manupatra roundup
Legislative and Regulatory Update
_____________________________________________________________________
India Centric Online Legal & Business Database
Bringing forth new efficiency and unparalleled results to research efforts.
In This Issue [No.31] Nov 10, 2002
Site Links
To keep you informed about the latest Legislative and Regulatory information manupatra.com publishes this e-roundup highlighting the recent changes brought about by the Notifications/Acts/Bills /Ordinances etc.
About manupatra.com
../ provides comprehensive and easy to use legal and related information over the Internet .Our database covers Central Laws , Judgments of Supreme Court and High Court (full text of the judgments from 1950 onwards ), Orders of Tribunals , Bills , Notifications, Circulars and moreKey features of manupatra are
Content is derived from reliable primary and secondary sources Database is updated on a daily basis Electronic Ready Reckoner to view the judgments under a particular section of an Act / Subject Powerful search engine with user friendly interfaces Search in any one court/year or multiple courts/year Hyper-linking of documents Updated modules on WTO, Anti Dumping, Arbitration, Investment Destinations Abroad, Capital Markets, Taxation, Environment, Cyber & IT Laws, IPR, Corporate Laws, Industrial Policies, Foreign Trade, Forex & Banking and more
For subscription to manupatra.com or for more details please log onto ../ or call us at 0120 4531811 or send an email to : contact@manupatra.com
If at any stage you wish to stop receiving the e-roundup please click here to unsubscribe.
Primary Market Division
Time bound Arbitration Proceedings
Circular No. SMD/Policy/Cir- 26/2002 Dated 30.10.2002 : With reference to circular SMD/Policy/Cir-18/2002 dated August 28,2002 regarding time bound arbitration proceedings at the exchanges, it is clarified that notwithstanding the extensions granted, the arbitration award should be passed within a period of six months from the date of entering into reference i.e. extension of time of award can be for a maximum period of three months.
Depositories and Custodian Division
Mandatory admission of debt instruments on both the Depositories
Circular No. D&CC/FITTC/CIR - 13/2002 Dated 01.11.2002 : The issue of admission of debt instruments on both the Depositories was discussed in the meeting of Working Group on Dematerialisation held on 18th October 2002. It has now been decided that such debt instruments be mandatorily admitted on both the Depositories.
Account Closure charges
Circular No. D&CC/FITTC/CIR - 12/2002 Dated 30.10.2002 : In view of the representations received on not to charge Account closure charges, the matter was discussed in the meeting of Working Group on Dematerialisation held on 18th October 2002. It has been decided that no Account closure charges be imposed on the closure of any Beneficial Owner accounts. However, the transaction charges as applicable may continued to be charged.
Recent Developments
Press Note : The Department of Company Affairs had constituted Joshi Committee, to identify the left over items of provisions of the Companies Bill, 1997. The Committee has submitted its report. The major recommendations of the Committee include prohibiting promoters to withdraw once having subscribed to a Public Issue, restriction on number of directors, retiring age of directors, service of notice etc. by Courier and electronic means and restriction on loans to directors.
Notifications under various sections of the Income Tax Act 1961.
