Thursday, November 28, 2013

[aaykarbhavan] Business standard news updates 29-11-2013

RBI to relax investment limit of NBFCs in insurers


BS REPORTER

Mumbai, 28 November

The Reserve Bank of India (RBI) said on Thursday it would consider
relaxation of the 50 per cent group limit for non- banking financial
companies (NBFCs) investing in insurance companies, on a case- to-
case basis.

According to the present norms, in case more than one company (
irrespective of doing financial activity or not) in the same group of
the NBFC wishes to acquire stake in the insurance company, the
contribution by all companies in the same group should not exceed 50
per cent equity investment in the insurance joint venture ( JV)
company.

RBI said that in the operation of of the insurance company, very
often, Irda required an insurance company to expand its capital,
taking into account the stipulations of the Insurance Act and the
solvency requirements of the insurance company.

New regulations on insider trading soon


BS REPORTER

Mumbai, 28 November

The Securities and Exchange Board of India ( Sebi) is set to announce
new regulations on insider trading soon. It is likely there would be
more checks and balances to clamp down on the misuse of price
sensitive information.

"The committee on insider trading norms is expected to submit its
report as early as next week. It has have almost finalised it," Sebi
Chairman U K Sinha said on the sidelines of a seminar on the corporate
bond market organised by CRISIL.

In April, Sebi had set up a 19member high- level committee to review
the country's twodecadeold insider trading regulations. The expert
panel is headed by former Securities Appellate Tribunal presiding
officer N K Sodhi and has representatives from across segments such as
legal, corporates, investment banking and stock exchanges. Before
finalising the committee's report, Sebi is expected to invite feedback
on it.

Sebi is also working with the government on resolving tax issues with
the foreign portfolio investment ( FPI) framework, which has delayed
its implementation.

In October, the regulator had announced the Sebi (foreign portfolio
investors) Regulations, 2013, which unified various portfolio
investment routes, including foreign institutional investors ( FIIs)
and qualified foreign investors (QFIs) into FPI.

The Income Tax Department is said to have raised concern on the tax
treatment to individual foreign investors under the new framework.
During a panel discussion at the CRISIL seminar on Thursday, K P
Krishnan, additional secretary in the Department of Economic Affairs,
said discussions in this regard were underway between Sebi and the
government. " In a couple of weeks, we should be able to figure a
solution that is acceptable to foreign participants and to the revenue
department," he said.

Meanwhile, Sebi is also set to finalise regulations on real estate
investment trusts ( Reits) at its board meeting expected to be held
next week. The regulator had issued Reit regulations in October and
had, subsequently, invited feedback on these.

Sinha said, " Reits will pick up only when there is clarity on tax
treatment. We have taken up this matter with the government."

Sebi, govt in talks to iron out tax issues with the FPI framework ON
SEBI'S PLATE

|New regulations on insider trading |Tax clarity on FPI regime
|Finalisation of Reit regulations




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