Volume XXV, No.

8, August, 2014

EDITORIAL
SEBI : A Need for Revitalisation and Proper Justice
The Securities and Exchange Board
of India was constituted more than
20 years ago and has worked very
effectively in a large number of
areas to improve disclosures,
investors' protection, investors'
education, upgradation of capital
market systems, rules and
procedures. The important role
CA Vinod Jain*
played by SEBI in bringing Indian
Capital Market, among best capital markets in the world
need very sincere appreciation.
SEBI has not been able to ensure sustained
confidence of the investors, intellectuals,
bureaucrats as well as general public in the capital
market. The society at large still has major
apprehensions regarding risk of fraud and
manipulation from the capital market.
Lok Sabha has recently unanimously approved The
Securities Laws (Amendment Bill) 2014 to provide more
teeth to SEBI to enable them to take actions against
promoters raising funds through ponzi scheme i.e. saving
schemes, deposit schemes or collective investment scheme
or other similar schemes collecting money from public at
large, without proper registration, approval and compliance
of regulatory procedures. SEBI has also been given power
for search and seizure as well as attachment of assets.
Powers to launch recovery proceedings, disgorgement of
amount and seek call-data records in its investigations of
securities-related offences has also been extended.
The amendments brought about to SEBI Act are with a
view to address cases like Sahara or Saradha Chit Fund
and similar other cases mushrooming in different names
and styles collecting money from public at large. The power
to regulate such schemes was very well needed. The

powers to search and seize are to be exercised with great

care and only in very extreme circumstances and the rules
need to be brought in to ensure adequate checks and
balances. SEBI need to work in a non-intrusive manner as
per the thinking of the Central Government as committed
by FM in his Budget speech. The detailed regulations need
to be in place and need clarity of jurisdiction between MCA,
RBI and SEBI.
It is however, very important for the government, including
the legislature as well as judiciary to examine as to how
far it is necessary to concentrate so much judicial and
administrative power in one organization.
SEBI CURRENT POWERS
SEBI is currently empowered to bring out all necessary
rules, regulations and guidelines to protect the interest of
investors and to regulate the capital market, market
intermediaries, stock exchanges, companies raising debt
and equity from the market as well as to regulate all kinds
of raising of resources, except financial market, money
market and foreign exchange market which is currently
regulated by Reserve Bank of India.
SEBI is empowered to undertake regular surveillance of
the capital market and various participants including mutual
The investors' grievances redressal and
compensation to those who suffered losses due to
market manipulation are not being adequately
addressed. The permission to co locate broker
servers, permitting algo trading, derivative
rampant usage in highly excessive speculation and
manipulation of market and not restricting the
same to hedging, need for a positivity in regulatory
approach and actions are some of the crucial areas
which need visionary decision of Hon'ble FM and
PM, in the interest of the country.
contd...Pg.4

* Mr. Vinod Jain, FCA, FCS, FICWA, LL.B., DISA (ICA), Chairman, INMACS and Vinod Kumar & Associates. vinodjain@inmacs.com, vinodjainca@gmail.com, +91 9811040004

LATEST IN FINANCE
LATEST IN FINANCE
1.0

5.0

SCs / RCs Clarifications Willful Defaulters

The Finance Ministry is considering reviving

Development Financial Institutions (DFIs) to
meet the long-term financing needs of the
infrastructure sector. IDBI, ICICI and IFCI
promoted by Government had played a very
significant role in Public Financial Institution (PFI)
for development of basic private sector, industrial
infrastructure for atleast four decades.

Securitisation Companies (SCs)/Reconstruction

Companies (RCs) should put up in their website,
at quarterly intervals, the list of suit filed accounts
of willful defaulters.
2.0

BRICS Bank to be Set-up

The decision to set up a USD 100 billion
Development Bank by the BRICS countries is a
strong signal to the rest of the world about the
growing economic clout of Brazil, Russia, India,
China and South Africa.

3.0

4.0

7.0

Bank License Norms for Payment/Small

banks
Payment banks

6.0

Govt developing flexible model to boost

Infrastructure
Road, transport and shipping minister Nitin
Gadkari said he would sort all issues related to
stuck road projects by August 15 and in future
no road projects would be bid out without
acquiring 80 per cent of the land. About 300
projects are being readied with all clearances.

