Section 9A of the Income Tax Act provides a special tax regime for certain eligible offshore investment funds and their fund managers located in India. Key conditions include the fund being established outside India, having a minimum of 25 non-connected members, and the fund manager being registered with SEBI. The remuneration paid to the fund manager must be at least a prescribed amount calculated based on assets under management. This was introduced to incentivize offshore fund managers to relocate to India while avoiding creating a taxable presence for the offshore fund. However, challenges remain in the tax regime for offshore funds to fully realize the potential of developing an offshore fund management hub in India.
OBJECTIVE
Companies in Singapore are governed by the laws of Companies Act (the Act), originally enacted in 1967 and which has undergone significant amendments in 2014 and 2017. The Accounting and Corporate Regulatory Authority (ACRA) is the national regulator of business entities and corporate service providers in Singapore. Incorporation and powers of companies in Singapore are governed by Part III of the Act. The webinar covers the provisions in Part III of the Act, more specifically dealing with Constitution of Companies.
OBJECTIVE
Merger and Amalgamation (M&A) is one of the forms of Corporate Restructuring. M&A transactions are generally done to diversify the business, reduce competition, exercise increased scale of operations, to focus on core businesses to streamline costs and improve profit margins, etc. Provisions for merger and amalgamation under Companies Act, 2013 also includes demerger. The webinar deals with the provisions of merger and amalgamation enshrined in Companies Act, 2013 read with Rules made there under, legal formalities involved and judicial precedents.
OBJECTIVE
Winding up is the final stage in the business cycle of a Company. It is the process of closing down the legal existence of a Company. It can be done either by the Company on its own (voluntary winding up) or by an order passed by the Tribunal (compulsory winding up). Provisions under Companies Act, 2013 with respect to voluntary winding up are omitted and shifted to Insolvency and Bankruptcy Code, 2016 (“the Code”). The webinar covers the aspects of provisions involved in voluntary winding up as enshrined under the Code read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017.
OBJECTIVE
Companies in Singapore are governed by the laws of Companies Act (the Act), originally enacted in 1967 and which has undergone significant amendments in 2014 and 2017. The Accounting and Corporate Regulatory Authority (ACRA) is the national regulator of business entities and corporate service providers in Singapore. A foreign company may carry on business in Singapore by transferring that Company’s registration from foreign country to Singapore or by registering the branch of the foreign Company in Singapore. In this webinar, transfer of registration of foreign corporate entity to Singapore is covered. The provisions of Transfer of Registration are governed by Part XA of the Act read with Companies (Transfer of Registration) Regulations 2017.
Objectives & Agenda :
To understand the assessment of partnership firms. To know the conditions to be satisfied to be assessed as a firm. To understand how partnership firms are assessed in various situations. To gain knowledge with regards to the deductions allowed to partnership firms during assessment.To know how to calculate book profit.
The document provides an overview of public issue of debentures by companies in India. It defines debentures and various types of debentures. It discusses the process of public issue of debentures which requires issue of a prospectus, appointment of a debenture trustee, creation of debenture redemption reserve, and compliance with various other statutory requirements. It also describes different types of prospectus that can be issued for public offer of debentures and exceptions available for certain companies.
Objectives & Agenda :
One of the charitable forms of organisation is Trust. It is generally formed for the benefit of public at large (public charitable trusts) or for a specified group of persons (private trusts). Formation of trusts is governed by different legislations and involves various registrations under several Acts. The webinar dwells upon the aspects of formation of trust under relevant legislations, various types of trusts, registration of trusts, taxation of trusts and other relevant aspects of management of trust.
OBJECTIVE
Winding up is the final stage in the business cycle of a Company. It is the process of closing down the legal existence of a company. It can be done either by the Company on its own (voluntary winding up) or by an order passed by the Tribunal (compulsory winding up). The webinar covers the aspects of various provisions involved in winding up as enshrined in Companies Act, 2013 along with judicial precedents.
OBJECTIVE
Companies in Singapore are governed by the laws of Companies Act (the Act), originally enacted in 1967 and which has undergone significant amendments in 2014 and 2017. The Accounting and Corporate Regulatory Authority (ACRA) is the national regulator of business entities and corporate service providers in Singapore. Incorporation and powers of companies in Singapore are governed by Part III of the Act. The webinar covers the provisions in Part III of the Act, more specifically dealing with Constitution of Companies.
OBJECTIVE
Merger and Amalgamation (M&A) is one of the forms of Corporate Restructuring. M&A transactions are generally done to diversify the business, reduce competition, exercise increased scale of operations, to focus on core businesses to streamline costs and improve profit margins, etc. Provisions for merger and amalgamation under Companies Act, 2013 also includes demerger. The webinar deals with the provisions of merger and amalgamation enshrined in Companies Act, 2013 read with Rules made there under, legal formalities involved and judicial precedents.
OBJECTIVE
Winding up is the final stage in the business cycle of a Company. It is the process of closing down the legal existence of a Company. It can be done either by the Company on its own (voluntary winding up) or by an order passed by the Tribunal (compulsory winding up). Provisions under Companies Act, 2013 with respect to voluntary winding up are omitted and shifted to Insolvency and Bankruptcy Code, 2016 (“the Code”). The webinar covers the aspects of provisions involved in voluntary winding up as enshrined under the Code read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017.
OBJECTIVE
Companies in Singapore are governed by the laws of Companies Act (the Act), originally enacted in 1967 and which has undergone significant amendments in 2014 and 2017. The Accounting and Corporate Regulatory Authority (ACRA) is the national regulator of business entities and corporate service providers in Singapore. A foreign company may carry on business in Singapore by transferring that Company’s registration from foreign country to Singapore or by registering the branch of the foreign Company in Singapore. In this webinar, transfer of registration of foreign corporate entity to Singapore is covered. The provisions of Transfer of Registration are governed by Part XA of the Act read with Companies (Transfer of Registration) Regulations 2017.
Objectives & Agenda :
To understand the assessment of partnership firms. To know the conditions to be satisfied to be assessed as a firm. To understand how partnership firms are assessed in various situations. To gain knowledge with regards to the deductions allowed to partnership firms during assessment.To know how to calculate book profit.
The document provides an overview of public issue of debentures by companies in India. It defines debentures and various types of debentures. It discusses the process of public issue of debentures which requires issue of a prospectus, appointment of a debenture trustee, creation of debenture redemption reserve, and compliance with various other statutory requirements. It also describes different types of prospectus that can be issued for public offer of debentures and exceptions available for certain companies.
Objectives & Agenda :
One of the charitable forms of organisation is Trust. It is generally formed for the benefit of public at large (public charitable trusts) or for a specified group of persons (private trusts). Formation of trusts is governed by different legislations and involves various registrations under several Acts. The webinar dwells upon the aspects of formation of trust under relevant legislations, various types of trusts, registration of trusts, taxation of trusts and other relevant aspects of management of trust.
