ACCOUNTING NORM
Menace of 'money mules' and how not to become one
Mule accounts are bank accounts that are used to launder proceeds of crime by fraudsters. In an age when there are strict laws on holding or using large amounts of cash, transactions in the banking system cannot be avoided. At the same time, criminals cannot use bank accounts because KYC norms will enable authorities to link the money to the activity through which they receive it.
Groww Asset Management, trustee settle case with Sebi; pay Rs 9 lakh
Groww Asset Management Ltd (formerly known as India bulls Asset Management Company Ltd) and its trustee have settled with markets watchdog Sebi a case pertaining to alleged violation of regulatory norms after paying Rs 9 lakh. This came after the applicants Groww Asset Management Company and Groww Trustee Ltd (earlier known as India bulls Trustee Company Ltd) proposed to settle the alleged violation by "neither admitting nor denying the findings of fact".
Banks seek clarity from RBI on credit card network norms
Several banks have sought clarity from the Reserve Bank of India (RBI) regarding guidelines that mandate offering existing credit card customers a choice of networks like Rupay, Visa, and MasterCard. As per RBI's guidelines issued in March, card issuers must provide this choice both during initial issuance and at the time of renewals. A senior bank executive informed ET that banks have sought clarification on whether this choice of networks should be extended to all existing customers or only implemented during renewal processes.
EU's ill-fitting suite for 'greener' norms
EU's Ecodesign Directive banning destruction of unsold textiles and footwear to establish sustainability requirements will impact Asia, where they are made. Fast fashion drives overproduction, affecting export earnings of Asian economies like India.
SIP SIP Stop: Account closures at new high with tighter regulation
The SIP stoppage ratio reached a record high of 0.88 in May 2024, as per AMFI data, indicating closures surpass new additions.
While stepping down, very few independent directors speak up
Till date this year, out of 180 independent directors who resigned from corporate boards citing "personal reasons", only four have mentioned issues such as corporate governance or lack of transparency for doing so. In recent weeks, though, Nisaba Godrej stepped down as independent director on the board of VIP Industries citing accountability issues while Marc Desaedeleer resigned from Suzlon board citing "transparency" issues.
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IFSCA to notify revised norms on direct listing in early July: Chairman
International financial services regulator IFSCA will finalise a revised norms for direct listing of companies at GIFT City by early-July, Chairman K Rajaraman said on Wednesday. Rajaraman said the highest decision making body of the International Financial Services Centres Authority (IFSCA) will approve the norms by end of June and the same will be notified by early July.
SIP discontinuation aggravates in May amid regulatory changes, lower NFOs
The SIP stoppage ratio, which indicates how many SIPs were closed for every new account, reached a record 0.88 in May 2024 compared with the long term average of 0.51 according to the data from the Association of Mutual Funds in India (AMFI).
From stuffed toys to sports cars, sales break gender rules
Gender norms are blurring in purchasing decisions, particularly in urban India, with more men and women adopting newer hats in their social and professional lives. Consumer goods companies are adapting their marketing strategies to address this change. Women are increasingly buying 'toys for boys', such as drones and remote-control cars, accounting for 25-30% of Hamleys' sales.
RBI to come out with norms for securitising stressed loans
RBI is set to release final guidelines for securitisation of stressed assets, potentially initiating a junk bond market in India.
Lok Sabha Elections: Opposition to discuss counting norms with ECI today
The opposition alliance demanded that the Election Commission of India (ECI) follow the laid out procedure, including counting postal ballots first and adhering to the Supreme Court's guidelines on counting a minimum five per cent of voter verifiable paper audit trail (VVPAT) per polling booth.
Where there's fire, there's shoddiness
India experienced two devastating fires in just 24 hours, revealing a deep-seated neglect and apathy towards law enforcement and compliance. On May 25, a gaming zone fire killed 27 people, while a children's hospital fire killed six newborns and injured five others. Both disasters were man-made, with the fire in Rajkot ignited by sparks from a welding machine and the hospital in Delhi operating without a fire NOC or license.
RBI imposes monetary penalty on SBM Bank (India)
The Reserve Bank of India (RBI) on Friday said it has imposed a penalty of Rs 88.70 lakh on SBM Bank (India) for non-compliance with certain regulatory norms. In a statement, the central banks said the penalty has been imposed for non-compliance with licensing conditions imposed by the RBI, and specific directions to stop undertaking Liberalised Remittance Scheme (LRS) transactions with immediate effect.
RBI to boost rupee's internationalisation, liberalise norms for non-residents
The Reserve Bank of India (RBI) is intensifying efforts to internationalize the Indian Rupee (INR) by making regulatory changes for non-residents and enhancing the appeal of the GIFT City as an international financial center. The RBI plans to liberalize regulations related to INR accounts for non-residents and allow them to open rupee accounts outside India.
