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Sebi plans to issue norms for dealing with unclaimed funds of clients-Telangana Today

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Sebi plans to come out with a detailed procedure for dealing with unclaimed funds of clients lying with the stock brokers

Published Date – 07:40 PM, Tue – 8 August 23


Sebi plans to issue norms for dealing with unclaimed funds of clients



New Delhi: Markets regulator Sebi plans to come out with a detailed procedure for dealing with unclaimed funds of clients lying with the stock brokers, whereby such trading members will make attempts to find out the whereabouts of the investors for return of money.

In case the end client is not traceable despite the efforts of the Trading Member (TM), the unclaimed funds would be transferred to investor protection funds of stock exchanges on a periodic basis, the Securities and Exchange Board of India (Sebi) said in its annual report for 2022-23.

This will ensure that unclaimed funds of clients lying with the TMs are returned to the respective clients in a timely and efficient manner.

“It is proposed to have a detailed procedure for treatment of unclaimed funds of clients lying with the TMs, in which the TMs shall make efforts to find out the whereabouts of the clients for return of such funds,” Sebi said.

In September 2022, Sebi directed all entities, which have listed non-convertible securities, to submit information about unclaimed redemption and dividends amount.

In addition, Sebi would examine mandating digital assurance in respect of financial statements disclosed by listed entities.
“There is increasing availability of external information sources that provide information on the listed entity and its financial statements. An auditor may rely on such digital information, from external information sources in its routine nature of auditing,” as per the annual report.

In order to encourage and make the process easier for retail investors to participate in the voting on motions moved by listed companies, Sebi is looking to facilitate various channels for participation such as the website or app of the broker and depository participant.

Also, it is looking to explore the possibility of providing ease of access to reports of proxy advisors, for investors to make an informed decision.

Business

Gold falls Rs 50; silver tumbles Rs 400-Telangana Today

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In the international markets, both gold and silver were quoting lower at USD 1,906 per ounce and USD 22.55 per ounce, respectively.

Published Date – 04:30 PM, Thu – 14 September 23


Gold falls Rs 50; silver tumbles Rs 400



New Delhi: Gold price fell by Rs 50 to Rs 59,600 per 10 grams in the national capital on Thursday amid fall in precious metal prices in overseas markets, according to HDFC Securities.

In the previous trade, the yellow metal had finished at Rs 59,650 per 10 grams.

Silver also tumbled Rs 400 to Rs 73,000 per kg.

In the international markets, both gold and silver were quoting lower at USD 1,906 per ounce and USD 22.55 per ounce, respectively.

“The Comex gold price dropped to a fresh three-week low as fresh US inflation data indicated the Federal Reserve may implement further monetary tightening this year,” Saumil Gandhi, senior analyst of commodities at HDFC Securities, said.

Business

Sebi provides facility to remedy erroneous transfers in demat accounts-Telangana Today

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The depositories also put in place a system of obtaining the client’s consent through OTP for such off-market transfer of securities from the client’s demat account

Published Date – 08:05 PM, Tue – 8 August 23


Sebi provides facility to remedy erroneous transfers in demat accounts



New Delhi: Capital markets regulator Sebi on Tuesday decided to provide a facility for exemption from one-time password (OTP) to facilitate the reversal of erroneous transfers of securities in demat accounts.

Under the rule, all off-market transfer of securities will be permitted by the depositories only by the execution of a physical Delivery Instruction Slip (DIS) duly signed by the client himself/herself or by way of electronic DIS.

The depositories also put in place a system of obtaining the client’s consent through OTP for such off-market transfer of securities from the client’s demat account.

The facility came after Sebi received representations from depositories regarding the challenges being faced with regard to obtaining OTP in case of reversal of erroneous transfers in the demat accounts, and was requested to address the issue.

“It is decided that a well-balanced and operational mechanism for exemption from OTP may be provided for reversal of such erroneous transfers in the demat accounts,” the Securities and Exchange Board of India (Sebi) said in a circular.

For this purpose, depositories will constitute an internal and joint committees for examining the intra-depository and inter-depository erroneous transfers, respectively. Such a committee will be headed by a Public Interest Director of the depository and have a minimum of three members, including the head.

The depositories will place before the committee all such instances of erroneous transfers pending reversal.

The committee will examine such erroneous transfers and provide an opportunity for hearing to both parties in the interest of principles of natural justice.

Based on the documentary evidence and the hearing, the committee will take a decision on the basis of reasons to be recorded in writing.

