The document discusses several topics related to India's efforts to address black money and tax evasion. It provides details on:
1) The estimated amounts of black money in India according to various reports, ranging from 45-70% of GDP.
2) India's ranking of 5th in illicit financial outflows according to a 2013 Global Financial Integrity report estimating $466 billion in illegally stashed funds overseas.
3) Recent efforts like the Income Declaration Scheme, amendments to tax treaties with Mauritius, and BEPS have aimed to curb black money and tax evasion but major success has remained elusive as most data comes from foreign sources like HSBC and Mossack Fonseca leaks.
The initiatives proposed by honourable Finance Minister in his budget speech on February 28, 2016 to effectively deal with the problem of black money, which eats into vitals of our society and economy, are highly commendable. The measures initiated by the government in the last nine months to bring back the black money in Swiss Banks has already brought very fruitful results and the names and the details of possible offenders have already been disclosed to Special Investigation Team set up by honorable Supreme Court.
An Account of Unaccounted Income is a discussion document that takes an in-depth look at India's unaccounted economy. It is important to distinguish between different categories of unaccounted economy, each of which has different method of functioning and different implications for the economy. The unaccounted economy is a combination of the illegal economy, unreported economy, unrecorded economy and finally, the informal economy.
This discussion document focuses on the size of the unaccounted economy and the processes involved in generating and utilising unaccounted income. It dwells on select sectors of the economy, which are more vulnerable to unaccounted income, such as real estate, education, mining, trade misinvoicing and illicit financial flows, and gold. Finally, the document looks at corruption and malpractices in government contracts and schemes.
OBJECTIVE
Indonesia is a lower middle income country. Indonesia’s large domestic market offers a wide range of investment opportunities for foreign and domestic investors. In this webinar, we will be having insights about doing business in Indonesia.
The initiatives proposed by honourable Finance Minister in his budget speech on February 28, 2016 to effectively deal with the problem of black money, which eats into vitals of our society and economy, are highly commendable. The measures initiated by the government in the last nine months to bring back the black money in Swiss Banks has already brought very fruitful results and the names and the details of possible offenders have already been disclosed to Special Investigation Team set up by honorable Supreme Court.
An Account of Unaccounted Income is a discussion document that takes an in-depth look at India's unaccounted economy. It is important to distinguish between different categories of unaccounted economy, each of which has different method of functioning and different implications for the economy. The unaccounted economy is a combination of the illegal economy, unreported economy, unrecorded economy and finally, the informal economy.
This discussion document focuses on the size of the unaccounted economy and the processes involved in generating and utilising unaccounted income. It dwells on select sectors of the economy, which are more vulnerable to unaccounted income, such as real estate, education, mining, trade misinvoicing and illicit financial flows, and gold. Finally, the document looks at corruption and malpractices in government contracts and schemes.
OBJECTIVE
Indonesia is a lower middle income country. Indonesia’s large domestic market offers a wide range of investment opportunities for foreign and domestic investors. In this webinar, we will be having insights about doing business in Indonesia.
Why are Indians so much hyper about black money abroad when it is a worldwide...D Murali ☆
Why are Indians so much hyper about black money abroad when it is a worldwide phenomenon? - T. N. Pandey - Article published in Business Advisor, dated February 25, 2015 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Este guia de como abrir uma empresa no Brasil está com dizeres errôneos , pois diz que empresa LTDA e S/A são empresas estrangeiras no Brasil , dado como aberta por uma pessoa brasileira, passando á ser proprietário da empresa em questão ou seja seu representante legal com seu CPF e fazendo abertura feito pelo Banco Central Brasileiro e não fala nada da Sociedade estrangeira no brasil configurando filial brasileira da Sociedade estrangeira ..
Corporate Tax Planning (EDL 405)-Semester IV
We Also Provide SYNOPSIS AND PROJECT.
