Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Tax incentives are key to the success of <keyword id="6354553" type="COMPANY" weightage="60" keywordseo="real-estate">real estate</keyword> investment trusts (REITs) and infrastructure investment trusts (InvITs), the Securities and Exchange Board of India (<keyword id="35210" type="ORGANIZATION" weightage="80" keywordseo="sebi">SEBI</keyword>) has said. 
 
SEBI had notified the norms for listing business trust structures, REITs and InvITs, in September to attract more funds in the real estate sector. Both the trusts will get tax incentives. 
 "Countries like Singapore and Hong Kong had launched REITs but did not give any tax incentives because of which they did not kick off well. The whole REITs structure is motivated by tax benefit. If it is given, then it will work or else it will not," SEBI Executive Director <keyword id="2524820" type="UNKNOWN" weightage="80" keywordseo="Ananta-Barua">Ananta Barua</keyword> said. 
 
Real estate companies and investors have been demanding more clarity on tax structure for REITs and InvITs. 
 
"Taxation is involved at four stages--first while structuring and transferring assets to REITs or InvITs, second when they distribute income to its investors, third when they are traded and fourth time when there is an exit. These are heavy stages so tax issues have to be addressed," said Barua.

Tax Incentives Key To Success
Of Real Estate Investment Trusts: SEBI

New Delhi, Capital markets regulator <keyword id="35210" type="General" weightage="20" keywordseo="sebi" source="Orion">Sebi</keyword> is engaged with the <keyword id="6354820" type="General" weightage="20" keywordseo="mutual-fund" source="Orion">mutual fund</keyword> industry to introduce 'MF Lite' regulations for <keyword id="1653368" type="General" weightage="20" keywordseo="passive-funds" source="Orion">passive funds</keyword>, a move that will reduce the compliance burden and foster innovation. A passive fund is an investment vehicle that tracks a market index or a specific market segment. These funds include passive index funds, Exchange Traded Funds (ETFs), and Fund of Funds investing in ETFs. "Since the current MF regulatory framework was built around active fund management, Sebi is planning to introduce Mutual Fund Lite regulations for passive funds, wherein investment decisions are not discretionary, but tied to changes in the underlying benchmark index," the regulator said in its annual report for 2022-23, which was released on Monday. These new regulations are expected to significantly reduce the compliance requirements of passive funds and foster innovation in the passive fund ecosystem, it added. The regular mutual fund schemes, which raise money from the public, have to comply with a number of regulations. In regular mutual funds, investment decisions are at the discretion of the fund manager and since lakhs of small investors trust mutual funds, these have stringent requirements, including high Asset Management Companies (AMC) net worth, experienced investment team, among others, Sebi said. However, if a mutual fund desires to offer only passive investment products such as ETFs and index funds -- where investment decisions are not discretionary, but are tied to changes in the underlying benchmark index -- then there is a case to provide them a regulatory framework with fewer compliance requirements, it added. Accordingly, Sebi is currently engaged with the mutual fund industry to introduce 'MF Lite' for such entities. Earlier in May, Sebi Whole-Time Member Ananta Barua said the regulator will come out with mutual fund light regulations for passive funds. In its annual report, Sebi said the current regulatory rules applicable for fees and expenses charged by mutual fund schemes will be reviewed to encourage new participants, discourage cross-subsidisation across schemes, and curb malpractices. The regulator in May came out with a consultation paper proposing sweeping changes to mutual funds' total expense ratio, which accounts for the fees and expenses charged by AMCs. Sebi is also considering allowing them to sell credit default swaps for the purpose of taking exposure in synthetic corporate bonds to provide additional investment products for mutual funds. In the coming year, Sebi said it expects to see the launch of more facilities that are global firsts, such as the Investor Risk Reduction Access platform -- a special window for facilitating investors to directly access the stock exchanges in the event of significant downtime of broker -- and a SaaS-based model for clearing corporations to deal with cybersecurity events. Besides, one of the key focus areas for Sebi will continue to be the facilitation of financial inclusion in the securities market in the coming years. "We expect that technology will enable financial products and services offerings to be made available in a cost-effective manner, in every nook and corner of the country, without compromising on risk management and prudential norms as may be necessary," Sebi said.

Sebi looking to introduce 'MF Lite' regulations for passive funds

New Delhi, Nov 22 () Regulator Sebi on Friday Karvy Stock Broking Ltd (KSBL) from taking new clients with respect to stock broking activities for alleged misuse of clients' securities.
On Friday, NSE forwarded a preliminary report to Sebi on the non-compliances observed with respect to the pledging/misuse of client securities by KSBL.
The exchange's preliminary report is the result of the limited purpose inspection of KSBL conducted by it on August 19, covering a period from January 1 onwards, Sebi said in an order.
In a 12-page ex-parte interim order, Sebi Whole Time Member Ananta Barua said there is a "need for urgent regulatory intervention to prevent further misuse of clients' securities".
Apart from prohibiting the entity from taking new clients in respect of its stock broking activities, the watchdog directed NSDL and CDSL not to to act upon any instruction given by KSBL in pursuance of power of attorney given by its clients.
"The depositories shall monitor the movement of securities into and from the DP account of clients of KSBL as DP to ensure that clients' operations are not affected," the order said.
Further, the regulator said the depositories and stock exchanges shall initiate appropriate disciplinary regulatory proceedings against KSBL for misuse of clients' funds and securities as per their respective regulations.
The findings recorded in the order are based on the prima facie examination of facts and prima facie violation of securities law, it added.
Sebi also said the "order does not ipso facto entitle any client of the noticee (KSBL) to claim their funds, stocks and securities, which claims are to be taken by such clients with the concerned stock exchanges/ depositories in accordance with their respective bye-laws".
The directions would be in place pending forensic audit.
KSBL has been given 21 days time from the date of receiving the order to file its objections or responses, if any. RAM BAL

