge to build one crore rural homes in two years to help provide housing for all by 2022.
Accordance of infrastructure sector status to this segment of real estate will help increase the much needed supply of affordable homes. Developers are expected to have access to cheaper institutional funds (including ECBs, insurance and pension funds) and tax exemptions to improve margins, which may induce developers to provide such housing.
Buyers, especially for
Wednesday, Mar 08, 2017

FinTech – A new concept in the era of Digitization

FinTech describes a business that aims at utilizing modern technology and software to provide efficient and superior financial services platform to institutions and end users. FinTech companies are accelerating the pace of change and are reshaping the financial services industry radically. Financial service providers like banks are recognizing the potentials of the FinTech. It is clear, however, that the disruptive innovations of FinTech cannot wholly eliminate or completely decimate the traditional banking or finance, but is expected to go a long way in establishing a clear footprint towards
Friday, Feb 17, 2017


"The Reserve Bank of India (RBI) vide Notification dated 10th January, 2017 introduced a new instrument for Start up companies named as ‘Convertible Notes’ by amending the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 (Regulations) through issue of Foreign Exchange Management (Transfer of Issue of Security by a Person Resident Outside India) (Fifteenth Amendment) Regulations, 2016 (Amendment)."
Monday, Feb 13, 2017


“GST shall strive to make India a One Tax Nation proving to be biggest reform to check misreporting or non reporting of the transactions in the books of account.
GST would be critical step to redefine the policy mechanism. Basic exemption threshold would be reduced to an annual turnover of INR 20 Lakhs.”
Thursday, Jan 12, 2017

Start up India – Progress so far

"It is seen that the last two years have seen a swing of initiatives and agendas announced by the government – starting with National Digital Literacy Mission with its worthwhile agenda of enabling one person in each Indian family to have digital skills, we have seen Swach Bharat Abhiyan, Make in India, Start up India and the more recent demonetization drive and the ‘Cashless India’ opportunity capturing the imagination of the country. "
Wednesday, Jan 11, 2017


"In the repercussion of the cancellation of the legal tender character of old INR 500 and INR 1000 notes, there has been a surge in the digital transactions through use of credit/debit cards and mobile phone applications/e-wallets etc. To further accelerate this process, the Central Government has come out with various incentive packages and measures for promotion of digital and cashless economy in the country. Digital India is a programme initiated to prepare India for a knowledge future. "
Wednesday, Dec 07, 2016

An Insight – Taxation (Second Amendment) Bill, 2016

"In order to bring more clarity and to capture the possible concealing black money, the Taxation Laws (Second Amendment) Bill, 2016 (“the Bill”) was introduced in Parliament to amend the provisions of the Income Tax Act, 1961 (Act) to ensure that defaulting assesses are subjected to tax at a higher rate and with stringent penalty provision."
Wednesday, Dec 07, 2016

Demonetization of the Indian Currency - Effect on the Economy

“A recent move of the Central Government exercising its powers u/s 26(2) of the Reserve Bank of India Act, 1934, to withdraw the legal tender character of existing bank notes in denominations of ₹ 500 and ₹ 1000 issued by Reserve Bank of India (RBI) is unprecedented. The demonetization of ₹ 500 and ₹ 1000 banknotes was a policy enacted by the Government of India on 8th November, 2016. All ₹ 500 and ₹ 1000 banknotes of the Mahatma Gandhi Series ceased to be legal tender in India from 9th November, 2016”
Tuesday, Nov 08, 2016

Real Estates Rules Tightened – A Check on the Real Estate Market

“Real Estate Rules Notified - 70% Of Unused Amounts Collected For Ongoing Projects To Be Kept In A Separate Bank Account, Promoters To Declare Original Sanctioned Plans, Changes Made Later, Fresh Timeline For Completion of Ongoing Projects Registration of Projects With Regulatory Authorities Incentivized By Reducing Fee Substantially, Interest To Be Paid Both By Promoters and Allottees Is SBI Marginal Cost Lending Rate Plus 2%, Promoters to Make Public A Host of Information And Report Quarterly Progress To Enable Informed Decisions By Buyers”
Tuesday, Nov 08, 2016

Real Estate Asset Management – A paradigm shift in Indian Investment Market

India was a top investment destination in the mid to late 2000’s. Even after the Global meltdown of 2008 India has remained one of the top investment destination and it continues to show a vast potential for foreign investment and foreign players.
Friday, Oct 07, 2016

Cyber Security Due Diligence in M&A Transactions – A Prerequisite

Cyber Security Due Diligence is defined as the review of governance, processes and controls that are used to secure information assets.
Tuesday, Sep 06, 2016

The Maternity Benefit (Amendment) Bill, 2016 – A Transformation in the Labour Law

The much awaited transformation in the Labour Law empowering women employment, the Maternity Benefit (Amendment) Bill was passed by Rajya Sabha on 11th August, 2016. While the bill is yet to be passed in Lok Sabha. The bill highlights the increasing the period of maternity leave from 12 to 26 weeks for Organized Formal Sectors.
Thursday, Jul 07, 2016

Model GST Law – A Tax Law Transformation

"The GST Act 2016 has been for the first time made public in June 2016 by the Indian Government. The government is planning to introduce the Act w.e.f. 1st April, 2017 and proposes to pass the 122nd Constitutional Amendment bill, 2014 in the upcoming monsoon session of the parliament”
Tuesday, Sep 06, 2016

Masala Bonds – A New-fangled way of raising money

“Masala Bond is a kind of financial instrument through which Indian entities can raise money from overseas Markets in rupee and not in foreign currency. Indian rupee denominated bonds issued in offshore Capital markets.”
Wednesday, Aug 03, 2016

Brexit – An Open Challenge for The Indian Economy

“Withdrawal of United Kingdom (UK) (Britain) from the European Union (EU) is termed as Brexit, it is term that refers to the June 23, 2016 referendum where the British voters agreed to exit the EU. The referendum shook the global markets leading to downfall in the currency British pound to its lowest level in decades”
Wednesday, Aug 03, 2016

NCLT and NCLAT Rules 2016 – A Transformation in the Corporate Law Judiciary

“National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) under the Companies Act, 2013 was notified by the Ministry of Corporate Affairs (MCA) on 1st June, 2016. For the working of the provisions of the sections for establishment of NCLT and NCLAT, the Government has now provided with the rules governing the functioning of the tribunals.”
Tuesday, Jun 07, 2016

Insolvency and Bankruptcy Code 2016 – A dawn in the era of Credit Market Laws

"A transformation in the Indian Economic reform with the passing of the Insolvency and Bankruptcy Code 2016 (hereinafter referred as ‘Code’) with regard to the functioning of the credit market in India. This shall provide a big boost to Ease of doing business in India. The law has been enacted with a vision to encourage entrepreneurship and innovation which will further boost the startups in India. "
Tuesday, May 03, 2016

The Real Estate (Regulation and Development) Act, 2016 – Effect on the buyer and developers of the Property

“Real Estate (Regulation and Development) Act, 2016 established to regulate and keep an eye on all the norms applicable on real estate industry – setting up of RERA and real estate appellate tribunals.”
Monday, May 02, 2016

Start – up India – A Campaign to Boost the Business in India

“Startup entity means an entity incorporated or registered in India not prior to five years with an annual turnover not exceeding 25Cr and can be in the following forms- Partnership firm, LLP or a Private Limited Company”

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