Five large banks were fined $5.7 billion for manipulating foreign exchange markets and interest rates. Small businesses in India may have easier provident fund rules, requiring employers to contribute 9% of salaries for businesses with over 10 employees. SEBI and IRDA announced new guidelines, including allowing fund managers to service foreign portfolio investors and calling for prompt insurance premium receipts. The government also announced new initiatives to improve business conditions in India, such as a gold monetization scheme. Tax exemptions were provided for certain power sector services, and a court case determined that land value should be excluded from works contracts in Haryana. Stock indexes closed slightly down, while currency and commodity prices fluctuated.

1. PGC NEWSLETTER 1
PGC
NEWSLETTER
21st
May, 2015
THOUGHT OF THE DAY
“ To accomplish great things, we must not only act, but also dream, not
only plan, but also believe ...”
ECONOMIC UPDATES
 Five of the world's largest banks are to pay fines totalling $5.7bn
(£3.6bn) for charges including manipulating the foreign exchange
market. JPMorgan, Barclays, Citigroup and RBS - have agreed to plead
guilty to US criminal charges. The fifth, UBS, will plead guilty to
rigging benchmark interest rates.
 The labour ministry has proposed easier provident fund rules for small
establishments. Establishments with at least 10 workers might have to
pay provident fund, with the employer contributing nine per cent of a
worker's salary.
SEBI/CORPORATE UPDATES
 Vide Notification No. NRO-OIAE/GN/2015-16/005 dated 15th May,
2015, SEBI allows AMCs to provide management and advisory services
to category-1 FPIs.
 Vide Circular ref IRDA/LIFE/MISC/CIR/106/05/2015 dated 18-05-
2015, IRDA calls for prompt issue of acknowledgment on collection of
premium; unveils guidelines for the purpose.
 Government announces major initiatives on improving 'Ease of Doing
Business in India'
 Government has issued Draft on Gold Monetization Scheme that aims
to cut down gold imports in the country. The guidelines have been
notified nearly three months after the scheme was announced by
Finance Minister Arun Jaitley in the Union Budget.
RBI/TAX LAW UPDATES
 Vide Notification No 17/2015-ST dated 19-05-2015 issued by CBEC,
Seeks to exempt certain services under Power System Development
Fund (PSDF) Scheme of Ministry of Power.
 In CHD Developers Ltd. v. State of Haryana (2015) 57 taxmann.com
315 (Punjab & Haryana), it was held that where assessee, a
builder/developer, entered into agreements with prospective buyers to
construct flats, etc. and thereafter sell same with some portion of land
against valuable consideration, activity of assessee would be covered
under term 'works contract' but Assessing Authority was to be directed
to pass fresh assessment order. Hence Harayana VAT must incorporate
provisions to exclude value of land from works contract: High Court.
MARKET UPDATES
SENSEX
27,810.09 -27.12
CNX NIFTY
8,419.30 -3.95
DOLLAR/ RUPEE
63.68 -0.15.
MCX SILVER
39,297.00 7.00
MCX GOLD
27,286.00 2.00
MCX CRUDE OIL
3,795.00 20.00
Dow Jones Industrial
average
18,285.40 -26.99
Nasdaq Composite
5,071.74 1.71
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