New IPO application forms to avoid manual intervention

New Delhi: SEBI's Primary Market Advisory Committee (PMAC) has given
an in-principle nod for initiating steps to ensure "no manual
intervention" in the primary market issuance process.

The Minister of State for Finance, Pawan Kumar Bansal, said in a
written reply in the Rajya Sabha today that the PMAC has endorsed the
suggestions of the Group on Review of Issue Process (GRIP) on this
matter. GRIP had recommended modified application forms that can be
submitted physically as well as electronically.


For transparency
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"These measures will enable faster and transparent processing of
application forms leading to a reduction in the time gap between
closure of an IPO and its listing," Bansal said.

Indications are that the proposed measures would be placed for
approval before the SEBI Board, as part of reform process on the
primary market. SEBI had advised the PMAC to review the entire issue
process with an objective to reduce the time gap between closure of an
IPO and its listing.

Capital gains tax
============

Meanwhile, the Government has made it clear that the central board of
direct taxes has not sought any amendments to the Income Tax Act, so
that all foreign institutional investors (FII) pay capital gains tax
on their profits in India.

"Taxation of capital gains of FIIs is provided for in the Income Tax
Act 1961 read with the relevant double taxation avoidance agreement,"
S.S. Palanimanickam, Minister of State for Finance, said in a written
reply in the Rajya Sabha.

FIIs are allowed to participate in the Indian stock markets. The
Government, the RBI and SEBI have framed a policy for such
participation.

 

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