Corporate Updates – 26-11-2015


The Securities and Exchange Board of India (SEBI) and the Bangladesh Securities and Exchange Commission (BSEC) signed a Memorandum of Understanding (MoU) on bilateral cooperation and technical assistance at Dhaka, Bangladesh on November 22, 2015. SEBI has been actively engaging with the securities market regulators in the SAARC region and the MoU will further facilitate training and technical assistance program between the two jurisdictions besides strengthening relations. The MoU, inter alia, seeks to promote further development of economic links and cooperation between the two signatories and aims at enhancing investor protection and creating conditions for an effective development of securities markets in the two countries. In the past, SEBI has signed 20 bilateral MoUs with a number of countries. India and Bangladesh both are signatories to the multilateral MoU of International Organization of Securities Commissions (IOSCO).


DVAT Authorities have issued Circular regarding the status of the forms downloaded by the dealers for Central statutory forms/declarations which are mainly required by the dealers for making inter-state purchases at concessional rate or for inward stock transfer. It has been noticed that some dealers are downloading the statutory forms amounting to ‘crores of rupees without showing any sale or stock transfer during the relevant tax period or showing negligible sale and there is a growing tendency of misuse of the facility by unscrupulous persons. It has now been decided that the facility of auto downloading of the forms shall not be available for a tax period in cases where the ratio of purchase and sales, including stock transfer and local transactions falls below 60%. The statutory forms in such cases shall be available for auto-downloading on the basis of sale and purchase of next quarter. It has further been decided that factum of purchase of capital goods shall be kept out of the proposed mechanism which shall be available only to eligible dealers. Further, the dealers who have applied for cancellation of registration or ward officer has issued show cause notice for cancellation or whose registration has been cancelled for any reason, shall not be able to download the forms without the approval of concerned ward officer.

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