Corporate Updates – 20-05-2015


The Hon’ble President has given assent to the Finance Bill, 2015 on Thursday, May 14, 2015. Accordingly, the Finance Bill, 2015 has now become Finance Act (No.20), 2015. Few of the changes in Service tax are effective from the date of notification i.e May 14, 2015 and few of the changes will become effective only from the date to be notified. In the regard Service Tax rate as increased from 12.36% to 14% (Subsuming EC and SHEC) shall be applicable from 1st June, 2015.


RBI reviewed the instructions regarding opening and maintenance of FCNR (B) deposit and noticed that Authorised Dealer banks are insisting on different requirements at the time of closure of FCNR (B) deposits and subsequent remittance of funds. RBI clarified that A2 form is to be filed at the time of purchase of foreign exchange using rupee funds and hence is not applicable while remitting FCNR (B) funds. Further, banks, with the help of technology, will have to devise better alternatives/ methods for ensuring bonafides of the transaction rather than insisting on physical presence of the account holder, in order to ensure hassle free remittance of funds to the account holder.

Corporate Updates – 19-05-2015


RBI with an intention to liberalise and simplify the procedure Export of Goods and Services, has decided to dispense with the requirement of declaring the export of Goods /Software in the SDF in case of exports taking place through the EDI ports, as the mandatory statutory requirements contained in the SDF have been subsumed in the Shipping Bill format. The Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, requires that every exporter of goods or software has to declare the same in one of the forms stated therein.


SEBI has passed orders to provide Exit to the Madras Stock Exchange Limited (MSE) under the current policy MSE is the Fourteenth Stock Exchange to exit under this policy. SEBI vide Circular dated May 30, 2012 had issued the Guidelines for exit of stock exchanges. This contained details of the conditions for exit of de-recognised /non operational stock exchanges, inter–alia, including treatment of assets of de-recognised / non-operational exchanges and a facility of dissemination Board for companies listed. Further, the Income Tax Authorities, Ministry of Corporate Affairs and the State Government of Tamil Nadu are being intimated about the exit of MSE, for appropriate action at their end.

Corporate Updates – 15-01-2015


CBDT has amended & notified the Income Tax (Dispute Resolution Panel) (First Amendment) Rules, 2014 which shall come into force on 1st January, 2015. The Board shall constitute panels at headquarters and assign three Commissioners of Income-tax to each panel as Members for the purpose of transfer of cases of eligible assessee from one panel to another panel under their jurisdiction. Transfer of cases will take place after an opportunity of being heard in being given to the assessee and after recording the reasons, for transfer a case.


RBI has earlier decided to implement Cheque Truncation System with effect from January 1, 2015 by Dispensation of the requirement of forwarding of government cheques in physical form to government. However, it has now been decided to postpone the implementation of discontinuation of P2F. The revised date would be advised shortly by the RBI in this regard and till that time old system will continue.


Corporate Updates – 07-01-2015


SEBI issues Concept Paper on proposed framework for issuance and listing of debt securities by municipalities. Pursuant to the recommendation made by Corporate Bonds and Securitization Advisory Committee (CoBoSAC), SEBI is proposing to lay down regulatory framework for issue and listing of debt securities by municipalities. In this regard, SEBI has initiated the public consultation process by preparing concept paper and draft regulations viz., SEBI (Issue and Listing of Debt Securities by Municipality) Regulations, 2015. Comments of public are invited on the draft regulations latest by January 30, 2015.


RBI has revised the format of reporting for Representative Offices of Foreign Banks in India. All Representative Offices of foreign banks in India are currently required to submit information / documents on an annual basis to Reserve Bank of India along with the a certificate from the auditor to the effect that during the year no income was earned by/ accrued to the office in India, certified copy of the audited final accounts of the office in India. The revised format of reporting would be effective from the next reporting cycle.


Corporate Updates – 31-12-2014


RBI with an intention to grant more flexibility to the Indian party, directs banks to allow credit facilities to Indian party on pledging of shares of its step down subsidiary. It has been decided to further liberalize certain regulations of the Notification relating to Overseas Direct Investments by Indian Party. IN this regard regulation relating to Creation of charge on shares of JV / WOS / step down subsidiary (SDS) in favour of domestic / overseas lender, Creation of charge on the domestic assets in favour of overseas lenders to the JV / WOS / step down subsidiary & Creation of charge on overseas assets in favour of domestic lender have been liberalized.


UPVAT Authorities have extended Last Date of UP VAT Annual Return (Form 52, 52A & 52B) for the year 2013-2014 upto 31-12-2014 from 30-11-2014. Now the authorities have again considered the requests of the stakeholders and have extended the last date of furnishing for Annual Return to 29-01-2015 from 31-12-2014.

