Left Menu
Development News Edition

RBI task force for aligning tax treatment of forex derivatives with major international markets

PTI | Mumbai | Updated: 08-08-2019 19:19 IST | Created: 08-08-2019 19:19 IST
RBI task force for aligning tax treatment of forex derivatives with major international markets

An RBI-appointed task force on offshore rupee markets has suggested aligning tax treatment of foreign exchange derivatives with that in major international centres and centralising KYC requirements across financial markets, to facilitate hedging of exposure of non-residents. The report of the panel on 'Offshore Rupee Market' headed by former RBI deputy governor Usha Thorat has been made public on Thursday on which the central bank has sought public comments by August 31.

The panel was set up by the RBI to examine the issues related to the offshore rupee markets in depth and recommend appropriate policy measures for incentivising non-residents to access the onshore foreign exchange market. It has also suggested extension of onshore market hours to improve access of overseas users and also permit Indian banks to freely offer prices to global clients around the clock.

According to the report, the panel has recommended that the "competent authorities may examine the issue of taxation" with the objective of overcoming gaps between tax regime in India and other major international financial centres (Singapore, Hong Kong and London) to the extent possible, and thereby incentivising non-residents to hedge in the onshore market. Another major suggestion is that the KYC registration may be centralised across the financial market with uniform documentation requirement.

"All regulated financial market intermediaries should be provided access to the centralised registry and they should be allowed to rely on online registry for confirmation that KYC has been completed and it’s valid," the task force said. It is also recommended enabling rupee derivatives (settled in foreign currency), to be traded in the International Financial Services Centres (IFSC) in India, to begin with on exchanges in IFSC.



South Africa's COVID-19 response: Surprising outcomes or just poor data management?

South Africa has been committed to improving its health information system and shows that a robust digital has considerable scope to improve healthcare for the entire population. But the COVID-19 pandemic has highlighted that significant ga...

Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...


Latest News

Scientists develop AI tool to identify COVID-19 cases using CT scans

Researchers have shown that an artificial intelligence AI algorithm could be trained to classify COVID-19 pneumonia in X-ray scans with up to 90 per cent accuracy, an advance that can lead to the development of a complementary test tool, pa...

Scientists uncover clue on how dark ages of Universe ended and how extreme-UV light appeared

Scientists have uncovered an important clue on how the dark ages of the Universe ended and how the first extreme-UV light appeared.Indias first multi-wavelength satellite, AstroSat, has detected extreme-UV EUV light from a galaxy, called AU...

Vedanta faces do or die battle if delisting fails

Vedanta Ltd, the metals to mining conglomerate, may find it tough to survive if its corporate restructuring exercise fails as the group is faced with burgeoning debt on one hand and falling revenues on the other, analysts said. Vedantas res...

Russia, France and U.S. call for immediate ceasefire in Nagorno-Karabakh, return to talks

France, Russia and the United States on Thursday called for an immediate ceasefire between Azerbaijan and ethnic Armenian forces around Nagorno-Karabakh and urged the rival sides to return to negotiations without delay.The move came as the ...

Give Feedback