Credit costs expected to increase if RBI’s proposed norms for projects under construction implemented
There is a possibility that the implementation of this framework will overlap with the expected credit loss (ECL) framework that is required by RBI. The ECL framework requires banks to recognise losses on loans as soon as they are expected to occur, even if the borrower hasn’t actually defaulted.
Sebi moots relaxation in valuation norms for alternative investment fund
Capital markets regulator Sebi on Thursday proposed providing relaxation on the framework pertaining to valuation of investment portfolio of alternative investment fund (AIF).
How bankers are helping cybercriminals siphon your money
13 bankers, including a former Yes Bank deputy manager, were arrested for aiding cybercriminals by providing access to bank accounts for online frauds. The manager, Shaikh, opened accounts without following KYC norms. ACP Priyanshu Dewan commented on the case.
Statue weeping blood or vision of Mother Mary: Vatican issues revised guidelines. Know in detail
The Vatican has said that there is nothing about the event that is contrary to the faith, and therefore Catholics can express devotion to it. But it is not the business of the church to authenticate inexplicable events.
MF investors get KYC relief as Sebi withdraws PAN-Aadhaar link norm
The Securities and Exchange Board of India (Sebi), in a circular on May 14, removed the requirement for investors to link the permanent account number (PAN) with Aadhaar to obtain the 'KYC registered' status for mutual fund transactions. This means all investors can continue putting money into mutual funds without putting up additional documents for the time being.
Sebi eases KYC norms for mutual fund investors
In October, Sebi asked all investors to redo their KYC process after submitting the required documents. The official valid documents were Aadhar, passport, or a voter ID card. Earlier a bank passbook or a bank account statement was considered a valid proof of address to do their KYC.
Credit growth to be between 11-12% for next financial year: Atul Kumar Goel, PNB
For the current financial year 24-25, we have set a target of around 57% and remaining 43% will be the corporate advance because we are one of the largest bank of the country.
Outcome of tax disputes holds key to Xiaomi’s ops
Xiaomi Technology India's ability to continue as a going concern depends on the outcome of multiple regulatory and tax disputes and additional funds from the Chinese parent. However, the company doesn't see a threat "for the foreseeable future" based on legal opinions obtained and cash flow projections. Xiaomi has faced multiple investigations and legal proceedings launched by income tax authorities, the Directorate of Enforcement, and the customs department on matters such as alleged evasion of custom duty and irregularities in royalty payments.
CDSL opens record 1.09 crore Demat accounts in Q4
On Friday, CDSL announced its March quarter earnings where it reported a 52% increase in annual profit after tax (PAT), and a 105% increase in quarterly PAT. The total standalone income reported by the company for FY24 stood at 743 crore, which was a 37% YoY jump. On the consolidated basis, the total revenue stood at Rs 907 crore which was 46% higher than what it reported in the yea
PFC, REC shares fall up to 12%. CLSA says don't worry about impact of RBI norms
Shares of PSU financers PFC, REC, and IREDA tumbled up to 12% today as RBI raised provisioning requirements during the construction phase of projects from 0.4% to 5.0%. CLSA mentioned that while it doesn't anticipate an impact on the profit and loss account of PFC and REC, it could affect capital adequacy.
Foreign banks seek leeway on LEF rules for Nostro accounts
At a time when overseas capital flows have been firm, foreign lenders have requested the banking regulator for flexibility in compliance with the central bank's Large Exposures Framework (LEF), particularly in handling certain types of accounts that facilitate global transactions.
RBI’s stricter KYC rules may slow merchant onboarding 90%: experts
The new rules will be applicable to existing payment aggregators such as Razorpay, Cashfree, and PayU, card payment companies, such as Pine Labs, Innoviti Payments, and MSwipe, and QR code deployers, such as PhonePe, BharatPe and Google Pay.
Sebi mulls framework for voluntary blocking of trading accounts by clients
The regulator said there is an urgent need to address the situation of having a facility for blocking of trading accounts as it is available for blocking of ATM cards and credit cards.
Sebi plans to allow voluntary freezing of clients’ trading account from July 1
Currently, voluntary blocking/freezing of demat accounts is already available for investors, and this facility is now proposed to be offered for their trading accounts also, Sebi said.
RBI simplifies reactivation of dormant accounts; tightens norms to curb frauds
The Reserve Bank of India (RBI) has relaxed the process for reactivating dormant accounts and increased norms to limit fraud in inoperative accounts. Activation can be done through KYC details or video-customer identification processes. Banks are not allowed to charge fees for inoperative account activation or penalize non-maintenance of minimum balances.
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