Latest news with #Ladha
India Today
04-08-2025
- Business
- India Today
Buying Dubai property with credit cards? Why many Indians are now in trouble
Many Indians are now finding themselves in a tricky spot after using their international credit cards (ICCs) to buy property in Dubai, reported The Economic Times. What seemed like an easy and quick way to pay is now causing them legal and tax problems back WENT WRONG?Several homebuyers either clicked on payment links shared by Dubai-based builders or swiped their credit cards during their visits to the UAE. It felt hassle-free, no paperwork, no visits to the bank, and they believed they could avoid the hefty 20% tax collected at source (TCS) on overseas there's a catch. Credit cards, even international ones, are only meant for current account transactions, like booking hotels, downloading movies or buying books. They are not allowed for capital account transactions such as buying immovable property or shares. While there's no specific law banning the use of ICCs for buying property abroad, experts believe it clearly violates RBI's guidelines. So, in effect, these buyers have gone against the WHAT?Worried about attracting attention from the Income Tax Department or the Enforcement Directorate, many of these buyers are scrambling to fix their mistake. They're now remitting money properly under the Liberalised Remittance Scheme (LRS) and asking builders to cancel the earlier credit card payments. Once the new payment is made through the right banking channels, the builder refunds the earlier way, they hope to stay out of are also preparing to approach the RBI to regularise the payment. This means acknowledging the mistake and paying a penalty to avoid bigger legal consequences—a process known as IS LRS?Under LRS, an Indian resident can send up to $250,000 a year abroad for buying assets or for personal use. But the payment must go through proper banking channels, and the individual must have held an account with the bank for at least one year before the remittance for capital account a credit card to pay for property, even if done abroad, does not count under LRS and is seen as a DO EXPERTS SAY?Rajesh Shah, partner at Jayantilal Thakkar & Co. Compounding, told ET that RBI ought to be forgiving since the funds themselves were legitimate and only the payment route was incorrect. 'RBI should take a lenient view as the money paid through credit card is a legitimate payment and only the mode of payment was wrong. The regulator should compound the contravention if applied for and need not ask to unwind the transaction or sell the property,' he Ladha, Moin Ladha, partner at the law firm Khaitan & Co, adds that the RBI's overseas investment rules clearly lay down how such purchases should be made, either through inheritance, gifts, earlier foreign earnings, or via LRS. Credit card use doesn't fall into any of CA Ashish Karundia reminds that no matter how the payment is made, if you buy property abroad, 20% TCS still applies under income tax rules.- Ends
Calgary Herald
23-07-2025
- Health
- Calgary Herald
'Measles capital of North America': Alberta doctors sound alarm on immunization
Article content Measurable difference Article content In a statement emailed to Postmedia after press time Tuesday, the Ministry of Primary and Preventive Health Services said recent data shows current outreach and immunization efforts are making a measurable difference. Article content 'Between March 16 and July 12, more than 82,000 measles vaccines were administered across Alberta — an increase of more than 55 per cent compared to the same time last year,' the statement said. Article content 'In the South Zone, where targeted efforts have been underway, vaccine uptake rose by 121 per cent. In the North Zone, it rose by 94 per cent. A call-out campaign for parents of 6–11-month-olds in affected zones led to a 259 per cent increase in doses — about 6,000 more than the same period last year.' Article content The gains reflect the impact of expanded clinic access, early-dose eligibility in high-risk zones, and the extended Don't Get Measles, Get Immunized campaign, the release said. Article content Article content The ministry said the routine immunization schedule was updated for measles-containing vaccine in January 2021. Article content As of Jan. 1, 2021, the second dose shifted to 18 months of age from between four to six years of age to support children being fully immunized by the time they start participating in preschool, pre-kindergarten, and kindergarten programs that are often co-located in schools, the release said. Article content 'Alberta's government isn't considering linking school registration with immunization records.' Article content The Canadian government