Corporate Updates – 15-10-2014


SEBI has introduced the Single registration for Stock Brokers & Clearing Members by amending the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992. Accordingly for the purpose of implementing the revised registration requirements, new set of guidelines are issued to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets. Further, all Stock Exchanges and Clearing Corporations are directed to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in co-ordination with one another.


RBI has issued clarification with regard to requirement of one proof of address whether permanent or current, as some banks are still insisting on submission of a proof of address for the current address even when a customer produces a proof of permanent address, which prevents many prospective customers, especially migrant workers, from opening bank accounts. Banks are again advised to ensure that customers are not unnecessarily asked to submit additional proofs of addresses for current addresses in cases where proofs of addresses for permanent addresses are already available with Bank.


Corporate Updates – 14-10-2014


RBI has issued clarifications on usage of ATMs and number of free transactions provided by the banks. All banks were mandated not to charge any fees to their savings bank account customers for five ATM transactions (inclusive of both financial and non-financial) in a month carried out at other bank ATMs located in the 6 metro centres with a sub-limit of 3 transactions, if carried out at other bank ATMs located in six metro centres. However, Banks are free to offer more number of free transactions per month at other bank ATMs as well as own ATMs in any geographical location. Banks are also free to decide on the combination (for metro & non-metro locations) of free transactions while adhering to the minimum requirements.


CBEC has issued clarifications regarding powers of a Central Excise officer to conduct audit, in the background of a recent judgment of Hon’ble High Court of Delhi dated 04.08.2014 in case of M/s Travelite (India) wherein the Hon’ble court has held that the powers to conduct audit as envisaged in rule 5A (2) of the Service Tax Rules, 1994, does not have appropriate statutory backing and therefore quashed the rule. It has been clarified by the Department that Clause (x) of section 37(2) empowers the Central Government to make rules for verification of records and returns to check the correctness of levy and collection of duty and officers of Central Excise shall continue to conduct audit, as provided in the statute.


Corporate Updates – 13-10-2014


MCA has disabled View Public Documents (VPD) service effective today i.e 13th October, 2014 to 18th October, 2014 (09:00 AM – 09:00 PM), in light of peak filing period and to avoid last minute rush and system congestion on the MCA21 portal on account of filings under the Company Law Settlement Scheme, 2014 ending on 15.10.2014 and Annual Filings during October 2014. Stakeholders are requested to plan accordingly.


RBI has decided to permit remittances to the Prime Minister’s National Relief Fund through the Exchange Houses subject to the condition that the remittances are directly credited to the Fund by the banks and the banks maintain full details of the remitters. Accordingly the Memorandum of Instructions for Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts of Non-resident Exchange Houses, listing the permissible transactions has been and made applicable.


Corporate Updates – 10-10-2014


SEBI has issued Clarification on investment limit on Government Debt Investment Limits as available to all FPIs was enhanced to USD 30 billion. It was also stated in the aforesaid circular that all future investments in this USD 25 billion debt limit shall be required to be made in government bonds with a minimum residual maturity of three years. It is upon sale/redemption of debt securities, the FPI will have a re-investment period 5 days. If the reinvestment is not made within 5 working days, then the limits shall come back to the pool of free limits. Further, in order to provide operational flexibility to FPIs, it is clarified that there would be no other re-investment restrictions.


RBI has decided to reduce the eligible limit of ECR facility from the level of 32 per cent of the outstanding rupee export credit eligible for refinance as at the end of the second preceding fortnight to 15 per cent effective from October 10, 2014. Accordingly, part A of the reporting format is also modified.


Corporate Updates – 26-09-2014


RBI has notified the accreditation given to the SME Rating Agency of India Ltd (SMERA) as one of the approved credit rating agency for the purpose of rating Fixed Deposits of NBFCs. Accordingly, NBFCs may also use the ratings of SMERA for the purpose of rating their Fixed Deposits. The Minimum Investment Grade Rating for Fixed Deposits shall be “SMERA A”.


CBEC has issued clarifications to the Amendments made by Finance Act, 2014 with respect to the Appeal provisions in Customs, Central Excise and Service Tax. New provisions prescribe mandatory pre-deposit as a percentage of the duty demanded where duty demanded is in dispute or where duty demanded and penalty levied are in dispute. Where penalty alone is in dispute, the pre-deposit shall be calculated on the penalty imposed. Through these clarification, circumstance relating to pre deposit of the amount and ground of rejection of appeal are now settled.