OBJECTIVE
Winding up is the final stage in the business cycle of a Company. It is the process of closing down the legal existence of a company. It can be done either by the Company on its own (voluntary winding up) or by an order passed by the Tribunal (compulsory winding up). The webinar covers the aspects of various provisions involved in winding up as enshrined in Companies Act, 2013 along with judicial precedents.
Key Takeaways:
Appointment of directors under Singapore Companies Act
Disqualifications of directors
Powers and duties of directors
Removal and resignation of directors
Objectives & Agenda :
One of the primary and popular forms of raising money by a public company is by way of offer of securities to public. Private Companies are prohibited to invite the public to subscribe for any securities of the company. Such issue enables a company to raise funds from large number of investors. The webinar covers the aspects of overview on public issue, issue of prospectus, various types of prospectus, statutory provisions in the Companies Act, 2013, compliance aspects and judicial precedents.
Key Takeaways:
Appointment of auditors under Singapore Companies Act
Exemption from auditors' appointment
Powers and duties of auditors
Remuneration of auditors
Resignation and removal of auditors
Incorporation of Limited Liability Partnership (LLP) and conversion into CompanyDVSResearchFoundatio
Objectives & Agenda :
One of the convenient forms of running an organisation is the Limited Liability Partnership (LLP). It has similar features as that of a Company and has various advantages. With the advent of ease of doing business initiative, incorporation of LLP has become simple. The webinar covers the procedure for incorporation of an LLP under the LLP Act, 2008 read with LLP Rules, 2009 and its conversion into Company as per the provisions of the Companies Act, 2013.
What are the key elements of the companies (amendment) bill, 2020DVSResearchFoundatio
The document summarizes key proposed amendments to the Companies Act 2013 in India based on recommendations to decriminalize certain offenses. Some key points:
- It proposes to decriminalize certain offenses that do not involve larger public interest by removing imprisonment and relaxing penalties.
- It empowers the central government to exempt certain classes of companies from the definition of "listed company".
- It reduces timelines for rights issues to speed them up and provides exemptions to certain classes of companies from filing certain resolutions.
- It allows companies with CSR spending obligations up to Rs. 50 lakhs to not constitute a CSR committee and allows eligible companies to set off excess CSR spending against future obligations.
Key Takeaways
Maintenance of bank accounts by liquidator in case of winding up
Manner of depositing unpaid dividend & undistributed assets to Company Liquidation Dividend and Undistributed Assets Account
Summary procedure for liquidation
Power of Tribunal to declare dissolution as void
Dissolution Order
The presentation shall dwell upon the importance of Double taxation avoidance agreement and purpose of certificate of residence(COR).
The event would also throw light on what is COR, benefits of COR, eligibility of obtaining of COR, requisite documents and procedures for obtaining the same. Lastly, webinar would emphazise the importance of limitation of benefit clause in DTAA
OBJECTIVE
Compromise and arrangement is a form of Corporate Restructuring where company enters into an agreement with its creditors or members to reorganise the capital structure of the company. The webinar covers the aspects of statutory provisions pertaining to compromise and arrangement under Companies Act, 2013 in detail along with judicial precedents.
OBJECTIVE
Winding up is the final stage in the business cycle of a company. It is the process of closing down the legal existence of a company. It can be done either by the company on its own (voluntary winding up) or by an order passed by the Tribunal (compulsory winding up). The webinar covers the aspects of various provisions relating to debts and claims against the company as enshrined in Companies Act, 2013 read with Companies (Winding up) Rules, 2020.
Application for Lower/No Withholding of Tax: Sec 195 (2) & (3)DVSResearchFoundatio
Objectives & Agenda :
To understand the process involved in making an Application to Assessing Officer for Lower withholding in case of payments to non-residents by the Payer [Sec 195(2)] or the request by the recipient for No withholding [Sec 195(3)]. We shall also look at procedural aspects involved and relevant caveats to be kept in mind.
Objectives & Agenda :
One of the major forms of organisation is a company, having separate legal entity. It has several benefits as compared with other forms of business organisations. The process of incorporating a company has become seamless in line with ‘ease of doing business’ in India. The webinar shall cover the changes in the procedural aspects relating to incorporation of a company to simplify the process. The webinar shall also focus on the single form for company incorporation, practical issues and challenges in formation of a company.
The document summarizes recent updates to the Companies Act 2013 in India, including increasing the threshold for mandatory appointment of a Company Secretary to Rs. 10 crores, expanding requirements for secretarial audit reports, introducing new forms like SPICe+ for easier incorporation, extending various filing timelines due to COVID-19, and allowing meetings to be conducted virtually.
Appointment of Registered Valuer under the Companies Act, 2013DVSResearchFoundatio
This document provides an overview of the appointment of registered valuers under the Companies Act 2013 in India, including:
- When valuation is required under the Act for various corporate actions like mergers, preferential shares issuance, etc.
- The eligibility requirements to become a registered valuer, including qualifications, experience, and passing a valuation examination.
- The process for applying for and obtaining a certificate of registration from the authority (currently IBBI), and the ongoing conditions of registration.
- Requirements for how valuations must be conducted, including following valuation standards and what must be included in valuation reports.
- Provisions for temporary surrender of registration and transitional arrangements for existing valuers to obtain registration
This document summarizes significant changes introduced in the Companies Act 2017 in Pakistan. Key changes include making incorporation of companies easier, simplifying procedures for altering company documents, reducing compliance requirements for small private companies, increasing the time limit for registering charges on companies, introducing concepts of inactive companies and nominee shareholders, promoting use of technology, introducing new types of companies, strengthening corporate governance rules around board composition and related party transactions, and requiring larger companies to undertake corporate social responsibility initiatives.
Managerial Remuneration under Companies Act and SEBI (LODR) RegulationsDVSResearchFoundatio
Key Takeaways:
Limits prescribed under Companies Act, 2013
Procedural aspects and provisions of Schedule V
Relaxation of provisions for certain companies
Recent amendments in SEBI (LODR) Regulations
Implications and Procedures for NRI Selling Property in India and Remittance ...DVSResearchFoundatio
Key Takeaways
Understanding on:-
• Tax implication on NRI selling property in India
• FEMA implications
• Impact of TDS
• Application for lower or no withholding of TDS
What are the important measures taken by SEBI in response to COVID-19?DVSResearchFoundatio
Key Takeaways:
Relaxations from disclosure requirements
Relaxations for fundraising
Relaxations from compliance norms
Relaxations from regulatory compliances and other measures
Provident funds are retirement savings plans where monthly contributions are made by both employees and employers. Companies establish provident funds as they allow tax deductions for contributions and investment returns are tax exempt. The funds are governed by trust deeds and rules which trustees administer, making investments and distributing returns to members. A provident fund audit involves verifying contributions, investment income and returns, members' accounts, expenses and ensuring compliance with legal requirements.