urges measles vaccination for all eligible individuals, including two doses at 12 and 18 months of age. Article content Smith said the provincial government is now allowing everyone to get their two doses by the age of two. Article content 'Before we waited until kindergarten, but now so many kids are going into daycare, so we've moved that back, but we also make a microdose available to those parents who want that extra protection and so they can get a smaller dose,' she said. Article content Article content For now, Alberta is reaping the benefits of days when vaccine rates were higher. Article content Smith said she's 'pleased to see that we still have about a 90 per cent overall vaccination rate by the time young people get to be 17 years old — 95 per cent is what they recommend. But we're glad to see that the message is getting out,' she said. Article content Child, adult, pregnant woman alike, if you're in the room with an infected person and you're non-immune, your chances of getting the airborne illness is very, very high, said Ladha. Article content 'That represents a perfect storm where our children, grandchildren, nephews and nieces and family members will be at risk, increased risk in getting measles because they've gone to school in September or because they've brought it home from school to infect the children who are still at home,' Talbot said. Article content There have been recent ICU admissions with measles victims requiring care, said Dr. Lynora Saxinger, an infectious diseases specialist with the University of Alberta. Article content 'I have just recently been called about pregnant women who have measles in pregnancy. I've also been called about transplant patients with measles. Article content 'The likelihood that there will be severe outcomes with really significant critical illness or death is just going up, because the longer we have circulation of disease and more cases that happen, that's basically just a matter of numbers and risk, and it's just a matter of time, unfortunately,' Saxinger said. Article content Within the past few months, the province's health zones have stopped posting the areas of exposure to measles, where individuals travelled from their doctor's office to a lab to a radiology site to a store. Article content 'We don't see that from those sites anymore, because the volume is simply too high for them to be able to catch up. And so we just know that there's more transmission and more cases than are even being detected, and we're probably seeing, to some extent, the tip of the iceberg on the hospital side,' she said. Article content Article content Practical considerations Article content As a doctor, Talbot said, he's an optimist in that he believes public health threats can be addressed — noting that more than 90 per cent of Albertans got at least one COVID vaccination during the pandemic. Article content All American states have laws requiring certain vaccines for students to attend school, although a number of states allow for exemption on the basis of religion or philosophy, according to the National Conference of State Legislatures. Article content In Canada, Ontario and New Brunswick have made immunizations mandatory for school attendance. Article content It may be time for a public debate on requiring measles immunizations for school attendance in Alberta, Talbot said. Article content 'The second (way to address school spread of measles) is to make sure that people are aware that if measles does strike a school and starts to spread, that it may be necessary to send unimmunized students and unimmunized staff home so that they are protected for the time until all of those people who have been exposed are safe to return,' he said. Article content Article content Saxinger said for those who aren't immune, the current guidance for quarantine after measles exposure is 21 days. Article content 'That's to try to contain the infection and reduce the successive rings of spread — and that's very disruptive, if you think about that occurring in a school or in a workplace. It is a really strong practical argument to make sure that your immunization is up to date, and the immunization of your children is up to date,' Saxinger said. Article content What to do if your child is not immunized Article content The experts agreed there's a unique window in the next month. Article content 'It takes time to book an appointment, and then the child's body needs 10 to 15 days to get the maximum protection. So book your appointment now for anyone going back to school and anyone under the age of five who's not immune in your household. That's the most important back-to-school preparation you can do even more than buying a backpack or a lunch box,' Talbot said.