Notification No. 307/2002 to No. 337/2002 Dated 22.10.2002, 24.10.2002, 25.10.2002, 28.10.2002 and 30.10.2002 : M/s GMR Tuni Anakapalli Expressways Pvt. Ltd., and M/s Orrisa Power Generation Corporation Ltd. have been approved U/s 10(23G), Andh Kalyan Kendar, Shri KJ. Metha T. B Hospital, Hospital at Mehsana, Gujarat, Tiruvarur Lions Eye Hospital, Zarpan Nassarpur Vibhag Kelvani Mandal Vadi, Projects Specified, Janana Prabodhini, Salapur, Founding-Com-Adoption Centre for Orphaned and Destitute Children and Abandoned Babies, GDC Rural Research Foundation, Karuna Setu Trust, Kum. Rajshree Parmar Memorial Foundation, Umeed Khanna Foundation, Bhagwan Mahaveer Cancer Hospital & Research Centre, Gujrat Blind Relief and Health Association, Vithalpai Foundation, Parents Association for Welfare of Children with Mental Handicap, Sanjivani Trust have been Notified u/s35AC Congregation of Christian Brothers in India, Kolkata, The Fathers of Holy Cross, Bangalore, Society for Promotion of Wasteland Development, New Delhi, The Asthika Samaj, Mumbai notified U/s. 10(23C)(v), Tax free bonds by Nuclear Power Corporation of India Limited specified U/S 10(15)(iv)(h), 7.15% NHB Capital Gains Bonds, 2002 specified u/s 193(iib), M/s Chennai Container Terminal Limited, Mumbai approved U/S 10(23G), M/s National Institute of Construction Management & Research (NICMAR) Mumbai approved U/S 35(1)(ii) and certain Institutions have been Approved U/S 10(23C)(iv)/(v) of the Income Tax Act 1961.
Raising of protective demands consequent to CERA objection - modification of circular 5/83-CX6 dated 10.3.83 - reg.
Circular No. 65/674/2002 Dated 01.11.2002 : It has been decided that wherever Board’s instructions or circulars (whether issued under section 37 B or not) exist on a particular issue, no protective demands should be raised on the basis of CERA objection if the objection is contrary to such Board’s instructions or circulars. However, in all such cases, the matter should be immediately referred to PAC section of the Board for resolving the issue with the C&AG of India.
Amendment to Notification No. 8/97 Dated 01.03.1997
Notification No.54/2002 Dated 31.10.2002 : In the notification, for the words and figures "paragraph 6.8", the words and figures "paragraph 6.8 or of paragraph 6.20" have been substituted.
Amendment in Notification No. 6/2002-Central Excise dated 01.03.02
Notification No. 53/2002 Dated 30.10.2002 : In the notification, in the Annexure, Condition No. 35 relating to various conditions to be followed by the manufacturer to avail the exemption mentioned in the notification, has been substituted.
Modification of Circular No. 639/30/2002-CX. dt. 24.5.2002
Circular No. 64/673/2002 Dated 28.10.2002 : In view of the representations received from Trade Associations as well as field formations about difficulties in implementing Board’s Circular No. 639/30/2002-CX. dt. 24.5.2002, it has been decided to modify the said circular to the effect that once an MRP is scored out, ( even if it remains visible) and another MRP printed on the package , it could not be said that the package has two MRPs printed on it, since the scored out MRP could not be considered as an MRP either by the seller or by the consumer.
Exemption to Goods Specified in Notification No. 6/2002 Dated 01.03.2002
Circular No. 63/672/2002 Dated 23.10.2002 : Central Government, has exempted all goods falling under Chapter 24 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) manufactured in a factory and used within the factory of production in or in relation to the manufacture of final products all goods falling under Chapter 24 of the first Schedule to the said Tariff Act, from the whole of the duty of excise and additional duty of excise and national calamity contingent duty leviable thereon.
Amendment in Notification No.14/2002 Dated 08.03.2002
Notification No. 37/2002 NT Dated 31.10.2002 : In the notification the entries relating to jurisdiction of Chief Commissioner of Central Excise of Guwahati, Belapur, Bhopal, Raigad, Guwahati, Tiruchirappalli and Commissioner of Central Excise (Appeals), Guwahati, have been substituted.
Amendment in Notification No.39/2001 Dated 26.06.2001
Notification No. 36/2002 NT Dated 31.10.2002 : In the said notification, in the Table, for entries at column (2) against S. No. 2, the following have been substituted,
“Commissioners of Central Excise (Adjudication)
Chennai, Delhi, Kolkata and Mumbai”.
