Analysis of Notifications and Circulars for Week ending 16th February 2025

The week ending 16th February 2025 saw various important notifications and circulars across multiple sectors. In Income Tax, Bhaikaka University in Gujarat was recognized for scientific research under section 35(1)(ii), and Real Estate Regulatory Authority, Punjab received income exemptions. The Income Tax Bill for simplification was introduced, reducing the complexity of the law. In GST, new rules came into effect, including amendments to the Aadhaar authentication process for GST registration and the introduction of Form ENR-03 for unregistered dealers to generate e-way bills. A clarification on GST rates for commodities like pepper, raisins, and popcorn was also issued. SEBI introduced guidelines on the use of AI by stock exchanges, and amendments were made in securities regulations. In the RBI sector, credit lines for Vietnam and updates on government securities trading were notified. The SC also directed the creation of a legal framework for domestic workers’ rights and clarified that one-sided agreements fall under unfair trade practices. These changes reflect continued regulatory adjustments and simplifications in various financial and trade sectors.

Notifications & Circulars issued during week (10^th – 16^th Feb 2025)

A. Income Tax

Bhaikaka University, Anand, Gujarat notified under section 35(1)(ii)  for Scientific Research:  The notification notifies Bhaikaka University, Anand, Gujarat for ‘Scientific Research’ under the category of ‘University, college or other institution’, for the purposes section 35(1)(ii) of the Income-tax Act, read with rules 5C and 5E of the Income-tax Rules. This section allows for deduction equal to one and half times while computing taxes for expenses relating to scientific research. (Income Tax Notification 15/2025 Dated 10/02/205)

Exemptions to Real Estate Regulatory Authority, Punjab: Real Estate Regulatory Authority, Punjab, an authority constituted under The Real Estate (Regulation and Development) Act, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for the specified purposes under Section 10(46A) (a) of the Income-tax Act.  (Income Tax Notification 16/2025 Dated 10/02/2025)

Executive Summary on the Comprehensive Simplification of the Income Tax Act: The Income Tax Bill has been introduced in Parliament on 13^th February 2025. The simplification exercise was guided by three core principles, 1- Textual and structural simplification for improved clarity and coherence, 2- No major tax policy changes to ensure continuity and certainty, and 3- No modifications of tax rates, preserving predictability for taxpayers. The simplification process involved eliminating complex language, removing redundant provisions, and restructuring sections for consolidation of amendments for better readability. The revised law significantly reduces the Act size, words from 512535 to 259676, chapters 47 to 23, sections 819 to 536, while adding more structured 39 tables and 40 formulae. (Income Tax Press Release Dated 13/02/2025)

SC, Compounding of Income Tax Offences for belated Return filings: Case of Vinubhai Mohanlal Dobaria vs CCIT, SC Judgement Dated 7th February 2025. The appellant had filed returns for AY 2011-12 and 2013-14 after their due dates, leading to allegations under Section 276CC. The appellant sought to compound these offences under 2008 and 2014 guidelines, which led to a rejection by CCIT. HC upheld this decision, stating the offence for AY 2013-14 was not a first offence as per guidelines. However, the apex court overturned this, ruling that appellant actions for AY 2013-14 constituted a first offence as per the 2014 guidelines. The Court directed him to file a fresh compounding application within two weeks, pending which trial proceedings were stayed. (SC Judgement Dated 07/02/2025)

HC, License Fees for Goodwill acquisition Allowed as Expense under section 37 of Income Tax Act: Case of PCIT vs Remfry & Sagar, HC Delhi Judgement Dated 31st January 2025. HC held that license fees paid to Remfry & Sagar for use of goodwill vested in the company is allowable as deduction under section 37 of the Income Tax Act. Accordingly, appeal of the revenue dismissed. (Delhi HC Judgement Dated 31/01/2025)

B. GST

GST Rules implementation dates announced: The notification announces dates for implementation of certain rules introduced vide Notification 12/2024 dated 10^th July 2024. Rules 2, 24, 27, and 32 will come into effect from 11^th February 2025, while Rules 8, 37, and 38(ii) will come into effect from 1^st April 2025.