Mint
07-07-2025
- Business
- Mint
Sebi may revisit AIF rules after industry pushback on investor parity norms
Mumbai: The Securities and Exchange Board of India (Sebi) is reviewing a set of new rules for Alternative Investment Funds (AIFs) following growing concerns from fund managers, legal advisors and investors, at least five people aware of the development told Mint on the condition of anonymity. The rules, which came into effect in December 2024, were designed to ensure equal treatment of investors, but many in the industry say they are too inflexible and may disrupt existing fund structures and global investor participation, experts said. AIFs—private pools of capital that invest in startups, real estate, and unlisted companies—have become a major vehicle for capital formation in India. As of 31 March 2025, AIFs had invested ₹5.38 trillion, according to Sebi data. Of this, real estate accounted for ₹69,896 crore, IT services for ₹34,553 crore, and NBFCs for ₹25,564 crore. The 13 December Sebi circular mandates that all AIF investors must be treated equally, both in how capital is drawn down and how returns are distributed. This is based on two key principles: pro-rata rights, which require profits and losses to be shared in proportion to each investor's committed capital; and pari-passu rights, which ensure all investors are treated equally, unless a specific exemption applies. The rules were meant to bring clarity and fairness to the AIF space. But they have also cast uncertainty over existing fund structures, especially those involving differentiated rights, preferred investor classes, or global institutional limited partners (LPs). Before the rule change, private funds had more leeway to tailor rights for different investors. Some offered priority distribution models where 'senior" investors received returns before 'junior" ones, often in exchange for taking on less risk. While Sebi always promoted fair treatment in spirit, these practices were not explicitly restricted until now. The regulator first signalled discomfort with these structures in 2022, when it paused fundraising by funds using such waterfall distribution models. The December circular went further, formalizing a uniform treatment requirement and narrowing the scope for deviation. Seeking clarity on real-world impact Since then, legal and industry experts have warned that the rules, though well-intentioned, could stifle fund design and discourage foreign participation. 'The Sebi circular on pro-rata and pari-passu rights for AIF investors was brought to bring clarity to fund structuring, aiming to ensure fairness and uniformity in investor rights, while carving out limited exceptions for sponsors and other strategic investors," said Moin Ladha, partner at Khaitan & Co. Ladha noted that the transition has raised difficult questions about how the rules affect legacy commitments and deal terms. 'Since its issuance, however, several industry stakeholders have raised concerns regarding its impact on legacy fund commitments and other commercial arrangements necessary for making investment viable," he said. 'While Sebi has not issued a formal clarification so far, it has usually been proactive in engaging with the industry to address practical implementation challenges," Moin added. Industry participants are also seeking clarity on how these rules apply to multi-layered structures, and to Employee Welfare Trusts (EWTs)—entities used by some funds to allocate carried interest or profit-sharing to employees, Moin noted. The circular does allow a few carve-outs. Fund sponsors and managers, for instance, can make subordinated investments—meaning they take more risk and are paid last. Large Value Funds (LVFs), which collect ₹70 crore or more from each investor, can also offer special terms, so long as they're disclosed upfront in legal documents. Even so, legal experts say these exceptions are too narrow to accommodate common practices in the industry. 'Regulatory clarity on the 'pro-rata' part of the December 13, 2024, Sebi circular would go a long way in aligning legal expectations with practical realities for AIFs," said Nandini Pathak, partner, Bombay Law Chambers. She pointed out that global funds routinely use different allocation methods depending on the phase of investment. While capital calls may be based on outstanding commitments, distributions often follow the ratio of actual capital invested. 'Institutional LPs also prefer allocation rules for distributions to be on invested capital ratio basis, as is evident from the ILPA standard term sheet," she said, referring to the guidelines followed by large international investors. Experts argue that Sebi should allow Indian AIFs to adopt such globally accepted practices—provided they're clearly spelled out in the fund's Private Placement Memorandum (PPM), which lays out terms, risks and investment strategy for potential investors. Sebi response in the works To address the feedback, Sebi has formed a Standard Setting Forum (SSF), which is reviewing suggestions and working on a list of investor rights that AIFs may offer on a differential basis without violating the equal treatment rule. 'The SSF is looking at detailed industry feedback and certain reforms are expected," said Vivaik Sharma, Partner at Cyril Amarchand Mangaldas. 'The SSF has specified a positive list of rights which may be provided by AIFs on a differential basis. It should be clarified that any additional rights may be offered to specific investors of AIFs so long they are not prejudicial to any other investor." Some concerns go beyond distribution rights. Experts have pointed to other commercial nuances the rules currently overlook—such as profit-sharing with advisors or offsetting fund expenses across different legal entities in a master-feeder structure, a common setup for funds with international investors. 'When dealing with master-feeder structures where fund expenses are incurred at both levels (main fund and sub-funds), allowing for offsets of the relevant amount of fund expenses incurred at the feeder level when considering the proportionate allocation of fund expenses among investors at the master fund level, are some of the areas for reconsideration," said Clarence Anthony, founder of Clarence & Partners. 'Most of these could be addressed by amending the Implementation Standards for offering of differential rights to select investors of an AIF." People familiar with the matter said Sebi is currently reviewing all industry feedback and may issue formal clarifications or revisions in the coming months.
