Public Finance Management

This week, Mario Draghi submitted his seminal report on European competitiveness to the EU's political leaders. I hope its findings will shape the agenda of the next European Commission and across European capitals because its core message is one that I believe is essential: Europe needs to boost private and public investment in security and the digital and green transition to ensure future competitiveness. The report confirms that the EU was late to #digitalization and is still not reaping the enormous benefits it offers in terms of #innovation, productivity, and growth. But it also clearly shows that Europe can quickly catch up by adopting proven, state-of-the-art solutions – and that's where Europe should be heading now. Thoroughly adopting cloud solutions in the private and public sector would go a long way already to #modernizing our companies, societies, and governments. We'll get there much faster when we unify fragmented digital markets (across the EU27, as well as inside key countries such as Germany) and by putting digitalization at the top of the political agenda. This will lay an important foundation for our ambitions to catch the next big opportunity for Europe and become a world leader in #AI for industrial applications.   The Draghi Report offers a blueprint for the future – now it’s up to us to take its findings seriously and implement the best recommendations at speed and at scale.  https://lnkd.in/epJaDJQk

When Regulation Sleeps, Reputation Suffers — A Wake-Up Call for the SME IPO Ecosystem The recent expose on the alleged misuse of SME IPO proceeds by promoters of Synoptic Technology Ltd and merchant bankers is both disheartening and alarming. When companies like Synoptic and C2C Advanced Systems Limited raise public funds with grand promises and then vanish from the compliance radar, it’s not just a failure of corporate governance — it’s a failure of the system. How long will SEBI remain reactive instead of proactive? Repeated alerts about misutilisation of IPO funds, inflated projections, and blatant manipulation are met with silence — or delayed action at best. The role of merchant bankers in these listings must come under serious scrutiny. Those involved in facilitating such offerings should be blacklisted and barred from further mandates. Such Merchant Banking firms along with its promoters should be barred for life from taking new assignments and hefty penalty be imposed. This is not just about one company. It’s about preserving investor trust in the SME platform — a trust that’s being eroded rapidly. If left unchecked, such practices could taint the entire segment, hurting genuine SMEs who are trying to raise capital ethically. It’s time for SEBI to: • Initiate forensic audits in suspicious SME IPOs. • Mandate stricter post-issue monitoring. • Hold merchant bankers and company promoters jointly accountable. • Take swift action on cases like C2C Advanced, where the red flags are glaring. The SME IPO space needs discipline, not dilution. Transparency, credibility, and investor protection must be the pillars — not shortcuts, syndicates, and silence. #SMEIPO #CorporateGovernance #SEBI #InvestorProtection #MerchantBankers #CapitalMarkets #RegulatoryAction #Accountability #EthicsInFinance #IPOReform Ajay Thakur Anil Singhvi

Here are three rules about IPO fundraising I got to know after reading ICDR you didn't know Securities and Exchange Board of India (SEBI) has progressively become very proactive in safeguarding investors Their actions, which at times appear draconic, are always taken with the best interests of investors in mind One such series of actions I got to know recently was regarding IPOs When reading SEBI ICDR 2022 (Issue of Capital and Disclosure Requirements), I learned about the limitations that SEBI has put on how much money a company can raise through fresh issues for certain purposes IPOs are already a sensitive topic where frenzy grips the minds of retail investors, and we see them getting oversubscribed by large margins To prevent companies from using this phenomenon to exploit investors, SEBI has put these limitations:. [1] Amount raised for general corporate purposes Companies often allocate funds for “general corporate purposes,” a broad category that includes working capital, advertising, or promotions. This is used to fill the remaining portion of the issue. SEBI has capped the amount that can be raised for this purpose at 25% of the total fresh issue. This ensures that companies can’t use too much of their raised funds for non-specific reasons. [2] Amount raised for unidentified investment target Sometimes, a company might state it needs funds for mergers and acquisitions but hasn’t identified any specific target yet. SEBI allows companies to raise money for such purposes but has put a 25% limit on it. This is to prevent companies from raising large amounts for unspecified future investments. [3] Amount for unidentified investment target + general corporate purpose When a company wants to raise money for both general corporate purposes and unidentified investment targets, SEBI has set a combined limit of 35%. This combined limit helps companies raise money for concrete, well-defined purposes rather than ambiguous ones. These rules are designed to ensure that companies raise funds for clear and justifiable reasons, protecting investors from potential misuse of their money.