Rule 2, Amendments to Rule 8(4A) (Aadhaar Authentication for GST Registration).

Rule 24, Introduction FORM ENR-03 for E-Way Bill enrolment by unregistered persons.

Rule 27, Mandating FORM ENR-03 for E-Way Bill Generation by unregistered entities.

Rule 32, Introduction of Table 3.1.1 in GSTR-3B for reporting supplies under section 9(5).

Rule 8, Amendments to Rule 39 (ITC Distribution by Input Service Distributors (ISD)).

Rule 37, Modifications in GSTR-7 Format (Tax Deducted at Source (TDS) Reporting).

Rule 38(ii), Updates in FORM GSTR-8 (TCS) Reporting by E-Commerce Operators).

(CGST Notification 09/2025 Dated 11/02/2025)

Clarification regarding GST Rates & Classification Of Pepper, Raisins, Popcorn, AAC Blocks: Pepper (Genus Piper) whether green (fresh), white, or black is classified under HS Code 0904, attracting 5% rate. Dried pepper supplied directly by an agriculturist from their plantations is exempt from GST. The agriculturist does not need to take GST registration for such supplies.

— If an agriculturist supplies raisins directly from their cultivation, they are exempt from GST and do not need to register under GST.

— Popcorn Mixed with Salt & Spices, categorized under namkeens, GST Rates is 5%, if sold loose (not pre-packaged & not labelled) and 12% if sold pre-packaged & labelled.

Caramel Popcorn or Popcorn Mixed with Sugar, categorized under sugar confectionery, GST Rate 1s 18%.

— Fly Ash-Based AAA blocks includes Fly ash bricks, fly ash aggregates, and fly ash blocks, attracting GST rate 12%. Cement/Concrete based AAA blocks include articles of cement, concrete, or artificial stone (whether reinforced or not), attracting GST rate 18%. (CGST Circular 247/2025 Dated 14/02/2025)

Advisory for GST Registration Process: The GST registration process has been updated as per Rule 8 of the CGST Rules. Applicants who opt out of Aadhaar authentication must visit a designated GST Suvidha Kendra (GSK) for photo capturing and document verification. A confirmation email will provide GSK details and appointment scheduling options. Those opting for Aadhaar authentication may be required to undergo biometric authentication at the GSK, including the Promoters/Partners and the Primary Authorized Signatory (PAS). Failure to complete biometric authentication or document verification within 15 days of submitting Part B of REG-01 will result in the non-generation of the Application Reference Number (ARN). (GSTN Advisory Dated 12/02/2025)

Advisory on Introduction of Form ENR-03 for Enrolment of Unregistered Dealers/Persons in e-Way Bill Portal for generating e-way Bill: A new feature has been introduced in the E-Way Bill (EWB) system to facilitate the enrolment of unregistered dealers supplying goods, with effect from 11.02.2025. Unregistered dealers engaged in the movement or transportation of goods can now generate e-Way Bills by enrolling themselves on the EWB portal and obtaining a unique Enrolment ID. This ID will serve as an alternative to the Supplier GSTIN or Recipient GSTIN for generating e-Way Bills. (GSTN Advisory Dated 15/02/2025)

AAR, GST Exemption on Manpower Supply for Jal Jeevan Mission: Case of Webel Technology Limited, AAR WB Ruling Dated 14th January 2025. The supplies of data entry operator & junior engineer (System Administrator, Software Support Personnel) made by the applicant to the Public Health Engineering Department (PHE), Govt of West Bengal for executing Jal Jeevan Mission is exempted from payment of tax vide serial number 3 of the Notification No. 12/2017 Central Tax (Rate) dated 28^th June 2017. (AAR WB Ruling Dated 14/01/2025)

AAR, GST Rate on Hiring of Fitted Assets: Case of TCG Urban Infrastructure Holdings Private Limited, AAR WB Ruling Dated 14th January 2025. The applicant, engaged in real estate development, provides infrastructure support to tenants, including air-conditioning systems, fire sprinklers, DG sets, and electrical installations. Initially the applicant applied a 28% GST rate but sought clarity on whether an alternative rate of 18% under SAC 997314 should apply. AAR ruled that such services fall under leasing or rental services and should be taxed at 18% under serial number 17(viii) of the notification No. 11/2017. The ruling classified the assets as immovable property, negating the argument for a mixed supply with the highest rate of 28%. (AAR WB Ruling Dated 14/01/2025)

