manupatra roundup
Legislative and Regulatory Update
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In This Issue [No.27] Sep 30, 2002
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Primary Market Division
Clarification regarding certificate of registration under SEBI (Underwriters) Rules & regulations, 1993, SEBI (Portfolio Managers) Regulations, 1993 and SEBI (Merchant Bankers) Regulations, 1992
Circular No. RUW Circular No1 (2002-2003) Dated 23.09.2002, Circular No. RPM Circular No 1(2002-2003) Dated 17.09.2002 and Circular No. RMB Circular No 1(2002-2003) Dated 17.09.2002 : The Board, while considering applications for granting certificates of registration under the abovementioned Regulations, is required to consider interalia whether a person directly or indirectly connected with the applicant has not been granted registration by SEBI. It is clarified that while considering this aspect, the Board may consider grant of certificate to an applicant, notwithstanding that another entity in the same group has been previously granted registration by the Board, if certain conditions are fulfilled.
Secondary Market Division
Participation by OCBs in the limited two way fungibility of ADRs/GDRs
Circular No. SMD/Policy/Cir- 24/2002 Dated 23.09.2002 : It has been clarified by the RBI that the participation of the OCBs in the issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 is being considered by the Government and that it has been decided that the two way fungibility scheme can be kept on hold for OCBs for the time being till a full review is made.
Amendments to Article of Association of Calcutta Stock Exchange Association Limited
Notification No. SO1003(E) Dated 24.09.2002 : Clause (i) of Article 82E has been amended
Regulations
Securities and Exchange Board of India (Issue of Sweat Equity) Regulations, 2002
Notification No. SO1031(E) Dated 24.09.2002 : SEBI has issued Securities and Exchange Board of India (Issue of Sweat Equity) Regulations, 2002 to be effective from 24.09.2002
Depositories And Custodian Division
Participation by Overseas Corporate Bodies ("OCBs") in the limited two-way fungibility of DRs/GDRs
Circular No. D&CC/FITTC/CIR - 10/2002 Dated 25.09.2002 : It has been clarified by RBI that the participation of the OCBs in the issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 is being considered by the Government and that it has been decided that the two-way fungibility scheme can be kept on hold for OCBs for the time being till a full review is made.
Clarification regarding provisions of Section 205C inserted in Companies Act on 31.10.1998
Circular No. 22/2002 Dated 23.09.2002 : In supersession of all earlier letters or clarifications, given either generally or specifically to any company, the correct legal position is clarified that all amounts transferred to the ‘unpaid dividend account’ of a company on or after 30th October, 1995 or which have remained unpaid or unclaimed for a period of seven years from the date of such transfer should be transferred to the Investor Education and Protection Fund together with interest accrued thereon, unless they have already been transferred to the general revenue account of the Central Government prior to the enactment of the Companies (Amendment) Act, 1999.
Notifications U/s 10 (23C)(iv), U/s 35, U/s 10(23G) and U/s 10 (23)
Notification No. 268/2002 to No. 272/2002 Dated 20.09.2002, No. 264/2002 to No. 267/2002 Dated 17.09.2002 : Cancer Relief Society, Cochin, Nathdwara Temple Board, Nathdwara, Rajasthan, U.P. Rural Water Supply & Environment Sanitation Project Management Unit, Sree Jain Swetamber Bhandar Tirth, Pawapuri, Bihar, Shri Jambhuvantiji Mandir Trust, Bet, have been notified U/s 10 (23C)(iv), M/s M. S. Swaminathan Research Foundation, Chennai Notified U/s 35, M/s Rajahmundry Expressway Ltd. New Delhi and M/s Hughes Telecom (India) Ltd have been Notified U/s 10(23G) and Water Sports specified U/s 10 (23).
Accountal of Petroleum Products movements through pipelines without payment of duty
Circular No. 54/663/2002 Dated 23.09.2002 : It was represented to Board that the present system of consignment wise generation of ARE-3 is causing disputes in getting the warehousing certificates within the prescribed period of 90 days as it is not possible in the pipe line movement to identify the destination at the time of dispatch of petroleum products from refinery due to the pumping of the product continuously to multiple tap off points. The matter was examined by the Board in consultation with the oil companies and the procedure has been prescribed accordingly.