First they ditched Microsoft. Next comes Google. Then Meta. Europe’s quiet tech revolution has begun — and it’s about sovereignty, not software. Ive adressed this several times before and its now in motion. U.S. tech dominance in European government IT is eroding fast: 🇩🇪 Schleswig-Holstein: migrating 30,000 public workers off Microsoft Office & Windows to Linux + German cloud. 🇩🇰 Danish Digitalisation Agency: abandoning Microsoft Office for LibreOffice; pushing local hosting over Azure. 🇳🇱 Dutch Ministry of Justice: banned U.S. cloud services for sensitive data since 2022. 🇫🇷 French public sector: deploying open-source alternatives to Teams and Google Docs. 🇸🇪 Sweden, tensions are rising: the Tax Agency wants to move sensitive data to Microsoft’s cloud — but the Enforcement Authority says it may violate secrecy laws. Why? Because 98% of Europe’s public digital infrastructure is run by foreign tech — mostly U.S. giants under the CLOUD Act. ✅ That means Washington can legally demand access to European public data, even if stored in EU datacenters. ✅ EU’s cybersecurity agency calls it for what it is “strategic vulnerability.” ✅ A 2024 poll found 73% of EU IT leaders are actively seeking to de-risk U.S. dependencies. Eurostack. This is a pan-European initiative led by Cristina Caffarra to replace U.S. digital platforms in public administration: ✅ Not just Microsoft and Google Workspace. ✅ Also YouTube, Meta, Zoom, and Slack — all under scrutiny. ✅ Target: public sector communications, citizen platforms, school systems, internal messaging. ✅ Think “Schengen for cloud” — where data stays in Europe, under European control. The implications are massive: ✅ €52 billion/year of public IT contracts could shift to EU-owned platforms. ✅ European open source and cloud industries gain strategic funding. ✅ Social media platforms face new barriers in education, governance, and public media. ✅ U.S. leverage over Europe — via digital kill switches — begins to fade. The next time you hear “It’s just about productivity tools,” remember: You can’t outsource your tech stack and still claim you’re sovereign. 🇪🇺 EU has finally woken up 🙏 . The U.S. cloud party in Brussels is hopefully finally over. And there are plenty of EU companies that can do this soooo much better

A working group in the European Parliament wants to take action to grow the organic market in support of the EU goal of 25% organic in all EU farming. Today I presented lessons from Denmark on how we moved organic food from niche to mainstream in supermarkets, achieving the highest organic market shares in the world: 30-60 % organic for many basic foods like milk, eggs, flour and many fruits and vegetables. I also shared how we developed organic public procurement, reaching 60 and even 90 percent organic in cities like Copenhagen. It is so positive that the European Social and Economic Committee recognizes the benefits of organic farming for nature, drinking water, resource efficiency, climate and not least farm incomes and rural resilience. And that if we want more organic farmers, we need to grow the market. There were strong arguments, not least from Eduardo Cuoco, Director IFOAM Organics Europe for how organic farming benefits farmers and rural communities and is more resilient and self-reliant, in relation to the type of economic shocks and trade crises we are experiencing now. Among the lessons and recommendations I shared were: ✅ Market growth requires a combination of 3 elements: strong policy, market partnerships and capacity building in organic sector organizations, as catalysts for action and collaboration. ✅  There are a wide range of policy measures that are proven effective in developing the organic market and growing organic in schools, hospitals, military barracks and all public sector meals. I shared many of these. ✅  Now that all EU member states have goals for organic farming, they need ambitious goals in CAP strategic plans for organic market growth and public procurement. ✅ A key missing element in most EU nations is capacity in the organic sector organisations to unite the organic producers and supply chains, partner with retailers and drive organic market growth. Together they can move mountains! ✅  Small public investments in organic sector organizations allows them to leverage sales platforms in retail and food service far beyond what any campaigns can deliver. ✅ Partnerships with retailers is the most impactful element. They make organic available, visible, affordable and meaningful for consumers. Democratizing organics. ✅  Public procurement requires strong local and national goals, investments in education in kitchens and labelling for documentation and pride in the kitchens. Partnerships with cities, wholesalers & kitchen workers unions drive transition. ✅ We need gamechangers that level the playing field in the market, like lower VAT on organic food, and fees on pesticides & fossil-fuel based synthetic fertilizers, so prices reflect environmental costs. Thank you Henri Delanghe, Organic Unit in the Commission, Eduardo Cuoco, Wolfram Dienel, German Farmers Assoc & COPA COGECA, Barbara Koecher-Schulz, AGRARMARKT AUSTRIA MARKETING GESMBH, & Claudio Serafine, Organic Cities Network Europe for the great points!