Small banks

Who can set them NBFCs,

corporate
up?
business correspondents, mobile telephone
companies,
super-market chains

Resident individuals/
professionals with 10
years of experience in
banking and finance,
NBFCs and MFIs

What can they do? Provide payments and

remittance services and
demand
deposit
products to small
business and lowincome households

Undertake basic banking

activities of acceptance
of deposits and lending
to small farmers, small
businesses, micro and
small industries and
unorganised sector
entities

What are the Payments banks will be

l e n d i n g / d e p o s i t initially restricted to
limits?
holding a maximum
balance of ` 1,00,000 per
customer.

The maximum loan size

would be restricted to
15% of its capital funds.
At least 50% of its loan
por tfolio
should
constitute loans and
advances of size up to
`25 lakh

Who will get Payments banks in the

preferences?
under-banked states/
districts
in
the
Nor theast, East and
Central regions of the
country

Professionals
from
banking/financial sector,
NBFCs and MFIs. Local
focus and ability to serve
smaller customers will be
key criterion

Development Finance Bodies may return for

Infra funding

Industrial Licence Validity extended to

3 years
India Inc has hailed the governments move to
extend the validity period of industrial license to
three years with a provision for further extension
of two years as a measure for ease of doing
business in India.
Loans against Gold Ornaments and Jewellery
for Non-Agricultural End-uses- Relaxed
Banks, as per their Board approved policy, are
now at liberty to decide upon the ceiling with
regard to the quantum of loans.
In this connection, it is also clarified that LTV of
75 per cent shall be maintained throughout the
tenure of the loan for all loans extended against
pledge of gold.
(vide RBI/2014-15/142, DBOD.No. BP.BC.27/21.04.048/
2014-15)

8.0

THE CHARTERED ACCOUNTANT WORLD August 2014

Flexible Structuring of Long Term Project

Loans by bank for upto 25 years to
Infrastructure and Core Industries
The Reserve Bank of India (RBI) has clarified
that it would not have any objection to banks
financing of long term projects in infrastructure
and core industries sector provided that only term
loans to infrastructure projects and projects in
core industries sector, (viz., coal, crude oil,
natural gas, petroleum refinery products,
fertilisers, steel (Alloy + Non Alloy), cement and
electricity - some of these sectors such as
fertilisers, electricity generation, distribution and
transmission, etc. are also included in the
Harmonised Master List of Infrastructure subsectors) - will qualify for such refinancing.
At the time of initial appraisal of such projects,
banks may fix an amortisation schedule (Original
Amortisation Schedule) while ensuring that the
cash flows from such projects and all necessary
financial and non-financial parameters are robust
even under stress scenarios.
Contd...

EDITORIAL / LATEST IN FINANCE

EDITORIAL

Contd...

SEBI : A Need ...

funds, venture capital funds REITs, Infrastructure
Investment Trust, listed companies, besides all other
capital market participants. SEBI is further empowered
to investigate into the affairs of the capital market, to
enable SEBI to monitor compliance of all regulatory
guidelines and to ensure prevention of manipulation,
fraudulent and unfair trade practices.

show cause notice, the power to undertake an enquiry,

the power to undertake adjudication of an offence and
also power to recommend punishment as well as power
to ultimately impose harsh penalty and heavy fines
remain concentrated in one institution i.e. SEBI. The
investigating authorities, show cause issuer, enquiry
officials, adjudicating authorities, punishing authorities
are all working under the supervision and control of
SEBI Chairman and Whole Time Member.
The real issue is whether the role of SEBI as a
prosecutor and also as judiciary, undertaking
adjudication and awarding punishment is
appropriate. The principles of natural justice
may be adversely impaired. The conflict of
interest between the prosecutor and adjudicator
may effect free and fair trial, natural justice and
appropriate punishment.

