Corporate Updates – 23-11-2015


RBI has notified the Directions relating to Prior Approval for acquisition of shares or voting rights in Private Sector Banks, which shall be called the Reserve Bank of India (Prior approval for acquisition of shares or voting rights in private sector banks) Directions,2015. The provisions of these Directions shall apply to the existing and proposed “major shareholders” of the Private Sector Banks and all Private Sector Banks including Local Area Banks, licensed to operate in India by Reserve Bank of India. Every person who intends to make an acquisition / make an agreement for acquisition which will / is likely to take the aggregate holding of such person together with shares / voting rights / compulsorily convertible debentures / bonds held by him, his relatives, associate enterprises and persons acting in concert with him, to 5 per cent or more of the paid-up share capital of the concerned bank or entitles him to exercise 5 per cent or more of the total voting rights of the concerned bank, shall seek prior approval of the Reserve Bank in the manner specified in Chapter III and IV of these directions.


The Finance Minister’s in his Budget announcement has indicated that the rate of corporate tax will be reduced from 30% to 25% over the next four years along with corresponding phasing out of exemptions and deductions. The Government now proposes to implement the said decision in the following manner: Profit linked, investment linked and area based deductions will be phased out for both corporate and non-corporate tax payers. The provisions having a sunset date will not be modified to advance the sunset date. Similarly the sunset dates provided in the Act will not be extended. In case of tax incentives with no terminal date, a sunset date of 31.03.2017 will be provided either for commencement of the activity or for claim of benefit depending upon the structure of the relevant provisions of the Act. There will be no weighted deduction with effect from 01.04.2017. Comments on this proposal may be sent within 15 days to Director (TPL-III).

Speak Your Mind