Context: The Financial Intelligence Unit-India (FIU-IND) has issued a directive mandating all registered cryptocurrency exchanges to enhance their Know Your Customer (KYC) processes by June 30, 2025, in compliance with the Prevention of Money Laundering Act (PMLA). Key Highlights KYC Overhaul Required TDS and Tax Compliance FIU’s Warning Compliance by Major Exchanges Regulatory Context TET
Sebi Imposes â‚ą10 Lakh Fine on Future Retail
Context: The Securities and Exchange Board of India (SEBI) has imposed a penalty of â‚ą10 lakh on Future Retail for disclosure lapses related to material events, particularly regarding arbitration proceedings initiated by Amazon. Key Highlights: Sebi’s Move to Ease Business for Small and Medium REITs In a bid to improve the regulatory framework and ease the process for Small and Medium Real Estate Investment Trusts (SM REITs), SEBI has announced new measures to simplify public issue processes and standardise disclosures. BS
Revised Eligibility Criteria for SMEs to Migrate to Mainboard on NSE
Context: The National Stock Exchange (NSE) has revised its eligibility criteria for small and medium enterprises (SMEs) wishing to migrate to the mainboard, effective May 1 2025. These updated guidelines come in response to growing concerns about the governance and financial practices of SMEs, following recent scrutiny by the Securities and Exchange Board of India (SEBI). New Eligibility Requirements: Additional Requirements: Recent Context: Migration Data: The NSE has raised the bar for SMEs looking to migrate to the mainboard, with stricter financial and governance standards. These measures are aimed at improving transparency and ensuring that only well-managed firms make the transition to the mainboard. The revised guidelines will ensure greater scrutiny and enhance investor confidence in the SME sector. BS
Equity Mutual Funds Performance Based on Information Ratios (IR)
Context: The Information Ratio (IR) has become an important metric to evaluate the performance of equity mutual fund schemes on a risk-adjusted basis. This ratio helps investors understand how well a fund has performed relative to its benchmark, considering the risks involved. In the five-year period from 2020 to 2025, one in three equity mutual fund schemes managed to beat their benchmark based on IR. Key Insights on Fund Performance Category-Wise Performance Performance over Different Time Periods Top and Bottom Performing Funds Factors Driving Performance BS
New CBDT Notification
Context: The Central Board of Direct Taxes (CBDT) has issued a notification stating that companies can no longer claim tax deductions on expenditures incurred to settle cases related to violations of specific financial and competition laws. The change, effective April 23, prohibits companies from deducting fines, penalties, or settlement amounts associated with four key laws while calculating taxable income. Laws Affected Impact on Businesses Government’s Stance BS
DigiLocker Initiative Launched for Athletes
Context: Sports Minister Mansukh Mandaviya has launched the DigiLocker facility for athletes, aiming to digitally store and manage essential sports documents. The initiative was unveiled at a formal event attended by representatives from 40 National Sports Federations (NSFs) and notable athletes including Mirabai Chanu and Jarmanpreet Singh. Objectives of the Initiative Mandatory Digitisation Timeline Benefits for Athletes Broader Vision TOI
CBDT has notified a 1% Tax Collected at Source (TCS)
Context: The Central Board of Direct Taxes (CBDT) has notified a 1% Tax Collected at Source (TCS) on the sale of specified luxury goods priced above â‚ą10 lakh, effective from April 22, 2025. (Luxury Buys Over Rs 10 Lakh To Attract 1% TCS From 22 April) Key Details:
Impact of Emerging Tariff Scenario on India
Context: The imposition of additional tariffs by the United States (US) on Indian exports, even at modest rates, could lead to a decline in India’s export growth. This, combined with a potential moderation in global demand, presents a challenge for India’s export-driven sectors. A positive offset to this impact could be lower crude oil prices, which may help reduce India’s import bill and thus mitigate the negative effects on the trade balance. Fiscal Impact and Budget Forecasts Strategies to Leverage the Current Crisis India can turn the current uncertainty into an opportunity by adopting a two-pronged strategy: Policy Measures to Support Investment To support investment in new sectors, the following measures could be considered: While the global tariff scenario poses challenges for India, it also presents an opportunity to restructure trade partnerships, develop a strategic industrial policy, and implement key support measures to attract investment. India’s growth forecast remains positive, and with the right policies, the country can turn these challenges into long-term economic advantages. BS
External Commercial Borrowing (ECB) Inflows in India
Overview of Inflows Factors Driving Growth Cumulative Data (April 2024 – February 2025) Impact of US Tariff and Rate Expectations ECB Flow Trends (FY21 – FY25) Outlook BS
Private Investment Concerns and Growth Outlook for India
Private Investment Issues Growth Forecast Adjustment Recommendations for Growth Growth Drivers and Risks Outlook BS