SEBI has been making substantial and commendable

efforts in the aforesaid directions.
There are serious reservations amidst investors at large
and more importantly among the learned intellectuals
of the country about safety of their investments in the
capital market. SEBI need to examine the major reasons
behind such precarious situation and should initiate
some real positive action to ensure at least reasonable
safety of investment from manipulative practices and
unfair trade.
FREE ISSUE PRICING- NEED FOR CHECKS AND
BALANCES

The purpose of this editorial note is not to levy any

allegations on Hon'ble institution like SEBI but the entire
purpose of this proposition or questioning is to ensure
Contd..Pg.8
LATEST IN FINANCE Contd...

SEBI need to re-examine as to whether it is appropriate

to continue complete freedom on issue pricing or the
same is required to be regulated by independent
valuation. In case full freedom of issue price is proposed
to be continued, SEBI may consider mandatory
allotment of additional shares, if the share price of public
issue falls by more than 20% of the issue price, within
1st year of the issue. On the basis of weighted average
price in the 1st year of issuance, the correct issue price
can be determined. (Market is the best to determine
the correct value-Price) and additional shares can be
issued to the public shareholders, who bought such
shares at an exorbitant higher price so that the average
cost per share can be brought near to the real market
value. This will dilute the promoters' holding and the
promoters will be more careful in future. The promoters
can also be given an option to subscribe additional shares
at the same price, in case they do not wish to dilute the
shareholding percentage.
JUDICIAL MECHANISM
SEBI is rightly empowered to make rules, regulations
and guidelines, to undertake surveillance and also to
undertake a detailed investigation into any manipulated,
fraudulent and unfair trade practices.
The government and the judiciary need to consider as
to whether it is appropriate that the power to issue

A JOURNAL OF

The tenor of the Amortisation Schedule should

not be more than 80% (leaving a trail of 20%) of
the initial concession period in case of
infrastructure projects under Public Private
Partnership (PPP) model; or 80% of the initial
economic life.
The bank offering the Initial Debt Facility may
sanction the loan for a medium term, say 5 to 7
years. This is to take care of initial construction
period and also cover the period at least up to the
date of commencement of commercial operations
(DCCO) and revenue ramp up.
The repayment(s) at the end of this period (equal
in present value to the remaining residual
payments corresponding to the Original
Amortisation Schedule) could be structured as a
bullet repayment, with the intent specified up front
that it will be refinanced by a set of banks. That
repayment may be taken up by the same lender
or a set of new lenders, or combination of both,
or by issue of corporate bond, as Refinancing
Debt Facility, and such refinancing may repeat
till the end of the Amortisation Schedule.
Mere extension of DCCO would not be
considered as restructuring subject to certain
conditions, if the revised DCCO falls within the
Contd...

ALL INDIA CHARTERED ACCOUNTANTS SOCIETY

LATEST IN FINANCE / CAPITAL MARKET / FEMA

period of two years and one year from the original
DCCO and the entire project debt amortisation is
scheduled within 85% of the initial economic life of the
project or the concessional period.
The Amortisation Schedule of a project loan may be
modified once during the course of the loan (after DCCO)
based on the actual performance of the project.
The above structure will apply to new loans to
infrastructure projects and core industries projects
sanctioned after the date of this circular.

These InvITs can be listed on the stock

exchanges, will get tax benefits and will invest
the funds collected from investors in
infrastructure projects, including PPP (Public
Private Partnership). The SEBI guidelines state
that the proposed holding of an InvIT in the
underlying assets shall be not less than ` 500
crore, and the offer size of the InvIT shall not be
less then ` 250 crore at the time of initial offer of
units. The aggregate consolidated borrowing of
the InvIT and the underlying SPVs shall never
exceed 49 per cent of the value of InvIT assets.
However, this may exclude any debt infused by
the InvIT in the underlying SPV and further, for
any borrowing exceeding 25 per cent of the value
of InvIT assets, requirement of credit rating and
unit holders approval has been made mandatory.
The draft guidelines in respect of Real Estate
Investment Trust (REITs) have been approved
by SEBI.

