April 2010
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New tax norm may spook PE party

Private equity (PE) and venture capital (VC) deals in India may be hit once a Central Board of Direct Taxes (CBDT) formula to determine the fair market value of shares for calculating tax comes into effect after the finance Bill is passed in Parliament. Finance minister Pranab Mukherjee in his February Budget had proposed that a firm which buys shares at a price lower than the fair market value of such shares will have to pay tax on the difference between the two. He did not define fair value. The board issued a notification on 8 April saying the fair market value of unlisted shares will be calculated based on a formula that uses the net asset value methodology, based on the difference between assets and liabilities appearing on the balance sheet. […]

Kings XI team finds buyer, to be sold soon

Kings XI Punjab, currently ranked last in this season's IPL table, is up for sale. The promoters of the club have put up an asking price of $300 million (Rs 1,380 crore). Sources said the final price is likely to be settled at around $280 million (Rs 1,288 crore). The buyer's identity is not being disclosed. But it is known consumer goods major Videocon's chairman Venugopal Dhoot is keen on buying a minority stake in an existing team. […]