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 – 13-05-2015


SEBI has notified the SEBI (Prohibition of Insider Trading) Regulations, 2015 which will be effective from 15-05-2015. With reference to the disclosures requirements of regulation 6 of the Regulations, SEBI has notified the Formats for Disclosures and such disclosures may be maintained by the company in physical / electronic mode. Further, with reference to the requirements of the regulation 8 (Code of Fair Disclosure) and regulation 9 (Code of Conduct) of the Regulations, the companies shall also ensure that Formulated and published (on its official website), code of practices and procedures for fair disclosure of Unpublished Price Sensitive Information (UPSI) and formulated code of conduct, is confirmed to the stock exchanges, immediately. The Stock exchanges are advised to put in place the adequate systems and issue the necessary guidelines for implementing the above decision and to make necessary amendments to the relevant bye-laws, rules and regulations as applicable for the implementation of the above decision immediately.


DGFT with an intention to sort out the pending issues and grievances and to make meetings with the officials more fruitful and result oriented, has prescribed visiting hours for non – officials / members of trade for meetings with the officials at DGFT HQ. It is now decided that visiting hours between 3 pm to 5 pm each working day would be earmarked for meetings with non officials / members of trade. It is felt that the aforesaid measures would help in saving the time of the visitor and this arrangement shall be in place only for meetings with officials working in DGFT HQ.

News from NIRC of ICSI

NIRC of ICSI is organizing one day Seminar on the theme “Arbitration in India – The Way Ahead….” on Saturday, the 16th May, 2015 at Hotel Le-Meridien (Soverign Hall), Janpath, New Delhi from 10 am onwards. Fees : Rs. 1,750/-, Free for Corporate Members. PCH – 6.

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 – 30-12-2014


CBDT has notifies Reliance Retirement Fund set up by the Reliance Mutual Fund registered under the Securities and Exchange of Board of India (Mutual Fund Regulations, 1993) having registration No MF/022/95/1, dated the 30th June, 1995 as a Pension Fund under Section 80C(2)(xiv) for the purposes of the said clause for the assessment year 2015-16 and subsequent assessment years. This notification shall come into force from the date of its publication in the Official Gazette.


SEBI has passed orders for providing the exit to Bangalore Stock Exchange Limited and Cochin Stock Exchange Limited under the current 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.

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 – 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 – 09-10-2014


SEBI has amended the regulations named the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, which shall come into force on the date of their publication in the official Gazette. According to amended regulations, SEBI dispenses with requirement of separate registration for stock brokers for operating in multiple exchanges as no separate registration shall be required for a stock broker registered with the Board to operate in more than one stock exchange, of which he is admitted as a member, subject to grant of approval by the concerned stock exchange and compliance of other rules & regulations as prescribed under these rules.

Rajasthan VAT:

Rajasthan Government has notified the Rajasthan Value Added Tax (Second Amendment) Rules, 2014, which shall come into force on the date of their publication in the official Gazette. Amendment have been made in Rules 17A, 19, 37, 79A, Form VAT-10 and Form VAT-69 and revises VAT return form and now seeks details of goods sold by agent in new form.


Corporate Updates – 07-10-2014


DVAT Authorities have extended the last date of filing of online return in Form 9 for the year 2013-14, prescribed under Rule 4 of Central Sales Tax (Delhi) Rules, 2005 to 28th November, 2014. The return is to be filed by dealers who have made interstate sale at concessional rates against statutory forms ‘C’ or stock transferred against ‘F’ forms or sold the goods against ‘H’ forms to dealers (other than Delhi) or claimed deduction from taxable turnover against E-I/EII forms or I/J forms etc. The dealers who have not made the sale as mentioned above need not file reconciliation return in Form 9.


SEBI with an intention to have an effective regulation of the Mutual Fund Industry, Securities and Exchange Board of India (SEBI) has come out with the Master Circular for Mutual Funds. Master Circular is a compilation of all the existing/applicable circulars issued by Investment Management Department of SEBI to Mutual Funds. In case of any inconsistency between the master circular and the applicable circulars, the contents of the relevant circular shall prevail.


Corporate Updates – 01-10-2014


SEBI has granted Recognition to MCX-SX Clearing Corporation Limited (MCX-SXCCL) for a period of one year commencing on the 3rd day of October, 2014 and ending on the 2nd day of October, 2015. Further MCX-SXCCL shall comply with the shareholding requirements of SCR (SECC) Regulations, 2012. MCX-SXCCL shall submit an action plan for achieving Networth requirements of INR 100 crore within nine months from the date of grant of recognition. MCX-SXCCL shall also appoint Managing Director and Compliance Officer and to take immediate steps to rectify the deficiencies pointed out in the systems audit.


CBDT has issued instructions to all the Commissioners of Income Tax, stating the scope of enquiry for Scrutiny Cases selected on the basis of AIR/TDS Mismatch. The cases selected for scrutiny during the Financial Year 2014-2015 under CASS, on the basis of either AIR data or CIB information or for non re-conciliation with 26AS data the scope of enquiry should be limited to verification of these particular aspects only. Therefore, in such cases, an Assessing Officer shall confine the questionnaire and subsequent enquiry or verification only to the specific point(s) on the basis of which the particular return has been selected for scrutiny.


Corporate Updates – 30-09-2014


SEBI has modified Investor Protection Fund (IPF) / Customer Protection Fund (CPF) Guidelines to give effect, the new procedure for eligible claim arises within three years from the date of expiry of the specified period. In all such cases, now IPF/CPF Trust shall satisfy itself that such claim could not have been filed during the specified period for reasons beyond the control of the claimant. Further in cases where any litigation’s are pending against the defaulter member, it has been prescribed that the residual amount, if any, may be retained by the stock exchange until such litigation’s are concluded.

MP Stamp Act

Madhya Pradesh Government has proposed amendments to the Indian Stamp Act, which shall be known as Indian Stamp (MP Amendment) Ordinance 2014. According to the amendments made to the Act, the rates of Stamp Duty on most of the documents have been raised to 5 times of the existing applicable rates. Now the stakeholders have to pay 1) Minimum Rs.5000 (Rs.1000/-) Max 25 Lacs (5 Lacs) for AOA, 2) Minimum Rs.2,500 (Rs.500/-) for MOA, 3) Rs.10/- (Rs.2/-) for Letter of Allotment of Shares, 4) Rs.50/- (Rs.10/-) for Affidavits, 5) 0.5% of amount or value secured subject to minimum Rs.500/- (Rs.250/-) for Indemnity Bond, 6) Normal Agreement: Rs.500/-, 7) Notary – Rs.50/- from Rs.10/- among other.