HC, Simultaneous Probes by DGGI & State GST Authority on same issue Not Allowed: Case of Metalax Industries vs GST Officer, Delhi HC Judgement Dated 26th November 2024. HC held that State GST authorities could review and take necessary actions based on the outcome of the DGGI proceedings but could not independently pursue parallel assessments for the same issue and time period. (Delhi HC Judgement Dated 26/11/2025)

C. Central Excise

No Notification/ Circular during the week.

D. Custom Duty

Revision of Agricultural Infrastructure Development Cess (AIDC) on Bourbon whiskey: The notification amends notification 11/2021 dated 1^st February 2021. While a 100% AIDC continues to apply to a broad range of spirits under tariff headings 2204, 2205, 2206, and 2208, a separate entry has been created for bourbon whiskey. The AIDC rate for bourbon whiskey has been set at 50%. (Custom Notification 14/2025 (T) Dated 13/02/2025)

Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 15^th February 2025. The tariff value for crude palm oil is set at USD 1111 per metric ton, while gold and silver have tariff values of USD 938 per 10 grams and USD 1043 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 8140 per metric ton. (Custom Notification 10/2025 (NT) Dated 14/02/2025)

HC, Orders 30% Bank Guarantee for Seized Goods Release: Case of Rocktek Infra Services Pvt Ltd vs PC Customs, Delhi HC Judgement Dated 6th February 2025. HC held that imposition of condition in case of provisional release of seized goods is discretionary and hence directed furnishing of bank guarantee to the tune of 30% of the differential duty instead of 130%. (Delhi HC Judgement Dated 06/02/2025)

E. Directorate General of Foreign Trade (DGFT)

Amendment in Export Policy of Raw Human Hair:  The amendment changes the export classification of unworked human hair from ‘Restricted’ to ‘Prohibited.’ However, exports remain permitted if the Free on Board (FOB) value is at least USD 65 per kilogram. This revision takes immediate effect. (DGFT Notification 59/2025 Dated 10/02/2025)

Procedure for Allocation of Quantities for import of Calcined Petroleum Coke and Raw Petroleum Coke: The Public Notice outline the procedure for allocating import quantities of Calcined Petroleum Coke (CPC) and Raw Petroleum Coke (RPC) for the financial year 2025-26. In compliance with the Supreme Court and Commission for Air Quality Management (CAQM) directives, the Aluminium industry is permitted to import up to 0.8 million MTs of CPC, while CPC manufacturing units can import up to 1.9 million MTs of RPC. Applications for these allocations must be submitted online via the DGFT website under the designated import category. (DGFT Public Notice 48/2025 Dated 12/02/2025)

Seeking details of manually issued Certificates of Origin in contravention of DGFT guidelines: DGFT has reiterated that all Certificates of Origin (CoO) must be issued electronically through the eCoO 2.0 platform on Trade Connect. Exporters are advised not to accept manually issued CoOs beyond the specified deadlines, as such documents will be considered invalid. Despite prior notices, some agencies continue to issue manual CoOs.  Any violations should be reported to DGFT via tradeconnect-dgft@gov.in. Agencies found issuing manual CoOs in contravention of the guidelines risk removal from the list of authorized issuers. (DGFT Trade Notice 28/2025 Dated 11/02/2025)

Mandatory online submissions and online payments against Show Cause Notices and other proceedings under FTDR Act: The Trade Notice mandate online processes for Enforcement-cum-Adjudication and related proceedings under the Foreign Trade (Development & Regulation) Act (FTDR Act). As part of paperless trade initiative, all replies to Show Cause Notices, adjudications, appeals, and reviews must be submitted digitally via the DGFT portal. Physical submissions will no longer be accepted. The penalties levied must be paid online through the relevant ECA/Appeal or Review files to ensure proper accounting and avoid administrative complications. (DGFT Trade Notice 29/2025 Dated 11/02/2025)

