Page 13 - Banking Finance December 2016

ROUNDUP

BSE enhances supervisory framework for brokers I-T raids on jewellers,

Leading stock exchange BSE has issued detailed guidelines for monitoring the hawala rings
financial strength of stock brokers as well as detect any
misutilisation of clients' funds. The income tax department carried
out raids
In order to monitor clients' funds lying with brokers, across the
BSE has asked them to submit information, about ag- country af-
gregate fund balances available in all client bank ac- ter finding
counts, including the settlement account, maintained out that
by them across stock exchanges, on last trading day of every week to it. many jew-
BSE said that as and when securities are pledged, stock brokers will have to send a ellers and bullion traders were ac-
statement reflecting the pledge and funding to the clients in a prescribed format. cepting large number of
demonetised Rs 500 and Rs 1,000
PMGKY to get rid of black money after IDS notes at a premium of up to 40%
from people with alleged unac-
Finance Minister Arun Jaitley has recently introduced a Taxation Laws (Second
Amendment) Bill in Lok Sabha, which proposes a new vol- counted cash and then selling them
bullion and jewellery.
untary disclosure and investment scheme, named Pradhan
Mantri Garib Kalyan Yojana (PMGKY) 2016. The raids were conducted on jewel-
lers and bullion traders at Delhi,
Revenue Secretary Hasmukh Adhia said the new propos- Chandigarh, Ludhiana, Kolkata and
als will impose an unaffordable cost on undisclosed in- Jalandhar. Two big hawala operators
comes. He has urged the people with unaccounted incomes to pay the tax and were raided in Mumbai.
penalty or use the PMGKY route. He added, "Use this scheme now as the gov-
ernment may take more steps against black money later." However, I-T officers were yet to find
out where these old currency notes
Adhia said the Income Tax Department will not ask for the source of funds de- will be stashed and how they can be
posited in banks from November 10 if the entire income is offered to tax and 50 monetised considering they are no
per cent tax is paid on it. The disclosures will enjoy immunity from wealth tax, more legal tender.
civil and other taxation laws, but there will be no immunity from Prevention of
Money Laundering Act, FEMA, benami laws and black money Act. Aadhaar data to be re-
G Ramaswamy, former CA Institute President, said, "This will be an opportunity tained by Govt for 7
to pay tax on unexplained cash on hand. The special window should be fully years
utilised.
The government will keep for seven
DIPP announces Uttar Pradesh as India's top mobile years a record of all the services and
benefits availed
manufacturer using the

Uttar Pradesh has emerged as mobile manufacturing hub in the country account- Aadhaar num-
ing for around half of mobile devices production capacity ber, prompting
in the country, as per a report released by the Depart- fears that the da-
ment of Industrial Policy and Promotion. tabase could be used for surveillance.

"38 new mobile manufacturing units with over 20 million UIDAI chief executive officer ABP
units per month capacity have been set up since Septem- Pandey said every time a person finger-
ber 2015. These units have generated 38,300 employment opportunities," the prints and quotes the Aadhaar number,
report said. the agency concerned sends the data
to UIDAI to crosscheck the particulars.
UP alone houses 13 of 38 mobile manufacturing units established in the country.
The authority will retain the informa-
Delhi follows up with 6 mobile manufacturing units, Andhra Pradesh 4 units,
Haryana and Uttarakhand 3 each, Maharashtra 2, Telangana 2, 1 each in Jammu tion online for two years and another
and Kashmir, Himachal Pradesh, Tamil Nadu, West Bengal and Daman. five years in the offline archives.

BANKING FINANCE | DECEMBER | 2016 | 13

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