A. SEBI UPDATES: SEBI introduced an Investor Charter for KYC Registration Agencies (KRAs) to enhance investor awareness regarding services provided by KRAs, rights of investors, and grievance redressal mechanisms. Change: SEBI has amended Regulation 17(a) for Category II AIFs. Now, If a Category II AIF invests in listed debt securities ...

(A) SEBI UPDATES: Responsibility of regulated entities in use of AI tools: SEBI has made it mandatory for all regulated entities to take full accountability when using AI tools, including handling data responsibility and ensuring legal compliance. Extension of Demat Compliance Timelines for AIFs: SEBI has extended the timeline for ...

(A) SEBI UPDATES: 1) Matters related to Alternative Investment Funds (AIFs)/Venture Capital Funds (VCFs) approved by the SEBI in its board meetings: SEBI has approved borrowing for Category I and II AIFs for up to 30 days to address temporary shortfalls in investor drawdowns during investments. The cost of borrowing ...

A. SEBI UPDATES: 1) Matters related to Alternative Investment Funds (AIFs)/Venture Capital Funds (VCFs) approved by the SEBI in its board meetings: SEBI has approved borrowing for Category I and II AIFs for up to 30 days to address temporary shortfalls in investor drawdowns during investments. The cost of borrowing ...

(A) SEBI UPDATES 1) Matters related to Alternative Investment Funds (AIFs)/Venture Capital Funds (VCFs) approved by the SEBI in its board meetings: a) AIFs are given flexibility to manage unliquidated investments beyond the expiry of a scheme's tenure by allowing these investments to continue during a Dissolution Period, in place ...

(A) SEBI UPDATES 1)  SEBI Circulars: (a) Issuance of units of AIF in dematerialised form All schemes of AIFs, other than a scheme whose initial tenure (without extension) ends on or before April 30, 2024, to dematerialize their units as per the below time frame: Particulars Schemes of AIFs with ...

(A) SEBI UPDATES 1)  Key amendments to SEBI (AIF) Regulations, 2012: Key investment team requirement (effective date to be notified by SEBI): Key investment team of the Manager should have at least one key personnel with relevant certification as may be specified by SEBI. Such certification to be renewed before ...

A. SEBI UPDATES: 1) Key amendments to SEBI (AIF) Regulations, 2012: SEBI Press Release dated March 29, 2023 a) Valuation of investment portfolios of an AIF: In order to have consistent and standardised approach for valuation of investment portfolios of AIFs, SEBI has approved proposals to specify: The necessary framework required by an AIF to carry out the ...

(A) SEBI Updates 1) Amendments to SEBI (AIF) Regulations, 2012 Timeline and minimum corpus for declaring First Close of a scheme of an AIF to be prescribed Tenure of close ended schemes of AIFs shall now be calculated from date of declaration of First Close Change in manager/sponsor shall now ...

1. TAXATION Extension of time limits of certain compliances May 20, 2021: CBDT : CBDT has decided to extend the time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic. Amendments and addition to Income Tax Rules, 1962 May 4, 2021: CBDT : CBDT ...

1) Introduction of Special Situation Fund AIF (SSF AIF): 'SSF' has been defined to mean a Category I AIF that invests in special situation assets in accordance with its investment objectives and may act as a resolution applicant under the Insolvency and Bankruptcy Code, 2016 (IBC). Stressed Assets to included ...

A. TAXATION New  Form 26AS is the Faceless hand-holding of the Taxpayers July  18, 2020: CBDT :The new Form 26AS  is the faceless  hand-holding  of the taxpayers  to  e-file their income tax returns quickly and correctly. From the current AY, taxpayers will see an improved Form 26AS which would carry ...

A. TAXATION PROPOSED DIRECT TAX CHANGES Tax Rate and Residency • Tax rate for income up to INR 15 lakh for individuals and HUFs reduced if they do not avail of specified exemptions/ deductions • Residency rules for individual amended as under: – Indian citizens or PIOs on visits to ...

Key Income-Tax Updates Clarification regarding tax ability of income earned by a non-resident investor from off-shore investments routed through an Alternate Investment Fund July 3, 2019: CBDT: As section 115UB(1) of the Income-tax Act, 1961 (the Act) provides that the investments made by Category I or Category II AIFs are deemed ...

A. Key Income-Tax Updates 1. Angel Tax exemption January 31, 2019 : CBDT: ‘Angel tax’ exemption granted vide notification dated May 24, 2018 has modified pursuant to revised DIPP notification dated January 16, 2019. As per the modified notification, provisions of Sec. 56(2)(viib) of the Act shall not apply to ...

A. TAX UPDATES In this quarter, angel tax has been the topic of attention for the startup ecosystem. The following two changes are worth reporting: V. No coercive measures on startups to recover demand w.r.t additions u/s 56(2)(viib), directs CBDT. January 02, 2019: CBDT: CBDT directs AOs not to take coercive action ...