Depositories will subsequently act based on the decision of the committee and shall send an e-mail to the registered e-mail ID of the transferee, informing about the decision of the committee.

Further, to minimise such erroneous transfers, depositories will provide a facility for the investors and depository participants to add and verify the beneficiaries before the execution of off-market transfers, including inter-depository transfers.

Sebi has asked depositories to put in place appropriate systems and procedures to ensure compliance with the framework and disseminate the standard operating procedure on their websites and bring it to the notice of their participants.

The framework will come into force with immediate effect, while those pertaining to verification of the beneficiaries before execution of off-market transfers would come into effect from January 1, 2024.

Business

28 per cent GST on casinos, online gaming will result in higher revenues: FM Nirmala Sitharaman-Telangana Today

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The online gaming segment grew by 28 per cent in 2021 to reach USD 1.9 billion, as per NITI Aayog estimates

Updated On – 08:18 PM, Tue – 8 August 23


28 per cent GST on casinos, online gaming will result in higher revenues: FM Nirmala Sitharaman

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New Delhi: Finance minister Nirmala Sitharaman on Tuesday said the 28 per cent GST on full face value of supplies in casinos, race courses and online gaming will result in higher revenues.

The online gaming segment grew by 28 per cent in 2021 to reach USD 1.9 billion, as per NITI Aayog estimates referred in the Draft National Policy for Growth of Animation, Visual Effects, Gaming, Comic & Extended Reality sector in India prepared by the Information and Broadcasting Ministry.

In a written reply to a question in the Rajya Sabha, Sitharaman said casinos are currently paying 28 per cent GST on Gross Gaming Revenue (GGR). Online gaming industry supplying actionable claims and some horse race clubs are currently paying GST at the rate of 18 per cent on platform fees/commission ranging from 5 to 20 per cent of the full face value, while some horse race clubs are paying 28 per cent on the full face value. Sitharaman said online gaming companies supplying actionable claims and some horse race clubs paying 18 per cent on platform fee/commission are disputing the 28 per cent levy on actionable claims in the form of betting and gambling before various legal fora. “It is anticipated that the levy of 28 per cent on full face value, as recommended in the 50th GST Council meeting, will result in increase of revenue from current levels,” Sitharaman added.

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Homegrown gaming platform MPL lays off 50% of workforce-Telangana Today

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The Bengaluru-based startup ‘MPL’ initially announced its plans to cut jobs to employees last week amid 28% GST regime

Published Date – 08:21 PM, Tue – 8 August 23


Homegrown gaming platform MPL lays off 50% of workforce

The Bengaluru-based startup ‘MPL’ initially announced its plans to cut jobs to employees last week amid 28% GST regime

New Delhi: Homegrown online gaming platform Mobile Premier League (MPL) is reportedly slashing its workforce by nearly 50 per cent that will impact around 350 jobs, as the 51st GST Council meeting stayed firm on taxing online gaming at 28 per cent on gross value collected.

According to a TechCrunch report on Tuesday, the Bengaluru-based startup initially announced its plans to cut jobs to employees last week. It later “sent a formal communication” to affected employees. “As a digital company, our variable costs predominantly involve people, server, and office infrastructure.

Therefore, we must take steps to bring these expenses down in order to survive and to ensure that the business remains viable,” wrote Sai Srinivas, founder and chief executive of MPL in an internal email. MPL has Peak XV, Times Internet, MSA Novo, Crown Capital, Composite Capital and Moore Strategic Ventures among its investors. MPL, one of the most valued gaming platforms, had registered losses to the tune of about $149.3 million in FY22, from $48.3 million in FY21 — a three times surge. Founded in 2018, MPL hosts hundreds of millions of tournaments a month and is trusted by over 90 million registered users across India, Indonesia, Europe, and the US. The layoffs at MPL came as the government stayed firm on taxing online gaming at 28 per cent.

Industry players have lamented that taxing GST on deposits rather than the technology platform commission charged by the companies will make the unit economics unviable, wiping out 80 per cent of the industry. Most of the fatalities will be concentrated in MSMEs and startups that house new age business models, according to them. In a joint statement, the Federation of Indian Fantasy Sports and E-Gaming Federation had said that the new tax framework, while clarifying and resolving uncertainty, will lead to a very burdensome 350 per cent increase in GST and set the Indian online gaming industry back several years.

The GST Council has also decided to review the decisions on the rate of tax and valuation after six months of implementation of the amendments, giving some hope to the industry.

