In an overhaul of the norms governing the valuation of investments made by a bank, the Reserve Bank of India (RBI) has proposed a new category for classifying securities — ‘Fair value through profit and loss account (FVTPL)’.

This will enable banks, while drawing up their results, to properly value securities such as units issued by bad loan companies in consideration of non-performing assets (NPAs) sold to them. The securities held in FVTPL shall be fair-valued and the resultant gains/ losses shall be directly credited/ debited to the profit and loss account.

The RBI has proposed the new category to include those securities that currently cannot be classified as long-term holdings under the ‘held to maturity’ category and neither are they part of a bank’s trading portfolio which are held in the ‘available for sale’, or AFS, category.

The government has put on hold the sale of Central Electronics (CEL) to Delhi-based firm Nandal Finance and Leasing, following allegations of undervaluation by the employees’ association.“The employees’ association has raised some allegations after the press release announcing the decision. These are being examined by the IMG (inter-ministerial group). Therefore, the letter of intent is put on hold,” Department of Investment and Public Asset Management secretary Tuhin Kanta Pandey told media. “There’s already an existing case filed by employees in the Delhi High Court, praying for abandoning disinvestment,” Pandey said.

On November 29, the Cabinet Committee on Economic Affairs (CCEA)-empowered alternative mechanism (AM) comprising roads minister Nitin Gadkari, finance minister Nirmala Sitharaman and science minister Jitendra Singh had approved the highest price bid of Nandal Finance and Leasing Pvt for sale of 100% government stake in CEL for Rs 210 crore.

More than a year after M&M classified Ssangyong as “discontinued operations”, the ailing Korean company has finally signed up a buyer, but the sale will not earn the Indian company “any consideration”. According to a stock market notification by M&M, which holds 74.65% in Ssangyong, a consortium led by South Korean electric bus-maker Edison Motors has agreed to acquire the debt-ridden Ssangyong for 304.858 billion won ($254.65 million or Rs 1,882 crore) through a primary equity investment.

“We are happy to hear that Edison Motors consortium has formally agreed to acquire Ssangyong Motor Company and that the acquisition will progress to the next stage, in a defined time frame,” said an M&M spokesperson. “We will cooperate with the new investor in enabling the transition.”

Every stimulus package to boost the economy has its own burdening impact on the country’s fiscal position. However, a stimulus through tax reforms will be more helpful in infusing resilience in the economy in a sustainable manner. Finance Minister Nirmala Sitharaman is seeking suggestions from stakeholders in the run-up to finalise the annual budget for 2022-23. It is high time to go for an out-of-the-box initiative on the front of personal income tax. There is an opportunity to provide stimulus through direct tax reform in the form of an expenditure tax, which will be a more rational substitute for the income tax.

If personal income tax is done away with, about 6.32 crore people will have the freedom from the burden of submitting annual Income Tax Returns (ITR). The ITR has a demoralising effect on new entrepreneurs and emerging start-ups to grow as they are not exempted from personal tax compliances. Income tax regulations require people to maintain and submit various records and file returns. The Income Tax Department tirelessly scrutinises millions of returns, which are followed by queries, clarifications, refunds and protracted correspondence. The litigations, if any, go on for years, taking a toll on both the citizens and the government. The various organisations complying with TDS will also be free from the burden of collecting, remitting and submitting various returns if personal Income Tax is shelved.

The Delhi Metro Rail Corporation (DMRC) on Monday told the Delhi High Court that it only has Rs 6,200 crore in its accounts which would not be enough to pay the Rs 7,200 crore it owes to the Delhi Airport Metro Express Private Limited (DAMEPL).

DMRC says it has only Rs 6,200 cr, not enough to pay off DAMEPL© Provided by Business Today DMRC says it has only Rs 6,200 cr, not enough to pay off DAMEPL

DMRC made the submission in a fresh affidavit filed with the court after the Reliance Infrastructure subsidiary filed a contempt plea against it. DMRC said the amount of Rs 6,200 crore, which it has, also includes security amount and employee provident fund, among others.