Procedure for filing application of Tariff Rate Quota (TRQ) of Gold Bullion under India-UAE CEPA: The applicants for Gold import under TRQ for FY 2025-26 shall specify the purpose (manufacturing, trading or both) and submit CA certified turnover details from GST filings for past three years and current year. The last date for submitting applications is 28^th February 2025. (DGFT Trade Notice 30/2025 Dated 12/02/2025)

Guidelines for availing Import Authorisation for Import of Premium Frozen Duck Meat into India: The import of premium frozen duck meat is now restricted and allowed only for supply to 3-star and above operational hotels. However, these hotels may directly import without requiring an Import Authorization. For distributors, aggregators, and suppliers acting as intermediaries, an Import Authorization from DGFT is mandatory. They must submit an undertaking ensuring that the imported meat is supplied exclusively to eligible hotels and maintain records of such transactions. Imports will be subject to verification, and non- compliance may lead to regulatory action. (DGFT Trade Notice 31/2025 Dated 13/02/2025)

F. Securities and Exchange Board of India (SEBI)

Amendment to Securities Contracts (Stock Exchanges and Clearing Corporations) Regulations: The notification focus on the responsibilities of stock exchanges and clearing corporations when using artificial intelligence (AI) and machine learning (ML) tools. It mandate that any recognized stock exchange or clearing corporation deploying AI-driven tools, whether developed in-house or sourced externally, must take full responsibility for data security, privacy, and regulatory compliance. The newly added Regulation 39B outlines three key obligations: maintaining the integrity of investor and stakeholder data, being accountable for AI-generated outcomes, and ensuring adherence to existing laws. (SEBI Notification Dated 06/02/2025)

Amendment to SEBI Intermediaries Regulations on AI Usage: The notification introduce a new Chapter IIIB, under regulation 16C, any regulated entity using artificial intelligence (AI) and machine learning (ML) tools, whether developed in-house or sourced from third parties, is solely responsible for ensuring data privacy, security, and integrity. These entities must also be accountable for the accuracy of AI-generated outputs and compliance with applicable laws. SEBI retains the authority to take enforcement action in case of violations. (SEBI Notification Dated 06/02/2025)

Amendment to SEBI Depositories and Participants Regulations: The key changes include revised timelines for depositories to pay annual fees within 15 days from the start of the financial year and mandatory submission of fee remittance details certified by a chartered accountant. A new regulation imposes an interest penalty of 15% per annum on any unpaid, late, or short-paid fees by depositories. SEBI has also introduced regulations governing the use of artificial intelligence (AI) and machine learning (ML) tools by depositories. (SEBI Notification Dated 06/02/2025)

Amendment to SEBI Investor Charter Regulations: The amendments introduce specific provisions in multiple SEBI regulations, requiring regulated entities to adhere to the Investor Charter. This includes compliance obligations for alternative investment funds, investment advisers, research analysts, real estate and infrastructure investment trusts, foreign portfolio investors, portfolio managers, and vault managers. Each of these entities must now integrate the Investor Charter into their operational framework. (SEBI Notification Dated 10/02/2025)

Facilitation to SEBI registered Stock Brokers to access NDS-OM for trading in Government Securities: SEBI has issued a circular facilitating SEBI-registered stock brokers’ access to the Negotiated Dealing System-Order Matching (NDS-OM) for trading in Government Securities (G-Secs). This follows the RBI notification permitting non-bank brokers to use NDS-OM under specific access criteria. To streamline this process, SEBI requires stock brokers to conduct NDS-OM trading through Separate Business Units (SBUs) within their entities. These SBUs must operate independently from the securities market activities of the parent stock brokerage firm, with separate accounts and segregated net worth to ensure compliance and mitigate risks. (SEBI Circular Dated 11/02/2025)

MITRA, Service platform for investors to trace inactive and unclaimed Mutual Fund folios:  SEBI has introduced the Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) platform to help investors trace inactive and unclaimed Mutual Fund (MF) folios. An inactive folio is defined as one where no investor-initiated transactions have occurred in the past ten years, but units remain. Over time, investors may lose track of their investments due to minimal Know Your Customer (KYC) details or physical holdings. MITRA will provide a centralized, industry-wide searchable database, assisting investors in identifying overlooked investments and ensuring compliance with updated KYC norms. (SEBI Circular Dated 12/02/2025)

