Connect with us

Business

225,000 more shell companies come under ministry lens

Avatar

Published

🕒

on

IST

Mumbai :After taking action against 226,000 shell companies last year, the ministry of corporate affairs has now zeroed in on a fresh batch of suspected shell companies.

The government is intensifying its drive against shell companies.

After taking action against 226,000 shell companies last year, the ministry of corporate affairs has now zeroed in on another 225,000 suspected shell companies.

 

The ministry has sent notices to these companies, asking whether they had filed statutory financial returns.

Minister of State for Corporate Affairs P P Chaudhary told Business Standard that companies had been given a chance to respond to the notices.

On the Rs 139-billion Punjab National Bank fraud, Chaudhary said the Serious Fraud Investigation Office was probing 107 companies and seven limited liability partnerships belonging to Nirav Modi’s Firestar Diamond Group and Mehul Choksi’s Gitanjali group.

Though the minister refused to divulge details, most of these entities are suspected to be shell companies with no real businesses. Sources said these entities were used by Nirav and Choksi — the prime accused in the fraud case — to divert the money received from banks.

Chaudhary said the ministry had received a report from the Institute of Chartered Accountants of India on systemic issues that led to the PNB fraud. “We are currently examining it,” he said.

Nirav and Choksi face charges of defrauding PNB in connivance with a few bank employees.

Chaudhary refused to buy the argument that his ministry had gone slow on investigating shell companies after it froze accounts of 226,000 entities. He said the ministry had identified around 225,000 more companies against whom notices had been issued in the second round.

Under the Companies Act, 2013, companies can be struck off the register if they do not file financial returns for a continuous period of three years.

Chaudhary said of the 226,000 companies, bank details of 168,000 had been revealed. Of those, 73,000 companies deposited Rs 240 billion in banks post-demonetisation. Bank details of 58,000 companies have not been revealed yet. Sixty-eight shell firms were being probed, including 19 by the SFIO, the minister said.

Chaudhary also talked about a panel’s recommendations on the Insolvency and Bankruptcy Code.


Advertisement
Loading...
Comments

Business

India second most optimistic globally about executive job market in 2019: Survey

Agencies

Published

on

Mumbai: Senior management leaders in India are optimistic about growth of executive jobs in 2019, only second to Brazil. According to the 2019 BlueSteps Executive Career Outlook report, nearly 57 percent of India’s senior executives believe that there will be stellar growth in job market opportunities as compared with 2018 levels.

In Brazil, 72 percent leaders are positive of growth. India is followed by Africa at 54 percent and France at 40 percent. The results are based on a survey of over 1,400 senior executives worldwide.

Globally, optimism levels for executives about senior management jobs market dropped considerably as against their strong outlook at the beginning of 2018. “This indicates that while the decrease in optimism does reflect an overall concern in the marketplace, the change may be more of a reflection of how strong last year’s market was instead,” the report said.

 

Nearly a third of the respondents cite strong economic growth and business environment as a reason for their optimism. India topped the list with respect to economy forecast for 2019, where 57 percent respondents believed in the pace of the country’s growth.

Brazil trailed with 56 percent leaders expecting growth. Leaders of the eastern European countries, the UK and Ireland were pessimistic about their economy.

The technology sector is expected to have the strongest growth at the executive level in 2019, with 70 percent of all survey respondents believing there will be robust growth in the industry.

Continue Reading

Business

Traders’ body slams Rahul’s statement on abolishing GST

Agencies

Published

on

New Delhi: Traders’ body CAIT criticised Congress President Rahul Gandhi’s statement of abolishing GST if voted to power, saying he does not have a blueprint of any alternative tax structure.

The attempt of Gandhi for seeking political mileage making traders a scapegoat is deeply regretted and vehemently opposed by CAIT, the Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal said.

He said Rahul Gandhi should not do any politics using shoulders of the traders else traders are capable to give a fitting reply in forthcoming elections.

 

CAIT secretary general said Gandhi is opposing the GST “whereas he does not have a blueprint of any alternate tax structure”.

Khandelwal demanded Gandhi should speak out the plans and programmes thought by the Congress party for traders and added that there must be a blueprint of alternative tax structure before abolishing GST.

While addressing a traders’ conference in New Delhi, he said the Congress has ruled the country for a long time and in such a long tenure, the trading community was never on a priority of the government or for the Congress party.

In reference to forthcoming elections, Khandelwal claimed almost 7 crore traders across the country have now converted into a vote bank due to a two-month national campaign of the CAIT under the slogan “One Nation-One Trader-Ten Votes”.

The CAIT would shortly release a National Charter of Traders carrying core issues of the trading community and whoever political party gives a logical road map of solutions, the traders will vote for that party as one unit across the country, Khandelwal said.

Continue Reading

Business

NSE eyes 350-375 tonnes of domestically refined gold market for derivatives

Agencies

Published

on

Mumbai: With over 350-375 tonnes of the domestically refined gold market still away from the organised trading platforms in India, the National Stock Exchange of India (NSE) has decided to accept it as good delivery on its derivatives platform. So far, only London Bullion Market Association recognised bullion is accepted as good delivery on the exchange platform.

NSE has initiated a move to decide India good delivery norms for gold including sourcing norms for gold refined and unrefined (dore). The process of finalizing new norms and implementing is expected to take two months.

These are significant as in last few years Indian bullion refineries’ business has increased and in 2018 domestically refined gold contributed from dore and recycled gold to half (350-375 tonnes) of the domestic gold demand. However, on gold futures exchanges this gold cannot be delivered. This means domestic refineries have limited access to hedge their future production on exchange platform as they can’t deliver gold the refine on exchange platform.

 

India’s domestic physical gold demand is 600 tonnes for jewellery and 160-175 tonnes of investment demand, according to the World Gold Council 2018 data. 275 tonnes of gold was supplied by Indian gold refineries and 87 tonnes of gold was derived from scrap or recycled gold. Indian metal companies also derive gold from ores of other metals during the process of refining them. This was 8.6 tonnes. All these can now be deliverable on the futures market once India goods delivery norms are in place.

At present, only MMTC-Pamps refines gold, which is LBMA standard and eligible to be delivered on Indian exchanges.

NSE’s move will help this domestically refined gold deliverable on its futures exchange where gold is already traded. At present, MCX and BSE accept gold to be delivered in futures, which is as per LBMA good gold delivery standards. NSE spokesperson said that “we are developing India good delivery standards and they will be largely in sync with LBMA and BIS norms.” 20 plus Indian bullion refineries that are registered with Bureau of India Standards have applied to NSE and six have been approved. International agency Alex Stewart, which provides inspection and analytical laboratory services, is studying the processes of these refineries and giving their score.

Even a domestic laboratory is also looking at the same and expected to give its report on processes of refineries that it has studied.

Sourcing of dore or unrefined gold is a big controversy globally and there was always a question on mines which are producing it whether the mine is using the funds for illegitimate activities or not. Globally OECD has developed norms to avoid such gold and Indian industry has been working for the same. However, NSE spokesperson said that “the exchange’s India good delivery norms for gold will accommodate norms to verify legitimate sourcing of gold dore by Indian refineries.”

The sourcing norms will also include norms for sourcing domestic gold for recycling where the gold provider will have to give an undertaking that no money laundering etc involved for the gold he is giving for recycling.

Continue Reading

Latest News

Subscribe to The Kashmir Monitor via Email

Enter your email address to subscribe to The Kashmir Monitor and receive notifications of new stories by email.

Join 1,001,184 other subscribers

Archives

March 2019
M T W T F S S
« Feb    
 123
45678910
11121314151617
18192021222324
25262728293031
Advertisement