The Government of India has recently made fundamental changes in the Employees Provident Fund Scheme, 1952 and the Employees Pension Scheme, 1995 (collectively referred to as Indian Provident Fund schemes) which will impact the expatriates and the employers with whom they work in India.
The role of modern day accounting professionals has come a long way, from a core accounting function to that of being viewed as a corporate gatekeeper. Today’s professionals are not just auditors, certifying routine book of accounts, but also on the boards of companies as directors. This multi disciplinary role puts emphasis on “always taking the correct decisions and doing everything right”. While accountants look to successfully achieve the set standards, they are increasingly exposed to being targets for easy lawsuits, bought against them by third parties. A series of lawsuits filed against some of the reputed accounting firms and professionals is a beginning of the trend.
The 1988 Basel Capital Accord (“Basel I”) has been implemented as the capital adequacy standard for banks and has been adopted by more than 100 countries successfully. The fundamental objectives of the Accord were to strengthen the soundness and stability of the international banking system. Basel I, has been adopted by the leading industrialised nations as well as the emerging economies, including most in Asia.
Delay in receipt of income tax returns is the most registered grievance of taxpayers in the national capital with the I-T Ombudsman receiving almost 85 per cent complaints in this regard. The I-T Ombudsman, during 2007-09, has also come across complaints of tax refunds being lost in transit and taxpayers receiving empty refund envelopes.
Less than a week after the National Stock Exchange launched its mutual funds (MF) transaction platform, Asia’s oldest bourse, the Bombay Stock Exchange, today made operational its own MF platform for all investors.
The Insurance Regulatory and Development Authority (IRDA) have stipulated that the mandatory ceding by every general insurer in the country to the national reinsurer – GeneralInsurance Corporation (GIC), would continue to remain at 10 per cent.
The Revenue Department, which scrutinises all foreign investments from the tax angle, has asked the Foreign Investment Promotion Board (FIPB) to ensure that FDI applicants furnish three years audited financial statements of the investor.Such disclosures will be useful to determine the source of funds as also to assess the ability of the actual and the immediate investor to make such investments.
A bill enabling the State Bank of India (SBI) to split its shares and issue bonus shares may be placed in the current winter session of Parliament. Besides, the amendments to the State Bank of India Act, 1955, envisage the preferential or private placement of shares. The SBI (Amendment) Bill also proposes to allow India’s No. 1 bank to bring down the government holding to 51 per cent, which is on a par with other nationalised banks.
The Reserve Bank today said the domestic banks do not have much exposure to the debt-ridden Dubai World and hence their balance sheets will not be materially affected from the crisis. In the larger context, the rating agency Moody’s also today said the ratings of Asian banks are not likely to be downgraded, unless there is a massive restructuring in Dubai.
Capital market regulator SEBI has tightened key clauses in the client-broker agreement, as part of its attempts to curb the misuse of client money by brokers. In a circular on Thursday, SEBI said stock brokers should maintain a book containing all the mandatory and non-mandatory documents required for registering a client.