Relaxation in timelines for holding AIFs’ investments in dematerialised form: AIFs must hold all investments made on or after 1^st July 2025, in dematerialised form. Investments made before this date are exempt, except where the investee company is legally mandated to dematerialise its securities or where the AIF exercises control over the company alongside SEBI registered intermediaries. Such investments must be converted to dematerialised form by 31^st October 2025. (SEBI Circular Dated 14/02/2025)

Revised timelines for issuance of Consolidated Account Statement (CAS) by Depositories: As per the revised guidelines, Asset Management Companies (AMCs) and Mutual Fund Registrar and Transfer Agents (MF-RTAs) must submit data on common PANs to depositories by 5^th of each month. Depositories will then dispatch electronic CAS (e-CAS) by 12^th and physical statements by 15^th. For half-yearly CAS, AMCs/MF-RTAs must submit data by 8^th of April and October, with e-CAS sent by 18^th and physical CAS by 21^st of those months. (SEBI Circular Dated 14/02/2025)

Industry Standards on Minimum information to be provided for review of the audit  committee  and  shareholders  for  approval  of  a related  party transaction: The Industry Standards Forum (ISF) comprising of representatives from three industry associations, viz. ASSOCHAM, CII and FICCI, under the aegis of the Stock Exchanges, has formulated industry standards, in consultation with SEBI, for minimum information to be provided for review of the audit committee and shareholders for approval of RPTs. The listed entities shall follow the aforesaid industry standards to ensure compliance with Part A and Part B of Section III-B of the Master Circular read with LODR Regulations. (SEBI Circular dated 14/02/2014)

Industry Standards Recognition Manual: SEBI has introduced guidelines for recognizing Industry Standards Forums (ISFs) to facilitate the implementation of regulatory directives for Market Infrastructure Institutions (MIIs), Mutual Funds, listed companies, and other regulated entities. These ISFs, functioning as committees, are tasked with creating standards aligned with SEBI’s regulatory intent, offering checklists, standard operating procedures (SOPs), and reporting formats to ensure compliance. The manual emphasizes inclusivity, requiring ISFs to represent stakeholders across large, small, and medium segments, and mandates experienced leadership with clear procedures for appointing chairpersons and members. (SEBI Press Release dated 12/02/2025, Manual)

Consultation Paper on Treatment of unclaimed funds and securities of clients lying with Trading Members (TMs): The proposed mechanism defines unclaimed funds and securities as those that could not be credited due to unreachable clients or inactive accounts. TMs must attempt to contact clients through available channels and, if unsuccessful, must upstream unclaimed funds to Clearing Corporations (CCs). Additionally, a Designated Stock Exchange (DSE) will handle the transfer of unclaimed assets, and a Regulatory Oversight Committee will monitor implementation, with half- yearly reports submitted to SEBI. The comments/ feedback from stakeholders is invited. (SEBI Draft Circular Dated 11/02/2025)

Draft Circular on Margin obligations to be given by way of Pledge / re-pledge in the Depository system: Currently, brokers are required to accept collateral only via margin pledges. SEBI observed that after invoking pledged client securities, brokers are not selling them immediately, leading to accumulation and possible misutilization. To mitigate this, SEBI proposes blocking securities for early pay-in within the client’s demat account upon invocation. Additionally, instead of the current two-step process (un-pledging followed by pay- in), a single instruction termed “pledge release for pay-in” will be introduced. The comments/ feedback from stakeholders is invited. (SEBI Draft Circular Dated 12/02/2025)

Consultation Paper on Advance Fee to be charged by Investment Advisers (IAs) and Research Analysts (RAs): Currently, IAs and RAs can charge advance fees for up to two quarters and one quarter, respectively. The proposed change suggests extending this period to a maximum of one year. It proposes safeguards, such as mandatory fee refunds for unexpired periods in case of premature termination, and specifies breakage fee limits for IAs. For RAs, no breakage fee is allowed. The revised provisions would apply only to individual and HUF clients, while institutional and accredited investors would negotiate terms bilaterally. The comments/ feedback from stakeholders is invited. (SEBI Draft Circular Dated 12/02/2025)