Key Takeaways:
Appointment of directors under Singapore Companies Act
Disqualifications of directors
Powers and duties of directors
Removal and resignation of directors
Objectives & Agenda :
One of the primary and popular forms of raising money by a public company is by way of offer of securities to public. Private Companies are prohibited to invite the public to subscribe for any securities of the company. Such issue enables a company to raise funds from large number of investors. The webinar covers the aspects of overview on public issue, issue of prospectus, various types of prospectus, statutory provisions in the Companies Act, 2013, compliance aspects and judicial precedents.
Key Takeaways:
Appointment of auditors under Singapore Companies Act
Exemption from auditors' appointment
Powers and duties of auditors
Remuneration of auditors
Resignation and removal of auditors
Incorporation of Limited Liability Partnership (LLP) and conversion into CompanyDVSResearchFoundatio
Objectives & Agenda :
One of the convenient forms of running an organisation is the Limited Liability Partnership (LLP). It has similar features as that of a Company and has various advantages. With the advent of ease of doing business initiative, incorporation of LLP has become simple. The webinar covers the procedure for incorporation of an LLP under the LLP Act, 2008 read with LLP Rules, 2009 and its conversion into Company as per the provisions of the Companies Act, 2013.
What are the key elements of the companies (amendment) bill, 2020DVSResearchFoundatio
The document summarizes key proposed amendments to the Companies Act 2013 in India based on recommendations to decriminalize certain offenses. Some key points:
- It proposes to decriminalize certain offenses that do not involve larger public interest by removing imprisonment and relaxing penalties.
- It empowers the central government to exempt certain classes of companies from the definition of "listed company".
- It reduces timelines for rights issues to speed them up and provides exemptions to certain classes of companies from filing certain resolutions.
- It allows companies with CSR spending obligations up to Rs. 50 lakhs to not constitute a CSR committee and allows eligible companies to set off excess CSR spending against future obligations.
Key Takeaways
Maintenance of bank accounts by liquidator in case of winding up
Manner of depositing unpaid dividend & undistributed assets to Company Liquidation Dividend and Undistributed Assets Account
Summary procedure for liquidation
Power of Tribunal to declare dissolution as void
Dissolution Order
The presentation shall dwell upon the importance of Double taxation avoidance agreement and purpose of certificate of residence(COR).
The event would also throw light on what is COR, benefits of COR, eligibility of obtaining of COR, requisite documents and procedures for obtaining the same. Lastly, webinar would emphazise the importance of limitation of benefit clause in DTAA
OBJECTIVE
Compromise and arrangement is a form of Corporate Restructuring where company enters into an agreement with its creditors or members to reorganise the capital structure of the company. The webinar covers the aspects of statutory provisions pertaining to compromise and arrangement under Companies Act, 2013 in detail along with judicial precedents.
OBJECTIVE
Winding up is the final stage in the business cycle of a company. It is the process of closing down the legal existence of a company. It can be done either by the company on its own (voluntary winding up) or by an order passed by the Tribunal (compulsory winding up). The webinar covers the aspects of various provisions relating to debts and claims against the company as enshrined in Companies Act, 2013 read with Companies (Winding up) Rules, 2020.
Application for Lower/No Withholding of Tax: Sec 195 (2) & (3)DVSResearchFoundatio
Objectives & Agenda :
To understand the process involved in making an Application to Assessing Officer for Lower withholding in case of payments to non-residents by the Payer [Sec 195(2)] or the request by the recipient for No withholding [Sec 195(3)]. We shall also look at procedural aspects involved and relevant caveats to be kept in mind.
Objectives & Agenda :
One of the major forms of organisation is a company, having separate legal entity. It has several benefits as compared with other forms of business organisations. The process of incorporating a company has become seamless in line with ‘ease of doing business’ in India. The webinar shall cover the changes in the procedural aspects relating to incorporation of a company to simplify the process. The webinar shall also focus on the single form for company incorporation, practical issues and challenges in formation of a company.
The document summarizes recent updates to the Companies Act 2013 in India, including increasing the threshold for mandatory appointment of a Company Secretary to Rs. 10 crores, expanding requirements for secretarial audit reports, introducing new forms like SPICe+ for easier incorporation, extending various filing timelines due to COVID-19, and allowing meetings to be conducted virtually.
Appointment of Registered Valuer under the Companies Act, 2013DVSResearchFoundatio
This document provides an overview of the appointment of registered valuers under the Companies Act 2013 in India, including:
- When valuation is required under the Act for various corporate actions like mergers, preferential shares issuance, etc.
- The eligibility requirements to become a registered valuer, including qualifications, experience, and passing a valuation examination.
- The process for applying for and obtaining a certificate of registration from the authority (currently IBBI), and the ongoing conditions of registration.
- Requirements for how valuations must be conducted, including following valuation standards and what must be included in valuation reports.
- Provisions for temporary surrender of registration and transitional arrangements for existing valuers to obtain registration
This document summarizes significant changes introduced in the Companies Act 2017 in Pakistan. Key changes include making incorporation of companies easier, simplifying procedures for altering company documents, reducing compliance requirements for small private companies, increasing the time limit for registering charges on companies, introducing concepts of inactive companies and nominee shareholders, promoting use of technology, introducing new types of companies, strengthening corporate governance rules around board composition and related party transactions, and requiring larger companies to undertake corporate social responsibility initiatives.
Managerial Remuneration under Companies Act and SEBI (LODR) RegulationsDVSResearchFoundatio
Key Takeaways:
Limits prescribed under Companies Act, 2013
Procedural aspects and provisions of Schedule V
Relaxation of provisions for certain companies
Recent amendments in SEBI (LODR) Regulations
Implications and Procedures for NRI Selling Property in India and Remittance ...DVSResearchFoundatio
Key Takeaways
Understanding on:-
• Tax implication on NRI selling property in India
• FEMA implications
• Impact of TDS
• Application for lower or no withholding of TDS
What are the important measures taken by SEBI in response to COVID-19?DVSResearchFoundatio
Key Takeaways:
Relaxations from disclosure requirements
Relaxations for fundraising
Relaxations from compliance norms
Relaxations from regulatory compliances and other measures
Provident funds are retirement savings plans where monthly contributions are made by both employees and employers. Companies establish provident funds as they allow tax deductions for contributions and investment returns are tax exempt. The funds are governed by trust deeds and rules which trustees administer, making investments and distributing returns to members. A provident fund audit involves verifying contributions, investment income and returns, members' accounts, expenses and ensuring compliance with legal requirements.
Budget 2016-2017 - analysis of direct tax proposalsoswinfo
This document provides an analysis of key changes proposed in the Indian Budget 2016 relating to direct taxes. Some key points summarized are:
1. No change in basic tax exemption limits and rates for individuals. Surcharge of 15% for income over Rs. 1 crore. Section 87A rebate limit increased to Rs. 5,000. Section 80GG deduction limit for individuals without HRA enhanced to Rs. 5,000 per month.
