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HSBC to launch equity tax saver fund
Mumbai: HSBC Mutual Fund is all set to launch an equity tax saver fund.According to the offer document filed with the Securities and Exchange Board of India, the fund seeks to generate long-term capital growth through investments across all market capitalisation stocks.

The scheme is an equity-linked savings scheme and has a lock-in period of three years. Investors subscribing to the fund would be charged an entry load of 2.25 per cent on investments below Rs5 crore. There is no exit load, according to the offer document.

The fund aims to be predominantly invested in equity and equity related securities, but will also invest in fixed income securities and money market instruments, it says. The offer document says that equity investments by the fund would be between 80-100 per cent and up to 20 per cent can be invested in debt and money market products.

The offer document is now filed with SEBI and is awaiting regulatory clearances.
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India signs capital gains tax pact with Singapore
New Delhi: With India agreeing to extend Mauritius-like 'capital gains' tax concession to Singapore through a protocol capital gains arising to a Singapore resident on sale of shares of Indian companies would not be taxable in India. Consequent to the protocol, capital gains derived by a Singapore resident would be liable to tax only in Singapore.

Interestingly at present, there is no capital gains tax in Singapore. In effect capital gains, which accrue, would not be taxed even in Singapore.

Official sources said that this concession has been made co-terminus with the India-Mauritius Double Taxation Avoidance Convention and would be available to Singapore only till such time as the capital gains tax concession continues to be extended to Mauritius.

Under India's existing double taxation avoidance agreement with Mauritius, capital gains from sale of shares are liable to tax in the country of residence of the investor.

Meanwhile, Singapore has agreed to incorporate anti-abuse provisions in the protocol and to share with India whatever information it is competent to obtain for its own purposes under its law.

On mutual funds, the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) provides that asset managers established in India or Singapore and offering mutual funds to investors in India have been permitted to invest $250 million in equities and instruments in the Singapore Stock Exchange over and above the existing cap of $1 billion allowed for all mutual funds put together.
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SEBI extends supersession of the CSE to March 2006
Kolkata: The Securities and Exchange Board of India (SEBI) has extended the supersession of the committee of the Calcutta Stock Exchange (CSE) up to March 31, 2006.

The regulator, in its order sent to CSE, has further stated that T.K. Das will continue as the Administrator of the exchange. He will exercise and perform all the powers and duties of the committee during the extended period.

The exchange has already communicated SEBI's decision to its members. The regulator's order, dated June 27, will take effect from July 1.
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