Drawback u/s 74 of Customs Act in respect of re-exported goods
Circular No. 72/2002 Dated 01.11.2002 : It is, clarified that so long as the conditions specified in Section 74 of Customs Act, Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 and relevant notifications issued under section 74 are fulfilled, drawback u/s 74 should be allowed on merits without insisting on re-export of goods to the same supplier or that the re-export should take place from the same port.
Anti Dumping Duty
Notification No. 119/2002 to No. 123/2002 Dated 31.10.2002 Anti-Dumping Duty has been imposed on Pentaerythritol, Flexible Slabstock Polyol, Sodium Hydroxide, D (-) Para Hydroxy Phenyl Glycine Base, Poly-Iso-Butylene
Safeguard Duty on Epichlorohydrin
Notification No. 117/2002 Dated 30.10.2002 : The Central Government after considering the findings of the Director General (Safeguard), has imposed on Epichlorohydrin, falling under sub-heading 2910.30 of the First Schedule to the Customs Tariff Act, 1975, when imported into India, a safeguard duty at the rate of 12% ad valorem, if imported upto and inclusive of the 29th day of October, 2003.
Supply/Transfer of Capital Goods/Manufactured Goods from One EOU/EPZ/EHTP/STP/SEZ Unit to Another EOU/EPZ/SEZ/EHTP/STP
Circular No. 71/2002 Dated 30.10.2002 : It is clarified by the Board that transfer/supply of capital goods imported/procured or goods manufactured, produced or packaged in an EOU/EPZ/EHTP/STP/SEZ unit to another EOU/EPZ/SEZ/EHTP/STP unit without payment of duty may be allowed and suitable amendments incorporating specific provisions for such supplies would be made in the notification No. 133/94-Customs dated 22-6-94 at the appropriate time.
Enforcement Date of Notification No. 18/2002 Dated 07-03-2002
Notification No. 69/202-NT Dated 30.10.2002 : Notification No. 18/2002-Customs (N.T.) dated 7th March, 2002 (G.S.R. 174(E) dated 7th March, 2002) regarding appointment of officers has come into force with effect from 1st November, 2002.
Auctions for sale of Stocks
Notification No. 4(9)-W&M/2002 (1) Dated 01.11.2002 Auctions for Sale (Re-issue ) of '10.18 per cent Government Stock, 2026' and '10.03 per cent Government Stock, 2019' have been announced
Issue of International Credit Cards to Non-Resident Indians (NRIs)/Persons of Indian Origin (PIOs)
Circular No. AP (DIR Series) Circular No 40 Dated 05.11.2002 : It is clarified that authorised dealers may issue ICCs to NRIs/PIOs, without prior approval of the Reserve Bank, subject to the condition that charges on the use of ICCs should be settled by the concerned NRIs/PIOs, only out of inward remittances or balances held in their Non-Resident External (NRE) Accounts/ Foreign Currency Non-Resident (FCNR) Accounts.
Investment by NRIs/OCBs in Non-Convertible Debentures - Redemption thereof
Circular No. AP (DIR Series) Circular No 39 Dated 05.11.2002 : It is clarified that Indian companies, which were granted permission by Reserve Bank under FERA to issue NCDs on repatriation basis, subject to the condition that the company would seek prior permission of the Reserve Bank for repatriation of redemption proceeds, hereafter do not require prior permission of Reserve Bank to remit the redemption proceeds of the NCDs/PCDs issued by them, provided, they have complied with all other conditions stipulated in the relevant approval letter.
Investment in Overseas Markets
Circular No. AP (DIR Series) Circular No 38 Dated 02.11.2002 : It has now been decided that authorised dealers may henceforth invest undeployed FCNR (B) funds in overseas markets in long-term fixed income securities rated at least AA by Standard and Poor, or Aa3 by Moody’s or AA by Fitch IBCA.