Sebi bars Karvy Stock Broking from taking new clients

New Delhi, Dec 14 () Markets watchdog Sebi has refused to provide any relief to Bajaj Finance and three other lenders in the Karvy Stock Broking matter regarding pledged shares.
 On December 4, the Securities Appellate Tribunal denied any immediate relief to top lenders who had petitioned against the transfer of securities held with Karvy Stock Broking Ltd (KSBL) back to the clients.
 The tribunal had directed the four lenders to approach Sebi by December 6 and that Sebi pass an order.
 "... reliefs sought by the represented are not tenable and the remedy for the representors lies against KSBL before civil court of competent jurisdiction," Sebi Whole Time Member Ananta Barua said in the order.
 The representors are Bajaj Finance, ICICI Bank, HDFC Bank and IndusInd Bank.
 The case pertains to the securities held by KSBL which were allegedly used by the brokerage for borrowing courtesy the power of attorneys that they had. The securities held by over 83,000 clients were given back to them.
 The regulator noted that under no circumstances clients' securities received in payout can be retained by a stock broker beyond five trading days or can be used for any other purpose.
 "In the absence of corresponding trade instruction, pledging of securities of such clients is also unauthorised and hence, in law not treated as valid pledge," the 29-page order issued late Friday said.
 Sebi also quoted a part of the tribunal's order, dated December 4, which had said it was on record that NSE and NSDL transferred the securities to the clients' accounts after due diligence.
 In this context, a prayer to recall the same or to retain the same as frozen accounts of those clients becomes untenable, the regulator said, quoting the tribunal's order.
 On November 22, Sebi barred KSBL from taking new clients in respect of its stock broking activities and also prevented it from using the power of attorney (PoA) given by clients after the broker was found to have allegedly misused clients' securities. RAM ABM
ABM

Karvy matter: Sebi refuses relief to lenders

Mumbai, Nov 27 () In the aftermath of Karvy Stock Broking episode, capital market watchdog Sebi on Wednesday said the brokerage was indulging in activities which were "never allowed".
 The comments from the regulator's chairman Ajay Tyagi come days after Securities and Exchange Board of India (Sebi) banned Karvy, with immediate effect, for selling client stocks pledged with it through associated entities.
 Tyagi added that, in June, Sebi had made its stance "explicit" through a circular and hinted that there was no case for entities to indulge in such practices before that as well.
 "What is basically never allowed was being done. It is not that this separation was asked in June," he told reporters on the sidelines of the Organisation for Economic Co-operation and Development (OECD)-Asian roundtable on corporate governance here.
 "It cannot be anyone's case even if these instructions were not so explicit that they can use clients' securities for doing something (of) their own," he added.
 He mentioned proprietary trades or investments in other businesses while elaborating on the possible activities that a brokerage may carry out.
 "This is a very basic thing which can't be allowed," he reiterated.
 Last Friday, Sebi barred Karvy from taking new clients with respect to stock broking activities for alleged misuse of clients' securities.
 The action followed leading bourse NSE forwarding a preliminary report to Sebi on the non-compliances observed with respect to the pledging/misuse of client securities by Karvy Stock Broking (KSBL).
 The exchange's preliminary report is the result of the limited purpose inspection of KSBL conducted by it on 19 August, covering a period from 1 January onwards, Sebi had said in an order.
 In a 12-page ex-parte interim order, Sebi Whole Time Member Ananta Barua said there was a "need for urgent regulatory intervention to prevent further misuse of clients' securities".
 Apart from prohibiting the entity from taking new clients in respect of its stock broking activities, the watchdog directed NSDL and CDSL not to to act upon any instruction given by KSBL in pursuance of power of attorney given by its clients.
 "The depositories shall monitor the movement of securities into and from the DP account of clients of KSBL as DP to ensure that clients' operations are not affected," the order said. AA SID ANS
ANS

You Searched For "Ananta Barua" and got 5 results

Tax Incentives Key To Success Of Real Estate Investment Trusts: SEBI

BI India Bureau

Sebi looking to introduce 'MF Lite' regulations for passive funds

PTI

Sebi bars Karvy Stock Broking from taking new clients

PTI

Karvy matter: Sebi refuses relief to lenders

PTI

Karvy Stock Broking indulged in activities which were never allowed: Sebi chief

PTI

Popular Keywords

Buying Guides