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Assignment solution help, assignment answers help, Assignment Help, Synopsis and Project, Study Material, Exam Notes
Key Takeaways:
- Demography and Business Environment of Kenya
- Procedures relating to Setting up Business
- Regulations and Reforms
- Business Structures and Investment Incentives
- Relevant Numbers
Future of treaty formed holding companies and preferential Harm J. Oortwijn
Past present and future developments in holding and preferential tax regimes - what once was appropriate is now perceived inappropriate... and the perception continues to evolve!
Why are Indians so much hyper about black money abroad when it is a worldwide...D Murali ☆
Why are Indians so much hyper about black money abroad when it is a worldwide phenomenon? - T. N. Pandey - Article published in Business Advisor, dated February 25, 2015 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Este guia de como abrir uma empresa no Brasil está com dizeres errôneos , pois diz que empresa LTDA e S/A são empresas estrangeiras no Brasil , dado como aberta por uma pessoa brasileira, passando á ser proprietário da empresa em questão ou seja seu representante legal com seu CPF e fazendo abertura feito pelo Banco Central Brasileiro e não fala nada da Sociedade estrangeira no brasil configurando filial brasileira da Sociedade estrangeira ..
Corporate Tax Planning (EDL 405)-Semester IV
We Also Provide SYNOPSIS AND PROJECT.
Contact www.kimsharma.co.in for best and lowest cost solution or
Email: amitymbaassignment@gmail.com
Call/what’s app: +91 8290772200
Assignment solution help, assignment answers help, Assignment Help, Synopsis and Project, Study Material, Exam Notes
Key Takeaways:
- Demography and Business Environment of Kenya
- Procedures relating to Setting up Business
- Regulations and Reforms
- Business Structures and Investment Incentives
- Relevant Numbers
Future of treaty formed holding companies and preferential Harm J. Oortwijn
Past present and future developments in holding and preferential tax regimes - what once was appropriate is now perceived inappropriate... and the perception continues to evolve!
This Tax Guide edition covers various topics and articles such as urgency of Automatic Exchange of Information (AEol) implementation in 2018; divestment in business and policy; also analysis of government plan to impose progressive tax on idle land.
The 2015 budget had long list of expectations. On one hand; the Government has addressed major issues surrounding the foreign investors which would certainly boost capital market inflows and revive the private equity industry (by deferring GAAR by 2 years and clarifying Permanent Establishment & Indirect Transfer of Assets). On other hand; it has just rationalized the subsidies. Probably as we see growth coming in and more job creation; subsidy burden can be better dealt with by the Government. Though there are no direct benefits for the middle class. However incentives have been introduced to encourage savings. These savings are expected to fuel the infrastructure and other investment plans laid out by the Government. Certainly Foreign investors have a reason to cheer for this Pro Business; Pro Growth Government budget.
Tax management paper BBA University of PeshawarEmmaSidd
Q.1. Withholding tax is levied on the withdrawal of cash from the bank accounts by the customer. The current rate of the withholding tax is 0.3% for Tax filers and 0.6% for Non-Tax Filer. What is your opinion; is withholding tax meant to be a major source of earning for the government or helpful for documentation of the economy?
Q.3 Wealth Tax Return form used for the return of net wealth under section 14 of the Wealth Tax Act, 1963 (XV of 1963). Explain the legal importance of Wealth Tax Return proforma?
Corporate Tax Planning (VV2)
We Also Provide SYNOPSIS AND PROJECT.
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Safyr Utilis is pleased to provide you with our analysis of the tax measures announced in the budget speech delivered by the Honorable Pravind Jugnauth, Minister of Finance and Economic Development on 29 July 2016.
International Public Sector Accounting Standards and Financial Reporting in N...iosrjce
IOSR Journal of Economics and Finance (IOSR-JEF) discourages theoretical articles that are limited to axiomatics or that discuss minor variations of familiar models. Similarly, IOSR-JEF has little interest in empirical papers that do not explain the model's theoretical foundations or that exhausts themselves in applying a new or established technique (such as cointegration) to another data set without providing very good reasons why this research is important.