Time of India
02-07-2025
- Business
- Time of India
RBI's Trust concerns stall wealth transfer plans of India's rich families
Mumbai: A 'trust deficit' between the regulator and several rich Indian families is stalling plans to ring-fence wealth and put in place a succession strategy for the nextgen. Many promoter families hold shares of the companies they own as well as portfolio investments in other securities and listed non-group entities through closely-held non-banking finance companies (NBFCs). Family patriarchs have often preferred transferring their-and other family members'-ownerships in such NBFCs to a trust which holds the investments and distributes the earnings to the trust beneficiaries. This family blueprint to preserve wealth now faces a challenge. The Reserve Bank of India ( RBI ), which regulates NBFCs, is questioning the transfer of ownership of at least four families to discretionary trusts due to the opaque structure of trusts, persons familiar with the subject told ET. If an NBFC holds a substantial stake in any listed entity, an ownership transfer of the finance company also requires the approval of the Securities & Exchange Board of India, under the takeover code. "Perhaps, RBI could take a cue from the approach adopted by Sebi vide its 2017 circular, to consider prescribing conditions for addressing policy concerns over future changes or control structure in a trust," said Moin Ladha, partner at the law firm Khaitan & Co. "In any event, most families would retain the control and only a contractual obligation in the nature of trust is created for achieving continuity and succession planning. So, the eligibility and fit and proper status isn't impacted by the settlement to trust," said Ladha. Live Events Some believe that RBI's reservations may also stem from the fact a promoter giving guarantee to a group company to enable it borrow at a lower interest rate or carry out certain other transaction, may isolate the shares by setting them aside in a trust if the guarantee is invoked. RBI, however, does stall the shift in ownership as long as the NBFC in question is a 'core investment company' holding and managing investments in group companies. Also, core companies which have not raised money from public investors or through bank borrowings, may not need a go-ahead from the regulator. While RBI did not respond to ET's queries, the regulator, sources said, is likely to harbour the view that unlike long-term, strategic holdings in group companies, an NBFC's investments in shares of non-group companies are in the nature of short-term, portfolio investments. Since the latter kind of NBFCs is considered to be dealing in financial securities, RBI does not want them to be controlled by trusts. A discretionary trust is formed by the settlor (who is often the head of the family who transfers the assets), immediate family members are named as beneficiaries, and independent professionals or a trusteeship company serve as the trustees responsible for distributing the earnings of the trust from cash inflows like interest, rent, and capital gains to the beneficiaries in proportions that are not prefixed. "It's sometimes perceived that the RBI is trying to reduce the number of NBFC licence holders. Any transfer of ownership or management application ends in denial. It seems the regulator wants to focus on a few players who do proper compliance. We have seen cancellation of licences for failing to file annual returns or not maintaining adequate capital," said Rajesh Shah, partner at the CA firm Jayantilal Thakkar & Co. Any change in NBFC shareholding resulting in acquisition or transfer of 26% or more of its paid-up capital requires prior RBI approval. "The process is stringent, with RBI empowered to seek additional information during its due diligence. When the acquirer is a trust, KYC compliance extends to both trustees and beneficiaries, posing greater complexity in discretionary trusts where ownership is undefined. Notably, RBI regulations do not prescribe a specific timeline within which such approvals must be granted, making the overall process both document-intensive and time-sensitive for investors and promoters alike," said Isha Sekhri, partner at Isha Sekhri Advisory LLP, a CA firm. Economic Times WhatsApp channel )
