Five PSBs on brink of being put under RBI’s prompt corrective action plan
Five public sector banks (PSBs), including Canara and Union Bank of India, are on the brink of being put under the Reserve Bank of India’s (RBI’s) prompt corrective action (PCA) plan. According to rating agency Icra, their net non-performing assets (NPAs) rose above 6 per cent in December 2017. If the banking regulator places them under PCA, the action may drive these banks to recall additional tier-1 (AT-1) bonds, which is included in Tier-1 capital, of Rs 157 billion from investors. Besides Canara and Union Bank, three other PSBs that may come under PCA are Andhra Bank, Punjab National Bank, and Punjab & Sind Bank.
BDO takes IRPs of Bhushan Power, Jyoti Structures to court
Professional services firm BDO India has dragged interim resolution professionals (IRPs) of Bhushan Power & Steel and Jyoti to court, four people with direct knowledge of the matter told ET.The Indian arm of Belgium-headquartered accounting and advisory firm has approached the Bombay High Court to initiate arbitration proceedings against Mahender Kumar Khandelwal, an IRP of Bhushan Power, and Vandhana Garg, an IRP of Jyoti Structures, who quit BDO India as partners in January. Both Khandelwal and Garg are set to join PwC India with seven other executives from BDO, said a person with direct knowledge of the matter.
PNB scam: NCLT bars 64 firms from selling assets
The National Company Law Tribunal (NCLT) has restrained over 60 companies, including those belonging to Rs 12,600-crore PNB fraud accused Nirav Modi and his uncle Mehul Choksi, from selling their assets, according to a government announcement on Sunday. The ex-parte NCLT order was passed on a petition filed under various sections of the Companies Act 2013 by the Union Corporate Affairs Ministry last week before the Mumbai bench of the NCLT, the ministry said. The NCLT has granted an injunction against the specified entities from “removal, transfer or disposal of funds, assets and properties” till further orders, the announcement said.
Here’s how you can get LTCG tax exemption on sale of property
People having long-term capital gains (LTCG) can avail tax exemption under various sections of the Income Tax Act by making prescribed investments. LTCGs are usually taxed at 20%. This tax can be avoided by making investments as per Sections 54 and 54EC.Section 54: Profit on sale of property used for residence Capital gain arising on transfer of a residential house is exempt u/s 54 if such capital gain is reinvested. The house may be let out or self-occupied. For immovable property, being land or building or both, the period of holding is 24 months to qualify as a long-term capital asset. Earlier, the period of holding was 36 months to qualify as a long-term capital asset.
Proposed auditing watchdog should keep distance from ICAI, say experts
The National Financial Reporting Authority (NFRA), the proposed watchdog for the auditing community, will be effective only if it is kept independent from the Institute of Chartered Accountants in India (ICAI), the existing self-regulatory organization for auditors, said experts. The Union cabinet on Thursday approved a proposal to establish NFRA as an independent regulator for the auditing profession, in an attempt to tighten regulatory oversight over chartered accountants and plug loopholes. The bill will now be tabled in the coming session of Parliament.“For the NFRA to be effective, it should consist of independent experts with an impeccable record of integrity. Persons elected to ICAI’s council should be kept out,” said R. Narayanaswamy, professor of finance and control at the Indian Institute of Management, Bangalore.
Fugitive Economic Offenders Bill needs tweaks: Analysts
The Fugitive Economic Offenders Bill has been termed as a strong deterrent to people fleeing the country after committing a crime but experts say that flaws in the proposed legislation could be used to challenge the law in courts. The blanket ban on offenders contesting the confiscation of their properties through civil suits, sale of property without trial, and deterioration in value of seized assets and finding suitable buyers are some of the concerns around the new law. The Union cabinet on Thursday approved the draft law after Nirav Modi and Mehul Choksi, accused in the Rs12,636 crore Punjab National Bank (PNB) fraud, failed to appear before enforcement agencies. A special Prevention of Money Laundering Court (PMLA) on Saturday issued non-bailable warrants against the two for not responding to summons by the Enforcement Directorate (ED).
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