Page 16 - Banking Finance December 2020

ROUNDUP

Provision has also been made in the transferred securities to respective cli- million. The interest rate will vary from
rules regarding gratuity to an em- ents, invoked bank guarantees depos- 0.07% to 0.82% across different
ployee who is on fixed-term employ- ited with clearing corporations and liq- tranches. This will be the lowest rates
ment. The rules also provide for single uidated securities held by Karvy Group. of interest on any loan given to an in-
electronic registration of an establish-
"While disciplinary proceedings are frastructure project in India by a bilat-
ment, including cancellation of the
underway, funds and securities of ap- eral or multilateral funding agency.
registration in case of closure of busi-
proximately Rs. 2,300 crore belonging Metro Line 4 from Wadala to
ness activities. Provision has also been
to about 2,35,000 investors have been
made for the manner and conditions Kasarvadavali and Line 4A from
settled so far, with efforts focussed on
for exiting an establishment from EPFO settlement of small investors. Investors Kasarvadavali to Gaimukh will connect
and ESIC coverage, it said. with fund balances up to Rs. 30,000 the island city to the northern suburb
The procedure for self-assessment and due from Karvy Stock Broking Ltd have of Thane. This is part of the Mumbai
payment of cess in respect of BOCW been settled," NSE said. Metropolitan Region Development
has been specified in the rules. For the SEBI had found that Karvy misused the Authority's plan to build a 337-km
purpose of self-assessment, the em- metro rail network. At present, 118 km
power of attorney (PoA) given to it by
ployer shall calculate the cost of con- of metro lines are in various stages of
its clients for buying and selling of
struction as per the rates specified by shares. construction, while 11km is opera-
the State Public Works Department or tional.
Central Public Works Department or on Instead, SEBI alleged that Karvy had
the basis of return or documents sub- used the PoA to divert client shares Foreign entities must have
into its demat account and further
mitted to the Real Estate Regulatory
Authority, the statement said. pledged those shares to avail itself of PAN for paying equalisation
loan.
The rate of interest for delayed pay- levy: CBDT
As an immediate reaction, SEBI had
ment of such cess has been reduced Foreign entities operating e-com-
asked Karvy to reverse the pledged
from 2 per cent every month or part merce platforms in India or having ac-
of a month to 1 per cent. shares.
cess to Indian market will be mandated
NSE settles claims worth India gets mega infra loan to have permanent account numbers
(PAN) for paying up equalisation levy.
Rs. 2,300 cr of 2.35 lakh from Germany
"An e-commerce operator will be a
investors German development bank KfW has "non-resident who owns, operates or
approved a loan of €545 million to the
The National Stock Exchange has said manages digital or electronic facility or
that it has settled claims worth Rs. Union finance ministry to fund platform for online sale of goods or
2,300 crore of nearly 2.35 lakh Karvy Mumbai's Metro Line 4 and Line 4A, to online provision of services or both,"
Stock Broking Ltd investors. Investors expand the mass rapid transit system the CBDT said in the notification is-
with fund balances up to Rs. 30,000 of the largest metro railway network sued.
due from Karvy have been settled, the worldwide.
NSE said. The pact was signed after a year of Foreign entities such as Amazon (glo-
bal operations), Netflix, Airbnb,
On November 22, 2019, market regu- negotiations with the agency. It is Coursera, LinkedIn and others that of-
lator SEBI had banned Karvy for default KfW's single largest credit line to an
fer services in India from outside the
on client dues worth more than Rs. infrastructure project in India. country are covered by the levy and
2,000 crore.
The credit package from the German will need to comply with the new rules
Karvy Stock Broking Ltd was disabled Federal Ministry for Economic Coop- that also include ecommerce opera-
(trading rights withdrawn) on Decem- eration and Development (BMZ)-KfW tors. Entities established in India under
ber 2, 2019, the NSE said. consists of a development loan of €345 the Companies Act are exempt and so
The exchange has now said that it has million and a promotional loan of €200 are those with gross receipts below

16 | 2020 | DECEMBER | BANKING FINANCE