CIR/MRD/DP/ 8 /2011 June 30, 2011 Exchanges are advised to a) make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision. b) bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website. c) communicate to SEBI, the status of the implementation of this circular in the Monthly Development Report.
A. P. (DIR Series) Circular No.75 After reviewing the current policy on buyback/prepayment of Foreign Currency Convertible Bonds (FCCBs), the Reserve Bank in consultation with the Government of India, has decided to extend the time limit for buyback of FCCBs issued by Indian companies up to March 31, 2012 at reduced discount rates. Accordingly, Indian companies have been permitted to buyback the FCCBs at a minimum discount of 8 per cent on the book value utilizing their foreign currency funds under the automatic route. Indian companies may also buyback the FCCBs at a minimum discount between 10 and 20 per cent on the book value utilizing their internal accruals under the approval route.
The Reserve Bank of India (RBI) said it has decided to permit the issuance of equity, preference shares under the government route of the foreign direct investment scheme for some categories vide its A. P. (DIR Series) Circular No.74 Dated- June 30, 2011. Circular specifies that Payments should be made directly by the foreign investor to the company. Payments made through third parties citing the absence of a bank account or similar such reasons will not be eligible for issuance of shares towards FDI.
Transfer by way of sale of shares of a JV / WOS – An Indian Party, without prior approval of the Reserve Bank, may transfer by way of sale to another Indian Party which complies with the provisions of Regulation 6 of FEMA Notification 120/RB-2004 dated July 7, 2004 or to a person resident outside India, any share or security held by it in a JV or WOS outside India subject to the following conditions:
It is noticed that a large number of e-forms filed by the companies with the ROCs prior to implementation of revised regulation 17 of the Companies Regulation, 1956 (i.e. 15.02.2009) are still pending in folders like RESUB, PUCL etc. for want of action on the part of stake holders. Unless the companies respond to this, ROC’s are unable to process the said forms.
The Authority proposes to issue the Regulations on IRDA (Issue of Capital and Disclosure Requirements for Life Insurance Companies) Regulations, 2011. Accordingly, the Authority has prepared the Draft Regulations (attached as pdf and doc. documents) for the same. In this regard, comments/suggestions of all stake holders (including insurers, policyholders, academics, analysts etc.) on the Exposure Draft are invited
Circular No.25/2011-Customs Attention is also invited to Board’s Circular No.9/2010-Customs dated 8.4.2010 which stipulates that those applicants who have passed the examination referred to in Regulation 9 of CHALR, 1984, but were not given Licence under the said Regulation were required to appear in the examination and qualify the same under Regulation 8 of CHALR, 2004 in respect of additional subjects as provided in Notification No.30/2010-Customs (NT) dated 8.4.2010. The persons who qualify in the aforesaid examination shall be deemed to have passed under regulation 8 of the CHALR, 2004 and would be considered for grant of CHA licence in terms of regulation 9 of the CHALR, 2004.
Circular No. 947/08/2011-CX – On the issue of applicability of excise duty on uniforms or made-up articles like quilt, blankets, towels, linen etc bearing the name or logo of a school, security agency, company, hotel or airline etc., it is clarified that such products would not merit treatment as ‘branded’ products merely because the name of the school, institution or company or their logo is either printed, embroidered or etched on them. This is equally true of made ups such as towels, linen etc bearing the name of a hotel, restaurant or airlines. In all these cases, there is no nexus between such a name or logo & the product at the time of its sale which is essential ingredient in the definition of the term ‘brand name’. Unless such garments/made- ups also bear a brand name in addition to the name or logo of the school, security agency, hotels, airlines and company, such goods would not attract the excise duty.
The Registrar of Companies are hereby advised that after the date of implementation of Digital Certificates, no certificates shall be issued manually. All such pending certificates which are required to be issued manually, should be issued by 30th June, 2011.
Trade Circular No. 10T of 2011 The amendments carried out in respect of taxation of liquor have been explained in details in the Trade Circular No. 8T of 2011 referred here in above at Sr. No.(3). The procedure to fill up the information about turnover of liquor sales while uploading the Returns is explained in this circular. No new form of Return has been introduced for liquor dealers. The dealers dealing in liquor shall continue to file returns in the same form (form 231 to 235) in which they were filing returns before the amendments.