Consultation paper on Introduction of format for No-objection Certificate (NOC)/ Consent Letter to be submitted by existing charge holders to issuer: As per the provisions Master Circular for Debenture Trustees, issuer is mandated to provide Consent/ NOC from existing charge holders in case further creation of charge is proposed for encumbered assets. There is a need of standardization in respect of the format, so as to avoid variation in terms of submission of such consent/ NOC from existing charge holders. The comments/ feedback from stakeholders is invited. (SEBI Draft Circular Dated 12/02/2025)

Draft Circular on Strengthening of ESG Rating Providers (ERPs): It outlines revised regulations for ESG rating withdrawal, disclosure requirements, internal audit timelines, and governance norms. The comments/ feedback from stakeholders is invited. (SEBI Draft Circular Dated 13/02/2025)

Draft Circulars on review of REITs and InvITs Disclosure: The draft circulars relates to proposed revisions to financial disclosure and compliance norms for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The key revisions include mandatory disclosure of combined financial statements for initial public offerings, audited consolidated financials for follow-on offers, and new guidelines for calculating Net Distributable Cash Flows. The proposals require financial projections for at least three years and revising the format for reporting net asset values. The comments/ feedback from stakeholders is invited. (SEBI Draft Circular Dated 14/02/2025)

G. Ministry of Corporate Affairs (MCA)

Amendment to Companies Prospectus and Allotment of Securities Rules: The notification modifies Rule 9B for compliance related to certain private companies. The private companies (excluding Producer companies) that were not classified as small companies as of 31^st March 2023, may comply with the provisions of the sub-rule by 30^th June 2025. (MCA Notification Dated 12/02/2025)

H. Insolvency and Bankruptcy Board of India (IBBI)

IBBI Mandates Timely Reporting of Insolvency Assignments: The circular requires Insolvency Professionals (IPs) to update their assignments on the IBBI portal upon appointment. This applies to roles such as Interim Resolution Professional (IRP), Resolution Professional (RP), Liquidator, Bankruptcy Trustee, and Administrator under various processes of the IBC. IPs must submit new assignments within three days of appointment. (IBBI Circular Dated 11/02/2025)

SC, Resolution plan containing combination should have prior approval from CCI: Case of Independent Sugar Corporation Limited vs Girish Sriram Juneja, SC Judgement Dated 29th January 2025. The apex court held that for a Resolution Plan containing a combination should be examined by Committee of Creditors [CoC] only after prior approval from Competition Commission of India [CCI]. Thus, resolution plan approved by CoC without requisite CCI approval not sustained. (SC Judgement Dated 29/01/2025)

SC, Post-IBC resolution reassessment proceedings are invalid: Case of PCIT vs Patanjli Foods Ltd, SC Judgement Dated 15th January 2025. The apex court dismissed the appeal filed by PCIT effectively upholding the HC judgment, which had quashed reassessment notices and subsequent orders, pertaining to the assessment year 2013-14. The HC decision rested on the principle that such reassessment proceedings initiated after the approval of a resolution plan under the IBC are invalid. (SC Judgement Dated 15/01/2025)

NCLAT, Creditor not restricted to enforce personal guarantee signed on behalf of trust: Case of Shantanu Jagdish Prakash vs SBI, NCLAT Delhi Judgement Dated 23rd January 2025. The tribunal held that trusteeship deeds are generally signed between the trust on behalf of the lenders and the personal/ corporate guarantor of the principal borrower and Creditors are the true beneficiaries of such deed of guarantee. Thus, creditor cannot be restricted to enforce personal guarantee signed on behalf of trust. (NCLAT Delhi Judgement Dated 23/01/2025)

IBBI Penalizes Ahsan Ahmed IP for Related Party Voting in CIRP: Even after coming to the conclusion that Mr Sunit Suri was not director of the suspended board of the CD, he allowed Advocate to represent Mr Suri as director of the suspended board, in the CoC meeting which shows casual and negligent approach. IBBI imposes penalty of Rs 50000/- and warns him to be more careful. (IBBI Order Dated 12/02/2025)

