CBDT:
The CBDT has clarified the applicability of a new section 269ST which has been inserted in the Income-tax Act, 1961 (the Act) vide Finance Act, 2017 on Non Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) w.r.t repayment of loan. The said section inter-alia prohibits receipt of an amount of two lakh rupees or more by a person, in the circumstances specified therein, through modes other than by way of an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account. Penal provisions have also been introduced by way of a new section 271DA, which provides that if a person receives any amount in contravention to the provisions of section 269ST, it shall be liable to pay penalty of a sum equal to the amount of such receipt. It is clarified that in respect of receipt in the nature of repayment of loan by NBFCs or HFCs, the receipt of one installment of loan repayment in respect of a loan shall constitute a ‘single transaction’ as specified in clause (b) of section 269ST of the Act and all the installments paid for a loan shall not be aggregated for the purposes of determining applicability of the provisions section 269ST.
SEBI
SEBI has issued a Circular relating to Investments by FPIs in Government Securities. It has been decided to revise the limit for investment by FPIs in Government Securities, for the July –September 2017 quarter. Limit for FPIs in Central Government securities shall be enhanced to INR 187,700 Cr. Limit for Long Term FPIs (Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks) in Central Government securities shall be revised to INR 54,300 Cr. The debt limit category of State Development Loans (SDL) shall henceforth have two sub-categories, namely, SDL-General and SDL-Long Term. SDL-General shall be available for investment on tap for all categories of FPIs while SDL-Long Term shall be available for investment on tap for only Long Term FPIs. The limit for investment by all FPIs in SDL-General shall be INR 28,500 Cr while that for SDL-Long Term shall be INR 4,600 Cr.
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