(vide RBI/2014-15/126, DBOD.No.BP.BC.24/21.04.132/2014-15)

9.0

Levy of Foreclosure Charges/Pre-payment Penalty

on Floating Rate Loans NBFC barred
The Reserve Bank of India has decided that as a measure
of customer protection and also in order to bring in
uniformity with regard to prepayment of various loans
by borrowers of banks and NBFCs, it is advised that
NBFCs shall not charge foreclosure charges/prepayment penalties on all floating rate term loans
sanctioned to individual borrowers, with immediate
effect.
(vide RBI/2014-15/121 DNBS (PD).CC.No.399/03.10.42 /201415 dated July 14, 2014)

FEMA
1.0

10.0 Navratna, Miniratna PSUs can park surplus funds

with MFs, PSBs

It was decided vide A.P. (DIR Series) Circular

No. 138 dated June 3, 2014, to increase the limit
of Liberalised Remittance Scheme (LRS) for all
resident Indian Indivisiual to USD 125,000 per
financial year (April-March) from USD 75,000.

Public sector enterprises such as Navratnas and

Miniratnas are allowed to invest 30 per cent of their
surplus funds in SEBI-regulated public sector mutual
funds; however, they must park at least 60 per cent of
excess funds with public sector banks.

Further, it is clarified that the Scheme can now

be used also acquisition of immovable property
outside India.

CAPITAL MARKET
1.0

(vide RBI/2014-15/132, A.P. (DIR Series) Circular No. 5)

Expanding the Framework of Offer for Sale (OFS)

of Shares through Stock Exchange Mechanism

2.0

Any non-promoter shareholder of eligible companies

holding at least 10% of share capital may also offer
shares through the OFS mechanism subject to
guidelines.

Issue of Partly Paid Shares and Warrants by

Indian Company to Foreign Investors
permitted

Eligible instruments and investors

Seller shall announce intention of sale of shares latest

by 5 pm on T-2 day (T day being the day of the OFS)
to the stock exchange. Stock exchanges shall inform
the market immediately upon receipt of notice.
2.0

SEBI finalises Draft Norms for Infra Investment

Trusts
Taking forward a proposal made in the Union budget,
the Securities and Exchange Board of India (SEBI),
came out with draft guidelines for Infrastructure
Investment Trusts (InvITs), which will enable creation
of a new investment product for arranging long-term
financing for infrastructure projects.

LRS Can be used to acquire Real Estate

outside India

THE CHARTERED ACCOUNTANT WORLD August 2014

Partly paid equity shares and warrants issued by

an Indian company in accordance with the
provision of the Companies Act, 2013 and the
SEBI guidelines, as applicable, shall be eligible
instruments for the purpose of FDI and foreign
portfolio investment (FPI), Foreign Institutional
Investors (FIIs)/Registered Foreign Portfolio
Investors (RFPIs) subject to compliance with
FDI and FPI schemes.
Partly paid equity shares
The pricing of the partly paid equity shares shall
be determined upfront and 25% of the total
consideration amount (including share premium,

FEMA / DIRECT TAXATION

if any), shall also be received upfront. The balance
consideration towards fully paid equity shares
shall be received within a period of
12 months.

The issue and transfer of shares including

compulsorily convertible preference shares and
compulsorily convertible debentures with or
without optional clauses shall be at a price worked
out as per any internationally accepted pricing
methodology on arms length basis. Thus, the
guiding principle will be that the non-resident
investor is not guaranteed any assured exit price
at the time of making such investment/agreement
and shall exit at a fair price computed as above at
the time of exit subject to lock-in period
requirement as applicable.

The time period for receipt of the balance

consideration within 12 months shall not be
insisted upon where the issue size exceeds rupees
five hundred crore. However, the investee
company shall appoint a monitoring agency on
the same lines as required in case of a listed Indian
company under the SEBI (ICDR) Regulations.


Warrants
The pricing of the warrants and price/conversion
formula shall be determined upfront and 25% of
the consideration amount shall also be received
upfront. The balance consideration towards fully
paid up equity shares shall be received within a
period of 18 months.

DISCLOSURE IN FINANCIAL STATEMENT

An Indian company taking on record in its
books any transfer of its shares or convertible
debenture by way of sale from a resident to a
non-resident and a non-resident to a resident shall
disclose in its balance sheet for the financial year,
in which the transaction took place, the details
of valuation of share or convertible debentures,
the pricing methodology adopted for the same
as well as the agency that has given/certified
the valuation. (A.P. - DIR Series, Circular No.
86 dated January 9, 2014, issued by RBI)

The price at the time of conversion should not in

any case be lower than the fair value worked
out, at the time of issuance of such warrants, in
accordance with the extant FEMA Regulations
and pricing guidelines stipulated by RBI from time
to time. Thus, Investee company shall be free to
receive consideration more than the pre-agreed
price.