Central Excise Registration-new instructions
Circular No. 53/662/2002 Dated 17.09.2002 : Board has re-examined the Registration process under Central Excise in its entirety and prescribed a new procedure which will come into force from 1.10.2002.
Amendment to Notification No. 38/2001 Dated 26.06.2001
Notification No. 32/2002 NT Dated 17.09.2002 : In the Table, for S. No. 7 relating to Officers of Customs in Export Processing Zones, or Special Economic Zones, or in whose jurisdiction hundred percent export oriented undertakings are located and the entries relating to it have been substituted.
Amendment to Notification No. 36/2001 NT Dated
Notification No. 31/2002 NT Dated 17.09.2002 26.06.2001 : In the opening paragraph, in sub paragraph (2), the words, “hundred percent export oriented undertaking or a unit in Export Processing Zone or a unit in Special Economic Zone, is licensed or appointed, as the case may be, under the provisions of the Customs Act, 1962 (52 of 1962), such undertaking or unit”, have been substituted. Also a proviso has been added at the end.
Amendment to Notification No. 35/2001 – Central Excise (N.T.)
Notification No. 30/2002 NT Dated 17.09.2002 : In clause (1) of paragraph 1, for the words “jurisdictional Superintendent of Central Excise”, the words “jurisdictional Deputy or Assistant Commissioner of Central Excise” has been substituted and Annexure-I containing Form A-1 - Application for central Excise registration has also been substituted.
Levy of penalty under section 114A of Customs Act, 1962 – Clarification – regarding
Circular No. 61/2002 Dated 20.09.2002 : In view of the Supreme Court's decision in various cases regarding interpretation of the word “or” as “and” to give effect to the clear intention of the legislature, it is clarified that penalty under section 114A of the Customs Act, 1962 should be equivalent to duty and interest and the said clarification may kindly be kept in mind while imposing the penalty under section 114A of the Customs Act, 1962.
Levy of Service Tax on Food Grain Commission Agents under the category of ‘Clearing and Forwarding Agents’
Circular No. 48/10/2002 Dated 13.09.2002 : It has been reported that a foodgrain agent purchase the grains outright from farmers in auctions after which, certain physical processing such as sieving, winding (cleaning) and blending etc. are carried out and the grains are then graded according to the quality and sold to retailers against orders. As per the definition of Clearing and Forwarding Agents there must exist a relationship of a principal and an agent and as in this case the grain agents actually purchases the goods from the farmer he does not function as an agent of the farmer. He is not a C&F Agent and therefore not liable to Service Tax.
Security Interest (Enforcement) Rules, 2002 (Pertaining to Securitisation Ordinance)
Notification No. SO1020(E) Dated 20.09.2002 : The Central Government has made the Security Interest (Enforcement) Rules, 2002 to be effective from 20.09.2002
Rules regulating the method of recruitment of Group 'C' and 'D' (Non-Gazetted) posts in the Debts Recovery Tribunal
Notification No. GSR628(E) to No. GSR634(E) Dated 09.09.2002 : The Central Government has made the following rules regulating the method of recruitment of Group 'C' and 'D' (Non-Gazetted) posts in the Debts Recovery Tribunal
Debts Recovery Tribunal, Pune, (Group 'C' And 'D' Posts)(Non-Gazetted) Recruitment Rules, 2002.
Debts Recovery Tribunal, Coimbatore, (Group 'C' And 'D' Posts)(Non-Gazetted) Recruitment Rules, 2002.
Debts Recovery Tribunal, Vishakapatnam, (Group 'C' and 'D' Posts)(Non-Gazetted) Recruitment Rules, 2002.
Debts Recovery Tribunal III, Delhi, (Group 'C' And 'D' Posts)(Non-Gazetted) Recruitment Rules, 2002.
Debts Recovery Tribunal, Ranchi, (Group 'C' And 'D' Posts) (Non-Gazetted) Recruitment Rules, 2002.
Dated Debts Recovery Tribunal, Lucknow, (Group 'C' And 'D' Posts)(Non-Gazetted) Recruitment Rules, 2002.
Debts Recovery Tribunal-III Kolkata (Group 'C' And 'D' Posts) (Non-Gazetted) Recruitment Rules 2002.
