Abhishek Securities

In a fresh boost to startups, the government on Thursday inserted an amendment to the Finance Bill to provide for capital gains tax exemption if shares of an unlisted company were held for more than two years. Currently, there is no capital gains tax on share transactions in listed companies if those stocks are held for 12 months. But shares of unlisted entities face capital gains tax of 20% even after three years. The tax treatment has been a major area of concern for international investors, several of whom are pumping billions into Indian companies. And, the move is expected to spur M&As. The amendment was introduced as finance minister Arun Jaitley introduced other ones to the Bill, which was later cleared by the Lok Sabha. Most of the other amendments were in the nature of clarifications. For instance, buyers will have to pay 1% tax on cars which cost over Rs 10 lakh, which will be collected by the seller. This, officials said, was a clarification, although the move is mea...

As per Income Tax Law, Income earned from Sale of shares could be held as either Business Income or capital gains depending upon the facts of the case which had led to a lot of litigation over the years. The disputes persisted as assesses were finding it difficult to prove the intent of acquiring these shares. In order to avoid disputes and take a consistent view in assessments of such income, CBDT has decided that income arising from transfer of unlisted shares would be considered under the head ‘Capital Gain’. It may be noted that a similar instruction had earlier been issued by CBDT regarding tax treatment of investment in listed shares but this instruction for unlisted companies is more beneficial as the requirement of period of holding has also been dispensed with. It is however, clarified that this would not be necessarily applied in 3 situations where: i. The genuineness of transactions in unlisted shares itself is questionable; or ii. The transfer of unlisted shares is ...

A meeting of the Parliamentary Consultative Committee attached to the Ministry of Steel and Mines was held in New Delhi on 10-5-2016 for reviewing the functioning of HCL and MSTC Ltd. Presided over by the Minister of Steel and Mines Shri Narendra Singh tomar, the meeting reviewed the progress achieved in the field of Copper by the Hindustan Copper Limited HCL and the challenges and opportunities in Copper Sector in India. The meeting also reviewed the functioning of the revamped MSTC limited and its role in the E-Auctioning and E-Tendering processes in the Government and Public Sector Organisations. The Union Steel & Mines Minister Shri Narendra Singh Tomar chairing the meeting said that the two organizations have shown a high growth in their respective fields and are contributing hugely in the "Make in India" and "Digital India" programmes oh the NDA government. There is a huge potential for both these organisations to make more contribution towards growth in ...

Tata is one of the largest companies in India and stretches into just about every industry … cars, heavy trucks, metal supply, technology, consulting … even cell service, to name a few. From the looks of it, Tata is interested in stretching its wings (and the business) into the US, as subsidiary Tata Technologies has announced the opening of a new “innovation lab” in the renowned tech hub Silicon Valley in Northern California. Silicon Valley has been a hub for innovation on the ‘net and in technology for the last ~30 years or more, and over the last few years, has become a hub for integrating that technology into cars with Tesla, Ford, BMW, Mercedes, VW, Nissan, and others having local offices there with similar goals of harnessing the technological innovation of the Valley for integration into vehicles. Technology in cars used to be as simple as the standalone infotainment system, which, over time, evolved into GPS and navigation, then into the actual brains of the car,...

Mahindra Intertrade Ltd., apart of the USD 16.9 billion Mahindra Group, has signed a Memorandum of Understanding (MoU) with MSTC Ltd. (a Government of India enterprise formerly known as Metal Scrap Trading Corporation Limited). The MoU will see the companies undertake a joint initiative to set up India’s first auto shredding facility. The MoU was signed under the aegis of the Honorable Minister of Steel and Mines, Shri Narendra Singh Tomarji. Sandip Ginodia , Director   ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

The Securities and Exchange Board of India (Sebi) has provided a conditional go-ahead for the Initial Public Offer (IPO) of equity in RBL Bank (formerly Ratnakar Bank). According to people in the know, the market regulator has asked the private sector lender to offer an optional exit opportunity to its existing investors. This is because RBL has been in breach of the ‘deemed public issue’ norm in the Companies Act. From RBL’s draft prospectus, it had allotted shares through a rights issue to 2,591 investors on February 19, 2003, and to 1,969 investors on March 13, 2006. Under the earlier Companies Act of 1956, an unlisted company wasn’t allowed to allot securities to more than 49 investors in a financial year. The new Companies Act, of 2013, raised the cap to 200 investors but even with the revised norms, the number is well in excess of the limit. “Sebi has given a nod if the buyback conditions are met,” said a banker working on the IPO. The buyback process is likely to take another ...