2. Section 80CCC deduction limit increased from Rs. 1 lakh to Rs. 1.5 lakh. Section 10(12) and 10(13) exemptions for provident fund and superannuation fund limited to 40% of accumulated amount for contributions made
Managerial Remuneration under Companies Act and SEBI (LODR) RegulationsDVSResearchFoundatio
Key Takeaways:
Limits prescribed under Companies Act, 2013
Procedural aspects and provisions of Schedule V
Relaxation of provisions for certain companies
Recent amendments in SEBI (LODR) Regulations
This document summarizes the regulatory framework for Takaful (Islamic insurance) in Pakistan. It outlines the key controlling documents and rules for Takaful operators, including the Insurance Ordinance 2000, Takaful Rules 2005, and circulars issued by the Securities and Exchange Commission of Pakistan (SECP). It describes the major regulatory requirements for Takaful businesses such as registration, Shariah board oversight, minimum capital and solvency requirements, statutory deposits, operational models, reTakaful, fund maintenance, investments, market conduct, and additional family Takaful requirements. It also discusses some key issues, recent developments, and concludes with thanks.
In a move to further rationalize and liberalise the overseas investment central Government and Reserve Bank of India notified Foreign Exchange Management (Overseas Investment) Rules, 2022 and Foreign Exchange Management (Overseas Investment) Regulations, 2022 respectively on 22 Aug 2022.
The revised regulatory framework for overseas investment provides for simplification of the existing framework for overseas investment and has been aligned with the current business and economic dynamics. Immense clarity on Overseas Direct Investment and Overseas Portfolio Investment has been brought in and various overseas investment related transactions that were earlier under approval route are now under automatic route, significantly enhancing "Ease of Doing Business".
Universal Legal's (http://www.universal-legal.com/) September, 2016 Edition of LEY BOLETIN contains Overview of the Amendments to the Share Capital and Debenture Rules, 2016; FEMA Regulations, 2016; SEBI Circular on CAS as well as snippets of other key legal updates, which you would not want to miss.
Universal Legal's (http://www.universal-legal.com/) September, 2016 Edition of LEY BOLETIN contains Overview of the Amendments to the Share Capital and Debenture Rules, 2016; FEMA Regulations, 2016; SEBI Circular on CAS as well as snippets of other key legal updates.
Thin capitalization refers to a situation where a company is financed through high levels of debt compared to equity, resulting in a thin capital structure. Section 94B of the Indian Income Tax Act governs thin capitalization by restricting the deduction of interest expenses in cases where debt is from an associated enterprise or guaranteed by an associated enterprise. Excess interest, defined as interest exceeding 30% of EBITDA or total interest paid to associated enterprises, whichever is lower, is not deductible and can be carried forward for up to 8 years. The provisions apply to both debt from non-resident associated enterprises and debt from Indian lenders that is guaranteed by a non-resident associated enterprise.
The document discusses various topics related to mergers and acquisitions, foreign exchange regulations in India, and competition law. It defines mergers, acquisitions, and demergers. It outlines regulations around foreign direct investment, portfolio investment, and outbound investment from India. It discusses the thresholds for mandatory notification of combinations to the Competition Commission of India and the penalties for non-compliance. It also provides exemptions under competition law.
INDEX
1. Collective Investment Scheme
a. History of CIS . . . . . 1
b. Development of CIS . . . . . 2
c. Definition and CIS participants . . . . . 3
d. Benefits of CIS . . . . . 5
e. Disadvantages of CIS . . . . . 6
f. Different kind of CIS in the Market . . . . . 6
g. Schemes not treated as CIS . . . . . 8
h. Collective Investment Management Company . . . 11
i. Eligibility Criteria for CIS Registration . . . . 14
j. Governance of CIS . . . . . 16
2. Ponzi Scheme
a. Characteristic of Ponzi Scheme . . . . . 21
b. Case Studies
i. SPEAK ASIA, 2010 . . . . . 23
ii. GOLDSUKH, 2011 . . . . . 23
iii. ABHINAV GOLD, 2011 . . . . . 24
iv. SHIVRAJ PURI from CITIBANK INDIA, 2011 . . . 24
v. EMU FARMING, 2012 . . . . . 25
vi. THE SAHARA CASE, 2010 . . . . . 25
vii. THE SARADHA CASE . . . . . 27
3. Mutual Funds
a. Introduction . . . . . 29
b. Early History . . . . . 29
c. Growth and Development in India . . . . 33
d. Concept of Mutual Fund . . . . . 34
e. Structure of Mutual Fund . . . . . 39
f. Advantages of Mutual Fund . . . . . 42
g. Disadvantages of Mutual Fund . . . . . 43
h. Regulation of Mutual Fund . . . . . 46
i. Offer Document . . . . . 53
j. Statement of Additional Information . . . . 60
k. Difference between CIS and Mutual Funds . . . 62
4. Chit Funds
a. Origin and History of Chit Fund . . . . . 64
b. Evolution of Chit Fund . . . . . . 65
c. How do they work? . . . . . . 66
d. Chit Funds- Over the world . . . . . 68
e. Advantages of Chit Funds . . . . . 70
f. Case Study- Rose Valley Scam . . . . . 71
g. Difference between Mutual Funds and Chit Funds . . 72
h.
This document discusses Angel Tax and exemptions for startups in India. It defines Angel Tax as the income tax payable on capital raised by unlisted companies through share premium. Startups recognized by DPIIT are exempt from Angel Tax if total paid up capital and share premium is less than Rs. 25 crores and certain other conditions are met. These include restrictions on how funds can be invested. Non-compliance results in the premium being taxed at 200% as unexplained income. The document recommends relaxing some investment restrictions and removing the 200% penalty for startups.
This document provides information about State Bank of India - Mutual Fund (SBI MF). It discusses the company profile, key personnel, risk management team, and products offered by SBI MF. Some key points:
- SBI MF is one of the largest mutual funds in India with over 4.6 million investors and assets under management of over Rs. 51,461 crores across 36 schemes.
- It is a joint venture between State Bank of India and Société General Asset Management.
- SBI MF offers various equity, debt, liquid and other schemes and has a track record of over 20 years of consistent performance.
- The risk management team is headed by a
The BJP Government is on the verge of completing a year and has now stabilised. Major economic initiatives and actions are emerging for a high growth oriented economy.
Section 94B of the Income Tax Act, 1961 places limitations on the deductibility of interest expenses for loans taken from associated enterprises. Some key points:
1. Interest expenses over INR 1 crore claimed as a deduction are restricted to 30% of earnings before interest, taxes, depreciation and amortization (EBITDA) or interest paid to the associated enterprise, whichever is lower.
2. Loans from third parties where the associated enterprise provides an implicit or explicit guarantee or deposits matching funds are deemed to be from the associated enterprise.