Business

TRAI recommends no licence fee on permits for telecom infra firm-Telangana Today

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Trai recommended the government creates new permits for digital infrastructure service providers but no licence fee is imposed on the companies

Published Date – 11:00 PM, Tue – 8 August 23


TRAI recommends no licence fee on permits for telecom infra firm

Trai recommended the government creates new permits for digital infrastructure service providers but no licence fee is imposed on the companies

New Delhi: Telecom regulator Trai on Tuesday recommended the government creates new permits for digital infrastructure service providers but no licence fee is imposed on the companies.

Entities registered under the proposed licence will be able to provide both active infrastructures like mobile antennae and base stations and passive infrastructure as service to telecom operators except core network elements and spectrum, according to Trai’s recommendation on “Introduction of Digital Connectivity Infrastructure Provider (DCIP) Authorization under Unified Licence”.

“The Authority recommends that the new category of licence be called ‘Digital Connectivity Infrastructure Provider (DCIP) Licence’,” The Telecom Regulatory Authority of India (Trai) said in its recommendations.

The regulator has recommended an entry fee of Rs 2 lakh and an application processing fee of Rs 15,000 on DCIP permits.
“The Authority recommends that there should not be any licence fee applicable to DCIP authorization,” Trai said.

Earlier, DoT had introduced Infrastructure Provider II licence which allowed companies to establish digital networks, provide transmission capacity, leasing and sale of end to end bandwidth and such firms were required to pay a licence fee.

The government had discontinued IP II licences in December 2005 as telecom tower companies opposed paying any licence fee for providing infrastructure.

At present, entities that own and operate active network elements are required to pay an 8 per cent licence fee.
Trai has recommended that the proposed DCIP license should not be standalone license, but an authorization under Unified License.

“The Authority recommends that enabling provision should be made by DoT for DCIP Licensees to purchase radio equipment without assignment of any spectrum,” Trai recommended.

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Go First flight cancellations extended until August 11 citing ‘operational reasons’-Telangana Today

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Go First airline, which has been grounded since early May, has announced a further extension of flight cancellations till August 11

Published Date – 11:30 PM, Tue – 8 August 23


Go First flight cancellations extended until August 11 citing ‘operational reasons’



New Delhi: Go First airline, which has been grounded since early May, has announced a further extension of flight cancellations till August 11, the airline announced in a tweet on Tuesday.

Due to operational reasons, Go First flights until 6th August 2023 are cancelled. We apologise for the inconvenience caused…,” the airline tweeted.

Go First has also issued a statement, which it has posted along with the tweet, saying that the company has filed an application for immediate resolution and revival of operations and is optimistic about resuming bookings shortly.
“As you are aware, the company has filed an application for immediate resolution and revival of operations. We will be able to resume bookings shortly,” the airline stated.

“We regret to inform that due to operational reasons, Go First flights scheduled till August 11, 2023 have been cancelled. We apologise for the inconvenience caused by the flight cancellations. We acknowledge the flight cancellations might have disrupted your travel plans and we are committed to providing all the assistance we can,” Go First said in the statement.

Earlier on May 2, Go First cancelled its flights and filed for voluntary bankruptcy before the National Company Law Tribunal (NCLT), alleging delays on the part of a US-based engine maker, Pratt and Whitney, for its inability to promptly meet obligations — leading to the grounding of a portion of its fleet.

DGCA has conditionally allowed the grounded airline Go First to resume its operations. Directorate General of Civil Aviation (DGCA) had said Go First may resume scheduled flight operations on the availability of interim funding and approval of flight schedule by the regulator. The regulator had allowed the operation of 15 aircraft and 114 daily flights.

The airline has approximately 4,200 employees, and it reported total revenue from operations at Rs 4,183 crore in the financial year 2021-22. There were reports that the grounding of the Go First flights had put pressure on airfares, particularly on select routes where it had a footprint.

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India trails Bhutan, Nepal, Bangladesh on internet resilience: Report-Telangana Today

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India trails neighbours like Bhutan, Bangladesh and even Nepal on internet resilience, a report by a global non-profit said on Tuesday

Published Date – 06:00 AM, Wed – 9 August 23


India trails Bhutan, Nepal, Bangladesh on internet resilience: Report

Photo: IANS

Mumbai: India trails neighbours like Bhutan, Bangladesh and even Nepal on internet resilience, a report by a global non-profit said on Tuesday.

A resilient internet connection is one that maintains an acceptable level of service in the face of faults and challenges to normal operation, the Internet Society said, adding connectivity is essential for a country’s economy.

