Dated: 23-08-2021 To, To, The BSE Ltd. The National Stock Exchange
of India Limited Registered Office: Floor 25, Exchange Plaza, C-1,
Block G, P J Towers, Dalal Street, Bandra Kurla Complex, Bandra (E)
Mumbai 400 001 Mumbai – 400 051 Company Scrip Code: 533033 Company
Scrip Code: ISGEC EQ
Dear Madam / Sir,
Furnishing of Information as per SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and any other SEBI
Regulations, as may be applicable.
Subject: Newspaper Publication regarding Notice of Book Closure
Dates.
1. Please find enclosed herewith copies of the advertisement,
published in English daily newspaper (Business Line) and Hindi
daily newspaper at registered office Yamunanagaer (Hari Bhoomi) on
August 22, 2021, in respect of notice for book closure dates.
2. This intimation is also available on the website of the Company
at www.isgec.com
3. The above is for your information and records.
Thanking you,
(S.K. Khorana)
Encl: as above
BUSINESS OFFER
FARM HOUSE / LAND / RESORTS
What head of income is the compensation received on compulsory
acquisition of a house with plot taxable under? Or is it
exempt?
RAJAN NA
Section 45(5) of the Income Tax Act, 1961 (the Act) deals
with taxability of capital gains pursuant to compulsory
acquisition of capital asset under any law. A house with
plot is a capital asset and gains arising due to compulsory
acquisition shall be taxed under the head ‘Capital Gain’.
Depending on the period of holding the capital gains may
have to be categorized as longterm or shortterm .
The query is related to tax deducted at source. Is it mandatory to
file income tax returns, by only referring to Form 26AS? I am yet
to receive Form 16/16a from the deductor. In another case Form 26AS
doesn’t reflect amounts appropriately, partly they have allowed
partly they have not given credit. I request you to please clarify
what can be claimed as tax paid now, in ITR?
SIVALINGAM
Income earned during the financial year needs to be
offered to tax while filing the tax return in India. An
individual is required to collate details of all income
earned during the financial year, like salary income, rental
income, interest income, etc. and consider the same for
tax filing, regardless of whether there has been tax
deduction on such income. It may be noted that the
details reflected in the Form 26AS are based on the
withholding tax returns filed by tax deductor. It is
important to reconcile the income and taxes reported in
Form 26AS before filing the tax return. The central
processing unit (CPC) checks the accuracy of the amounts
offered in the tax return by comparing it with 26AS and
raises queries in case of discrepancies. Therefore, in case
of any difference in the amount, you are required to
connect with the deductor so that necessary corrective
action can be undertaken which should then reflect in
Form 26AS.
TAX QUERY
SUDHAKAR SETHURAMAN
Send your queries to
[email protected]
................CH-CHE
KUMAR SHANKAR ROY ..........................................
BL Research Bureau
Interest in directly investing in
inter
national stocks is growing in India and
to cater to this, new vistas are opening
up for Indian retail investors eager to
diversify beyond domestic stocks. Spe
cial platforms are coming up in
Gu jarat International Finance TecCity
(GIFT City) to enable the transaction of
international securities. Currently, in
vestors can take exposure to US stocks
through online platforms, having tie
ups with US brokers. We take a look at
the newer ways of going global
and how it compares with the current
route.
GIFT way In the GIFT City,
NSE International Ex
change (NSE IFSC) will permit trading
in select US stocks facilitated through
the NSE IFSC platform. The offering will
be in the form of unsponsored deposit
ory receipts. In this route, market
makers buy US stocks and issue depos
itary receipts against shares that
lie with custodian bank.
The entire trading, clearing, settle
ment and holding of US stocks will be
under the regulatory structure of IFSC
Authority. Indian retail investors
will
be able to transact on the NSE IFSC plat
form under the LRS limits prescribed
by RBI that permits resident individu
als to remit up to USD
2,50,000 (1.8 crore at current rates)
per financial
year. Investors will be able to hold the
depository receipts in their own demat
accounts opened in GIFT City. This in
dicates investors would need to open
demat accounts with the entities
based in GIFT City. Given the
high prices of US stocks for
eg. one Amazon.com Inc share costs
$3100
(2.3 lakh) investors will be provided
with an option to trade in
fractional
quantity/value. All the trades will also
be covered under the investor protec
tion framework at NSE IFSC. To
begin
with, NSE IFSC is expected to list depos
itary receipts of 50 US stocks including
Google parent Alphabet, Facebook,
Amazon, Tesla etc.
