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8/9/2019 Bfs Roundup Flip 140

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IPO window likely to shut for wilful defaulters

The Securities and Exchange Board of India is likely

to bar wilful defaulters from launching Initial PublicOffers (IPOs), while their access to the secondarymarket is likely to continue.

An entity is tagged a wilful defaulter if he or itdefaults despite having the ability to pay or uses

the loan for purposes other than specified.

Currently, entities listed as wilful defaulters by RBIarent allowed to come out with a public issue of

debt securities. Howeve, there is no restriction onthem from launching IPOs.

FLIPs View: I don't think wilful defaulters will beable to raise money in an IPO in any case. So this is

a little redundant. If they are not allowed to raisemoney in any form from any sources, that would bea good deterrent.

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Regulators move to monitor firms commodityexposure

Listed companies might soon have to disclose rawmaterial holdings and whether they have hedged

against exposure to commodities.

This move is an initiative of the commoditiesmarket regulator, the Forward Markets Commission

(FMC), and part of the enhanced disclosuresrequired by the SEBI s new listing regulations.

If the proposal gets cleared, companies would have

to disclose their hedged and unhedged raw materialon the stock exchange platform. This will increase

transparency and make individual shareholdersaware of the commodity exposure that a companyhas.

FLIPs View: Similar to their foreign exchange

exposure,this isa good step, as it exposes thevulnerability of the P/L to commodity pricefluctuations.

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Govt approves ordinance to ease LandAcquisition Act to push reforms

This is done to remove barriers in a range of sectors

like power, housing and defence to kick-start stalled

projects.Five identified

The week that was.

areas for this purpose are land for defence

purposes, rural infrastructure, affordable housing

and housing projects for poor, industrial corridors,

and infrastructure or social infrastructure projects,

including those in public-private projects in which

ownership of land will remain with the government.

While the compensation will remain high as per theact, and rehabilitation and resettlement will befollowed, the procedure for acquiring land for these

projects will be easier by omitting steps like socialimpact assessment, impact on food security, and

consent of 70% land owners, among other featuresof the act.

FLIPs View: A grand announcement no doubt,but

how it translates into reality remains the question.At the end of the day,if it translates into moreinvestments,the objective has been achieved. Wewill know that only in the next couple of years.

Special CoverageClick hereto read more

BFS14002ndJan, 2015

Weekly
http://www.business-standard.com/article/markets/ipo-window-likely-to-shut-for-wilful-defaulters-114122400659_1.htmlhttp://www.business-standard.com/article/markets/ipo-window-likely-to-shut-for-wilful-defaulters-114122400659_1.htmlhttp://www.taxmann.com/topstories/222330000000004415/regulators-move-to-monitor-firms%E2%80%99-commodity-exposure.aspxhttp://www.taxmann.com/topstories/222330000000004415/regulators-move-to-monitor-firms%E2%80%99-commodity-exposure.aspxhttp://timesofindia.indiatimes.com/india/Govt-approves-ordinance-to-ease-Land-Acquisition-Act-to-push-reforms/articleshow/45678103.cmshttp://timesofindia.indiatimes.com/india/Govt-approves-ordinance-to-ease-Land-Acquisition-Act-to-push-reforms/articleshow/45678103.cmshttp://www.learnwithflip.com/FLIP/FBNewsletter/FLIP_Article_Issue140.pdfhttp://www.learnwithflip.com/FLIP/FBNewsletter/FLIP_Article_Issue140.pdfhttp://www.learnwithflip.com/FLIP/FBNewsletter/FLIP_Article_Issue140.pdfhttp://www.learnwithflip.com/FLIP/FBNewsletter/FLIP_Article_Issue140.pdfhttp://timesofindia.indiatimes.com/india/Govt-approves-ordinance-to-ease-Land-Acquisition-Act-to-push-reforms/articleshow/45678103.cmshttp://timesofindia.indiatimes.com/india/Govt-approves-ordinance-to-ease-Land-Acquisition-Act-to-push-reforms/articleshow/45678103.cmshttp://www.taxmann.com/topstories/222330000000004415/regulators-move-to-monitor-firms%E2%80%99-commodity-exposure.aspxhttp://www.taxmann.com/topstories/222330000000004415/regulators-move-to-monitor-firms%E2%80%99-commodity-exposure.aspxhttp://www.business-standard.com/article/markets/ipo-window-likely-to-shut-for-wilful-defaulters-114122400659_1.html


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Did You Know?


