INSUBCONTINENT EXCLUSIVE:
prevention of insider-trading regulations, revisions in the double-taxation avoidance agreements (DTAAs) with Mauritius and Singapore are
set to come into effect from April 1.The changes in DTAAs give India the right to tax capital gains arising on Indian equity shares sold by
a Singapore or Mauritian resident.All this may also help improve corporate governance standards for the listed companies in India.Financial
markets recently saw several cases of high volatility in companies, like Sun Pharma, DHFL and ILFS, which created panic among retail
companies will be required to have at least six directors on their board against three, prescribed by the Companies Act 2013
Besides, the top 500 will also need to have at least one independent woman director.Also, a director can hold that position in not more than
explanation will be required if an independent director resigns before completion of the term.The Securities and Exchange Board of India
(Sebi) has also amended insider-trading regulations
As per the amendment, the definition of unpublished price sensitive information (UPSI) has been narrowed, allowing listed companies to share
such information for board-determined legitimate purposes, but only if the disclosure is in the best interest of the company.While UPSI will
help check insider-trading, the Sebi regulations have permitted flexibility by allowing block trade between insiders or between related
of stock option at a pre-determined price out of the ambit of insider-trading.The new requirements with relation to Sebi regulations will
also apply to intermediaries like auditors, accountancy firms, law firms, analysts and consultants
They'll have to put in place internal controls to check insider-trading.Additionally, the concessional tax regime for investors under the
earlier DTAAs for making investments into India via Singapore and Mauritius will cease to exist from April 1.India amended DTAAs with
Singapore and Mauritius in 2016
It gave India the right to collect tax on capital gains arising on Indian equity shares sold by a Singapore or Mauritian resident.Get the
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