End capital gains tax exemption to curb money laundering: BSE

 The Bombay Stock Exchange (BSE) Thursday called for ending exemption of capital gains tax on securities to contain various entities using capital markets to evade taxes and launder money.

The government should re-think the exemption on capital gains taxes on traded securities, which listed companies enjoy, in order to avoid misuse of the trading platform to launder money and evade taxes, BSE Managing Director and Chief Executive Ashishkumar Chauhan said here today.

He admitted that multilevel "checks and balances" at exchanges alone will not be able to end money laundering.

Chauhan said that the BSE, which celebrated 140 years of trading today, is working on a proposal to be submitted to the government which would make it difficult for companies to seek exemption on capital gains tax.

One such proposal is to identify those companies which fail to play fairly in the market and then prevent them from availing of capital gains tax exemption, he said.

"What we saw recently is the use of the market platform for tax evasion. We are in the process of putting up more checks and balances on our main board as well as on the SME platform," he said, about the recent suspension of 43 companies from its main board for alleged tax evasion.

His remarks came amidst a recent crackdown by the Securities and Exchange Board of India against 239 individuals and entities for allegedly misusing the BSE's SME platform to launder money as well as evade taxes.

Ahead of IIP data Sensex up 155 points on Asian cues.

 Snapping its three day losing streak, the benchmark BSE Sensex recovered over 155 points in early trade on Friday as participants bought select blue-chip stocks ahead of IIP data to be released later in the day.

Besides, firming trend in China stocks and other Asian markets, buoyed trading sentiments.

The 30-share index was trading higher by 155.47 points or 0.56 percent at 27,729.13 as all sectoral indices, led by metal, consumer durable and healthcare stocks with gains of up to 1.05 percent.

The gauge lost 635.10 points in the previous three days.

The National Stock Exchange index Nifty moved up by 28.45 points or 0.34 percent to 8,357.00.

Stock brokers said fresh positions created by participants ahead of key economic data -- industrial production (IIP) numbers for May -- to be released later in the day, contributed to the rise.

Moreover, a firming trend at other Asian markets after Greece submitted new debt reform plans and Chinese rout eased as Shanghai stocks surged again on government measures to boost the market, positively impacted sentiments, they added.

Stocks of country's largest software services firm Tata Consultancy Services fell 0.17 percent to Rs 2,517 after company yesterday reported a meagre 2.1 percent growth in its June quarter net profit.

Among Asian markets, China's main Shanghai Composite Index jumped 5.12 percent, Hong Kong's Hang Seng up 0.72 percent, while Japan's Nikkei gained 0.41 percent in morning trade on Friday.

The US Dow Jones Industrial Average ended 0.19 percent higher in yesterday's trade.

Rupee edges up 6 paise to 63.33 against dollar.

The rupee strengthened by 6 paise to 63.33 against the US dollar in early trade today at Interbank Foreign Exchange after the greenback weakened overseas after Greece submitted a fresh bailout plan.

Besides, selling of the US dollar by exporters and a higher opening in the domestic equity market supported the rupee, forex dealers said.

The domestic currency had jumped by 21 paise to 63.39, its highest closing in more than two months against the US dollar in yesterday's trade.

Meanwhile, BSE Sensex recovered by 155.47 points or 0.56 percent to 27,729.13 in early trade. 

TCS shares down 2% post Q1 results..

Shares of the country's largest software exporter TCS fell by almost 2 percent on Friday after the company's June quarter results disappointed investors.

The bellwether stock fell by 1.87 percent to Rs 2,474 even after a positive opening on BSE.

At the NSE, the stock lost 1.96 percent to Rs 2,473.

"TCS announced its Q1FY16 results which was lower than expectations on sales and net profit front," said Sarabjit Kour Nangra, VP Research - IT, Angel Broking.

TCS yesterday reported mere 2.1 percent growth in its June quarter net profit at Rs 5,684 crore with revenue growth trailing street expectations on difficulties from the Japanese and Latin American markets.

The firm had posted a net profit of Rs 5,568 crore in the year-ago period. The software major reported a consolidated revenue of Rs 25,668 crore under Indian GAAP accounting, which is up 16.1 percent on yearly basis and 6 percent sequentially.

"TCS Q1FY16 results were a mixed bag. Revenue was below consensus expectation, but volume growth and margin expansion was ahead of expectation," brokerage firm Prabhudas Lilladher Private said in a report.

Analysts at brokerage Motilal Oswal Securities also said the revenue growth was lower than the expectation.