Resident Foreign Currency (Domestic) Account - Facility for Resident Individuals
Circular No. AP (DIR Series) Circular No 37 Dated 01.11.2002 : It is clarified that the facility of opening of RFC (Domestic) Account is in addition to the existing facility of (i) RFC facility provided under Regulation 5 of Notification No. FEMA 10/ 2000-RB dated 3rd May 2000 and (ii) retention of foreign exchange in cash and/or travellers cheques up to US$ 2000 or its equivalent available in terms of Regulation 3(iii) of Notification No. FEMA 11/RB-2000 dated 3rd May, 2000.
Lifting of lock-in period for repatriation of saleproceeds of immovable property situated in India
Circular No. AP (DIR Series) Circular No 35 Dated 01.11.2002 : Reserve Bank has issued Notification No. FEMA 65/2002-RB dated June 29, 2002 amending the Notification cited above, removing the existing lock-in period for repatriation of the sale proceeds of immovable property purchased in India by NRIs/PIOs. Accordingly, it will be in order for authorised dealers to allow remittance of sale proceeds of immovable property in India acquired by NRIs/PIOs, irrespective of the period for which the property was held. The sale proceeds allowed to be repatriated should, however, not exceed the foreign exchange brought in to acquire the property.
Exchange Earners' Foreign Currency (EEFC) Account Scheme
Circular No. AP (DIR Series) Circular No 34 Dated 31.10.2002 : In terms of IECD Circular No. 9 /04.02.02/ 2002-03 of date Reserve Bank has liberalised the facility for liquidation of Rupee Packing Credit and Pre-shipment Credit in foreign currency by permitting repayment of such advances by exporters from out of their EEFC funds and/or rupee resources. Authorised dealers may, therefore, permit exporters to repay packing credit advances, whether availed of in Rupee or in foreign currency, from balances in their EEFC account to the extent exports have actually taken place.
Special One-Time Settlement (OTS) Scheme for Small and Marginal farmers
Notification No. DBOD.No.BP.BC. 40 /21.05.004/2002-03 Dated 06.11.2002 : The Government and the Reserve Bank of India have received requests from banks for extending the operation of the guidelines for special One Time Settlement Scheme for loans up to Rs.50, 000 to small and marginal farmers by public sector banks. In view of the above and keeping in view the drought/flood situation in different parts of the country, it has been decided, in consultation with the Government of India, to extend the operation of the guidelines, for a further period of 3 months, i.e., up to March 31, 2003.
Exemption of Advances granted to Self Help Groups (SHGs) against Group Guarantee from the Limit of Unsecured Guarantees and Advances
Notification No. DBOD.No.BP.BC. 39 /21.04.141/2002-03 Dated 06.11.2002 : Considering the high recovery rate in respect of banks’ advances to SHGs and that this programme helps the poor, it has been decided that unsecured advances given by banks to SHGs against group guarantee would be excluded for the purpose of computation of the prudential norms on unsecured guarantees and advances until further notice. The matter would be reviewed after a year in the light of growth in aggregate unsecured advances, and the recovery performance of advances to SHGs.
Mid-term Review of Monetary & Credit Policy for the year 2002-03 Interest Rates on Deposits by Banks/RRBs/Local Area Banks
Notification No. DBOD No. Dir. BC. 38 /13.03.00/2002-03 Dated 05.11.2002 : In order to remove the the anomalies, the following measures have been suggested for implementation as early as possible:
1. RRBs/LABs are encouraged not to pay any additional interest on the savings bank accounts over and above what is payable by commercial banks.
2. Sponsor banks are encouraged not to pay interest on the current accounts maintained by RRBs with them.
Penal Rate of Interest on shortfall in the maintenance of CRR/SLR
Notification No. DBOD No.BC. 36 /12.02.001/2002-03 Dated 29.10.2002 : It has been informed that penal rate of interest charged on the amount of shortfalls in the maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) which is linked to Bank Rate, stands revised from the close of business on October 29, 2002.