A. TAX UPDATES 1) Applicability of Section 56(2)(viib) in case of start-ups On February 06, 2018: CBDT: An instruction issued stating that, in cases of start-up Companies (as per the DIPP definition), no coercive measure would be taken by the Assessing Officer to recover the outstanding demand for additions made under ...

A. TAX UPDATES Union Cabinet approves DTAA with Hong Kong On November 10, 2017, Union Cabinet approves entering into an Agreement between India and the Hong Kong Special Administrative Region (‘HKSAR’) of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income (‘DTAA’).The ...

A. TAX UPDATES CBDT clarification on taxability of income/loss arising from transfer of unlisted shares – removal of exception for AIFs I and II CBDT had clarified that where any income arises from transfer of unlisted shares the same would be considered under the head “Capital Gains” irrespective of the ...

A. TAX UPDATES 1) Change in Corporate Tax Rates Corporate Tax Rate reduced to 25% for existing domestic companies with turnover or gross receipts in FY 2015-16 =< INR 50 crores; 2) Scope of Tax on Dividend in the hands of recipient Existing tax on dividend in excess of INR ...

A. TAX UPDATES 1) Central Board of Direct Taxes (CBDT) notifies final Buy Back Distribution tax rules The buy-back of shares (both equity / preference shares) by an unlisted company is subject to buy-back distribution tax (‘Buyback Tax’) at the rate of 23.072% in the hands of the said company ...

A. TAX UPDATES 1) Finance Act, 2016 Distribution of non-business income by an Alternative Investment Fund (‘AIF) to a non-resident would be subject to withholding tax as per rates in force (beneficial tax treaty rate should be available). Further, it has been clarified that no withholding shall be made in ...

A) FOREIGN INVESTMENT IN AIF (Notification No. FEMA.355/2015-RB) Non-residents including FPIs and NRIs permitted to invest in units of inter-alia, SEBI registered AIFs under the Automatic Route Downstream investment by AIF to be regarded as foreign investment if neither Sponsor nor Investment Manager of the said AIF is Indian “owned ...

A) VCFs like YourNest permitted to invest upto 25% vs 10% in offshore startups. Guidelines on overseas investments for AIFs/VCFs circular dated October 1, 2015 (CIR/IMD/DF/7/2015) issued by SEBI as under: Key changes with respect to overseas investment by VCFs VCFs are, from the date of this circular, permitted to ...

1) Regulatory GAAR: Applicability deferred to FY 2017-18 onwards. Exits made before March 31, 2017 won’t attract GAAR. All investments made upto March 31, 2017 will be protected from applicability of GAAR by amendment to be made in Income tax rules (to be notified). Permanent Establishment Safe Harbour- Fund management activity undertaken ...

1) Regulatory Indian company permitted to issue partly paid shares and warrants to the FDI Investors under Automatic Route. In case of unlisted companies, pricing methodology to determine fair value of shares in case of issue and transfers has been revised. Fair value should be determined as per internationally accepted ...

Regulatory Foreign Direct Investment (FDI) in India – issue / transfer of shares or convertible debentures – revised pricing guidelines The RBI has issued A. P. (DIR Series) Circular No. 4 dated 15 July 2014, whereby the extant pricing guidelines in respect of transfer / issue of shares and for ...

Regulatory: Guidelines on disclosures, reporting and clarifications under AIF Regulations (Circular dated June 19, 2014 CIR/IMD/DF/14/2014) Regulatory: SEBI’s draft proposals for crowd funding may restrict it to accredited investors, allow crowd fund AIFs Securities market regulator Securities & Exchange Board of India (SEBI) has come up with draft proposals which ...

Unlisted Indian Companies allowed to list and raise capital abroad At present, unlisted companies incorporated in India are not allowed to directly list in overseas markets without prior or simultaneous listing in Indian markets. It has now been decided that unlisted companies be allowed to raise capital abroad without the ...

Regulatory 1) The Securities and Exchange Board of India (‘SEBI’) updates regulation in relation to Alternative Investment Fund (“AIF”) and notifies regulation for “Angel Fund”. With an aim to encourage entrepreneurship in the country by financing small start-ups, SEBI, vide its notification dated 16 September 2013, amended AIF Regulations to ...

SEBI (Investment Advisers) Regulations, 2013 The Securities and Exchange Board of India (“SEBI”) issued the SEBI (Investment Advisers) Regulations, 2013 vide notification dated 21 January, 2013. It is applicable on Every person providing investment advice to any person for consideration (including non-cash benefit) would be required to obtain registration under ...

Highlights of Planning Commission report August, 2012

New SEBI Guidelines: SEBI (Alternate Investment Funds) Regulations 2012 Tax Implication for Venture Capital Funds – Union Budget 2012