India INX, BSE’s international arm, is
also adding international stocks to
trading, including shares from major
USlisted companies via its wholly
owned subsidiary India INX Global Ac
cess IFSC. It proposes to offer
stocks
from the US, Canada, UK, Europe, Aus
tralia, and Japan, covering about 80
percent of the investing universe. Res
ident individuals can use the India INX
platform under the LRS route. Eventu
ally, India INX in the first
phase is ex
pected to provide access to over 130 ex
changes across 31 countries worldwide
How it compares The GIFT way of
investing in global stocks offers
distinct advantages over the existing
route of direct investing where one
opens a US brokerage ac
count through online platforms such
as Vested, Globalise, Stockal etc. Invest
ing in global securities in the GIFT ex
changes is likely to be more secure as
the transactions will be overseen by IF
SCA. Additionally, the GIFT way of
global investing is likely to
make the
entire process easier and, importantly,
it could be at a lower cost for Indian in
vestors although we await exact pri
cing details. Right now, online plat
forms charge base plan opening fee of
upto 499 per year or 399 onetime,
while brokerage can be upto $2.99 per
trade. Under the paid/premium plans,
brokerage fees are virtually free gener
ally, but account charges range from
2,50013,999 a year. There are costs in
volved in the deposit process
to fund US brokerage account,
depending on the bank you use.
Similarly, during withdrawals, the
remitting bank will charge fee
for the transfer. However, do remember
that one would need to
watch out the liquidity/volume aspect
and premium/discount on depositary receipts
over actual US stocks when
trading eventually begins.
Taxation remains a grey area too. On
paper, IFSC is a taxexempt jurisdiction
and so taxes such as capital gains tax,
STT and stamp duty do not apply. How
ever, domain experts opine that the
taxfree status can be enjoyed only if a
person or company located in IFSC
campus is carrying those trades.
Readymade portfolios The nearly 50
international mutual funds arguably offer
the best way to play international
stocks and score
over others in many ways. Firstly, these
funds are managed by professionals
who have done the research and
are skilled at portfolio management. Two,
most of the international funds are
available for Indian investors only after
their master fund has developed a
trackrecord. In case of indexbased in
ternational funds, the indices too have a
demonstrable history. Three, MFs
compress the costs linked to direct in
vesting in global stocks into one single
data point, with total expense ratio
(TER) for direct plans ranging from
0.102.28 per cent. Four, direct
global
stock investing also brings along with
it the hassles related to capital gain tax,
withholding tax on dividend from for
eign securities etc.
Beyond the international MF route,
curated portfolios from ICICI Securit ies
(ISec), which operates ICICIdirect, by
virtue of a tieup with US
investor
advisor, Interactive Advisors, has been
introduced. These portfolios of inter
national stocks are built on models
constructed by global fund managers
such as Global X by Mirae Asset, State
Street Global Advisors, Legg Mason,
Wisdom Tree. There won’t be any
brokerage on such transactions, but
there is an asset management fee
linked to the portfolio and investment
strategy. There is also a
minimum in
vestment amount of $100. Some of the
online platforms such as Vested,
Stockal and Globalise also offer pre
built stock portfolios based on
differ
ent strategies and themes. There may
be an access fee depending on plans.
New roads open for global investing MARKET WISE
PATHS TO PROFIT
International mutual funds offer the best way to play global
investment opportunities for retail investors compared to available
options
SBI festival offers
SBI has announced multiple offerings for their
retail customers ahead of the festive season.
It is providing a special interest concession of
25 basis points (bps) for customers applying
for a car loan via YONO. There is also 100 per
cent waiver on processing fees for car loan
customers who can also avail the facility of up
to 90 per cent onroad financing. For its gold
loan customers, SBI is offering a 75 bps cut in
interest rates. It has further waived off the
processing fee for all the customers applying
for a gold loan via YONO.
Muthoottu Mini NCDs
Muthoottu Mini, a nondeposit taking NBFC in
the gold loan sector, is offering secured and
unsecured debentures (NCDs) of the face
value of 1,000 each. The coupon rates range
from 8.75 10.00 per cent per annum. The NCD
issue opened on August 18 and closes on
September 9, with an option of early closure
or extension. The minimum application is for
10 NCDs (10,000). While the secured NCD
comes with tenure of up to 50 months, the
unsecured NCD is available for 84 months.
Interest rates on home loans (%)
Institution
Bank of Baroda 6.75-8.35 6.75-8.35 6.75-8.35
Bank of India 6.85-8.35 6.85-8.35 6.85-8.35
Bank of Maharashtra 6.90-8.40 6.90-8.40 6.90-8.40
Canara Bank 6.9-8.9 6.9-8.9 6.9-8.9
Central Bank 6.85-7.30 6.85-7.30 6.85-7.30
HDFC Bank 6.75-7.50 6.75-7.75 7.00-7.85
ICICI Bank 6.75-7.3 6.75-7.45 7.00- 7.55
Indian Bank 6.80-7.40 6.80-7.40 6.80-7.40
IOB 7.05 7.05-7.15 7.15-7.3
State Bank of India 6.70 - 7.15 6.70 - 7.30 6.95 - 7.40
UCO Bank 6.90-7.25 6.90-7.25 6.90-7.25
Union Bank of India 6.8-7.35 6.8-7.4 6.9-7.4
HOUSING FINANCE COMPANIES (Floating rates)
Tata Capital ≥6.9 ≥6.9 ≥6.9
HDFC 6.75-7.65 6.75-7.90 7.0-8.0
LIC Housing Finance 6.66-7.60 6.66-7.80 6.9-7.90
Note: Rates that vary with tenures within the specified loan
amounts are indicated as a range. Fixed interest rates may be
subject to a revision after a specified tenure. Rates may also
apply only for a definite period and change to floating thereafter.