Raghu Babu Gunturu (Co-founder & Partner - R & A Associates & Samisti Legal) made this presentation at TatXpo2019 in Sydney on 27 Aug 2019. The presentation covers, how India made various moves to see how its very attractive destination to make investments and to do easy business with.
http://www.rna-cs.com
https://www.samistilegal.in
India to Dubai - Guide for Indian startups to expand into DubaiiB Hubs
This document is intended to provide insights and best practices for Indian startups expanding their business to Dubai.
There will be a series of similar magazines which will help Indian startups expand to other countries as well.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
NO1 Uk Rohani Baba In Karachi Bangali Baba Karachi Online Amil Baba WorldWide...Amil baba
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
3. # BLACK MONEY
1980 and 2007 ranges from 45% to 70% of
GDP. (NIPFP)
A December 2013 report by the Global
Financial Integrity (GFI), a non-profit
research and advocacy organization, places
India in 5th position on 'illicit financial
outflows' category.
Rs.28 lakh crore (around $466 billion) was
stashed away illegally in bank accounts
overseas.
3
HARVEERSIRforGSSCORE
5. Despite several official efforts to trace and
recover black money India has not registered
any major success.
The Panama papers bring out yet another list
of India’s rich and influential who have
parked money in tax havens,
finding credible ways to verify a new estimate
showing that over $505 billion (approximately
Rs. 33,83,500 crore) has left India during the
2004-13 period.
5
India’s Fight against Black Money
HARVEERSIRforGSSCORE
7. All major databases on which action have
been initiated have all come from foreign
sources. Be it HSBC Geneva or
Liechtenstein.
Justice M.B. Shah, chairman of the SIT on
black money, pointed out that new restrictions
are in place to control misuse of export-import
facilities.
Strict implementation of the Black Money
(Undisclosed Foreign Income and Assets) and
Imposition of Tax Act 2015.
7
HARVEERSIRforGSSCORE
8. Voluntary disclosure
The first such scheme was in 1951, which led to the
collection of Rs. 10.89 crore in taxes, and there have been
eight more such schemes, until 2014.
In 1997, the Voluntary Disclosure of Income Scheme was the
most successful of all of them, collecting Rs. 9,745 crore in
taxes.
644 declarations only
The Modi government’s first major announcement was the
setting up of the SIT on black money.
It followed it up with a three months compliance window
between July and September 2015 under the black money
Act.
It resulted in 644 declarations, totalling declaration of foreign
assets worth Rs. 4,164 crore.
A total of Rs. 446 crore was collected as tax and penalty. 8
HARVEERSIRforGSSCORE
11. Offshore bank accounts and other financial dealings in
another country can be used to evade regulatory oversight or
tax obligations. Often, companies or individuals use shell
companies, initially incorporated without significant assets or
operations, to disguise ownership or other information about
the funds involved.
Panama, the Cayman Islands and Bermuda are among
more than a dozen small, low-tax locations that specialise in
handling business services and investments of non-resident
companies.
Shell companies and other entities can be misused by
terrorists and others involved in international and financial
crimes to conceal sources of funds and ownership.
The ICIJ says the files from Mossack Fonseca include
information on 214,488 offshore entities linked to 14,153
clients in 200 countries and territories. 11
How are offshore accounts used to
evade tax obligations?
HARVEERSIRforGSSCORE
12. BASE EROSION AND PROFIT
SHIFTING (BEPS)
By: Harveer Singh
harveersinh@gmail.com
13. CONSIDER THIS
With changing business
models, globalisation,
elimination of trade barriers,
some of the international tax
rules are not working anymore.
Some companies are not
paying tax anywhere.
13
HARVEERSIRforGSSCORE
14. ALSO CONSIDER
A Purely Domestic company
v/s MNCs in terms of tax
minimization opportunity.