India achieved an overall score of 43 per cent and is ranked sixth in South Asia behind Bhutan (58 per cent), Bangladesh (51 per cent), Maldives (50 per cent), Sri Lanka (47 per cent) and Nepal (43 per cent), the report said.

However, the country is ranked ahead of Pakistan, the report, which looked at infrastructure, performance, security, and market readiness, said.

“India’s security is ranked above average, attributed to having the highest IPv6 (the newest Internet Protocol to accommodate growing networks) adoption in the world. Market readiness – the ability of India’s Internet market to self-regulate and provide affordability – is ranked comparatively poorly,” it said.

On security, the Indian score is 66 per cent, but the same goes down to 31 per cent on infrastructure and 35 per cent on market readiness.

Market readiness is arrived at by assessing the ability of India’s internet market to self-regulate and provide affordability, the report said, adding that this is a comparatively poor ranking.

Decision-makers in India can use this snapshot to understand the strengths and weaknesses in their Internet ecosystem and make data-driven decisions on where to invest to improve the country’s overall resilience, it said.

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Rupee rises by 10 paise to 82.81 against US dollar-Telangana Today

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However, weak equity markets, outflow of foreign funds and crude prices breaching USD 85 per barrel weighed on the local unit, said analysts.

Published Date – 12:15 PM, Wed – 9 August 23


Rupee rises by 10 paise to 82.81 against US dollar



Mumbai: The rupee appreciated by 10 paise to 82.81 against the US dollar in early trade on Wednesday gaining ground from the 8-month low level amid weakening American currency against major rivals overseas.

However, weak equity markets, outflow of foreign funds and crude prices breaching USD 85 per barrel weighed on the local unit, said analysts.

Participants were trading cautiously awaiting the US inflation data, the UK’s GDP number and RBI’s monetary policy decision to be announced on Thursday.

At the interbank foreign exchange, the domestic unit opened stronger at 82.83 against the dollar and touched the peak of 82.80.

The rupee later traded at 82.81, registering a gain of 10 paise over its previous close.

On Tuesday, the rupee had settled at more than 8-month low level of 82.91 against the dollar.

“Upside attempts lingered on, but momentum continued to be absent. While we continue to play for 82.90, dips to 82.65 may be expected,” Anand James, Chief Market Strategist at Geojit Financial Services, said in his USD-INR outlook.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.07 per cent to 102.45.

Global oil benchmark Brent crude was trading 0.21 per cent lower at USD 85.99 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 120.66 points or 0.18 per cent lower at 65,725.84. The broader NSE Nifty declined 19.90 points or 0.10 per cent to 19,550.95.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs 711.34 crore, according to exchange data.

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Markets fall in early trade on weak global trends, foreign fund outflows-Telangana Today

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Caution also prevailed in the markets ahead of the major events — RBI’s monetary policy and the US inflation data — due to be announced on Thursday.

Published Date – 12:30 PM, Wed – 9 August 23


Markets fall in early trade on weak global trends, foreign fund outflows



Mumbai: Benchmark equity indices declined in early trade on Wednesday amid weak global market trends and continuous foreign fund outflows.

Caution also prevailed in the markets ahead of the major events — RBI’s monetary policy and the US inflation data — due to be announced on Thursday.

The 30-share BSE Sensex fell 158.2 points to 65,688.30, extending its previous day’s weak trend. The NSE Nifty slipped 30.75 points to 19,540.10.

From the Sensex pack, ICICI Bank, Maruti, HCL Technologies, Hindustan Unilever, Wipro, Tata Consultancy Services, Reliance Industries and IndusInd Bank were the major laggards.

Mahindra & Mahindra, JSW Steel, Titan, Bharti Airtel, Tata Motors and Tech Mahindra were among the gainers.

In Asian markets, Tokyo, Shanghai and Hong Kong traded lower while Seoul quoted in the green.

The US markets ended in the negative territory on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 711.34 crore on Tuesday, according to exchange data.

Global oil benchmark Brent crude declined 0.22 per cent to USD 85.98 a barrel.

“While local markets have been range-bound in recent trades, FII selling in recent sessions have led to caution amongst the investors. Also, traders don’t want to take any chances ahead of the RBI’s credit policy on Thursday,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

The BSE benchmark fell 106.98 points or 0.16 per cent to settle at 65,846.50 on Tuesday. The Nifty slipped 26.45 points or 0.13 per cent to end at 19,570.85.