The reporting of issue or transfer of partly paid

shares shall be made in form FC-GPR and form
FC-TRS respectively.
Non-Resident Indians (NRIs) shall also be eligible
to invest on non-repatriation basis in partly-paid
shares and warrants issued by Indian companies
in accordance with the provisions of the
Companies Act/ SEBI guidelines / Income tax
provisions, as applicable. Investments by NRIs
in partly-paid shares and warrants on nonrepatriation basis shall also be subject to terms
and conditions stipulated in Schedule 4 to
Notification No. FEMA. 20/2000-RB dated 3rd
May 2000, as amended from time to time.

3.0

Foreign Direct Investment (FDI) in India Issue/Transfer of Shares or Convertible

Debentures - Revised pricing guidelines

In case of listed companies

In case of unlisted companies

DIRECT TAXATION
1.0

Govt. yet to take a View on Continuance of

GAAR Post-2015
The Revenue Secretary, Government of India has
said that the new government still needs to take a
view on GAAR and will clarify its stand shortly.

2.0

No Pass-through Status for Alternative

Investment Funds
The Central Board of Direct Taxes has stated
that in cases where the trust deed neither names
the investor nor specifies the beneficial interests,
the entire income of the fund would become liable
to be taxed at the maximum marginal rates in the
hands of trustees.

3.0

The non-resident investor shall be eligible to exit

at the market price prevailing on the recognised
stock exchanges subject to lock-in period as
stipulated, without any assured return.

A JOURNAL OF

Section 37(1), read with section 28(i), of the

Income-tax Act, 1961 - Business expenditure
- Allowability of (Corporate guarantee)
In the ITAT Mumbai Bench 'B' it was held that
where assessee furnished guarantees to different
banks against extension of credit facilities to its
JV company, in view of fact that JV did not
perform well and said guarantee came to devolve

ALL INDIA CHARTERED ACCOUNTANTS SOCIETY

DIRECT TAXATION / CORPORATE & ECONOMIC LAWS / INSURANCE

on assessee which was settled at a discount by
way of one time settlement (OTS) entered into
with creditors, amount so paid under OTS could
not be allowed as business expenditure or business
loss

will need to be construed with reference only to

the contract or arrangement for which the said
Special Resolution is being passed.
3.0

LML Ltd. vs. Joint Commissioner of Income-tax, Special

Range-3, Mumbai [2014] 46 taxmann.com 377.

A large number of unlisted private companies

have sought relief from the stringent provisions
of the new company laws as part of their feedback
sought by the ministry of corporate affairs, which
is reviewing exemptions that can be granted to
private companies.

Note :- The decision would be different if

guarantee commission charged
4.0

Section 115JB: Minimum Alternate Tax Amount withdrawn from Provision

The Cochin Bench of ITAT has held that in terms
of section 115JB it is only amount withdrawn
from provision made for meeting unascertained
liabilities and credited to profit and loss account
which is liable to be deducted from net profit
while computing book profit.

4.0

vs. Covema Filaments Ltd. [2014] 47 taxmann.com 52.

Section 2(22): Deemed dividend - Loans or

Advances to Shareholder
The High Court of Karnataka has held that deemed
dividend is to be taxed in hands of shareholder,
whose name is entered in register of shareholder
and, not in hands of beneficiary firm.

5.0

Commissioner of Income-tax, Bangalore vs. Namdhari

CORPORATE & ECONOMIC LAWS

Company Law Settlement Scheme 2014
(CLSS 2014)

6.0

2.0

Pay only 25% of Payable additional Fee and

Immunity from Prosecutions

Directors will also not be disqualified

u/s 164 (2) of the Companies Act 2013

INSURANCE
1.0

India Inc gets relief on Related Party

Transactions
The Ministry of Corporate Affairs clarified the
term Related Party referred in the Section 188

Gifted Property need not be handed over

The Supreme Court has stated that a gift of
property would not be invalid if the possession is
retained by the donor. The judgment said that
there is no provision in law that ownership in
property cannot be gifted without transfer of
possession of such property.