Large multinationals were
able to use mismatches in
domestic tax laws and gaps in
the international tax system to
dramatically reduce their
corporate taxes 14
HARVEERSIRforGSSCORE
15. BEPS is an effort by
OECD-G20 to modernise
international taxation
policies amongst developed
and developing economies
to reflect the changed and
ever changing reality. 15
HARVEERSIRforGSSCORE
16. MAGNITUDE..
Each country has a sovereign right to protect and
increase its Tax Base.
Due to the significant evolution of the economy that
is Digital economy and so on, the tax policy lags
behind and corporates exploits these loopholes.
(Double Non Taxation)
corporate income tax has a big role in public
finance of many developing countries.
The Loss of revenue is estimated to be around
$100-240 Bn.
16
HARVEERSIRforGSSCORE
17. IT CONTAINS..
BEPS project aims to fulfil G20-OECD's 15
points action plan on multifarious aspects of
international tax policy.
It includes 13 reports mostly related to
double taxation , double non-taxation,
Transfer Pricing, Interest Deductions,
information sharing, storage based digital
taxes etc.
It also looks at the nexus approach that is
linking tax benefits directly to R&D expenditure.
17
HARVEERSIRforGSSCORE
18. BEPS aims to complete (in 2016)
the work on a multilateral tax
treaty instrument .
countries signing on the
multilateral instrument may not
need to renegotiate their
respective bilateral treaties.
18
HARVEERSIRforGSSCORE
19. THE FOCUS
Companies with global turnover
in excess of ^750 million
(approximately Rs 6,000 crore)
have to report details of
revenues, profits and taxes paid
on a country-by-country basis to
their respective tax
administrators.
Around 900 companies across
the globe would be impacted. 19
HARVEERSIRforGSSCORE
20. FOR INDIA
BEPS recommendations pave the
way for a contemporary cross-border
taxation policy
It ensures stricter sourced based
taxation of profits linked to place
where economic activity and value
creation substantially occurs.
Rather than looking it as anti-
business, it should be seen as
upgradation of taxation system. 20
HARVEERSIRforGSSCORE
23. 36-year-old convention for
avoidance of double taxation to
curb revenue losses and money
laundering.
more than half the foreign
investments coming into this
country had been routed through
Singapore or Mauritius. 23
HARVEERSIRforGSSCORE
24. RULES
India the right to tax capital gains arising from sale
or transfer of shares of an Indian company acquired
by a Mauritian tax resident,
It proposes to exempt investments made until
March 31, 2017, from such taxation.
The government also said that shares acquired
between April 1, 2017 and March 31, 2019 will
attract capital gains tax at a 50% discount on the
domestic tax rate — i.e., at 7.5% for listed equities
and 20% for unlisted ones.
24
HARVEERSIRforGSSCORE
25. The full tax impact of the protocol will
fall on investments beginning April 1,
2019, when capital gains will attract
tax at the full domestic rates of 15%
and 40%.
Applicable only to those entities who
invest a minimum of `27 lakh (or 1.5
million Mauritian rupees) in a year
25
HARVEERSIRforGSSCORE
26. IMPACT
Between April 2000 and December 2015,
Mauritius accounted for $ 93.66 billion — or
33.7% — of the total foreign direct
investment of $ 278 billion
Mauritius and Singapore less attractive to
route investments to India, some of these
transactions could now come through
Netherlands which do not levy taxes on
gains made through short-term transactions
in financial securities. 26
HARVEERSIRforGSSCORE
27. Capital gains on shares for Singapore can
also now become source based due to
direct linkage of Singapore DTAA Clause
with Mauritius DTAA.
There are more than 90 Tax Havens across
the Globe.
We, continue to allow P-Notes. (Total $30
Bn P-Notes investment in Indian
Exchanges)
27
HARVEERSIRforGSSCORE
30. BACKGROUND
Doing Business Report,2016, India is
at 136 out of 189 countries.
Secured Creditor in India recovers
25.7 % against 72.3 % of OECD
Average.