Data taken from respective bank’s website as on August 20, 2021.
Contributed by BankBazaar.com, an online marketplace for comparing
loans and insurance products.
CM YK
Scan & Share
MAULIK MADHU ..........................................
BL Research Bureau
Last week, housing finance company,
HDFC and the country’s largest bank,
SBI launched new fixed deposits.
While the HDFC Green &
Sustainable
Deposit is targeted at those motivated
by the ESG (environmental, social, and
governance) theme, the appeal of SBI’s
Platinum Deposit Scheme lies in the
slightly higher rates compared to the
bank’s existing deposit rates.
That said, these deposits don’t seem
attractive, across both short (i.e.
less than one year) and long tenures.
There are many other higherreturn
fixed deposit options, both from
banks and nonbanking financial
companies (NBFCs) that investors can
consider. With interest rates expected
to move up, though not any time this
year, investors can go for
1–2year de
posits (and not very longtenure ones)
to benefit from a potential rate hike.
SBI Platinum doesn't shine
The scheme comes with three tenure
options – 75 days (2.5 months),
525
days (around 1.5 years) and 2250 days
(6 years and 3 months) with respective
interest rates of 3.95 per cent, 5.10 per
cent and 5.55 per cent for
under 2
crore deposits. These rates are 0.05 to
0.15 percentage points higher than
those offered on SBI’s existing depos
its of such tenures.
Senior citizens get 4.45 per cent and
5.60 per cent on the Platinum 75 days
and 525 days deposit respectively. Plat
inum 2250 days deposit offers 6.20 per
cent (rate applicable on the
SBI WE
CARE Scheme), an extra 0.65 per cent
for senior citizens. The Platinum de
posit scheme is open for investment
until 14 September 2021.
Deposits from the Post Office and
many public sector banks are a good
alternative to SBI Platinum deposits.
The ultrasafe Post Office 1year and 2
year time deposits (interest paid an
nually, calculated quarterly) offer 5.5
per cent per annum.
This is better than the 5.10 per cent
offered to nonsenior citizens on SBI’s
platinum 525 days deposit.
Many other public sector banks too
offer 5.10 5.20 per cent on
their 12 year deposits. SBI’s 5.6
per cent for
senior citizens is a tad better than the
5.50 per cent on Post Office
deposits
but is similar (5.60 – 5.70)
to that on
many public sector bank deposits.
HDFC green deposits flash amber HDFC’s Green
& Sustainable Deposit
(Green Deposit) is for those enthused
by the popular ESG theme. Money mo
bilised through these deposits will be
used to fund projects supporting the
UN’s sustainable development goals. These
deposits have tenures ranging from 33
to 120 months and interest
rates from 5.75 to 6.55 per cent per an
num on deposits of up to 2 crore. De
posits of up to 50 lakh
will get 0.10
per cent more if booked online. They
come with monthly, quarterly, half
yearly and annual payouts, and a cu
mulative option. The deposits have
the highest ratings of FAAA/Stable by
CRISIL and MAAA(stable) by ICRA.
While there are a few
ESGthemed
equity MFs in India, there are no such
debt funds. We compare HDFC’s Green
Deposit with other regular FDs from
NBFCs. Unlike bank deposits, NBFC de
posits are not protected under
DICGC’s insurance cover of up
to 5 lakh (principal and interest).
From a safety perspective, it’s best
to invest
only in AAArated NBFC deposits.
Purely based on returns, other AAA
rated NBFC deposits offer a better deal
compared to HDFC’s Green Deposits.
Also, minimum tenure for Green De
posits is as high as 33
months. Other
regular NBFC deposits, with 1year and
2year tenures, may be more suitable
given low interest rate scenario.
Given that the minimum tenure of
33 months itself is on the higher side,
we restrict our comparison with peers
to only this tenure. Even here,
green deposits don’t score. The 33month
Green Deposit offers rates from 5.90 to
6.10 per cent per annum on the non
cumulative options and 6.10 per cent
per annum on the cumulative option.
But HDFC’s 33month regular de posit
offers 0.10 per cent higher on
each of the respective options. That is,
6.0 per cent for the monthly, 6.05 per
cent for quarterly and 6.10 per cent for
halfyearly payout option, and 6.20
per cent both for annual payout and
cumulative option. HDFC’s regular de
posit rates are a tad better than those
of the financially strong Bajaj Fin
ance’s AAArated deposits rates as well.
Senior citizens get 0.25 per cent more
per annum on all these deposits.
Old wine in new bottle Rates on HDFC Green deposits, SBI Platinum
deposits are lower than those on other FDs
FD WATCH
There are other ways
environment.
best one.
Here’s a low-down on the latest routes through GIFT platforms and
curated portfolios
ALERTS
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