Time of India
25-06-2025
- Business
- Time of India
In Swiss they trust, though the banks are not as cool as before
Mumbai: Why are so many Indians parking money in Swiss accounts despite the alpine banks losing their once-famed secrecy? Who are these people? Is it forbidden funds- as one would suspect- or kosher money? Questions are popping out from numbers released by the Swiss National Bank, claiming that Indian money with Swiss banks trebled in 2024. What has happened? Some of the money flowing into the custody of these tight-lipped bankers may have a questionable colour. But, new rules in the UK and other countries, coupled with global uncertainties and choppy currency markets are driving many NRIs, wealthy families leaving India as well as rich residents to keep their money with Swiss banks, say financial advisors and lawyers familiar with such asset planning. According to them, most of the recent deposits piling up in Swiss banks are not 'black money' but funds of overseas Indians moving from other jurisdictions to Switzerland-many choosing to hold family wealth in Swiss foundations and trusts which are governed by friendly regulations. Switzerland offers a framework to recognise trusts formed under foreign law. (Join our ETNRI WhatsApp channel for all the latest updates) "The recent overhaul of the UK's non-dom rules has prompted many NRIs to relocate to either the UAE or Europe. Understandably, they are moving their wealth accounts. Singapore and Switzerland are the natural choices for holding such accounts. This could be the reason for increased remittance to Switzerland. Singapore and Switzerland are increasingly attracting global investors as evolved financial jurisdictions," said Moin Ladha, partner at the law firm Khaitan & Co. Live Events This year, the UK changed its 200-year old regime, causing many NRI families to look for second homes in other countries to escape high tax on overseas earnings and inheritance. The Swiss central bank data show that Indian money held through asset managers, insurers, and other financial intermediaries surged three times to 3.5 billion Swiss franc (or ₹37,600 crore), after falling to a four-year low in 2023. Money in customer (or retail) accounts of Indian clients rose only 11% in 2024. "The numbers point at a broader global trend of capital reallocation driven by regulations and tax," said Ladha. While there is no official statement from Swiss Banks about the reasons for the surge in Indian deposits, it reflects Switzerland's continued status as a trusted financial hub, said Isha Sekhri, who specialises in international and cross-border taxation. The strength and stability of the Swiss Franc amid geopolitical volatility, combined with its safe-haven reputation and agile regulations, make it an attractive destination for capital preservation, she said. While the Swiss currency slipped last year, it has appreciated 9.5% against the US dollar since January, and has outperformed its peers to close 2023 as the best-performing G10 currency. CONFIDENTIALITY LOST However, with countries signing pacts to share information on owners of bank accounts and other financial assets, Swiss banks have probably lost some of their lure to those stashing illicit money. As the Swiss revealed data on active and many closed accounts, the Indian Income tax department and the Enforcement Directorate invoked harsh laws against black money and laundering to question residents and serve notices to several NRIs. "Many of these accounts (linked to Indians) are held through investment vehicles or trusts where Indian individuals are 'ultimate beneficial owners' (UBOs), even if not named directly on the accounts. Enhanced global reporting standards could be contributing to greater visibility of such holdings," said Sekhri, partner at Isha Sekhri Advisory LLP. "Originally, many large families preferred keeping the names of beneficiaries under wraps. Here, Swiss confidentiality came handy, paving the way for estate planning along with tax avoidance," said Mitil Chokshi, partner at the CA firm Chokshi & Chokshi.
