Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: TDS :: Central Excise rule to resale the machines to a new company :: VAT Audit :: due date for vat payment :: empanelment :: cpt :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD
 
 
« News Headlines »
 Make your inventory and invoicing software GST Ready from Binarysoft
 Filing income-tax returns gets simpler for salaried persons
 Ten rules you must follow while filing income tax returns
 Reforming the income tax tribunal
 How the new system might impact consumers and businesses
 10 ways you get benefited from filing your tax return
 Returns under CGST Act,2017 with Rules
 Ten facts to know about filing income tax return this year
 The Ten Commandments of Tax Filing
 How to claim income tax refund
 How to time your buys to have best of two tax regimes

SEBI plans to offer tax incentives
August, 10th 2007

In a move to widen the corporate bond market, SEBI plans to attract market makers by offering them tax incentives. Even the earlier provision for filing shelf prospectus may be reintroduced to encourage more companies to issue bonds, said a senior SEBI official involved with the process.

SEBI may reintroduce the system of shelf prospectus, which helps companies to do away with a fresh filing for every issuance. 

The RH Patil committee report on corporate bonds had suggested that bringing in market makers, mainly banks and bond houses (or primary dealers), will create a demand for bonds and deepen the market. The capital market regulator is keen to introduce a system where banks, bond houses, mutual funds and insurance companies will buy and sell corporate bonds through a faceless, order-matching electronic platform.

Several international players like ICAP, Reuters and Bloomberg have shown interest in setting up platforms for screen-based trading. The challenge before us is to create regulations wherein these platforms are not perceived as exchanges, said the SEBI official who added that platforms should be identified as a system for bilateral settlement of trades.

SEBI is currently working on measures to draw companies to the corporate bond market. The system of shelf prospectus will be an important step. Introduced four years ago, it enabled companies to do away with a fresh filing for every issuance.

SEBI had recently authorised the Fixed Income, Money Markets and Derivatives Association (Fimmda) to set up a platform to report secondary transactions in corporate bonds. It has also asked Fimmda to aggregate data placed on its own platform, along with that reported on BSE and NSE, where corporate bonds are currently traded.

Meanwhile, primary dealers (PDs), through Fimmda, have suggested that instead of fund raising through private placement of bonds, companies can get a finer price if bond issuance happens through an auction-based mechanism. Just like gilt auctions, PDs would be allowed to bid in the allotment.

Recently, the State Bank of Travancore and Vijaya Bank hit the bond market. While the bonds issued by SBT had a rating only one level higher than Vijaya Bank, there was a difference of 30 basis points in their coupons. Typically, the differential between such issues should be 5-10 basis points, but it rose to 30 bps in this case, said an official with a PD.

In case of private placements, pricing is done by merchant bankers who bargain with issuing banks for commissions. As against this, an auction-based procedure would give way for pricing determined by competitive forces, he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Contact Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions