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Budget 2022: Experts exhort Centre to regulate crypto trades

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Even as Union Finance minister Nirmala Sitharaman is set to present the annual Budget on February 1, experts have called for regulation of cryptocurrencies and exhorted the government to treat them as capital assets with a “reasonable” tax regime.

While the sector has grown exponentially over the last few years in India with buying, selling of the digital currencies and altcoins and establishing cryptocurrency exchanges being legal, the government is yet to bring in a law that regulates the sector.

The government was expected to introduce a Bill titled “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” to regulate cryptocurrencies in the Winter session of the Parliament but did not do so. It is now expected to be tabled in the Parliament during the Budget session that starts on January 1 and ends on April 8.

Pratik Gauri, CEO, and Founder, 5ire said the government has a responsibility to protect people from investments that are sensationalized, and while risk-taking is every investor’s right, a measured hand where investment and holding parties responsible go hand-in-hand.

“Laissez-faire has never worked in populations where every rupee is hard-earned and we are a nation of hard-earners. Even in terms of governance, the Indian government is looking long and hard at accountability. So, taxation and regulation of investment falls under its purview and I think, thus far the government has done a remarkable job of balancing the need to encourage investment for innovation and the restriction on gaining from wild speculation,” he said.

He added that all gains from cryptocurrencies are taxed heavily across the globe and that asking to pay a fair share of taxes on the gains in crypto markets is just part of the puzzle.

Prime Minister Narendra Modi, while virtually addressing a summit of the World Economic Forum on January 17, had called for a synchronized global action to regulate cryptocurrencies. The Reserve Bank of India has publicly favored a ban on private cryptocurrencies. The crypto assets in India are currently estimated at around Rs 45,000 crore with about 15 million investors.

The risk in the widespread adoption of crypto is that poor AML and fraud practices are heavily present in the crypto exchange market. The reasons are multifold: Enhanced Due Diligence (EDD) is not required on crypto exchanges or ATMs at this time.

Raj Kapoor, Founder – India Blockchain Alliance and Chief Growth Officer at Chainsense LTD, said an alignment with the FATF framework would also provide crypto for a clearer framework on performing AML compliance, and to prepare to use this to inform your risk assessment and procedures.

The Customer Due Diligence (CDD) scanner to detect customer identification, especially for scanning high-risk customers would then be in place as well.

Ravi S. Raghavan, Partner, Tax and Private Client Group at Majmudar & Partners says cryptos should be treated as capital assets and reasonable tax regime such as a levy of 18 per cent GST on fee collected by exchanges for enabling buying and selling cryptos; and Investor profits to be either taxed as – short term capital gains (for cryptos held for less than 36 months) at 30 per cent; or long term capital gains tax (for cryptos held for more than 36 months) at 20 per cent that is similar to trading and investment in securities.

“Reporting procedures in income tax returns and whether tax withholdings are applicable (beyond prescribed thresholds) should be explained in the form of an FAQ by the Central Board of Direct Taxes in due course to avoid any tax litigation,” he said.

He added that crypto trading should be considered by the government as speculative transactions and no losses arising from crypto sales be allowed to be carried forward and set off against other business profits or salary income of the concerned taxpayer.

Regulating cryptocurrencies by bringing it under the IT Act will make it a part of the investment choices and while most investors do not have a problem with taxation, they seek clarity and consistency of taxes.

“Anything that is banned never goes away, it just goes underground and the govt misses out on the tax revenues. Also regulating it would ensure that all loopholes are plugged and people don’t feel the need to evade taxes,” Kunal Verma director and creative head of Yunometa Pte limited said.

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IT Q2 results beat low expectations, but demand recovery pushed to FY28: Report

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India’s information technology (IT) services sector delivered Q2 FY27 results that were modestly ahead of subdued expectations, but the broader recovery in demand is increasingly being pushed into FY28 as companies contend with pricing pressure and AI-driven disruption, a report said on Friday.

The report from BNP Paribas India said investors responded positively to better-than-expected earnings after analysing quarterly results from 15 Indian IT services companies, including five large-cap and 10 mid-cap firms.

Shares of the covered companies rose by a median 5 per cent following the results after having declined about 23 per cent year-to-date in 2026.

The market rewarded better-than-feared revenue, margin expansion and strong deal momentum, while penalising margin pressure and weak deal wins. Demand remains steady but narrow, with the financial services vertical as the bright spot.

“While FY27 headline revenue growth guidance cuts seemed modest, the organic cut was sharper, implying that FY27 organic revenue is likely to trail FY26, with acquisitions filling in the gap partly,” the report said.

“AI-led work continues to grow even as clients demand pass-back of the productivity gains, shrinking the legacy books and pushing down pricing pressure. With seasonally weak H2FY27, companies now expect recovery in FY28, supported by large deal ramp-ups,” the report noted.

Collectively, 60 per cent of the firms beat on revenue and 53 per cent beat on EBIT margin expectations, while 27 per cent missed on revenue growth and 40 per cent missed EBIT margin expectations.

Deal Total Contract Value (TCV) inched up modestly annually in Q2FY27, underpinned by strong wins of three companies. Headcount increased slightly sequentially, while attrition and utilisations improved modestly.

Another recent report said that management commentary across nearly all major Indian IT companies during Q1 FY27 earnings season showed that clients demanded measurable outcomes, governance frameworks and stronger data foundations before committing to large-scale AI rollouts.

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India bolsters ties with diamond-producing countries

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India, as Chair of the Kimberley Process (KP) for 2026, has flagged key priorities concerning the global diamond industry, including responsible rough diamond sourcing as part of its outreach ahead of the KP Plenary to be held in Delhi from November 30 to December 4, according to a statement issued by the Commerce Ministry on Thursday.

The issue was discussed at a stakeholder consultation in Angola’s Luanda on Tuesday, chaired by Additional Secretary Yashvir Singh on India’s behalf, which brought together the Chairs and Vice-Chairs of KP Working Groups and Committees (KP Working Bodies), the KP Vice-Chair (of Ghana), and the former KP Chair (of the United Arab Emirates). Representatives of observers and partner organisations, including the World Diamond Council and the African Diamond Producers’ Association (ADPA), also participated in the discussion, the statement said.

India has observer status in the ADPA, providing an institutional platform for engagement with African diamond-producing countries. This offers opportunities for cooperation in securing rough diamond supply chains, technical knowledge exchange, value addition, market access and the promotion of ethical and sustainable practices.

The 13th Extraordinary Meeting of the ADPA Council of Ministers, held alongside the 20th anniversary celebrations, approved a Memorandum of Understanding (MoU) between the Gem & Jewellery Export Promotion Council (GJEPC), India, and the ADPA. The MoU seeks to strengthen cooperation between the Indian gem and jewellery industry and African diamond-producing countries, including through capacity building and skills development in diamond sorting, valuation and manufacturing, exchange of technical expertise, and the promotion of trade and investment linkages across the diamond value chain, the statement said.

Yashvir Singh said: “India’s chairship places emphasis on confidence, compliance and credibility. The consultation in Luanda provided an opportunity to engage directly with the leadership of the KP working bodies, the KP Vice-Chair and observers on issues that are important to the future of the Process and the diamond industry. Our endeavour is to build a shared understanding of the issues before the New Delhi Plenary and to advance practical outcomes through constructive dialogue and consensus-based decision-making.”

Discussions covered the sustainability of diamond-producing countries and communities, sustainable funding and continuity of the KP Secretariat, digitalisation of certification and statistical processes, and strengthening compliance with the Kimberley Process Certification Scheme.

Participants also exchanged views on the reform of the conflict diamond definition, responsible sourcing, artisanal and alluvial diamond production, consumer confidence and the importance of effective reporting and peer-review mechanisms.

The ADPA, established in 2006 in Luanda, seeks to enhance cooperation among African diamond-producing nations. It effectively comprises 15 member countries and 8 observers, including two non-African observers, namely Russia and India. Its member countries collectively account for over 60 per cent of global diamond production.

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Adani Ports to acquire Europe’s Evos for 2.56 billion euros in major global expansion

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Adani Ports and Special Economic Zone Limited (APSEZ) on Thursday announced the acquisition of Netherlands-based Evos B.V., Europe’s second-largest independent liquid storage operator, in an all-cash transaction valued at an enterprise value of 2.56 billion euros.

Under the agreement, APSEZ will acquire a 100 per cent stake in Evos from Igneo Infrastructure Partners.

The deal values Evos at an equity value of 1.18 billion euros and implies an acquisition multiple of 11.7 times CY25 EV/EBITDA.

The transaction will be funded through debt and remains subject to regulatory approvals and works council consultation.

“APSEZ, India’s largest and one of the world’s fastest growing Integrated Transport Operator, agrees to acquire 100 per cent stake in Netherlands-headquartered Evos B.V. (Evos) from Igneo Infrastructure Partners. The proposed transaction is an all-cash deal at an enterprise value of 2.56 bn euros,” the official statement said.

For calendar year 2025, Evos reported revenue of 392 million euros and EBITDA of 219 million euros, translating into a robust EBITDA margin of 56 per cent.

Following the acquisition, the combined entity’s pro forma net debt-to-EBITDA ratio is expected to stand at 2.76 times and decline to around 2.5 times by FY27.

Commenting on the deal, Karan Adani, Managing Director of APSEZ, said the acquisition marks a significant milestone in the company’s journey toward handling one billion tonnes of cargo and building a truly global integrated transport platform.

“Evos marks an important milestone in APSEZ’s trajectory towards handling 1 billion tons of cargo and building a truly global, integrated transport platform. We are delighted to welcome Evos into our portfolio, giving us significant presence across key global liquid storage and energy hubs,” Karan Adani noted.

“We look forward to partnering with Europe, supporting its sustainable energy transition and creating enduring value while maintaining the financial prudence that underpins our growth,” he added.

Headquartered in the Netherlands, Evos operates 6.3 million cubic metres of storage capacity across eight strategically located port-based terminals in the Netherlands, Germany, Spain, Belgium and Malta.

The company has a presence in major energy and industrial hubs, including the Amsterdam-Rotterdam-Antwerp region, Hamburg and the Mediterranean.

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