Blog Posts
-
Taxing Sovereign Wealth Funds
[Posted by Umakanth Varottil] Just as hearings are being conducted before two subcommittees of the U.S. House of Representatives in relation to sovereign wealth funds (SWFs), and as the International Monetary Fund is stepping up efforts to formulate a code of conduct to regulate SWFs, a new story has emerged regarding the possible tax position…
-
SEBI Rationalises Filing Fee Structure
[Posted by Umakanth Varottil] The following post is contributed by Somasekhar Sundaresan The first board meeting under the new Chairman of the Securities and Exchange Board of India (“SEBI”) has taken a very significant decision. SEBI has slashed the ad valorem fee rates attendant with filing of various draft offer documents, by nearly 80%, and…
-
Insider Trading Regulations to Undergo Further Amendments
[Posted by Umakanth Varottil] Readers may recall that the SEBI (Prohibition of Insider Trading) Regulations, 1992 underwent detailed amendments in 2002. This was primarily to plug several loopholes in the law, some of which were exposed in the few insider trading cases that came up for hearing under the original regulations, the Hindustan Lever Case…
-
Foreign Investments into India: Tax Structuring
[Posted by Umakanth Varottil] Foreign investors invest funds into Indian companies in anticipation of financial returns. These returns usually take the form of dividend payment by the Indian companies, interest payment (in case of debt securities that are yet to be converted into equity) and capital gains on sale of investment. Although all three types…
-
FCEB Taxation
[Posted by Umakanth Varottil] In an earlier post on this blog, we analysed foreign currency convertible bonds (FCEBs). Although there was nothing on this count in the Finance Minister’s budget speech, the Finance Bill contains provisions clarifying the taxation position on FCEBs and the shares that arise out of conversion. Today’s Hindu Business Line carries…
-
Reverse Mortgages Explained
[Posted by Umakanth Varottil] Today’s Business Standard carries a column by Stanley Pinto that looks at reasons why reverse mortgages have failed in India. More importantly, it contains a lucid explanation of the concept: “The reverse mortgage facility allows senior citizens to unlock the value of their most valuable asset, their home, by mortgaging it…
-
Budget Impact
[Posted by Umakanth Varottil] This year’s budget, termed by the media as a populist one, has received mixed reactions from the corporate sector. At the same time, it has not gone well with the stock markets, which fell following the budget announcements. The entire set of budget materials is available here. Now, we look at…
-
Taxation Issues in Short Selling
[Posted by Umakanth Varottil] An earlier post on this blog had discussed the introduction of short selling in the Indian market and its implications on the market. Today’s Hindu Business Line has an article that refers to lack of clarify in the taxation regime with respect to short sales. Obviously, there seem to be several…
-
Corporate Governance Study
[Posted by Umakanth Varottil] Research in areas of corporate governance involving Indian companies has not been substantial, compared to that in its emerging market counterparts such as China. However, a recent study that has been commissioned by the IFC Global Corporate Governance Forum in consultation with SEBI and the National Institute for Securities Markets (NISM)…