The Ministry of Parliamentary Affairs has officially notified a 24% increase in the salaries of Members of Parliament, effective from April 1, 2023. The revision is based on the Cost Inflation Index and marks the first hike since 2018.

Revised Salary Structure

With the updated structure, an MP’s monthly salary has increased from ₹1,00,000 to ₹1,24,000. This is the first revision since February 2018, when salaries were raised from ₹50,000 to ₹1,00,000. The current hike has been implemented retrospectively.

The constituency allowance has been revised to ₹87,000 per month, up from the earlier ₹70,000. Office expenses allowance has also been raised from ₹60,000 to ₹75,000 per month.

MPs are entitled to a daily allowance when attending Parliament sessions or committee meetings. This has now been revised from ₹2,000 to ₹2,500 per day.

Pension Revisions for Former MPs

For former MPs, the monthly pension has increased from ₹25,000 to ₹31,000. Additionally, for every year of service beyond 5 years, the additional pension has gone up from ₹2,000 to ₹2,500 per month.

Additional Perks 

MPs will receive 34 domestic air tickets per year, unlimited first-class train travel, and a road mileage allowance. They are also allotted 50,000 electricity units, 4,000 kilolitres of water annually, and official housing in Delhi or a housing allowance. An annual phone and internet allowance is also provided.

Background and Automatic Revision System

In 2018, the government amended the Salary, Allowances and Pension of Members of Parliament Act, 1954, through the Finance Act, 2018. This introduced a system for automatic revision of salaries and allowances every five years, linked to the Cost Inflation Index, eliminating the need for separate approvals or recommendations by MPs.

Earlier Salary Cuts During COVID-19

In 2020, during the COVID-19 pandemic, the government had announced a 30% cut in MPs’ and ministers’ salaries for one year as a cost-saving measure.

Conclusion

The revised salary and allowance structure will apply from April 1, 2023, as notified. All changes are inflation-indexed and follow the framework established in 2018 for automatic, periodic adjustments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

On March 24, 2025, the Indian government introduced a significant amendment to the Finance Bill 2025, proposing the removal of the 6% equalisation levy on online advertising services. Commonly referred to as the “Google Tax,” this levy was imposed on payments made to non-resident digital service providers for online advertisements accessed by Indian users.

If this proposal is passed by Parliament, the levy will cease to apply from April 1, 2025, potentially marking a crucial step in aligning India’s tax regime with global standards.

What Was the Equalisation Levy?

The equalisation levy was first introduced in 2016 to bring foreign digital service providers under India’s tax net. Initially targeted at online advertisements, it was expanded in 2020 to include a broader 2% levy on e-commerce transactions involving non-resident companies.

This move was intended to ensure fair taxation of revenues generated by foreign digital businesses from Indian users, particularly when these entities lacked a physical presence in the country.

Concerns and Global Pushback

India’s digital taxation measures have faced sustained criticism from the United States, whose technology companies such as Google and Meta were among the most affected. In 2021, the US Trade Representative (USTR) published a report labelling the equalisation levy as discriminatory, arguing it disproportionately impacted US-based digital firms.

Despite these objections, India defended the tax, asserting it was necessary to ensure equity in cross-border digital transactions and to prevent revenue leakage.

Policy Evolution and Gradual Rollback

The Indian government has, over time, recognised the complexities and international concerns associated with digital taxation. In the Union Budget 2024, a proposal was made to withdraw the 2% equalisation levy on e-commerce services, effective from August 1, 2024.

However, the 6% levy on online ads remained in force—until now.

The recent amendment to the Finance Bill 2025 appears to be a continuation of India’s phased approach to digital tax reforms, gradually moving towards a more standardised and globally acceptable framework.

Industry Implications

According to a report, India had introduced the concept of Significant Economic Presence (SEP) to target foreign digital companies, thereby building a comprehensive digital tax structure.

The removal of the 6% levy could reduce costs for Indian consumers and advertisers, and is likely to benefit multinational tech firms by removing an additional layer of tax compliance.

What Lies Ahead

While this amendment still awaits parliamentary approval, it reflects India’s intent to support a more harmonised global tax regime. The proposal may also strengthen India’s diplomatic position, showing goodwill in negotiations around international digital tax frameworks spearheaded by the OECD and G20 nations.

Conclusion

The removal of the 6% equalisation levy on online advertising, if enacted, would signal a major shift in India’s digital tax policy. As the country repositions itself in the evolving global digital economy, this move may pave the way for more balanced and collaborative taxation practices in the future.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India’s steel industry is undergoing a transformation. With the launch and expansion of the Production-Linked Incentive (PLI) Scheme for specialty steel, the government is doubling down on its commitment to making India self-reliant in high-grade steel production. 

