The Corporate Affairs Ministry has made it mandatory for companies to disclose the profit or loss on transactions involving cryptocurrency or virtual currency.
subscribers exclusiveSUBSCRIBER EXCLUSIVE
alt_text
Data-Focus
Why household savings reverted to pre-Covid levels in Sept 2020 quarter
alt_text
Auto-Focus
Lock in to secure protection
alt_text
Technophile
Amazfit GTS 2: Basic health metrics done smartly
alt_text
Auto-Focus
At home on the road and the track

Companies have now been asked to disclose in their annual financial statements the amount of crypto currency held as on reporting date. Also, companies have to now disclose in their financial statements the details of deposits or advances taken from any person for trading or investing in crypto/virtual currency, the MCA has said.

The MCA move comes even as the Centre and the Reserve Bank of India are in active consultation to firm up a framework for regulating cryptocurrencies and looking at even introducing a sovereign digital currency while banning private cryptos.

A government-appointed panel, headed by SC Garg, former Finance Secretary, had recommended banning of cryptocurrency while allowing a sovereign digital currency.

Ashok Haldia, former Secretary of CA Institute, said that cryptocurrency, while not banned in India, is also not regulated. There is considerable lack of clarity around regulatory, accounting, and taxation aspects while the element of risk remains high. “Specific disclosure as now required is thus welcome from the perspective of investors, regulators and other stakeholders. This will also help regulators and authorities in tracking sources of funds used in trading or investing in cryptocurrency,” he said.

Srinath Sridharan, an independent markets commentator, said it’s a good move to collate information on the investments of Indian companies in cryptocurrency.

While the debate about banning crypto-currencies is still on, it would be useful to collate this data on the exposure of Corporate India in such securities. As long as accounting norms can recognise the volatility and liquidity of such securities, it will address any concerns, he said.

Published on March 25, 2021
Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

crypto currencies
SHARE
COMMENTS
You May Like
Coding Classes For Kids Age 6-18 by IIT/ Harvard Team
Laptop/Desktop is mandatory.
CampK12
|
Sponsored
Without Your Help They Could Starve Through This Pandemic
The Akshaya Patra Foundation
|
Sponsored
Buy Bitcoin (BTC) in small amounts, starting as low as ₹10 on INSTA
Get INR Withdrawal Directly In Your Linked Bank Account
CoinDCX
|
Sponsored
Is your Kid aged 4-6? Get them Personalized Reading Classes. Free Demo Class!
Vedantu SuperReaders | Online
|
Sponsored
38% Indians Stressed About Medical Expenses. Are You?
Max Life Insurance Quotes
|
Sponsored
Born Between 1965-1985? Get ₹1 Cr Term Plan at ₹1884/month*
Best Term Insurance Plans
|
Sponsored
This Game is So Beautiful it's Worth Installing Just to See
Victory awaits those who can rally the right Champions! 1+ million builds and 400+ hyper-realistic champions to take down your opponents in this adrenalin-charged, dark fantasy collection. Free to install RPG available now!
Raid: Shadow Legends | Free Download
|
Sponsored
59% Indians Feel Under Insured. Get A Term Plan
Max Life Insurance Quotes
|
Sponsored
The man who batted for women’s cricket
TheHindu.com
|
Sponsored
A child’s meal for one year costs just Rs 1,100. Donate today.
Akshaya Patra
|
Sponsored
Born b/w 1965-1990? Get ₹1 Cr Term Plan starting at ₹503/month*
Best Term Insurance Plans
|
Sponsored
In Tamil Nadu it's a two-horse race, still
Frontline
|
Sponsored
Start by investing as low as Rs.10 in Bitcoin & more. Start with CoinDCX India.
Instant ₹ Deposit & Withdrawal
CoinDCX
|
Sponsored
FM Nirmala Sitharaman introduces two key bills in Lok Sabha
The Hindu Businessline
IBC will be back in full force from March 25
The Hindu Businessline
They Are Sick, Abandoned And Injured. You Can Help.
Sudevi Mataji started the Radha Surabhi Gaushala in Mathura to give cows a safe and welcoming home. Today, she has over 2500 cows whom she takes care of.
Donatekart
|
Sponsored
Launching Mango SS21 Campaign With Vaani Kapoor
Mango
|
Sponsored
Join the first Edge conference for visionaries, technologists, and thought leaders
Aruba
|
Sponsored
The Game For Men Who Like Realism! Play Now
RAID: Shadow Legends
|
Sponsored
Clearance Sale. Flat 80% Off. Offer Today Only
Drift Deals
|
Sponsored
MOST POPULAR
India extends ban on commercial international flights till end of April
The Hindu Businessline
MOST POPULAR
Ambuja Cements (₹303.8): Buy
The Hindu Businessline
Connect with your family and planet in Australia
Tourism Australia
|
Sponsored
Don’t wait, invest in Amazon! Calculate your potential profit!
Smart Investors
|
Sponsored
Kanpur: The cost of a hair transplant may surprise you
Hair Transplant | Search Ads
|
Sponsored
..............BL