3. Disallowed interest can be carried forward for up to 8 years.
4. Key terms like associated enterprise, debt, and permanent establishment are defined
The Directors accept responsibility for the information provided in the document. The information is accurate and complete as of the date. The Directors established the Grivola Sub-Fund as a closed-ended Professional Investor Fund available only to Qualifying Investors. The Sub-Fund seeks long-term absolute returns through investing primarily in residential and commercial Italian property requiring renovation, to be developed and sold in the shortest time frame possible. Exposure may be direct or through special purpose vehicles established by the Company.
Submitted by nitish s harma presentationvinay verma
The document outlines the typical process for venture capital fund raising in India. It involves identifying an investment banker with relevant experience and networks. An investment memorandum and financial model are then prepared to capture the business details and project financials. Shortlisted investors are approached, and presentations are made to convince them. If interested, investors issue a term sheet covering valuation and deal structure. Due diligence is conducted before signing shareholder agreements and transferring funds. The obligations and restrictions for venture capital funds are also summarized.
Objectives & Agenda :
The Companies Act, 2013 has made several significant changes to redefine the Board governance in India. The webinar covers the statutory aspects relating to appointment and qualification of directors (first director, additional / nominee / alternate directors, re-appointment of retiring director, independent director, women director, small shareholder director, etc.), their roles and responsibilities, duties and liabilities of directors and judicial precedents.
Similar to Special tax regime for offshore investment fund (20)
SCRAPPING OF RETRO TAX PROVISIONS : A REVIVAL OF OVERSEAS INTEREST IN INDIADVSResearchFoundatio
The document summarizes the scrapping of retroactive tax provisions in India. It provides background on retroactive taxation laws introduced in 2012 in response to court rulings. It analyzes prominent cases like Vodafone and Cairn Energy that challenged the retroactive taxes under bilateral investment treaties. The Taxation Laws Amendment Act of 2021 was passed to scrap these retroactive provisions and provide tax refunds to affected companies like Cairn Energy. The act aims to improve India's reputation as an investment destination and revive interest from foreign investors.
Key Takeaways: - Analysis of section 45(4), section 9B of the Income Tax Act...DVSResearchFoundatio
Key Takeaways:
- Analysis of section 45(4), section 9B of the Income Tax Act and Rule 8AA and Rule 8AB of Income Tax Rules
- Illustrations to understand the relevant impact
- Critical Issues concerned with the provisions
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
FALLACIOUS DISREGARDING OF TRANSACTIONS THAT RESULT IN A TAX BENEFIT TO THE A...DVSResearchFoundatio
Key Takeaways:
- Facts of the case
- AO's contention
- Ruling of CIT(A) and issues for consideration of the ITAT
- Observations of ITAT
- Final Ruling
- Way Forward
ALLOWABILITY OF OUTSTANDING INTEREST CONVERTED INTO DEBENTURES AS AN EXPENSE ...DVSResearchFoundatio
The Supreme Court ruled that the conversion of outstanding interest into debentures by the assessee company qualified for deduction under Section 43B of the Income Tax Act. The conversion was done under a rehabilitation plan agreed with institutional creditors to extinguish the interest liability. The Court observed that Section 43B was not meant to affect bona fide transactions, and debentures were different than loans/borrowings under Explanation 3C. It set aside the High Court's decision and allowed the assessee's claim for deduction, noting the conversion was an actual payment of interest rather than postponing the liability.
Key Takeaways:
- Facts of the case
- Issues and Orders
- Contention of the parties
- Observations of Honourable Supreme Court
- Conclusion and way forward
This document outlines the process and documentation required for an SME to obtain an in-principle approval for an initial public offering (IPO) listing on the National Stock Exchange of India (NSE). It details the documents required to be submitted on T+2, T+3, T+4, and T+5 days from the date of in-principle approval to finalize the listing. These include annual reports, board resolutions, shareholding details, basis of allotment, post-issue shareholding pattern, and confirmation from issuers, merchant bankers, and statutory auditors. It also provides information on NEAPS platform registration and payment of processing and annual listing fees.
What are the post listing compliance norms for SME entities?DVSResearchFoundatio
The document summarizes post-listing compliance norms for small and medium enterprises (SMEs) listed on SME exchanges in India. It discusses requirements for further capital issues, green shoe options, migration to the main board, further public offerings, and mandatory and voluntary disclosures. Key requirements include making full disclosures for further issues, obtaining shareholder approval for green shoe options, complying with eligibility criteria for migration, and submitting regular financial disclosures and statements on the use of IPO proceeds.
1) Prior to listing on an SME exchange, a company must file an offer document with SEBI and the relevant stock exchange and appoint qualified intermediaries like lead managers, registrars, and syndicate members.
2) The company must make required disclosures in the offer document and the lead manager must conduct due diligence on these disclosures.
3) After filing the offer document, the company must price the issue, keep the issue open for subscription for at least 3 days, and ensure the issue is underwritten and market making arrangements are in place.
This document outlines the criteria for Small and Medium Enterprises (SMEs) to list on the SME platforms of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India. The key eligibility criteria are a positive net worth, a track record of at least 3 years of operations, and operating profits over the last 2-3 years. Additional disclosure requirements include details on directors, regulatory actions, litigation status, and defaults. SMEs listed can later migrate to the main board of the exchanges if they meet certain criteria like company size and track record. As of now, over 220 companies are listed on NSE's SME platform and over 100 have migrated from BSE's SME platform
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
An Indian individual seeks to incorporate a company in Singapore. The process involves obtaining name approval, determining the company structure as a private or public company, appointing directors and other key personnel, selecting a registered office address, and drafting a company constitution. Once incorporated, the new company can open a Singapore bank account and obtain a tax residency certificate. Indian regulations allow for foreign direct investment through the automatic route or approval route depending on the amount and financial commitment. The entire incorporation process can be completed quickly online but setting up documents may take a few days.
AUTOMATIC VACATION OF STAY GRANTED BY TRIBUNALDCIT v. PEPSI FOODS LTD. [2021]...DVSResearchFoundatio
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
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The report *State of D2C in India: A Logistics Update* talks about the evolving dynamics of the d2C landscape with a particular focus on how brands navigate the complexities of logistics. Third Party Logistics enablers emerge indispensable partners in facilitating the growth journey of D2C brands, offering cost-effective solutions tailored to their specific needs. As D2C brands continue to expand, they encounter heightened operational complexities with logistics standing out as a significant challenge. Logistics not only represents a substantial cost component for the brands but also directly influences the customer experience. Establishing efficient logistics operations while keeping costs low is therefore a crucial objective for brands. The report highlights how 3PLs are meeting the rising demands of D2C brands, supporting their expansion both online and offline, and paving the way for sustainable, scalable growth in this fast-paced market.
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AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
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Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...Adani case
Time and again, the business group has taken up new business ventures, each of which has allowed it to expand its horizons further and reach new heights. Even amidst the Adani CBI Investigation, the firm has always focused on improving its cement business.
