Investor Issues
NSE cuts STT rate in capital markets segment from 1st June
The revision is as per the Finance Act 2013, which received Presidential assent on 10th May
Leading bourse NSE (National Stock Exchange) today said it will reduce securities transaction tax (STT) in the capital market segments from 1st June.
The revision is as per the Finance Act 2013, which received Presidential assent on 10th May.
Introduced in 2004, STT is levied on the sale and purchase of equities.
In the case of sale of securities in futures segment, the tax has been revised downward to 0.01%, from 0.017%.
“We would like to inform you that as per the Finance Act 2013, which received the Presidential assent on 10 May 2013, rates of levy of STT with effect from 1 June 2013, are revised,” NSE (National Stock Exchange) said in a circular.
Regarding the sale of a unit of an equity oriented fund, where the transaction is entered into on a recognised bourse and the contract for the sale of such share is settled by the actual delivery or transfer of such share, STT has been revised downward from 0.1% to 0.001%.
In case of purchase of a unit of an equity oriented fund, where the transaction is entered into in a recognised stock exchange and the contract for the purchase of such unit is settled by the actual delivery, NSE has done away the tax from the existing 0.1%.
The exchange said that in case of other transactions, there would not be any change in STT rate.


US lauds India’s efforts to reduce oil imports from Iran; hints at new waiver
India and some other countries such as China and Japan have cut their oil imports from Iran to secure waivers. This enables them to continue imports of oil to some quantity without facing a backlash from the US 
India may soon get a fresh waiver from the sanctions imposed on doing business with Iran, the US indicated today while noting that India has made “tremendous progress” in reducing imports of oil from the Persian nation.
“I think India has made tremendous progress in reducing the level of its imports of Iranian oil. India has long been a leader in non-proliferation, stood side by side with all of us in the international community to say that Iran should not acquire a nuclear weapon,” US Under-Secretary of State for Political Affairs Wendy Sherman informed the media.
“That decision will be made shortly and all of the data is certainly pointing in a positive direction,” she said when asked whether the US could grant a fresh waiver to India to conduct business with Iran.
Her indication of a third waiver comes against the backdrop of India’s moves to reduce Iranian crude purchases to less than 13 million tonnes in the current financial year from 18.1 million tonnes last fiscal.
“We greatly appreciate all of the leadership that India has provided, including their imposition of sanctions,” Sherman said.
India and some other countries such as China and Japan have cut their oil imports from Iran to secure waivers. This enables them to continue imports of oil to some quantity without facing a backlash from the US.
The sanctions imposed by the US on Iran in view of its controversial nuclear programme prohibit any country from engaging them in the field of commerce.




3 years ago


Uncle Sam:

Dear India, thank you for reverting to buying Petrol in dollars (otherwise we are so ****ed you know). These dollars had to head home to roost without your complicity in the petro-dollar scam.


Dear Uncle Sam, we desperately need the toilet roll Ben Bernanke prints every month in order to prop up our unsustainable and bloated real estate sector. The feeling is mutual. We still haven't managed to grow a spine of our own.

Vinay Joshi

3 years ago


Is commerce prohibited with Iran? Under which provisions?

India had to reduce oil imports coz of forex payments. Each worldwide entity was restricted to US$ 500mn dealings.
In addition insurance.

OK, so the Govt. supposedly pooling 2.5KCR to meet the insurance liability, FRACTION if a liability arises as EU re-insurers can't insure under sanctions. Liability in billions of dollars cant be paid by Indian insurers NEITHER THE GOVT. [it will have to pitch in.]

However India continues to import oil from Iran, new fix scenario, barter. Insurance grey area but latest tankers are deployed.

Now Iran has shown interest in importing automobiles & pharma products from India.
The payments will be settled in rupees.

Iran can draw from its rupee a/c with UCO Bank.

FY13 Indian exports to Iran were $3.36Bn against imports of $ 11.6Bn.

This is a fillip to the sagging auto sector & growing pharma as this perfectly suites the importing country. Pharma exports are approx 30% of now.

TVS may be the first to enter into a JV with Iran mfgr's.

With rupee payment it can beat imports from Japan & S.Korea in passenger cars & LCV's but long haul truck-trailers it will have to depend on their source.

