It is observed that Indian operations of foreign banks functioning in India as branches of the parent banks generally do not have a separate Audit Committee vested with the responsibility of examining and reviewing inspection/audit reports for their compliance. In the recent past, there have been concerns about the adequacy of regulatory compliance by foreign banks in India and it is felt that this is on account of Business Heads/Units reporting directly and being answerable to their ‘Functional Heads’ located overseas and not to the Chief Executive Officer (CEO) of Indian operations. RBI/2010-11/520 Ref.DBS.ARS.BC. No.07/ 08.91.020/ 2010-11
In March 2009, Ministry of Corporate Affairs (MCA), added paragraph 46 to the existing notified AS 11, The Effects of Changes in Foreign Exchange Rates, giving an option to companies to follow accounting treatment laid down in that paragraph. However, that option was available, as per that paragraph, only upto 31 st March 2011. Thus, that option is presently not available after 1st April 2011.
State Bank of India (SBI) will introduce green-channel banking at more of its branches to promote paperless work and to facilitate faster transactions for customers, SBI sources said. All major transactions, including withdrawals, deposits and remittances up to Rs 40,000, will be made through green-channel banking, which was introduced at 26 out of 680 branches of the bank in the first phase, the bank’s General Manager (Network-II), Devendra Prasad, said today.
These rules may be called the Companies (Accounting Standards) Amendment Rules, 2011. They shall come into force on the date of their publication in the Official Gazette. In the said rules, in the annexure under the heading B. ACCOUNTING STANDARDS, in the sub-heading “Accounting Standard (AS) 11” relating to The Effects of Changes in Foreign Exchange Rates, in paragraph 46, for the words and figures “46. In respect of accounting periods commencing on or after 7th December, 2006 and ending on or before 31s` March 2011”, the following shall be substituted, namely,‑ 46. In respect of accounting periods commencing on or after 7th December, 2006 and ending on or before 31′ March 2012.
Approval for FDI in Limited Liability Partnership firms The Cabinet Committee on Economic Affairs today approved the proposal to amend the policy on allowing Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP) firms. The FDI in LLPs will be implemented in a calibrated manner, beginning with the ‘open’ sectors where monitoring is not required, subject to the following conditions:
The Union Finance Minister Shri Pranab Mukherjee said that there are three major challenges before us today. The Finance Minister said that the first major challenge is how to bring entire society especially the poor and vulnerable section of society in the ambit of development process so that everyone shares fruits of benefit of growth and development. Shri Mukherjee said that the second major challenge is to achieve sustained GDP growth at the rate of 9 to 10 percent with fiscal prudence and moderate inflation.
The Union Finance Minister Shri Pranab Mukherjee said that Indian diplomacy has to acquire a decisive economic perspective to its thinking and strategic approach. Elaborating the same, the Union Finance Minister said while anchoring our foreign policy primarily in the promotion of our national self-interest, we need to engage with our partners in a manner that we create strong mutual stakes in each other’s development process, in general, and economies in particular.
The Competition Commission of India (CCI) today released the regulation of Combinations related with the implementation of provisions of Section 5 & 6 of Competition Act (the Combination Provisions, which have been envisaged to prevent creation of anti competitive environment in Indian economy),are coming into effect from 1st June, 2011.
The attention of Government has been drawn to news items in a section of media on certain aspects of the Rules notified under Section 79 pertaining to liability of intermediaries under the Information Technology Act, 2000. These items have raised two broad issues. One is that words used in Rules for objectionable content are broad and could be interpreted subjectively. Secondly, there is an apprehension that the Rules enable the Government to regulate content in a highly subjective and possibly arbitrary manner.
The government is in the process of redrafting the proposal document format for appointment of merchant bankers to avoid the conflict of interest between the public and private share sale issues.