RBL, formerly known as Ratnakar Bank, recently announced the launch of an  exclusive branch for the startups  in Bangalore. With this, the team aims to assist the entrepreneurs in setting new companies and help them in understanding tax and legal compliance through partners. Also, they would be provided with banking products including foreign exchange services, remittances, cash management, and others. The branch was inaugurated by Nandan Nilekani, former chairman of Unique Identification Authority of India. As per Rajeev Ahuja, Head – Strategy, this is not merely a branch where a startup entrepreneur will walk up and ask for a current account or a remittance. Sandip Ginodia , Director   ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

HDFC  Life has signed a corporate agency agreement with Indiabulls Housing Finance, leading private housing finance company, to distribute individual insurance products. Under this new tie up, Indiabulls Housing will distribute HDFC Life's individual life, health and pension products to its customers across India, the private insurer said today in a release issued here.

AT&T, Otis partner on Internet of Things services * AT&T has tied up with Otis Elevator Company to enhance connectivity through the use of Internet of Things (IoT) products - services and technologies that employ digital technologies to better connect with customers and with elevator, escalator and moving walkway equipment.  As part of this collaboration, AT&T and Otis, a unit of United Technologies Corp, are expanding their long-standing relationship to develop the connectivity to support advanced elevators while also providing mobility to over 30,000 service employees at Otis companies worldwide, the company said in a statement. Sandip Ginodia , Director ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

Gujarat NRE Coke has informed that with reference to the Scheme of Amalgamation of NRE Metcoke Limited and Bajrang Bali Coke Industries Limited (Transferor Companies) with the Company i.e. Gujarat NRE Coke Limited (Transferee Company), approved by the Hon’ble High Court at Calcutta on January 21, 2016, the Company has now filed High Court’s Order with the Ministry of Corporate Affairs on March 16, 2016. On filing of the said order the Scheme of Amalgamation has become effective with effect from April 01, 2014 (Appointed Date). The above information is a part of company’s filings submitted to BSE.

B B Singh has been appointed as Chairman-cum-Managing Director (CMD), MSTC Limited,  a mini-ratna public sector undertaking under the Ministry of Steel, involved in importing bulk raw material for various industries, Bureaucracy Today has learnt.    At present Singh is Director (Commercial), MSTC.    The Appointments Committee of the Cabinet (ACC) has approved appointment of Singh as CMD, MSTC Ltd for a period of five years from the date of his assumption of charge of the post on or after June 1, 2016, an order issued by the Department of Personnel and Training said.    He will take charge from SK Tripathi, who completes his tenure at the end of May. 

Long-term capital gains on sale of listed shares has now been exempt from tax for more than 10 years, since it was implemented in October 2004. The exemption applies in cases where the Securities Transaction Tax (STT) has been paid, and therefore effectively applies to all transactions of sale of listed shares on a recognised stock exchange. In recent years, the scope of the exemption has been effectively extended to a couple of more types of transactions, not by amending the provision governing the exemption, but by bringing the transactions within the net of STT. One such type of transaction is the public offer for sale of shares. A public offer could be of two types (or a combination of these two)—one, an offer where the company issues shares to the public by allotting new shares, and second, an offer made by the existing shareholders of the company (which may be promoters, venture capital funds, private equity funds, or others) to the public of existing shares held by them in ...

