Articles and Updates

• Sawant Singh and Aditya Bhargava - 25-04-2017

As part of its ongoing putsch against stress in the banking system, the Reserve Bank of India (RBI) issued guidelines on sale of stressed assets by banks on 1 September. The guidelines continue the RBI's various efforts since 2014 to put in place a regulatory framework to identify and tackle stress in the banking system before loans are classified as non-performing assets (NPAs), and clean up banks' balance sheets. The guidelines are detailed and cover a vast swathe including when stressed assets should be sold, valuation, investment in security receipts by selling banks, and mode of sale (including a right of first refusal to be offered by the selling bank).

• - 21-04-2017

The ghost of retrospective amendments hangs over foreign investors who had made gains from indirect transfers, with added risk of penalty as high as 300 per cent going by the recent Cairn Energy case. This is more so for all those past cases (before Arun Jaitley became Finance Minister) that were entangled in litigation around indirect transfer involving underlying Indian assets. They will now have to live in more uncertainty, especially those that had not opted for the Dire

• - 12-04-2017

Delhi HC reverses ITAT order, deletes disallowance u/s 40A(2) with respect to professional remuneration payment by assessee-company to its Vice President (Marketing) [who is a related party u/s 40A(2)(b)] during AY 2009-10; ITAT had upheld AO's dsallowance of 50% of the payments holding it to be unreasonable and excessive on the ground that he could not perform multiple task for more than one concern;

• Veena Mani - 19-02-2017

It has been more than three years since the ministry of corporate affairs (MCA) had issued the draft rules on valuation of businesses, under the Companies Act, 2013. These are yet to be finalised.

• Veena Mani - 18-02-2017

The MCA came out with draft rules defining evaluator, evaluation process way back in Sept 2013 It has been more than three years since the ministry of corporate affairs (MCA) had issued the draft rules on valuation of businesses, under the Companies Act, 2013. These are yet to be finalised. However, MCA has clarified that Securities and Exchange Board of India (SEBI)-registered merchant bankers and chartered accountants with 10 years of experience will do valuation of shares and debentures until the final rul