Tired of chasing down expiring contracts and drowning in paperwork? Mastering contract management can significantly enhance your business efficiency and productivity. This guide unveils expert secrets to streamline your contract management process. Learn how to save time, minimize risk, and achieve effortless contract management.
Prescriptive analytics BA4206 Anna University PPTFreelance
Business analysis - Prescriptive analytics Introduction to Prescriptive analytics
Prescriptive Modeling
Non Linear Optimization
Demonstrating Business Performance Improvement
L'indice de performance des ports à conteneurs de l'année 2023SPATPortToamasina
Une évaluation comparable de la performance basée sur le temps d'escale des navires
L'objectif de l'ICPP est d'identifier les domaines d'amélioration qui peuvent en fin de compte bénéficier à toutes les parties concernées, des compagnies maritimes aux gouvernements nationaux en passant par les consommateurs. Il est conçu pour servir de point de référence aux principaux acteurs de l'économie mondiale, notamment les autorités et les opérateurs portuaires, les gouvernements nationaux, les organisations supranationales, les agences de développement, les divers intérêts maritimes et d'autres acteurs publics et privés du commerce, de la logistique et des services de la chaîne d'approvisionnement.
Le développement de l'ICPP repose sur le temps total passé par les porte-conteneurs dans les ports, de la manière expliquée dans les sections suivantes du rapport, et comme dans les itérations précédentes de l'ICPP. Cette quatrième itération utilise des données pour l'année civile complète 2023. Elle poursuit le changement introduit l'année dernière en n'incluant que les ports qui ont eu un minimum de 24 escales valides au cours de la période de 12 mois de l'étude. Le nombre de ports inclus dans l'ICPP 2023 est de 405.
Comme dans les éditions précédentes de l'ICPP, la production du classement fait appel à deux approches méthodologiques différentes : une approche administrative, ou technique, une méthodologie pragmatique reflétant les connaissances et le jugement des experts ; et une approche statistique, utilisant l'analyse factorielle (AF), ou plus précisément la factorisation matricielle. L'utilisation de ces deux approches vise à garantir que le classement des performances des ports à conteneurs reflète le plus fidèlement possible les performances réelles des ports, tout en étant statistiquement robuste.
3. Legends used in the Presentation
AD Authorised Dealer
ALP Arm’s length price
AO Assessing Officer
AUM Assets Under Management
CBDT Central Board of Direct Taxes
CG Central Government
FPI Foreign Portfolio Investor
KYC Know Your Customer
DTAA Double Taxation Avoidance Agreement
PAN Permanent Account Number
PY Previous Year
SEBI Securities Exchange Board of India
TPO Transfer Pricing Officer
The Act Income-tax Act
4. Presentation Schema
Introduction In Indian Context
Sec 9A - Certain
Activities not to
Constitute Business
Connection in India
Business
Connection in India
Definitions
Eligible Investment
Fund
Eligible Fund
Manager
Other Conditions
Renumeration to
Fund Manager
Proposed Rules for
Prescribed
Remuneration
Form 3CEJA
Status of the Indian
Financial Services
Sector
Scope for Asset
Management
Industry
Offshore Fund
Management
Challenges in the
Tax Regime for
Offshore Funds
High Level Advisory
Group
Policy
Recommendations
by High Level
Advisory Group
Conclusion
5. Introduction
would not be
considered a
resident for tax
purposes solely
based on its fund
manager being
located in India
Under these
provisions, on
satisfying a set of
eligibility
conditions, an
offshore fund
with effect from
April 2016, the
Government
introduced
provisions under
Sec 9A of the
Income Tax Act
To incentivize
offshore fund
managers to
relocate from
offshore
jurisdictions to
India to manage
such funds
6. In Indian Context
Offshore Funds are funds, such as mutual funds, that exist and operate abroad, usually in offshore financial centers
Offshore funds largely pool and manage international investment influx into a Country
Offshore funds are located in tax and regulatory friendly jurisdictions
The Activity of Managing such funds is known as Offshore Fund Management
Offshore Funds are reluctant to employ an Indian Entity for Fund Management as it would create tax
implications for the Fund’s profits
Attracting such funds to operate to India and to employ Indian Fund Managers would attract further inflow of
foreign investment and generate income for the country via financial services
7. Sec 9A - Certain Activities not to Constitute Business
Connection in India
Sec 9A provides for a special taxation regime in respect of certain Offshore funds in the context of their
fund managers being located in India
In case of an Eligible investment fund, the Fund management activity carried out, through an Eligible fund
Manager acting on behalf of such fund, shall not constitute Business Connection in India of the said fund
An eligible Investment fund shall not be said to be resident in India, merely because the Eligible Fund
Manager, undertaking fund management activities on its behalf, is located in India
8. Business Connection in India
Sec 9 of the Act provides for Incomes that would be deemed to accrue or arise for Income-tax purposes
It, inter alia, provides that all income accruing or arising, whether directly or indirectly, through or from
any business connection in India shall be deemed to accrue or arise in India
Income from Business Connection
Person acting on behalf of a non-resident Significant Economic Presence
9. Definitions
Associate
being more than 15% of its share capital or interest
holds, either individually or collectively, share or interest,
or a director or a trustee or a partner or a member of the fund manager of such fund,
a director or a trustee or a partner or a member or a fund manager of the investment fund
Means an entity in which
Corpus
Means the total amount of funds raised for the purpose of
investment by the eligible investment fund as on a particular date
Definitions
10. Definitions – Contd.
Connected person
Means any person who is connected directly or indirectly to another person and includes
Individual Any relative of that person
Company Director and relative of such director
Firm, AOP or BOI Partner or Member and their relatives
HUF Member and their relatives
Any person who has a substantial interest in the
business of another person or their Connected Persons
11. Eligible Investment Fund
Means a fund established or incorporated or registered outside India, which collects funds
from its members for investing it for their benefit and fulfils the following conditions:
Fund is not a person resident in India
The fund is a resident of a country or a specified territory with which DTAA has been entered into or is
established or incorporated or registered in a country or a specified territory notified by the CG in this behalf
Aggregate direct or indirect participation or investment of Indian Residents in the fund does not exceed 5%
of the corpus
The fund and its activities are subject to applicable investor protection regulations in the country or specified
territory where it is established or incorporated or is a resident
The fund has a minimum of 25 members who are, directly or indirectly, not connected persons
Any member of the fund along with connected persons shall not have any participation interest, directly or
indirectly, in the fund exceeding 10%
The aggregate participation interest, directly or indirectly, of 10 or less members along with their connected
