QBiz: Goyal Wants Tax Evaders Exposed, LIC Board Meet on IDBI Deal
Here are the top business stories of the day.
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1. LIC Board to Meet On Monday to Finalise IDBI Bank Deal
The board of Life Insurance Corporation of India (LIC) is scheduled to meet in Mumbai on Monday, 16 July, to finalise the acquisition of 51% stake in IDBI Bank Ltd, people familiar with the matter said. LIC has completed the due diligence of IDBI Bank according to the directions of the Insurance Regulatory Development Authority of India (Irdai), the people said. LIC will approach Sebi after getting approval from its board for the IDBI Bank acquisition.
“The LIC-IDBI Bank deal will trigger an open offer to protect the interest of minority shareholders in the bank,” said one of the persons quoted. The LIC-IDBI Bank deal is likely to be finalised by September.
(Source: Livemint)
2. Centre May Ease MUDRA Refinance Norms to Rope in Smaller NBFCs
The Centre may relax the eligibility criteria for non-banking finance companies (NBFCs) under the MUDRA, which could help increase the uptake of loans under the scheme.
Experts believe the existing norms are focussed on large NBFCs whereas it is the small- and medium-sized ones that would be more suited for refinancing under the Micro Units Development and Refinance Agency (MUDRA) scheme.
“The cap on margin makes MUDRA unattractive for large NBFCs. But there are over 11,000 small and medium NBFCs that can be harnessed for the scheme,” said Raman Aggarwal, Chairman, Finance Industry Development Council.
(Source: HinduBusinessLine)
3. Businessmen Should Blow Whistle On Tax Evasion, Says Piyush Goyal
Union Finance Minister Piyush Goyal on 16 July called on traders and industrialists to expose tax evaders.
“It is our responsibility to expose those who are doing wrong (evading tax) and harming the economy,” Goyal said while interacting with traders and industrialists here late this evening.
The meeting was organised by the Chhattisgarh Chamber of Commerce and Industries and the Chhattisgarh State Industrial Development Corporation.
Businessmen should compete not to evade taxes, but to produce and deliver quality goods and services, he said, adding that the Goods and Services Tax (GST) has created an honest and simplified taxation system.
(Source: FinancialExpress)
4. Fin Min May Seek Deadline Extension From Sebi for PSBs On Minimum Public Float Norm
The finance ministry may approach markets regulator Sebi to seek relaxation on the minimum 25 percent public shareholding norm for some public sector banks (PSBs). There are 13 PSBs including IDBI Bank, Bank of India in which the government holding is more than 75 percent.
If these banks are unable to meet the norm by August deadline, the Department of Financial Services will have to approach the Securities and Exchange Board of India (Sebi) for exemption, sources said. Listed public sector undertakings (PSUs), including banks, have already been provided one year extension till 21 August to comply with the norms. Due to successive capital infusion in the NPA-ridden PSBs, the government holding in them has increased and the public float deferred in the last two years.
(Source: Financial Express)
5. India Raises Trade Deficit Issue With China At WTO
India has flagged concerns of its large trade deficit with China, visa restrictions for Indian professionals and the challenges faced in exporting IT services, meat, rice and medicines to Beijing at the World Trade Organization (WTO).
Trade is skewed in favour of China at a trade surplus of $63 billion. Bilateral trade was $89.6 billion in 2017-18.
“This large and growing deficit is difficult for India to sustain, and serious efforts need to be made to remedy the situation,” India said in its submission to WTO, commenting on China’s trade policy, which ET has seen.
(Source: The Economic Times)
6. Infosys to Create New Return Form for GST Council
The GSTN Group of Ministers (GoM) has asked Infosys to create a new tax return filing form in an effort to simplify I-T returns for businesses.
Addressing newspersons at the ninth GSTN GoM meeting, Bihar Deputy Chief Minister Sushil Kumar Modi said taxpayers who file 37 returns a year will file just 13 returns when the new format comes into place. “It will be a single-page return form and will be approved by the GST Council in the next few days,” he added.
The efforts to simplify the filing of GST returns is seen as a practical approach in the face of mounting criticism over the complexity and time that businesses have to spend on compliance. Further, filing of returns would be done in a staggered manner between the 10th and 20th of each succeeding month, said Sushil Modi.
(Source: HinduBusinessLine)
7. Global Corporate Funding in Solar Sector at $5.3 Bn Till June
Total global corporate funding in the solar sector touched USD 5.3 billion in the first half of this year, up 15 percent over last year, amid uncertainty in the industry owing to Trump tariffs and the Chinese subsidy pullback, global consulting firm Mercom Capital Group said.
Corporate funding, including venture capital, public market, and debt financing, in the solar sector was USD 4.6 billion in the January-June period of 2017. “The first half of 2018 has been a roller-coaster for the solar industry marked by uncertainty due to Trump tariffs followed by the recent Chinese subsidy pullback,” commented Raj Prabhu, CEO of Mercom Capital Group.
(Source: HinduBusinessLine)
8. Committee To Review Penal Provisions Under Companies Act
A 10-member committee has been set up to review the penal provisions under the Companies Act and examine de-criminalisation of certain offences, the government announced on Sunday.
A Corporate Affairs Ministry release said the committee, chaired by Corporate Affairs Secretary Injeti Srinivas, would submit its report in 30 days to the government.
The Corporate Affairs Ministry seeks to review offences under the Companies Act, 2013, as some of the offences may be required to be decriminalised and handled in an in-house mechanism, where a penalty could be levied in instances of default, it said.
(Source: Financial Express)
9. Nabard Working On Ways to Boost Funding for Farmer Producer Organisations
In a bid to bolster the resources of farmer producer organisations (FPOs), the National Bank for Agriculture and Rural Development (Nabard) is looking to help them take the subordinated debt route. It is also working to facilitate guarantees so that banks are encouraged to lend to them.
Given that banks’ credit exposure to the sector is not much now, subordinated debt, which is a secondary form of equity, will help FPOs garner resources better, said Nabard Chairman Harsh Kumar Bhanwala.
Referring to Nabard guaranteeing the credit offtake from its own subsidiaries, Bhanwala said his institution is working on the concept of guarantee, which can be availed of by lenders providing credit to FPOs.
(Source: HinduBusinessLine)
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