Sebi, RBI tell FIs to register under Fatca by Jan

The SEBI has asked financial institutions to register with the American tax regulator by January 1, 2015.

Those who do not would be subject to a withholding tax of 30% on all payments coming out of the USA.

The RBI has issued the same instruction. This is in line with the requirement under a new American law, the

Foreign Account Tax Compliance Act (Fatca). All foreign institutions would have to provide information on

whether they have any clients who would be subject to taxation under American laws. They are required to

register with Americas Internal Revenue Service forthis purpose. After doing so, they get a Global

ntermediary Identification Number without this, they get subject to the witholding tax.

The US has been signing agreements with governments around the world to ensure their financial

nstitutions comply with this law.

FLIPs View: We are looking to increase the ease of doing business,and this will not help. The other

question is,what have we got in return from the US,in terms of disclosures of US companies operating in

ndia? - Nothing, I gather.

Trading goes Mobile!

Besides shopping and banking, Indians are increasingly doing equity

tradingusing their mobile phones.

Average daily turnover through mobiles has increased 2.5 timesto

Rs. 221 crore as of November from Rs. 88 crore in January on theNSE and BSE.

This is a significant development and brokerage houses are working

hard to encourage their clients to use their phones for trading

activity. This reduces the need for physical presence for brokers,

thereby reducing costs for them.

An interesting point to note is that the mobile trading volume is still

1% of the total trading volume; however, this is expected to go up.

As per data from Google Play Store, trading appsoffered by Kotak

Securities and ICICI Securities have seen more than 1,00,000

downloads so far. This is followed by HDFC Bank, Geojit BNP Paribas

and IIFL apps, which have a little over 50,000 downloads each.

You too can experience the market at your fingertips!

For more interesting BFS updates,like uson facebook.

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http://www.business-standard.com/article/markets/sebi-rbi-tell-fis-to-register-under-fatca-by-jan-1-114123001136_1.htmlhttp://www.business-standard.com/article/markets/sebi-rbi-tell-fis-to-register-under-fatca-by-jan-1-114123001136_1.htmlhttps://www.facebook.com/learnwithfliphttps://www.facebook.com/learnwithfliphttps://www.facebook.com/learnwithfliphttps://www.facebook.com/learnwithfliphttp://www.business-standard.com/article/markets/sebi-rbi-tell-fis-to-register-under-fatca-by-jan-1-114123001136_1.html


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Term of the Week

Bharat Bill Payment System (BBPS)

RBI has issued final guidelines for the Bharat Bill Payment System

Bharat Bill Payment System (BBPS) has been touted as a path breaking initiative.

Well be explaining the system, and how it will impact your life.

What is BBPS?

Put simply, its an integrated bill payment system. So, you can pay nearly all your bills like electricity ,

telephone , school fees etc., through a single payment mechanism.

The structure will consist of:

(i) National Payment Corporation of India - which will cover standards related to payments, and theclearing and settlement process, and

(ii)

Bharat Bill Payment Operating Units (BBPOUs) - which will be the authorized operational units.

Current Scenario:

At present, we use different modes of payment (credit card, debit card, cash, cheque, net banking etc.) andmultiple channels (paytm, ccavenues,billpay etc.) to pay different utility bills.

For example - service provider A will have a tie-up with paytm, whereas service provider B will have a tie-up with ccavenues. Since both channels are working in isolation, this promotes inefficiency.

Proposed System:

Under the new system, all service providers will register with BBPS. Also all payment channels will be

authorized as BBPOUs, which in turn will be connected to BBPS.

Benefits:

A more efficient payment system as BBPOUs need not tie up individually with different service

providers.

RBI can have a unified view of all payment transactions.

Payments will be more secure.

The prospective BBPOUs need to submit applications to the RBI from the first quarter of 2015.

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