[NEWS] Progress continues in strengthening tax transparency through Country-by-Country reporting I am pleased to announce that today we released the 8th annual peer review of #BEPS Action 13, strengthening jurisdictions’ commitment to tax transparency through the implementation of the minimum standard on Country-by-Country (CbC) reporting. The BEPS Action 13 minimum standard on CbC requires tax administrations to collect and share detailed information on all large MNEs doing business in their country. Information collected includes the amount of revenue reported, profit before income tax, and income tax paid and accrued, as well as the stated capital, accumulated earnings, number of employees and tangible assets, broken down by jurisdiction. This report presents the findings of the 2024/25 peer review, which assessed the implementation of CbC reporting across 142 Inclusive Framework members. It shows continuous progress in tax transparency through the implementation of the minimum standard. The BEPS Action 13 peer review is an annual process and the next peer review report will be released in Q3 2026. 🗞️ Read more ➡️ https://oe.cd/6bO 🔍 Learn more about the BEPS Action 13 minimum standard on Country-by-Country reporting ➡️ https://oe.cd/6aC #OECDtax #OECD #tax #CbCreporting #BEPS #Action13

India Sets Bold Course for Construction and Demolition Waste Management – Effective April 2026 India is set to enforce one of its most comprehensive environmental regulations – The Construction and Demolition Waste Management Rules, effective April 1, 2026. Notified by the Ministry of Environment, Forest and Climate Change, these rules represent a landmark effort to tackle the mounting challenge of construction-related waste across the nation. Who is Impacted: The regulations apply to all construction, demolition, renovation, remodeling, and repair activities, with exceptions for: - Projects under the Atomic Energy Act 1962 - Defence and strategic operations - Waste resulting from natural disasters or war Other waste categories are governed by separate regulations Key Features of the New Rules: (a) Extended Producer Responsibility Producers of construction waste will now be directly accountable. A centralized online portal will manage compliance, certifications, and monitoring. Registrations with the Central Pollution Control Board are mandatory, with a strict 15-day processing window. (b) Strict Compliance Measures Unregistered operations are prohibited. False declarations can result in registration suspension for up to five years and financial penalties. (c) Local Authority Empowerment Municipal bodies must prepare targeted waste management plans and enforce EPR goals. Reusable materials are excluded from EPR target calculations, encouraging circular practices. (d) Recycling Mandate for Large Projects Construction projects exceeding 20000 square meters must incorporate recycled materials. All waste generators are required to purchase EPR certificates from registered recyclers, establishing a functioning circular economy. (e) Accountability and Transparency A robust digital tracking system will log waste movement, storage, and processing. Reporting of accidents within 24 hours is compulsory during all stages of handling, including collection, transport, storage, or processing. (f) Funding and Oversight A 20 to 80 fund-sharing model between Central and State Boards will support implementation. Both boards will jointly oversee the use of recycled waste in infrastructure projects such as road construction. (g) Efficient Storage Protocols Local authorities must establish waste collection and intermediate storage points. Storage duration is limited to 120 days, extendable up to 180 days in specific cases. Timely processing and accurate reporting through the portal are essential. Whether you are involved in real estate development, infrastructure construction, urban planning, waste management, policy advisory, these Rules mark significant shift in the regulatory landscape—making it essential for industry stakeholders to stay informed, assess potential impacts, and proactively align their practices with the upcoming compliance framework. ANB Legal #Sustainability #ESG #India

Climate and environmental risks are central priorities for Europe's top financial supervisors over the next two years. That's good! However, there is a great need to more fully consider and manage these risks as they cut across all other risk types. A few examples of interrelated risks as identified in their priorities: -Geopolitical shocks can be driven by and exacerbated by environmentally-driven events, consider the effects of climate on migration -Counterparty risks, especially for firms with long supply chains may be driven by environmental and social factors that at present seem opaque to the financial institution -Operational resilience requires systems that are climate-ready and adaptable to changing conditions Would love to see more detail also on how nature-related risks are going to be considered in the financial system. Great to see "climate and environment" but more details are needed. Another big area where more focus is needed is around social issues such as inequality and their harmful effects. Check out the European Central Bank's priorities here: https://lnkd.in/ddwfteCU #climate #nature #biodiversity #esg #sustainabilityregulation #csrd #ecb #sfdr #climatefinance #sustainablefinance #regulation #risk #financialregulation