At present, listed shares enjoy concessional tax treatment both in terms of holding period and the tax rate, while they, unlike other asset classes, are subjected to the STT. The tax on capital gains on equity shares held in a company listed on a recognised stock exchange and equity-oriented mutual funds is zero if the stock is held for more than 12 months, while gains made in a shorter period would attract 15% tax. However, in the case of unlisted shares, the tax rate is 20% (with indexation) if held for more than 36 months (considered as long-term) and 30% for domestic companies and 40% for foreign companies for holdings less than three years. “The need of the hour is encourage investments into companies (whether listed or unlisted) to meet the capital needs of the aspirational programmes of the government. A contrarian approach would be to bring in parity between listed and unlisted companies and reduce the (long-term period) for unlisted companies from 36 to 12 months, at...

Bharti Telecom Ltd is planning to raise its stake in Bharti Airtel to over 50 per cent through open market purchases, according to reports. Report says that the company intended to acquire stake from Indian Continental Investment Ltd (ICIL) that owns 6.65% stake in Bharti Airtel.  Bharti Airtel Ltd ended at Rs. 324, up by Rs. 3 or 0.93% from its previous closing of Rs. 321 on the BSE. The scrip opened at Rs. 322 and touched a high and low of Rs. 325.3 and Rs. 318.6 respectively. A total of 2492777(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 129515.76 crore. The BSE group 'A' stock of face value Rs. 5 touched a 52 week high of Rs. 452.45 on 21-Jul-2015 and a 52 week low of Rs. 282.3 on 29-Jan-2016. Last one week high and low of the scrip stood at Rs. 334.8 and Rs. 316.15 respectively. The promoters holding in the company stood at 65.62 % while Institutions and Non-Institutions held 25.4 % and 8.93 %. Sandi...

Otis Elevator Company (India) has finalised an agreement with Mantri Developers to provide more than 1,000 elevator and escalator units for the builder's residential, commercial, retail and villa projects over the next few years.  Otis India is a unit of United Technologies Corp. It has the largest elevator and escalator service network in the country, covering about 300 cities and towns with its 80-odd centres.  "Mantri is a well-respected, future-focused developer and we are delighted with this agreement," said Sebi Joseph, president, Otis India. "At Otis, we find that working with the customer allows us to offer solutions that positively impact their business."  In a move to strengthen its presence in the country, Otis India last year announced the expansion of its Bengaluru manufacturing facility, where most units for the Mantri projects will be made. The Bengaluru factory supports Otis focus on local innovation and continued investment in manufacturin...

The Competition Commission of India (CCI) has approved the proposed merger of Sistema Shyam Ltd's operations into Reliance Communications, paving way for the first major consolidation in the intensely competitive sector since 2009. ET had first reported in May last year, that RCom was in talks with SSTL for a possible takeover in an all-stock deal, worth around Rs 4,500-5,000 crore that could give the latter's shareholders a stake of around 10 per cent in the merged entity. Prior to the approval, the Bombay High Court has admitted an application seeking a merger between RCom and SSTL, the telecom unit of Russia's Sistema JSFC, after which the the court had asked RCom to convene a meeting of shareholders on March 8. The deal will give India's fourth-largest carrier access to airwaves in the 850 Mhz band which can be used for 4G services that it plans to start later this year. Moreover, it will be able to extend the validity of its licenses by 12 years in eight high rev...

Thrissur-based Catholic Syrian Bank (CSB), though not a listed bank, reported a net loss of Rs 53 crore in fiscal 2014-15 on a total income of Rs 1,672 crore and capital adequacy ratio of 11 per cent. In the first half of 2015-16, CSB reported a net loss of Rs 41 crore on total income of Rs 814 crore.  It seems that the bad loans of Kerala-based banks have increased significantly over the years. According to latest data, listed banks based in Kerala have total non-performing assets (NPAs) worth Rs 6,024.14 crore. As at December 31, 2014, the value of bad loans was Rs 5,649.27 crore, compared to Rs 5,364 crore recorded on December 31, 2013. Sandip Ginodia , Director   ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com