No CAs in Centre’s new regulatory body for accounting professionals
The Centre’s new body to regulate accounting and audit professionals, the National Financial Regulatory Authority (NFRA), will not have any representation from chartered or cost accountants and could essentially be a body run by retired bureaucrats. This is mainly aimed to ensure that regulation is not marred by any conflict of interest. Officials said if a practising chartered accountant (CA) became part of NFRA, he or she would have to surrender practising license and leave the profession. The rules are being framed to maintain absolute transparency and fair play in investigations. This would be unlike the Institute of Chartered Accountants of India (ICAI), which, while regulating the profession of CAs, is itself headed by a CA.
Resolution plan: Government may amend IBC norms to reduce the voting share
To minimize the possibility of a deadlock or delay in decision making in the insolvency resolution process, the government is contemplating a reduction in the share of votes required for approving a resolution plan by the committee of creditors, sources aware of the development told FE. As per Section 30(4) of the Insolvency and Bankruptcy Code, 2016, the committee of creditors (CoC) may approve a resolution plan by a vote of not less than 75% of voting shares of financial creditors. Sources quoted above said the 75% threshold is likely to be brought down to 65-66%. “This has been a long-standing demand, and it will help us to reach a decision faster. Now even if fewer banks agree on a plan, there is scope for it to be accepted as the final plan,” a banker said on condition of anonymity.
CCI fines Jet Airways, InterGlobe Aviation, and Spice Jet for unfair business practices
The Competition Commission today imposed a total fine of more than Rs 54 crore on Jet Airways, InterGlobe Aviation and Spice Jet for unfair business practices with respect to fixing fuel surcharge on cargo transport. Besides, the watchdog has directed the three airlines to “cease and desist” from anti-competitive practices. A fine of Rs 39.81 crore has been imposed on Jet Airways while the penalties on InterGlobe Aviation and Spice Jet are Rs 9.45 crore and Rs 5.10 crore, respectively, according to an official release.
GST Council to weigh the proposal to further delay the rollout of the e-way bill
The GST Council meeting will on Saturday consider proposals to further delay rolling out the e-way bill system by about 5-6 months and levy GST on a concentrated form of alcohol. The 26th GST Council meeting will also try to reach a consensus on simplifying tax returns. The GST Council meeting, earlier planned a video conference, will now be held in New Delhi as this is expected to make it easier to explore consensus on technical issues relating to tax rebates that are proving to be a stumbling block in simplifying tax returns, a person privy to the development said on condition of anonymity.
Regulator plans single-window system for new drug approvals
In a move aimed at boosting the Make in India initiative, the Drug Controller General of India (DCGI) proposes to set up a single-window facility for innovators and start-ups seeking consents, approvals and information. DCGI plans a separate public relations (PR) office which can be approached by innovators and start-ups seeking information regarding regulatory requirements for commercialization of products as well as clarifications on the Drugs and Cosmetics Act 1940 and other rules.“The office shall guide assist and handhold investors in various phases of the business lifecycle as per the existing focus on Invest India/Make in India,” said an office memorandum.
PNB scam has hit credit to SMEs
The Indian financial system is witnessing major turbulence as the banking sector is being dragged down by mounting NPAs and scams severely hurting the country’s exchequer. Data from RBI show that state-run banks in the last five years have reported 8,670 “loan fraud” cases totalling $9.58 billion (excluding the Punjab National Bank fraud), with bad loans peaking at $149 billion last year. In this backdrop, Business Line on Wednesday organized ‘Financial Conclave 2018’, in association with FKCCI (Federation of Karnataka Chambers of Commerce and Industry) and XIME (Xavier Institute of Management and Entrepreneurship) as the knowledge partner.
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