Section 42(1) of the Reserve Bank of India Act, 1934 - Maintenance of Cash Reserve Ratio(CRR)
Notification No. DBOD.No.BC. 35/12.01.001/2002-03 Dated 29.10.2002 : It has been decided to reduce CRR by 0.25 percentage point from 5.00 per cent to 4.75 per cent from the fortnight beginning November 16, 2002. It has also been decided that banks will be required to maintain a minimum of 80 per cent of CRR requirement on daily basis during the fortnight.
Sale of Gold / Silver / Platinum - Forward contract
Notification No. DBOD.No.IBS. 817 /23.67.001/ 2002-03 0 Dated 26.10.2002 : It has been decided to permit authorized banks to enter into forward contracts with their constituents (exporters of gold products, jewellery manufactures, trading houses etc.) in respect of the underlying sale/ purchase and loan transactions in gold with them.
Rupee Export Credit Interest Rates
Notification No. IECD No. 10 /04.02.01/2002-03 Dated 07.11.2002 : In pursuance of the policy of deregulation of interest rates on export credit, with effect from May 1, 2003, the interest rates on second slab, i.e. 181 to 270 days for pre-shipment credit and 91 to 180 days for post-shipment credit are made free, and are to be decided by the banks subject to the approval of their Boards.
Export Credit - Flexibility in repayment of pre-shipment credit and conversion of drawals under rupee packing credit into PCFC
Notification No. IECD.No.9/04.02.02/2002-03 Dated 31.10.2002 : Based on the representations received from exporters/ export associations it has been decided (c.f.paragraph 76 of the statement on Mid-Term Review of Monetary and Credit Policy for the year 2002-03) that subject to mutual agreement between the exporter and the banker, the repayment/ prepayment of pre-shipment credit may henceforth be permitted. Exporter may, herefore, be allowed to repay/prepay packing credit whether availed of in rupees or in foreign currency out of balances in Exchange Earners' Foreign Currency A/c (EEFC A/c) as also from rupee resources of the exporter to the extent exports have actually taken place.
RBI notifies Repayment of Packing Credit
Press Release No. 465/2002-03 Dated 01.11.2002 : The Reserve Bank of India today issued instructions to commercial banks stating that the exporters may be allowed to repay/pre-pay packing credit (including for deemed exports), whether availed of in rupees or in foreign currency, out of the balances in Exchange Earners' Foreign Currency account (EEFC), as also, from rupee resources of the exporter to the extent exports have taken place.
New Facility of Foreign Currency Accounts for Resident Individuals
Press Release No. 462/2002-03 Dated 01.11.2002 : It has been decided to permit a person resident in India to open, hold and maintain with a licenced bank (which is also an Authorised Dealer) in India a Foreign Currency Account. This account will be known as Resident Foreign Currency (Domestic) Account and foreign exchange acquired from any of the sources specified at (i) to (iv) above can be kept in this account by Residents.
Amendments in Export and Import Policy, 2002-07
Notification No. 17/2002-07 Dated 07.11.2002 : The Central Government has made amendments relating to Supplies to EOU/EPZ, DTA sales, Investment criteria and other issues pertaining to the EOU/ EPZ Scheme, in the Export and Import Policy, 2002-07.
Additions/Corrections to SION
Public Notice No. 46/2002-2007 Dated 06.11.2002 : The DGFT has made amendments / deletions/corrections and additions in the statement of Standard Input Output Norms in Handbook of Procedures, Vol.2, 2002-2007, as amended.
Third party exports under the EDI shipping bill
Circular No. 12/2002-2007 Dated 01.11.2002 : DGFT has issued clarifications regarding the following:
(a) Third party exports under the EDI shipping bill
(b) Counting of payment received through ECGC cover for fulfillment of export obligation even in case of old applications
(c) Application by branch office of registered exporters for benefits under the Exim Policy
(d) Settlement of all cases where surrender of SIL was mandated
Transitional Arrangements for Obtaining Replenishment of Gold/Silver etc.