The second round of the scheme, dubbed PLI 1.1, has garnered strong industry participation and is poised to reshape the country’s steel landscape.

Strengthening the “Make in India” Vision

The PLI Scheme for specialty steel aligns with Prime Minister Narendra Modi’s “Make in India” initiative, aiming to reduce the country’s dependency on imported high-end steel. Despite being the world’s second-largest steel producer and consumer, India continues to rely on imports for certain specialty steel products. The scheme is designed to bridge this gap by incentivising domestic production.

Key Features of the PLI Scheme

Initially launched in July 2021, the PLI Scheme for specialty steel covers five broad categories and 19 sub-categories. It offers incentives ranging from 3% to 4% based on investment and production targets. 

Notably, only Indian-registered companies involved in end-to-end steel manufacturing are eligible, ensuring that the benefits stay within the domestic ecosystem.

Second Round Sees Strong Industry Participation

Encouraged by the response to the first round, where 44 applications were submitted by 23 companies, the government introduced Round 2 to accommodate greater industry interest. The second round received 42 applications from 25 companies, representing a commitment of ₹17,000 crore in investments. 

This overwhelming response led to the signing of 42 Memorandums of Understanding (MoUs), signalling a major leap in India’s self-reliance journey.

Leadership and Collaboration Drive the Scheme Forward

At the recent MoU signing event, Union Steel Minister H.D. Kumaraswamy praised the collaborative efforts of the Ministry of Steel and technical consultant MECON. He highlighted the speed and efficiency in rolling out the second round and acknowledged the vital role of stakeholders in making the scheme a success.

He also appealed directly to Indian steelmakers to invest in the production of specialty steel. “If you succeed in producing specialty steel domestically, it will boost our capacity and self-reliance,” he urged.

Looking Ahead: A Competitive Edge for India

The expanded scope of the PLI Scheme is expected to bolster India’s position in the global steel market. With financial incentives, increased investment, and active government support, the initiative aims to turn India into a global hub for high-quality, value-added steel.

Kumaraswamy expressed gratitude to Prime Minister Modi for his leadership and reiterated the government’s long-term commitment to supporting the steel sector through forward-looking policies.

Conclusion

As the PLI 1.1 scheme gains traction, it marks a significant step towards reducing India’s import dependency and enhancing the country’s manufacturing capabilities. With strong public-private collaboration, the future of India’s specialty steel sector looks both promising and globally competitive.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The Reserve Bank of India (RBI) has released a comprehensive revision to its Priority Sector Lending (PSL) guidelines, with changes set to take effect from April 1, 2025. These new measures are aimed at refining the allocation of bank credit to economically and socially significant sectors of the Indian economy.

According to the central bank, the enhanced coverage is designed to better target bank lending to priority sectors, addressing both developmental needs and financial inclusivity.

Let’s explore the key revisions and their implications:

1. Increased Housing Loan Limits

To make housing finance more accessible and inclusive, the RBI has raised the limits for loans eligible under PSL:

• ₹50 lakh for centres with populations of 50 lakh and above
  
• ₹45 lakh for cities with populations between 10 and 50 lakh
  
• ₹35 lakh for centres with populations below 10 lakh
  

Additionally, the maximum cost of dwelling units has been specified to ensure affordability and prevent misuse of the PSL benefits.

2. Boost to Renewable Energy Lending

Recognising the importance of clean energy, the RBI has expanded the definition and loan limits for renewable energy projects:

• Loans up to ₹35 crore for renewable energy-based power generators and public utilities
  
• Loans up to ₹10 lakh for individual households installing renewable energy systems
  

This move is expected to catalyse investments in sustainable infrastructure and support India’s renewable energy goals.

3. Revised Targets for Urban Cooperative Banks (UCBs)

Urban Cooperative Banks will now be subject to an updated PSL target:

• 60% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBSE), whichever is higher

This revision aligns UCBs more closely with commercial banks in their lending obligations to priority sectors.

4. Expanded Coverage for Weaker Sections

The definition of ‘Weaker Sections’ has been broadened to allow a wider range of beneficiaries access to credit. Notably:

• The cap on loans to individual women beneficiaries by UCBs has been removed, encouraging gender-inclusive financial access.
  

These measures are in line with the broader aim of fostering equitable credit distribution across underserved demographics.