persons in the fund, shall be less than 50%
12. Contd.
The fund shall not invest more than 20% of its corpus in any entity
The fund shall not make any investment in its associate entity
The monthly average of the corpus of the fund shall be at least 100 crore rupees
If fund is established or incorporated in the previous year, the corpus shall be reached within 6 months from
end of month of incorporation or the end of PY, whichever is later
Minimum corpus requirement shall not apply to a fund which has been wound up in the PY
The fund shall not carry on or control and manage, directly or indirectly, any business in India
- The fund is neither engaged in any activity which constitutes a business connection in India
- nor has any person acting on its behalf whose activities constitute a business connection in India
- other than the activities undertaken by the eligible Fund manager on its behalf
The Remuneration paid by the fund to an eligible fund manager in respect of fund management activity
undertaken by him on its behalf is not less than the amount calculated in such manner as may be prescribed*
*Amendment of Union Budget 2019
13. Eligible Fund Manager
The person is not an employee of the eligible investment fund or a connected person of the fund
The person is registered as a fund manager or an investment advisor in accordance with the SEBI
Portfolio Manager and Investment Advisers Regulations
The person is acting in the ordinary course of his business as a fund manager
The person along with his connected persons is not entitled, directly or indirectly, to more than
20% of the profits accruing or arising to the eligible investment fund from the transactions
carried out by the fund through the fund manager
The eligible fund manager means any person who is engaged in the
activity of fund management and fulfils the following conditions:
14. Other Conditions
By virtue of this Sec, Income of the eligible investment fund which would have been
earned even without the fund management activity with the Eligible Fund manager,
shall not be excluded from taxation
Provisions of this Sec shall not have any effect on the scope of total income or
determination of total income of the eligible fund manager
Every eligible investment fund shall furnish Form 3CEK within 90 days from the end of
the FY which contains information relating to fulfilment of conditions in the Sec and
other relevant information
15. Renumeration to Fund Manager
Earlier Provision
Sec 9A(3)(m) provided that the remuneration to a fund manager shall
not be less than the arm’s length price (ALP) for that activity
Amendment by Union Budget 2019
Finance (No 2) Act, 2019 with effect from 1 April, 2019 amended Sec 9A(3)(m) so as to provide that
• the remuneration paid by the fund to an eligible fund manager in respect of fund management
activity undertaken by him on its behalf is
• not less than the amount calculated in such manner as may be prescribed
16. Sub-rule (5) to (10) of Rule 10V – Guidance on Determination
of ALP of Remuneration to Fund Manager – Current Scenario
i.e. Transfer Pricing Provisions would apply
And the Eligible Investment Fund and the Manager are Associated Enterprises
Income-tax provisions shall apply as if transaction between Investment Fund and
the Manager is an international transaction
These are the provisions which are currently applicable for ALP of Remuneration to Fund Manager
Fund Manager shall keep and maintain Documentation required under Sec 92D (Transfer Pricing Documentation)
In addition to Transfer Pricing Report under Sec 92E, the Fund Manager shall obtain a report from an accountant
in Form 3CEJ in in respect of activity undertaken for the fund
If documentation has not been maintained by the Fund Manager, the AO or TPO as the case may be, before
determining ALP shall provide an opportunity to the Fund to provide information for ALP determination
• Benefits of Sec 9A shall not be denied due to non-satisfaction of ALP condition where other conditions are satisfied
• This shall not be applicable if the remuneration is not at ALP for 3 consecutive years or any 3 out of 4 PYs
17. Proposed Rules for Prescribed Remuneration
A draft notification to amend the Rules for prescribing the minimum amount of remuneration has been
released by the CBDT on 5th December 2019, for public consultation, containing the following provisions:
Sub-rule (5) to sub-rule (10) shall not apply on or after the 1st day of April, 2019
The amount of remuneration to be paid by the fund to a fund manager shall be calculated in the following manner:
In case the fund is a Category-I Foreign
Portfolio Investor (FPI) as per SEBI Regulation
In Any other case
0.5% of the Assets under Management
0.3% of the Assets under Management
10% of the profits in excess of specified hurdle rate
50% of management fee whether fixed or profit-
linked received by the Fund as reduced by operational
expenses including distributional expenses if any
OR
OR
“Specified hurdle rate” means a pre-defined threshold
beyond which the fund agrees to pay a share of the
profits earned by the fund from the fund management
activity undertaken by the find manager
General public and Stakeholders can provide inputs electronically at the email address, ustpll@nic.in upto 19th December, 2019
18. Contd.
Asset under management Means the annual average of the monthly average of the opening and
closing balances of the value of the fund managed by the fund manager
and all the provisions of the Act shall apply as if it is a report to be furnished under Sec 92E
obtain a report from the accountant in respect of activity undertaken for the fund and furnish such report
on or before the due date for filing return of income in the Form No. 3CEJA duly verified by an accountant
The fund manager shall, in addition to any report required to be furnished by it under Sec 92E,
In case where
the amount of
remuneration
is lower than
the amount
prescribed,
the fund may, at its
option, apply to the
Prescribed authority*
seeking approval of
CBDT for that lower
amount to be the
Remuneration and
on receipt of such
application CBDT may,
after satisfying itself
considering the relevant
facts, approve such
lower amount
*The Member, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, North Block,
New Delhi having supervision and control over the work of Foreign Tax and Tax Research (FT&TR) Division
19. Form 3CEJA
“FORM No. 3CEJA
[See rule 10V (13)]
Report from an accountant to be furnished for purpose of section 9A regarding fulfilment of certain conditions by an
eligible investment fund
*I/We have examined the accounts and records of……………………………………………. (name and address of the fund manager
with PAN) relating to the fund management activity and other transactions or services rendered by the fund manager to
the eligible investment fund/ funds during the previous year ending on 31″ March,
1. In*my/our opinion proper information and documents as are prescribed have been kept by the fund manager in
respect of fund management activity and other transactions or services rendered by the fund manager to the fund/funds
so far as appears from *my/our examination of the records of the fund manager.
2. The particulars required to be furnished for the purpose of section 9A are given in the Annexure to this Form.
In*my/our opinion and to the best of my/our information and according to the explanations given to *me/us, the
particulars given in the Annexure are true and correct.
**Signed
Name:
Address:
Membership No.:
Place:
Date:
Notes:
1. *Delete whichever is not applicable.
2. * *This report has to be signed by an accountant as defined in the Explanation below sub-section (2) of section 288.
20. Annexure to Form No. 3CEJA
Particulars relating to fund management activity required to be furnished
for the purposes of section 9A of the Income-tax Act, 1961
1. Name of the Fund Manager
2. Address
3. Permanent account number
4. Nature of business or activities of the fund manager
5. Status
6. Residential status
7. Details of SEBI registration
(a) Regulation under which registered
(b) Registration number and date
(c) Foreign portfolio investor category, if applicable
8. Previous year ended
9. Whether Fund Manager and Fund are related in terms of provision under section 92B.
10. Aggregate value of remuneration received from the eligible fund/funds as per books of account
11. List of eligible investment funds for whom the fund manager has undertaken the fund management activity
12. Particulars of remuneration received in respect of each eligible investment fund and each activity undertaken (if
such activity is separately remunerated)
13. Particulars in respect of any other transaction undertaken by the fund manager with/on behalf of the eligible
investment fund
21. Status of the Indian Financial Services Sector
India is currently a net importer of financial services, running a small trade deficit of USD 373 million
as of 2017-18.