Companies who have not filed their annual reports,

financial statements and related documents due
for filing on or before 30/06/2014 can file these
documents before 15/10/2014 and avail of the
following:


Cheque Bouncing: SC settles law on where

to File a Complaint
The Supreme Court (SC) ruled that a complaint
about a bounced cheque must only be filed at the
place where the bank dishonoured it, settling
doubts raised by its own earlier conflicting
judgments on the jurisdiction of a magistrate.

Seeds [2014] 46 taxmann.com 441.

1.0

Central Council of Cost Accountants of India

resigns
The row over the Cost Audit Rules introduced
under the Companies Act has reached a flash point
as the entire central council of the Institute of
Cost Accountants of India (ICAI) submitted its
resignation to Finance Minister Arun Jaitley, who
also has the charge of the corporate affairs
ministry. Amid concerns raised by cost
accountants over provisions in the new Cost
Records and Audit Rules, the government set up
an expert committee to look into this matter.

Assistant Commissioner of Income-tax, Circle-1 (1), Kochi

5.0

Companies Law: Private firms seek more

Exemptions

THE CHARTERED ACCOUNTANT WORLD August 2014

Corporate Bond Market- Permission to

Insurers for membership in SEBI approved
Stock Exchanges for proprietary trading
Insurers are now allowed to become a proprietary
trading member of a SEBI approved stock
exchange for carrying out trades in the debt
segment.

INDIRECT TAXATION / TELECOM

As a first step, it is proposed to implead ICAI in
the aforesaid matter as ICAI is not a party to the
said case.

INDIRECT TAXATION
1.0

2.0

Manner of distribution of Common Input

Service Credit under rule 7(d) of the Cenvat
Credit Rules, 2004
Credit of service tax attributable to service used
by more than one unit shall be distributed pro
rata on the basis of the turnover of such units
during the relevant period to the total turnover of
all its units, which are operational in the current
year, during the said relevant period.
Impact of FIAT India Case-Central Excise
The Honble Supreme Court, in the Fiat India
case, has cautioned against drawing general
conclusions and inferences, quoting the truism
stated by Lord Halsbury that a case is only an
authority for what it actually decides and not for
what may seem to follow logically from it.
After examination of the issue as to whether the
declared transaction value can be rejected in all
cases where the transaction value is lower than
the manufacturing cost and profit, the Ministry
has clarified vide Circular No. 979/03/2014-CX
dated 15th January, 2014 that mere sale of goods
below the manufacturing cost and profit cannot
be taken as the sole basis for rejecting the
transaction value. The Supreme Court, in the Fiat
India case, has not ruled that the subsidy
component provided by the Government would
tantamount to consideration flowing from the
buyer to the seller and therefore, should be
included in the assessable value of an excisable
good in terms of the extant Valuation Rules.

3.0

4.0

Section 73A: Recovery of sums collected in

excess of duty/tax
The New Delhi Bench of CESTAT has held that
where Service tax collected by builders from
buyers is deposited with Revenue by contractor
being job worker for builders, revenue cannot be
allowed to receive service tax again in respect of
same construction activities from buyer by taking
resort to section 73A.
Jaipuria Infrastructure Developers (P.) Ltd. vs.
Commissioner of Service Tax, Delhi, [2014] 46
taxmann.com 432.

TELECOM
1.0

TRAI releases its Recommendations for a

New DTH Licensing Regime

The period of DTH license to be increased from

10 years to 20 years, renewable by 10 years at a
time.
One time entry fee to be retained at Rs. 10 crore.
Existing license fee to be reduced from 10% of
Gross Revenue (GR) to 8% of Adjusted Gross
Revenue (AGR) in line with the telecom licenses.
The existing DTH licensees to be permitted to
migrate to new regime at any time during the
currency of their existing licenses.




FINANCIAL INDICATORS
Current Rate* Month Ago

It is, therefore, clarified by Central Board of

Excise & Custom (CBEC) that in respect of
fertilizers for which subsidy is provided by the
government, the excise duty will be chargeable
on the MRP and not on the subsidy component
provided by the Government.