5. Reinforcing Focus Areas Under PSL

The RBI’s revised guidelines reaffirm its commitment to sectors that are vital to national development. The PSL framework continues to cover:

• Agriculture
  
• Micro, Small, and Medium Enterprises (MSMEs)
  
• Export credit
  
• Education
  
• Housing
  
• Social infrastructure
  
• Renewable energy
  

The updated norms provide a more detailed framework and refined thresholds for each segment, ensuring targeted delivery of credit.

Conclusion

These revised PSL guidelines mark a significant step by the RBI to recalibrate credit flow in accordance with changing economic priorities and societal needs. By refining limits and expanding eligible categories, the central bank aims to enhance both the quality and reach of institutional lending across India’s diverse economy.

While these norms are set for implementation in April 2025, their announcement gives time for financial institutions to align their internal policies and practices accordingly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

In recent weeks, speculation around a possible change in the retirement age for central government employees resurfaced, sparking discussions across departments and public forums. However, the Ministry of Personnel has put all doubts to rest with an official clarification during a parliamentary session.

No Change in Retirement Age, Says Government

Union Minister Jitendra Singh, while addressing questions in Parliament, stated unequivocally that the government has no intention of altering the retirement age of central government employees. The current retirement age remains 60 years. This reiteration comes after multiple queries raised by members of Parliament over the past few sessions.

Clarification on Vacancies Post Retirement

Another query raised in the House concerned whether the government was eliminating posts that became vacant due to employee retirements. In response, the Minister confirmed that there is no existing policy to abolish such vacancies. Additionally, when asked how many posts have been removed since 2014, the government stated that no official data is available in this regard.

Central vs State: Why the Difference in Retirement Age?

The retirement age for employees varies between the central and state governments. Responding to why this discrepancy exists, the Centre explained that retirement age falls under the purview of individual states. As a result, the central government does not maintain comparative data on this matter.

Employee Unions and the Retirement Age Demand

It is often speculated that employee unions may be lobbying for a change in the retirement age, either an increase or a decrease. However, the government clarified that no formal proposal has been received from the National Council under the Joint Consultation Mechanism in this regard.

Current Status Remains Unchanged

As of now, central government employees will continue to retire at the age of 60. While states may have different policies, this confirmation from the Centre dispels the recent wave of speculation. The announcement aims to bring clarity and stability for employees nearing retirement and for departments planning workforce requirements.

Conclusion

The Ministry of Personnel’s response serves as a timely clarification amid growing speculation about changes to the retirement framework. With no proposed alteration on the horizon, employees can continue with their planning under the existing policy. The matter, while often revisited in public discourse, appears to remain settled for the foreseeable future.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The Securities and Exchange Board of India (SEBI), in its 209th board meeting held in Mumbai on March 24, 2025, approved several critical regulatory measures aimed at strengthening governance, improving transparency, and facilitating ease of doing business across various segments of the capital market ecosystem. 

The decisions span across Foreign Portfolio Investors (FPIs), Alternative Investment Funds (AIFs), Market Infrastructure Institutions (MIIs), investment advisers, and research analysts.

Threshold for FPI Disclosures Raised to ₹50,000 Crore

To mitigate the risk of market disruption from large FPIs and ensure alignment with Press Note 3 stipulations, SEBI had earlier mandated comprehensive disclosures from FPIs holding over ₹25,000 crore in Indian equity assets. However, considering the significant growth in cash equity market volumes since FY 2022-23, the board has approved a revision in this threshold.

Going forward, FPIs with equity AUM exceeding ₹50,000 crore will be required to disclose full ownership and control details, up to the level of the natural person. The aim is to maintain market integrity while reflecting the evolving scale of the Indian markets.

There is no change in the additional disclosure requirement for FPIs with over 50% equity AUM invested in a single corporate group, which continues to ensure compliance with norms on Minimum Public Shareholding and Substantial Acquisition of Shares and Takeovers.

Category II AIF Investment Norms Relaxed

SEBI acknowledged the changing regulatory environment surrounding debt securities issuance. Previously, Category II AIFs were required to invest a majority of their capital in unlisted securities. However, with recent amendments to the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, entities issuing listed debt can only raise fresh debt in listed form.

To accommodate this shift and promote investment in lesser-rated debt instruments, SEBI has decided that investments by Category II AIFs in listed debt securities rated ‘A’ or below will now be treated as investments in unlisted securities for regulatory compliance purposes. This move is expected to ease compliance challenges while supporting market liquidity.

Strengthening Governance in MIIs

To enhance the governance framework of Market Infrastructure Institutions (MIIs), SEBI approved a set of measures focused on appointments and transitions of key personnel:

• Public Interest Directors (PIDs): The current process requiring SEBI’s approval—but not shareholder approval—for appointing PIDs will remain unchanged. However, if a governing board opts not to reappoint a PID after their first term, the rationale must be documented and shared with SEBI.