🚀 Strengthening the SME IPO Market: SEBI's New Regulations 🏦 The Securities and Exchange Board of India (SEBI) has unveiled stricter regulations for SME IPOs, aiming to address concerns around transparency, governance, and misuse of funds in the SME segment. These measures are set to improve listing quality and safeguard investors. Here's a quick rundown of the key changes: ✅ Profitability Mandate: SMEs must demonstrate an operating profit (EBITDA) of ₹1 crore in at least 2 of the past 3 fiscal years before filing their DRHP. ✅ Restriction on Stake Sale: Selling shareholders cannot offload more than 50% of their stake, and the offer-for-sale portion is capped at 20% of the issue size. ✅ Tighter Fund Utilization: IPO proceeds can’t be used to settle loans with promoters or directors. Allocation for General Corporate Purposes (GCP) is capped at 15% of the issue size or ₹10 crore, whichever is lower. ✅ Enhanced Transparency: SMEs must advertise in newspapers and integrate QR codes for easy DRHP access. ✅ Unified Standards: SME firms will now follow Related Party Transaction (RPT) norms and allocation methodologies akin to main-board IPOs. In 2024 alone, over 230 SMEs raised ₹8,414 crore, with some IPOs seeing 100+ times subscription! However, recent controversies, due to inaccuracies, highlight the need for these reforms. These guidelines come alongside SEBI's broader regulatory changes, including updates for ESG rating providers, InvITs, REITs, and debenture trustees, highlighting SEBI's commitment to a robust and trustworthy financial ecosystem. 📊 These changes are a step towards ensuring financial robustness, investor trust, and a sustainable IPO ecosystem for SMEs. What do you think about SEBI’s new guidelines? Will they foster investor confidence or create barriers for SMEs? Share your thoughts below! 💬 LinkedIn Guide to Creating CA Sakshi Borikar

Some thoughtful suggestions raised by DIGITALEUROPE in their recent manifesto ‘Europe 2030’ – regarding the ways in which we can boost tech leadership and resilience… The individual propositions are broken down into five parent categories – being competitive, sustainable, resilient & secure, global, and having a digital society – and some that stuck out include: 💲 Putting the single market back at the heart of the EU project - scaling in Europe is a huge challenge right now, and one of the biggest hurdles is the number of bodies & institutions that companies have to go through to do business - a streamlined single market would remove a significant barrier (See the recent work of the EU inc team on the 28th regime) 🌿 A ‘Twin Transition Fund’ - would pool EU, private, and national resources on current transformative green technologies - by centralising R&I initiatives on green technologies, duplication would be avoided, and we could dedicate funding to monitoring new emerging technologies in the space 🤖 Public & private cooperation on cyber   - though we’ve come on leaps and bounds in coordinating cyber agencies, we still lack a clear chain of command and a meaningful and complementary role from the private sector (you could Defense tech to this too…) - not only will this keep us safe, but it will work to cut the skills gap 🌏 Renew focus on global standards - by playing a strong role in the international standards-setting process, we gain global expertise, promote our standards internationally, push our industry to be competitive, and, importantly, reduce compliance costs for European companies - AI is a phenomenal place to start in this initiative 💻 Fully online public services and digital IDs - both citizens and businesses should be able to conduct all transactions & interactions with central and local govt services from anywhere in Europe - the pandemic did a lot of heavy lifting re: digitisation, but unfortunately only 49% of the the current 84% of govt services available online can be accessed cross-boarder (the UK government has followed Tony Blair Institute for Global Change in promising greater take up of digital ids ) As DIGITALEUROPE crucially pointed out, only 10 of the top 100 tech companies are European. Only 8% of SMEs are trading across one European border. Our tech industry is not stagnating – it is declining. Crucially, we cannot regulate our way to success. We need to implement real changes; to incentivise entrepreneurs to start their companies in Europe; to collaborate with others to streamline our own processes. A standard single market & public and private coordination on cyber alone could do much heavy lifting to unite Europe. I hope to see governments take heed of these suggestions from the minds at DIGITALEUROPE. All very achievable in the coming decade.