E India CA

Professional Updates for Chartered Accountants

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Relief for FPIs as SEBI eases KYC guidelines

The Securities and Exchange Board of India (Sebi) on Friday relaxed know-your-client (KYC) requirements norms for foreign portfolio investors (FPIs). After considering the interim recommendations of the Sebi working group under the chairmanship of Harun R. Khan, a former deputy governor of the Reserve Bank of India, the capital mark...

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If NFRA spreads its wings too wide its failure may not be ruled out: Amarjit Chopra, Chairman, NACAS

With the economy struck by a series of corporate frauds, the Modi government has approved setting up of National Financial Regulatory Authority (NFRA), an independent regulator for the auditing profession that will replace National Advisory Committee on Accounting Standards (NACAS). The regulator would not be a game changer and may n...

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The rise of late-stage venture capital

A stock market listing has long been one of the most significant milestones in a company’s life. It comes with a range of benefits, including a raised company profile, flexible access to a very liquid pool of capital and the ability to attract top talent by offering employee stock options. However, while equity capital markets hav...

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Company director sent to 6 months of rigorous imprisonment for TDS default

A court here has sentenced the director of a real estate firm to six months of rigorous imprisonment (RI) for allegedly failing to deposit over Rs 50 lakh TDS in time to the Income Tax Department. A senior official of the department said the director of the firm, engaged in building construction services, has been convicted re...

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Why auditors are under scrutiny from regulators and investors, globally

It is not just India—auditors across the world find themselves under scrutiny from the governments, regulators and investors. Enhanced disclosures, lower conflict of interest and regulations to improve the quality of audit are in the works. How effective these are could also offer lessons to India. The International Forum of Indep...

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Is Your Company Struck Off?

Recently, the Registrar of Companies, Delhi and Haryana (ROC) in its drive to clean the registry have initiated the action (II stage) against the non working companies for striking off of all such Companies under Section 248(1) of the Companies Act, 2013 and notices were sent to show cause to around 31,250 Companies. Consequent t...

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ICICI Bank masked bad loans through change in accounting policy

As a multi-agency probe into dealings by ICICI Bank Ltd and its chief executive Chanda Kochhar has gathered pace in recent weeks, more skeletons are tumbling out of the closet of the country’s second-largest private bank. As financial year 2016-17 drew to a close, the ICICI Bank management wrote off unsecured portions of doubtful...

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The time has come to force promoters out of companies where appropriate

Indian business is quite akin to Indian politics where heredity rules rather than talent. However, unlike politics where incumbents can be voted out, Indian promoters tend to be like royals and cannot be forced out regardless of competence or character. (Obviously, there are a large number of exceptions to this.) The first threat to...