Foreign Currency Loans in India to holders of FCNR (B) Deposits
Circular No. AP (DIR Series) Circular No 24 Dated 25.09.2002 : It has now been decided to permit authorised dealers to grant foreign currency loans in India against the security of funds held in FCNR (B) deposit accounts to the account holders only, subject to the guidelines specified.
Asset Classification of the Projects Under Implementation - Time Overrun - Reversal of Provisions
Notification No. DBS FID No C-8 / 01.02.00 / 2002- 03 Dated 14.09.2002 : With reference to para 3.1 of the Circular DBS.FID. No. C-11/201.02.00/2001-02 dated February 1, 2002 on the subject in term of which the asset classification of the projects falling under Category II, as specified therein, is required to be decided with reference to the 'deemed date of completion' of such projects as determined by the Independent Group. In this context it has been advised that, as a prudential measure, the provisions held by the FIs in respect of such accounts should not be reversed even in cases where, as per the deemed date of completion of the Category II projects, certain accounts might become eligible for upgradation to the 'standard' category.
Charging of interest at monthly rests – Agricultural Advances
Notification No. DBOD No Dir BC 25/13.03.00/2002-03 Dated 19.09.2002 : The banks have been advised to meticulously follow the instructions regarding charging of interest on agricultural advances contained in circular DBOD No. Dir. BC. 8/13.03.00/ 02-03 dated 26 July 2002.
Rupee Export Credit Interest Rates
Notification No. IECD No 7/04.02.01/2002-03 Dated 23.09.2002 : With reference to circulars IECD.No.4/04.02.01/2001-02 dated September 24, 2001 and IECD No.17/04.02.01/2001-02 dated March 15, 2002 advising a reduction in the ceiling interest rates on rupee export credit by 1 percentage point across the board effective from September 26,2001 to September 30, 2002, the validity of the reduction in the interest rates on rupee export credit effective from September 26, 2001 would now remain in force upto April 30, 2003.
Authorised Dealers to allow Short Term Credit for Imports into India
Press Release No. 327/2002-2003 Dated 25.09.2002 : As a part of its continuing efforts to simplify and liberalise the exchange control procedures, the Reserve Bank of India has introduced a revised procedure for short-term credit, for periods less than three years, for imports up to US $ 20 million per import transaction.
Import of Raw Garlic against export of Garlic products under Duty Exemption Scheme
Public Notice No. 36(RE-2002)/2002-2007 Dated 17.09.2002 : The DGFT has notified that the advance licences under para 4.7 of the Handbook of Procedures, Vol 1 (1st April, 2002 – 31st march, 2007) for import of garlic against export of garlic products shall be issued by the Regional Licensing Authorities with (i) prior import condition, and (ii) the condition that the weight of Allicin content in import and export should match with a variation of +/-2% on the basis of Chromatographic profile of import and export item.
Initiation of Anti-Dumping Investigations
Notification No. 14/30/2002-DGAD Dated 21.09.2002, No. 14/36/2002-DGAD Dated 20.09.2002 and No. 14/35/2002-DGAD Dated 18.09.2002 : Anti-Dumping investigation have been initiated concerning import of Ball Bearings and parts and Components thereof (up to 50 Mm Bore Dia) from China PR, Poland, Russia and Romania, imports of Ammonium Nitrate into India originating in or Exported from Russia & Iran and import of Hexamine originating in or exported from Iran.
Final Findings on Anti-Dumping Investigations
Notification No. 51/1/2001-DGAD Dated 20.09.2002 and No. 41/1/2001-DGAD Dated 19.09.2002 : Final findings on Anti-Dumping Investigations on imports Of D (-) Para Hydroxy Phenyl Glycine Base (PHPG-Base) Originating In Or Exported From China PR And Singapore and imports of Flexible Slabstock Polyol of Molecular Weight 3000 to 4000 originating in or Exported from USA, Japan, Singapore and European Union, have been published.
Exemptions from Rule 31(2) of the Explosives Rules, 1983.
Notification No. SO1000(E) to No. SO1004(E) Dated 16.09.2002 : Notification No. SO1003(E) Dated 16.09.2002 : OIL, Duliajan has been exempted import of explosives as specified from Baker Oil Tools, USAONGC, Mumbai for import of explosives as specified from the Etudes et Productions Schlumberger, France ONGC, Nazira for import of Explosives from SRC Technologies, Texas and ONGC, Dehradun has been exempted for import of explosives from Goex International, Texas.