I. Reserve Bank of India (RBI)

All Agency Banks to remain open for public on 31^st March 2025 (Monday): Agency Banks are advised to keep all their branches dealing with government business open on March 31, 2025 (Monday) so as to account for all the government transactions relating to receipts and payments in the Financial Year 2024-25 itself. (RBI Notification 112/2025 Dated 11/02/2025)

RBI Guidelines on $180M Credit Line to Vietnam for Patrol Vessels: The notification relates to Government of India supported Line of Credit (LoC) of USD 180 million extended by the Export-Import Bank of India (Exim Bank) to the Government of Vietnam to facilitates procurement of four Offshore Patrol Vessels (OPVs) in Vietnam. It allows the export of eligible Indian goods and services, provided they comply with the Indian Foreign Trade Policy and Exim Bank’s financing terms. The disbursement period for the LoC extends up to 60 months from the scheduled project completion date. (RBI Notification 113/2025 Dated 13/02/2025)

RBI Guidelines on $120M Credit Line to Vietnam for Guard Boats: The notification relates to Government of India supported Line of Credit (LoC) of USD 120 million extended by the Export-Import Bank of India (Exim Bank) to Vietnam for procuring High-Speed Guard Boats. It allows the export of eligible Indian goods and services under India’s Foreign Trade Policy, subject to Exim Bank’s financing terms. The LoC will remain available for disbursement up to 60 months after the project’s scheduled completion. (RBI Notification 114/2025 Dated 13/02/2025)

Amendment regarding Government Securities Trading: The amendment relates to definition of permissible contracts for the sale or purchase of government securities, gold- related securities, and money market instruments under section 16 of the Securities Contracts (Regulation) Act. As per new provisions, such contracts are prohibited except for spot delivery contracts, those traded on recognized stock exchanges under applicable regulations, or those explicitly permitted by the RBI. (RBI Notification Dated 07/02/2025)

Amendment FEMA Manner of Receipt and Payment Regulations: The notification relates to payment methods for member countries of the Asian Clearing Union (ACU), except Nepal and Bhutan. Under the revised regulation, payments between residents of ACU member nations must be routed through the ACU mechanism or as per RBI directives to authorized dealers. (RBI FEMA Notification dated 10/02/2025)

Operation of Pre-Sanctioned Credit Lines at Banks through Unified Payments Interface (UPI): Currently, savings account, overdraft account, prepaid wallets and credit cards can be linked to UPI. As announced in Monetary Policy, the scope of UPI is now being expanded by inclusion of credit lines as a funding account. Under this facility, payments through a pre-sanctioned credit line issued by a Scheduled Commercial Bank to individuals, with prior consent of the individual customer, are enabled for transactions using the UPI System. (RBI Notification Dated 12/02/2025)

J. Miscellaneous

SC, directs Legal Framework for Domestic Workers Rights & Protection: Case of Ajay Malik vs State of Uttarakhand, SC Judgement Dated 29th January 2025. The apex court directs various responsible ministries to jointly constitute a Committee comprising subject experts to consider the desirability of recommending a legal framework for the benefit, protection and regulation of the rights of domestic workers. (SC Judgement Dated 29/01/2025)

SC, One-sided agreements are covered by ‘unfair trade practice’ definition: Case of Godrej Projects Development Limited vs Anil Karlekar, SC Judgement Dated 3rd February 2025. National Consumer Disputes Redressal Commission disposed of the Consumer Complaint filed by the Respondents No. 1 and 2 thereby directing the Appellant to deduct only 10% of the Basic Sale Price towards cancellation of the Complainants’ Apartment and refund the balance amount along with simple interest @ 6% per annum from the date of each payment till the date of refund. The appeal has been filed by aggrieved party. SC held that one-sided agreements are covered by definition of term ‘unfair trade practice’. Thus, refund of amount in excess of 10% of Basic Sale Price towards cancellation of Complainants Agreement justifiable. (SC Judgement Dated 03/02/2025)

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Disclaimer: The contents of this article are for informational purposes only. The user may refer to the relevant notification/ circular/ decisions issued by the respective authorities for specific interpretation and compliances related to a particular subject matter)