3 Month LIBOR (%)

Announcement on Court Verdict Pronounced

on 6 August 2014, by the Lucknow Bench of
the Allahabad High Court on VAT
With reference to the order passed by the
Lucknow Bench of the Allahabad High Court in
the matter of Tax Lawyers Association & Anr.
v/s State of U.P. & Ors. whereby only registered
advocates are permitted to appear before the
Authority under the VAT Act in the State of U.P.,
The Institute of Chartered Accountants of India
is seized of the matter and taking all steps to
ensure that the status quo ante is restored in the
matter and interest of the profession is preserved.
A JOURNAL OF

3 Month MIBOR (%)

3 Month

6 Month

0.24

0.23

0.22

0.24

8.97

8.79

9.17

9.52

SENSEX

25329.14 25,373 22994.23 20334

NIFTY

7568.55

7,568 6858.80

6053

CRR (%)

REPO (%)

REVERSE REPO (%)

Gold (per 10 gm)

28576.00 28,677 29725.00 29881

Silver (per kg)

43800.00 45,903 41251.00 44585

Crude (USD/bbl)

105.02

108.67 107.97

` vs USD

61.14

60.28

60.04

62.34

` vs Euro

81.94

81.82

82.49

85.06

` vs 100 Yen

60.93

59.18

58.93

61.03

9.91

9.70

9.64

10.29

` vs RMB

108.35

` vs Pound

102.57

103.01 101.03

102.36

MCX Aluminium

124.20

112.90 103.15

103.95

430.00

427.65 405.05

444.45

MCX Copper
*As on 10th August 2014

(Sources: MoneyControl, NSE, BSE, RBI, MCX)

ALL INDIA CHARTERED ACCOUNTANTS SOCIETY

Date of Printing : 12th August, 2014

R.N.I. No. 50796/90
Posting Date: 14/15 August, 2014

EDITORIAL

Registration No. DL(c)-01/1268/2012-14

Licenced to post without prepayment No. U-(C)-82/2012-14

Contd...

SEBI : A Need ...

SEBI can consider recommending constitution of multilevel

Investors' Courts on the lines of consumer courts at
national, regional and district level.

higher credibility to the entire exercise being undertaken

by SEBI and to ensure internal control on possibility of
misuse of power.

so that appropriate action can be initiated against erring

unscrupulous promoters and market participants and justice
reach near the investors and not concentrated at Mumbai.

It is therefore very important that the power to issue show

cause notices, the power to make enquiries, power to make
adjudication and most importantly power to levy penalty
are decided by independent judiciary. It is important that
the entire judicial power, being currently exercised by
Adjudicating Officer and Whole Time Member of SEBI
are all assigned to an independent judicial system.

CONFIDENTIALITY:

It is also very necessary that investors are adequately

compensated for the loss incurred by them due to fraudulent
and manipulative practices.

SEBI also need to consider that various investigations,

show cause notices, adjudication and punishments are kept
completely confidential at least till the final penalty is levied.
In case the investigation or interim actions are made public,
even innocent persons credibility and image can get
adversely impacted, specially if at same stage it is
determined that the person or company was not actually
guilty. Transparency needs balancing in the interest of
justice.

 Contact details : Dharampal (9013363257) All India Chartered Accountants Society - CFO World 909, Chiranjiv Tower, 43, Nehru Place,
New Delhi-110019. Ph: 26223712, 26228410, 26226933 E-mail:aicas.cfo@gmail.com / cfoworld@gmail.com  EDITOR: Pankaj Gupta, LLB, FCS
E-mail: pankajguptafcs@gmail.com  PUBLISHED & PRINTED: At New Delhi by Satish Chandra, Administrative Officer, on behalf of All India Chartered

Accountants Society, 4696, Brij Bhawan, 21A, Ansari Road, Darya Ganj, New Delhi-110 002 Phone 23265320, 23288101 E-mail : aicas.cfo@gmail.com
Printed at: EIH Ltd., Unit : Printing Press, No. 7, Sham Nath Marg, Delhi-110054. Views expressed by contributors are their own and the Society does not accept
any responsibility.

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THE CHARTERED ACCOUNTANT WORLD August 2014