Page 14 - Banking Finance December 2024

ROUNDUP

GSTAT will be functional
Govt revises norms linked to dividend payment for
by FY25-end: Revenue sec-
PSUs
The Centre unveiled revised guidelines for state-run firms linked to dividend retary
payment, buyback of shares, issue of bonus shares and splitting of shares Revenue Secretary Sanjay Malhotra
and the measures are aimed at creating value in PSUs to maximise returns said the Goods and Services Tax Appel-
for govt and other shareholders. late Tribunal (GSTAT) is in the final
stages of operationalisation and should
The Department of Investment and Public Asset Management (DIPAM) re-
start functioning by the end of this fi-
leased the revised guidelines, amending its earlier 2016 rules, to better
reflect market realities. nancial year. GSTAT is a body set up for
resolving GST-related disputes.
The objectives of the revised guidelines include enhancing value of the CPSE
and total returns for the shareholders, improving performance and efficiency "On the GST side, there have been
of these entities by providing them more operational and financial flexibil- questions about the operationalisation
ity. These are also aimed at enabling CPSEs to play an effective role in eco- of the GST Appellate Tribunal. I would
like to assure you that we are now at
nomic growth of the country and ensure more investors participate in the
the final stages of operationalising the
value creation by CPSEs.
GSTAT. Hopefully, it should start func-
"These guidelines have been done keeping in mind the realities of the mar- tioning and hearing cases by the end
ket and are forward looking. They will also help PSUs to push capex and of this financial year," Malhotra said
provide them flexibility," said Tuhin Kanta Pandey, secretary DIPAM.
during the State Bank of India's (SBI's)
Under the revised guidelines every CPSE would pay a minimum annual divi- annual business and economic con-
dend of 30% of profit after tax (PAT) or 4% of the networth, whichever is clave.
higher subject to the limit, if any, under any extant legal provision. Earlier
In May 2023, Union Finance Minister
the limit was 5% of net worth. Financial sector CPSES like NBFCs may pay a
Nirmala Sitharaman appointed Justice
minimum annual dividend of 30% of PAT subject to the limit.
(Retd) Sanjaya Kumar Mishra as the
President of the GST Appellate Tribu-
said, "I am very sceptical of crypto The move will be applicable with im- nal (GSTAT).
currency. RBI is also very careful on mediate effect, the Securities and Ex-
that. We need to be very careful." change Board of India (Sebi) said in a ICAI's audit quality matu-
Last month, speaking at a conference circular. rity model 2.0 launched
in the United States, RBI Governor Before this, any company that is look- The CA Institute, the world's largest
Shaktikanta Das had said that crypto ing to launch a public issue of equity accounting and audit body, approved
currencies pose huge risks to financial shares has to deposit with the stock the second version of Audit Quality
stability and monetary stability. He exchanges an amount equal to 1 per Maturity Model (AQMM) that would
asserted that such assets may create cent of the issue size. The deposit was be mandatory for audit firms of certain
a situation where the central bank returned to the company after the public interest entities.
could lose control of the money supply public issue.
in the economy. "In order to facilitate ease of doing AQMM 2.0, developed by ICAI's centre
business to issuer company, the re- for audit quality, will be applicable on
firms auditing a listed entity; or banks
SEBI scraps 1% security quirement to deposit 1 per cent of the other than co-operative banks (except
issue size available for subscription to
deposit for public issues the public with the designated stock multistate co-operative banks); or in-
Markets regulator Sebi abolished the exchange by the issuer company un- surance companies.
requirement of a mandatory security der... Sebi (Issue of Capital and Disclo- AQMM v 1.0 , introduced in 2021, was
deposit with the exchanges before a sure Requirements) Regulations, 2018 made mandatory from April 1, 2023 to
public issue in a bid to facilitate ease (ICDR Regulations) has been dispensed the firms auditing a listed entity; or
of doing business for issuer companies. with," Sebi said. banks other than co-operative banks

BANKING FINANCE | DECEMBER | 2024 | 13