Whole process takes 4.7 years in India
(OECD 1.7 Years )
** compared to 0.8 years in Singapore
and 1 year in London. 30
HARVEERSIRforGSSCORE
32. BACKGROUND
Kingfisher, once India's second-biggest
airline, was grounded in 2012 with debts of
over $1.5 billion.
But it was not until February 2015that its
long-suffering creditor banks got their hands
on its former headquarters in Mumbai.
Nearly 60,000 bankruptcy cases languish in
India's overburdened courts.
32
HARVEERSIRforGSSCORE
33. ISSUES
some laws forbid creditors from taking any legal action
against the defaulter until a restructuring plan is in place;
that can take several years.
In the meantime, owners of sick companies retain day-
to-day management control and often prolong court
proceedings as nervy creditors watch the value of their
assets dwindle
defaulters to start another business under their relative’s
name by siphoning off business from the old one.
Insolvency protection for debtors, too, is similarly flawed.
Ailing companies have to wait until their net worth is
reduced by half before they qualify as “sick”
Other Labor and Land laws conflict with the selling of
Land or laying off workers. 33
HARVEERSIRforGSSCORE
34. ISSUES
To be declared sick, and qualify for court
protection, firms have to apply to the Board for
Industrial and Financial Reconstruction, a
government agency, which will not act until the firm
has frittered away half of its net worth in losses.
34
HARVEERSIRforGSSCORE
35. PROVISIONS OF THE ACT
time-bound processes for insolvency resolution of
companies and individuals. (within 180 days).
The assets of the borrowers may be sold to repay
creditors, if insolvency not resolved.
Would be conducted by licensed insolvency
professionals (IPs). These IPs will be members of
insolvency professional agencies (IPAs). IPAs will
also furnish performance bonds equal to the assets
of a company under insolvency resolution.
Information utilities (IUs) will be established to
collect, collate and disseminate financial
information to facilitate insolvency resolution.
35
HARVEERSIRforGSSCORE
36. The National Company Law Tribunal (NCLT) will
adjudicate insolvency resolution for companies.
The Debt Recovery Tribunal (DRT) will adjudicate
insolvency resolution for individuals.
The Insolvency and Bankruptcy Board of India will
be set up to regulate functioning of IPs, IPAs and
IUs.
The Board will consist of representatives of
Reserve Bank of India, and the Ministries of
Finance, Corporate Affairs and Law.
36
HARVEERSIRforGSSCORE
37. i) insolvency resolution costs,
including the remuneration to the
insolvency professional,
ii) secured creditors, whose loans are
backed by collateral, dues to
workers, other employees,
iii) unsecured creditors,
iv) dues to government, v) priority
shareholders and vi) equity
shareholders.
37
HARVEERSIRforGSSCORE
38. POSSIBLE IMPACTS
Banks NPAs would be reduced.
Specially PSBs.
Ease of Doing Business => Investment
Improve investor confidence and can
deepen the corporate bond market.
New Start Ups => If Succeed- Party, If
Fail => Bankruptcy
38
HARVEERSIRforGSSCORE
39. One, when a loan default occurs, and either the
borrower or the lender approaches the NCLT or
DRT for initiating the resolution process.
Two, the creditors appoint an interim Insolvency
Professional (IP) to take control of the debtor’s
assets and company’s operations, collect financial
information of the debtor from information utilities,
and constitute the creditors’ committee.
Three, the committee has to then take decisions
regarding insolvency resolution by a 75% majority.
39
HARVEERSIRforGSSCORE
40. Four, once a resolution is passed, the committee
has to decide on the restructuring process that
could either be a revised repayment plan for the
company, or liquidation of the assets of the
company. If no decision is made during the
resolution process, the debtor’s assets will be
liquidated to repay the debt.
Five, the resolution plan will be sent to the tribunal
for final approval, and implemented once approved
40
HARVEERSIRforGSSCORE