Financial services exports have averaged about USD 5.2 billion in the recent years, while their share
in total services exports has declined from 5.2% in 2010-11 to 2.6% in 2017-18.
The financial services sector has been identified as one of the Champion Services Sectors by the
Government
> for import substitution of financial services for which India currently relies on global financial
centres, and
> to boost financial services exports and high-skilled employment
22. Scope for Asset Management Industry
However, India still accounts for less than 1% of the global asset management industry
AUM in Alternative Investment Funds (AIFs) increasing ten-folds
AUM in Portfolio Management Services rising three-folds and
with Assets Under Management (AUM) in the Mutual Funds industry more than doubling between 2013-17,
India has one of the fastest growing asset management industry in the world,
One area in financial services with scope for continued expansion is the asset management industry.
23. Offshore Fund Management
One area within the asset management industry with immense potential for development is undertaking fund
management activity of the offshore funds from India.
These offshore funds are located in tax and regulatory friendly jurisdictions, such as Singapore, Mauritius, Luxembourg,
Ireland, Hong Kong and London, which pool and manage foreign portfolio investments (FPIs) coming into India.
Such funds include the India-dedicated offshore funds which invest only in India (with USD 31 billion in AUM as of 2017)
and the Regional/Global diversified funds which have partial investment allocation to India.
Such funds are currently managed by fund managers, often of Indian origin, from these offshore jurisdictions since their
presence in India can create tax implications for the offshore fund’s profits
Addressing the tax implications for such offshore funds would incentivise the fund managers of India-
dedicated funds, and potentially, Regional/Global diversified funds with partial investment allocation to
India to relocate from offshore jurisdictions to India to Manage the funds
24. Potential of Offshore Fund Management
Creation of an asset
management hub in India -
Employment generation for
about 7,500 high-skilled
finance professionals,
including fund managers and
support service providers, risk
managers, research analytics
professionals and tax advisors
Management fee received by
fund managers for managing
the offshore funds could yield
financial services export
revenues of about USD 800
million by 2020 and USD 1.4
billion by 2025 if the India-
dedicated offshore funds
move their fund management
activity to India
Fund managers’
remuneration would yield
income tax revenues of
about INR 1,680 crores by
2020 and INR 2,940 crores by
2025 if the India-dedicated
offshore funds move their
fund management activity to
India
Promotion of Offshore fund management in India would enable greater delegation of fund
management activity of FPIs to India as India continues to attract greater FPI inflows
It would enable Portfolio Managers currently located in India, and managing domestic
funds, to expand their client base to manage the offshore funds from India
Source: Report of High Level Advisory Group of Ministry of commerce
25. Challenges in the Tax Regime for Offshore Funds
Government introduced provisions of Section 9A to incentivize the offshore fund managers to relocate to India
The eligibility conditions under those provisions have been designed to prevent round-tripping and money
laundering of funds to India
CBDT’s reservations on relaxing the eligibility conditions emanate from concerns around KYC compliance and to
curb revenue loss from the potential misuse of provisions
While several offshore funds are willing to relocate their fund managers to India, the number of applications
being submitted by such funds to CBDT (and being accepted) to avail the safe harbour provisions remain
extremely low even three years after the introduction of the provisions. This is due to:
The offshore funds have to
satisfy a total of 17
eligibility conditions, 13
conditions related to the
offshore fund’s structure,
investor composition and
investment activity, and 4
conditions related to the
fund manager’s activity and
remuneration
Most offshore funds are
unable to satisfy majority of
the eligibility conditions
since they are extremely
stringent, open to varied
legal interpretation
The conditions on the
offshore fund’s structure /
investor composition /
investment activity and the
fund manager’s activity /
remuneration are
incoherent with the
intrinsic structure of the
offshore funds and the
nature of FPI inflows into
India
The need to satisfy several
eligibility conditions results
in dual compliance burden
for the offshore fund
investors since they are also
required to comply with
SEBI regulations
andSEBI/RBI guidelines
26. High Level Advisory Group
Mainstreaming new age policy making
Managing pressing bilateral trade relations and
For boosting India’s share and importance in global merchandise and services trade
To assess the global environment and make recommendations:
The High-Level Advisory Group (HLAG) was constituted by the Minister of
Commerce and Industry, Department of Commerce, Government of India,
HLAG was chaired by Mr Surjit S Bhalla and contained 11 other members
The HLAG deliberated upon these issues and arrived upon certain recommendations on issues
The Final Report was presented on 12th September 2019 to the Department of Commerce, Government of India
27. Policy Recommendations by High Level Advisory Group
The Report of High Level Advisory Group made policy recommendations by
prescribing frame work for foreign investments funds:
Fund and Fund Manager should be fully KYC compliant in home country and SEBI, and shall have PAN
The entity and the fund manager should be free to operate from any physical location as long as the entity in
question is registered with a regulator who is an IOSCO (International Organisation of Securities Commissions)
member or a regulator with whom SEBI has a bilateral agreement or MoU
No requirement of the place of residence or deemed resident should be necessary
The foreign investor entity (AIF, FII, Pension Fund, etc.) has to be registered with the home country regulator.
28. Contd.
Foreign Individual Investors should be allowed to invest in India through permitted Indian and Foreign ADs, with simplified
PAN process, ADs facilitating registration and tax aspects while permitting investment in equity and debt but not in real estate
SEBI should act as Centralised agency for non-compliance and violations
Regulators should avoid bureaucratic delays. SEBI shall prescribe 21 days time limit for KYC registration to ensure no delays
CA certification should be mandated by AD bank for outward remittance
In case the entity and fund manager are registered with SEBI and compliant with SEBI regulations, there should be no tax
residency risk in India for such an entity even if its fund manager is located in India
The entity should be entitled to the tax treatment as agreed in the DTAA, and the accounting firm along with a lawyer in India
should be responsible for compliance certificate on inward and outward remittance
29. IOSCO Non-Members
Country Regulator
BARBADOS Financial Services Commission
BOLIVIA Autoridad de Supervisión del Sistema Financiero
COSTA RICA Superintendencia General de Valores
GHANA Securities and Exchange Commission
KYRGYZ REPUBLIC State Agency for Financial Surveillance and Accounting
PAPUA NEW GUINEA Securities Commission
PHILIPPINES Securities and Exchange Commission
UKRAINE National Securities and Stock Market Commission
UZBEKISTAN Center for Coordination and Control over Functioning of Securities Market
30. Conclusion
Even though tax incentives via exemption from Residency is provided there are several conditions for
eligibility which makes Offshore funds hesitant to migrate to India
Prescription of minimum remuneration to fund managers is yet another deterring provision
Increase in compliance from Income-tax perspective only swells the burden of dual compliance
Considering the importance and future prospects of the Financial Services Sector, Government needs
to contemplate relaxation of norms for Offshore Fund Management