Amendment to Notification No. SO884(E) Dated 19.12.1996
Notification No. SO1010(E) Dated 18.09.2002 : In the said notification in paragraph 1 for the words “five years and nine months” the words “Five Years and eleven months” shall be substituted.
Constitution of Central Empowered Committee in pursuance of Supreme Courts order in Writ Petition Nos. 202/95 and 171/96
Notification No. SO1008(E) Dated 17.09.2002 : Central Government has constituted an authority to be known as the Central Empowered Committee, consisting of the following members appointed in pursuance of the Hon’ble Supreme Court’s orders dated the 9th May, 2002 and 9th September 2002 in Writ Petitions (Civil) No. 202/95 and 171/96, for a period of five years with effect from the date of publication of this notification in the Official Gazette, for the purposes of monitoring and ensuring compliance of the orders of the Hon’ble Supreme Court covering the subject matter of forests and wildlife, and related issues.
Environment (Protection) Fourth Amendment Rules, 2002
Notification No. GSR647(E) Dated 13.09.2002 : In Schedule 1 to the Environment (Protection) Rules, 1986 against serial number 59, in column 2, for the words “Bagasse-fired Boilers”, the words and brackets “Agriculture residue fired Boilers (including bagasse), have been substituted.
Drugs and Cosmetics (7th Amendment) Rules, 2002
Notification No. GSR648(E) Dated 16.09.2002 : (1) In item number 5-A, under the column 'Extent and Conditions of Exemptions' the following entry has been inserted "(4). The drugs shall be purchased from a manufacturer or a dealer licensed under these rules or received as transferred stocks from hospital stores for distribution. Records of such purchases or receipts shall be maintained."
(2) In item number 15, under the column 'Class of Drugs', entry no. 4 relating to Desogestrel and Ethinyloestradiol and entry no. 5 relating to Levonorgestrel and Ethinyloestradiol, have been inserted.
(3) Item no. 32 relating to First Aid kit supplied alongwith motor vehicle by the manufacturer or its distributor at the time of first sale of vehicle, has been inserted.
Reconstitution of Central Apprenticeship Council as Specified
Notification No. SO1017(E) Dated 18.09.2002 : The Central Government has reconstituted with immediate effect the Central Apprenticeship Council and appoints the Union Minister of Labour/Minister of State for Labour as Chairman, the Union Minister of State for Education/Deputy Minister for Education, Ministry of Human Resource Development as its Vice Chairman and specified persons as members.
Extension of term of Justice K. Venkataswami Commission of Inquiry
Notification No. SO1021(E) Dated 21.09.2002 : The Central Government has extended the term of the Justice K. Venkataswami Commission of Inquiry for a further period beyond 23rd September, 2002 and upto 31st January, 2003.
Appointment of Competent Authority NH 5 as Specified
Notification No. SO1016(E) Dated 19.09.2002 : The Central Government has authorized the specified officers as competent authority to perform the functions of such authority in respect of the stretch of land mentioned relating to District and Tehsils, arid villages specified for widening of existing National Highway No. 5 including construction of Bypass in the State of Orissa as specified in the Schedule till further orders.
Properties of an underworld operative attached
Dated 20.09.2002 : The Appellate Tribunal for Forfeited Property today ordered the forfeiture of a large number of mumbai based residential and commercial properties of Mohd. Ahmed Ummer Dossa alias Tiger Majnoo and his relatives and associates under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act,1976 (SAFEMA).
Filling up vacancies of Judges
Dated 24.09.2002 : The Centre has worked out an action plan in consultation with the states to fill up all the existing 2216 vacant posts of judges and magistrates in district and subordinate courts for the current financial year 2002-2003 as per the directions of the Supreme Court in Judge’s case in March, 2002.
International Centre for Alternative Disputes Resolution
Dated 20.09.2002 : The International Centre for Alternative Disputes Resolution (ICADR) received 13 arbitration cases during the period from March 1997 to March 2002, out of which five cases have been resolved. The Centre received two conciliation cases during that period, which too were resolved.
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