Iranian port Bandar Abbas, now modernized Raja Sallai, transports FCL's across CIS.

Ajai Sahai, DG & CEO, FIEO has corroborated the development. Suranjan Gupta, Dir.EEPC has welcomed it. The delegation led by Com.Sec, S.R Rao has yielded results.

Iran may not depend on Indian imports but for some more time India has to depend on Iranian oil imports which is cheaper.

In UN Iran has always stood by India, India will extract all possible concessions on Indo-Iran trade from US. US has to oblige.


Public shareholding: 87 companies yet to comply with revised norms
Around 75 private and 12 PSU companies are yet to comply with the revised minimum public shareholding norms. Over the next few days, promoters of these 75 would have to sell shares worth about $1.9 billion
Even as the deadline to increase public shareholding to 25% (for private companies it is 3 June 2013) and 10% (for public sector units-PSUs it is 9 August 2013) nearing, there are still 87 listed companies that have yet to comply with the revised guidelines issued by the finance ministry on 4 June 2010.
As reported earlier by Moneylife, most companies are yet to increase their free float to the requisite level, and compliance may entail significant stake sales by promoters, which could depress share prices in the near term.
However, the fact is that share prices are falling even as the deadline nears. This only means neither the companies nor the stock market players give a damn about the Securities and Exchange Board of India (SEBI) diktat, which has been around for over seven years now. SEBI has had three chairpersons during this period.
So far, the market has seen 44 offer for sale (OFSs) and eight institutional placement program (IPPs) worth $9 billion. Other private companies are hurrying to comply with the minimum public shareholding (MPS) norms before the June 2013 deadline (for public companies the deadline is August 2013). SEBI has allowed companies to take either one of the routes—follow-on public offer (FPOs), OFS, IPP or bonus, rights issues—to comply with the revised norms. A company wanting to take any other route must take SEBI's permission before doing so.  
“We estimate a further sale of around $1.9 billion over the next few days (by 3rd June 2013) as 75 private sector companies have yet to comply with the 25% MPS norm. Another 12 PSUs have to comply with the MPS requirement of 10% by 9th August and we estimate the sale amount at $680 million at current prices,” said Kotak Institutional Equities Research in a report. 
According to media reports, SEBI is working on penalties for companies that may be unable to meet the revised MPS norms, but would be lenient with companies that made an effort to meet them. The regulator also stated it would try to ensure that any action taken would not harm the interests of minority shareholders.
On 4 June 2010, the finance ministry amended the Securities Contracts (Regulation) Rules, 1957 (SCRR), raising the MPS requirement to 25% for listed companies or those that proposed to list. Listed companies that did not meet the MPS norm would be required to increase public shareholding by at least 5% a year until they met the norm. On 9 August 2010, the SCRR was amended again to revise public-sector companies' MPS norms to 10% (from 25%) within three years from August 2010.



Naresh Nayak

3 years ago

Forced public shareholding? What a harebrained scheme is this? Instead of forcing unlisted subsidiaries of listed companies to list which are known to transfer profitable businesses to unlisted companies (like Siemens India) by offering first right of refusal to existing shareholders who have been robbed as minority shareholders, they are forcing all LISTED companies to dilute their shareholding. What about the UNLISTED companies. Why aren't you making the field level and listing them?

Dear SEBI, You are a bunch of bureaucrats who have no inkling of the laws of the land, or capital flows or preservation of corporate wealth which can be used to invest in the nation. You cannot tell Premji what he can or cannot do with the vested shares in the trust. The irrevocable trust can sell shares after 2 years or after 100 years and SEBI can't dictate that. I am sure some other regulator is feeling his toes are stepped upon… and you get no prizes for guessing it is the Charitable Trust Commissioner. Azim Premji is going to be Poor Premji because if the Trust commissioner makes noises, he is going to be a shuttle cock making rounds to Delhi and Bandra Kurla Complex only because he wanted to help the education sector with a part of his wealth. I hope he drops his idea of charity and keeps the money to himself. The Indians don't want his money and develop the national cause. Did someone say India is unattractive because of too many regulators and too much conflicting regulation? No prizes for guessing that too and it is the Foreign Investors who are not touching India with a barge pole except for hot FII money!

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