• Cooling-off Period: SEBI will no longer prescribe a mandatory cooling-off period for PIDs moving between competing MIIs. However, individual MIIs may establish their own cooling-off rules for their directors and Key Management Personnel (KMPs).

• KMP Appointments: The authority for appointing or removing key roles such as Compliance Officer, Chief Risk Officer, Chief Technology Officer, and Chief Information Security Officer now shifts from the Nomination and Remuneration Committee to the Governing Board of the MII. This change aims to enhance accountability and align these roles more closely with the MII’s public interest mandate.

Advance Fee Norms for Investment Advisers and Research Analysts Revised

Recognising concerns raised by the investment advisory and research community regarding fee restrictions, SEBI has revised its advance fee collection norms.

Investment Advisers (IAs) and Research Analysts (RAs) can now charge advance fees for up to 1 year—an increase from the earlier limits of 6 months and 3 months, respectively. 

However, this relaxation applies only to individual and Hindu Undivided Family (HUF) clients, excluding accredited investors and institutions, who will continue to operate under bespoke contractual terms.

This move is intended to offer greater flexibility to advisers while ensuring protection for retail investors through clearly defined payment and refund norms.

Deferment of Amendments for Certain Intermediaries

The board has decided to defer the implementation of previously approved amendments to regulations governing Merchant Bankers, Debenture Trustees, and Custodians. These amendments, which required the hiving-off of regulated activities into separate legal entities, will be reviewed further. A revised proposal will be brought forward after internal evaluation to ensure a level playing field while avoiding unnecessary structural complications.

High-Level Committee on Conflict of Interest and Disclosures

In a significant step towards enhancing transparency and accountability, SEBI will constitute a High-Level Committee (HLC) to review the existing framework governing conflict of interest, disclosures of property, investments, and liabilities among SEBI board members and officials.

Comprising distinguished individuals from regulatory bodies, government, private sector, and academia, the HLC will be tasked with recommending improvements to uphold the highest standards of ethical conduct. The committee is expected to submit its findings within three months for board consideration.

Conclusion

The latest set of reforms approved by SEBI reflect its proactive stance in adapting to a growing and evolving market landscape. These measures aim to bolster investor confidence, ensure regulatory clarity, and promote ethical market practices. While some reforms offer ease of business for market participants, others reaffirm SEBI’s commitment to governance and transparency at the core of India’s financial ecosystem.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

In a startling revelation that has gripped Mumbai’s financial and legal circles, the Economic Offences Wing (EOW) is investigating a complex embezzlement case involving the New India Co-operative Bank. 

The case revolves around the alleged misappropriation of ₹122 crore from the bank’s vaults and a series of fraudulent investments that followed. The latest arrest has further unravelled the intricate web of deception.

The Prime Accused and the Missing ₹122 Crore

At the centre of this scandal is Hitesh Mehta, the former general manager of the New India Co-operative Bank. According to the EOW, Mehta misappropriated ₹122 crore from the bank’s vaults. 

This money was then distributed among other accused individuals under the pretext of investment opportunities promising unusually high returns, as per news reports.

Arrest of the 8th Accused

The eighth arrest in this high-profile case is that of 45-year-old Rajiv Ranjan Pandey. He was apprehended by Mumbai police from Bokaro, Jharkhand, and presented before the court, which remanded him to police custody until 28 March. 

The investigators allege that Pandey received ₹15 crore from another accused, Unnathan Arunachalam, as per news reports.

The Temptation of ‘CSR Investments’

The EOW has revealed that Pandey, along with three associates, persuaded Arunachalam to invest ₹15 crore in businesses purportedly aligned with Corporate Social Responsibility (CSR) initiatives. They allegedly offered a staggering 50% interest on the invested amount, a promise that raised further red flags.

The Chain of Transactions

As per EOW officials, Arunachalam had received ₹40 crore from Hitesh Mehta and subsequently transferred ₹15 crore to Pandey. 

This transfer was made under the belief that the money would be invested in legitimate ventures yielding high returns. The remaining individuals involved in the scheme are yet to be identified.

Ongoing Investigation

The EOW is currently tracing the whereabouts of the three unnamed associates of Pandey who played a role in the fraudulent operation. Authorities are also scrutinising what Pandey did with the money once it was transferred to him. This line of enquiry is crucial to determining the final destination of the embezzled funds.

Conclusion

This case serves as a stark reminder of the vulnerabilities in the banking sector and the lengths to which individuals may go to exploit them. While the investigation continues, it underscores the importance of regulatory vigilance and the need for thorough internal controls within financial institutions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.