The board of the Securities and Exchange Board of India (Sebi) has initiated the process of opening up the country's commodity derivatives market to new participants. Sebi is working on allowing AIFs, particularly the category III (such as hedge funds) segment in commodity derivatives market.

Sebi has already written to the Reserve Bank of India and ministry of agriculture for their comments.

The markets regulator has made it mandatory for top 500 listed companies to submit Business Responsibility Report which will give details on areas such as environment, governance and stakeholder's relationships.

The government appointed Ajay Tyagi as the ninth chairman of the Securities and Exchange Board of India (SEBI). Tyagi, who was the additional secretary, Department of Economic Affairs in the finance ministry, has been appointed for a period of five years.

The registration of financial market intermediaries like mutual funds, brokers, portfolio managers, etc., will be completely made online by SEBI. Also, SEBI, RBI, and CBDT will take necessary steps to put in place systems and procedures to introduce a common application form for registration, opening of bank and demat accounts, and issue of PAN card.

SEBI has decided that any proceeds due to sale of security under disinvestment and any receipts in the form of securities arising out of shares written off shall be credited net off expenses to Investor

Protection and Education Fund.

With an aim to deepen the capital market, regulator Sebi has notified guidelines permitting well- regulated foreign portfolio investors (FPIs) to trade directly in corporate bonds without any broker.

Currently, FPIs can trade in Indian markets only through brokers who are registered with stock exchanges as their members.

New conditions for unlisted- listed mergers:-

(1) Putting in place the disclosure norms for real estate investment trusts (REITs), Sebi on Monday said the offer document will contain financial information, related-party transactions and past performances.

(2) SEBI last month notified revised and easier regulations for raising capital through this instrument. SEBI had notified the REIT regulations in 2014

Simplifying the process, pension fund regulator PFRDA has dispensed with the requirement of submission of physical application form for NPS account opening if done through Aadhaar verification and e-Signature.

The National Stock Exchange (NSE) will introduce new interest rate futures (IRF) contracts from December 30 on six-year government bonds maturing in 2022.

Markets regulator SEBI said registered FPIs planning to set up operations in International Financial Services Centres (IFSCs) will be allowed to do so without any additional documentation. Foreign Portfolio Investors (FPIs), who presently operate in Indian securities market and propose to operate in IFSC also, will be required to ensure clear segregation of funds and securities.

THE ITAT Kolkata Bench held that where principal business of assessee was trading in shares, in view of amendment brought by Finance Act 2014 with retrospective effect from 1-4-1988, Explanation to section 73 was not applicable to its case and, thus, it was eligible to claim set off of loss incurred in share transactions against short-term capital gain.

Jalan Cement Works Ltd. v. CIT, Kolkata-1. [2016] 76 taxmann.com 230

THE ITAT Mumbai Bench held that where assessee made payment towards internet charges to concerns providing broadband facilities, internet services provided by broadband service provider could not be construed as technical service so as to require assessee to deduct tax at source under section 194J. 

Income-tax Officer, TDS-1 (2), Mumbai v. Chinubhai Kalidas & Bros. [2016] 76 taxmann.com 289

The Supreme Court of India held that Where Tribunal held that assessee was entitled to deduction under section 80-IA without setting off losses/unabsorbed depreciation pertaining to windmill, which were set off in earlier year, initial assessment year in section 80-IA(5) would only mean year of claim of deduction under section 80-IA, and assessee had option to choose first/ initial assessment year of claim for deduction under section 80-IA and High Court upheld order of Tribunal, SLP was to be dismissed. 

Commissioner of Income-tax v. Best Corporation Ltd.

[2016] 76 taxmann.com 295

Based on representations received from stakeholders and to further ease the PAN verification process at the time of account opening of FPIs, it is decided that the intermediaries can verify the PAN of FPIs online from website authorized by Income Tax department at the time of account-opening for FPIs. However, FPIs need to provide the copy of PAN card within 60 days of account-opening or before remitting funds out of India, whichever is earlier to their intermediaries.

Markets regulator Sebi re- constituted its committee that suggests roadmap for developing corporate bond market in the country. The 28-member committee would be chaired by Shyamala Gopinath, former Deputy Governor at the Reserve Bank

Sebi has notified norms to increase the value of such allotments to Rs5 lakh, up from Rs2 lakh currently, under staff quota. 

The ITAT Bangalore Bench held that where assessee entered into a contract with a party to supply labourers for construction of flats, mere fact that assessee procurred materials also through said contractor without any profit markup involved therein for contractor, it could not be regarded as a case of composite work contract and, thus, assessee was not required to deduct tax at source while making reimbursement of cost of materials supplied.