Public Notice No. 45/2002-2007 Dated 30.10.2002 : The Director General of Foreign Trade, has permitted extension of the time limit for exports effected on or before 31.3.2002 and effected under para 8.37 of the Exim Policy 1997-2002 to obtain replenishment from the nominated agencies by 31st December, 2002.
Final Finding on Anti-Dumping Investigations
Notification No. 54/1/2001-DGAD Dated 28.10.2002 and No. 24/1/2001-DGAD Dated 19.10.2002 : Final Findings have been issued regarding Anti-Dumping Investigation Concerning Imports Of Sodium Nitrite From European Union (EU) And Taiwan and Import of Cold Rolled Flat Products of Stainless Steel Originating in or Exported From European Union, Japan, Canada and USA.
Initiation of Anti-Dumping Investigations
Notification No.14/31/2002-DGAD Dated 22.10.2002 : Anti-Dumping Investigations Concerning Imports of Measuring Tapes from China PR F. No. 14/31/2002-DGAD.--M/s FMI Limited, Ludhiana and M/s. Freemans, have been initiated.
Central Capital Investment Subsidy Scheme, 2002
Notification No. 1(11)/2002-NER Dated 22.10.2002 : The Government of India has made Scheme of Central Grant or Subsidy for Industrial units in the Jammu & Kashmir with a view to accelerating the industrial development in the State. The scheme will come into effect from the 14th June, 2002 and remain in force upto and inclusive of 14.06.2012.
Central Comprehensive Insurance Scheme, 2002
Notification No. 1(11)/2002-NER Dated 22.10.2002 : The Government of India has made the Scheme of Comprehensive Insurance for Industrial Units for the state of Jammu & Kashmir with a view to accelerating industrial development in the state. The scheme will be effective from 22.10.2002 and remain in force upto and inclusive of 14.06.2012
Central Interest Subsidy Scheme, 2002
Notification No. 1(11)/2002-NER Dated 22.10.2002 : The Government of India has made the scheme of Interest Subsidy on Working Capital Loans for Industrial units in the state of Jammu & Kashmir with a view to accelerating the industrial development in the state. The scheme will come into effect from the 14th June, 2002 and remain in force upto and inclusive of 14.06.2012.
Reconstitution of Committee by the Central Pollution Control Board
Notification No. SO1131(E) Dated 23.10.2002 : The Central Pollution Control Board has reconstituted the Committee, as specified by the Central Government, whose constitution was notified by a notification published in the Gazette of India vide S.O. No. 199{E) dated 15-03-1991 in respect of the Union Territory of Chandigarh.
Legal Services Day on November 9
Dated 08.11.2002 : Legal Services Day has been observed all over the country on November 9, 2002. To mark the occasion, the National Legal Services Authority (NALSA) has reiterated its resolve to ensure Equal Justice to All under the Legal Services Authorities Act, 1987.
Justice G.B. Pattanaik takes over as Chief Justice of India
Dated 08.11.2002 : The President Dr. A.P.J. Abdul Kalam administered the oath of office of the Chief Justice of India to Shri Justice Gopal Ballav Pattanaik, the senior most judge of the Supreme Court of India, at the Rashtrapati Bhavan
Appointment of Notaries
Dated 05.11.2002 : The Centre has relaxed the eligibility criteria for appointment as Notary for legal practitioners belonging to Scheduled Castes, Scheduled Tribes, Other Backward Classes and Women. For this, Rule 3 of the Notaries Rules, 1956, has been amended.
Creation of All India Judicial Service
Dated 31.10.2002 : Creation of an All India Judicial Service has been under consideration of the Central Government for a long time. This follows recommendations of the Law Commission of India, decisions of the Supreme Court of India in All India Judges Association Case and the guidelines recommended by the First National Judicial Pay Commission, which forwarded its report to the Government in November 1999.
President promulgates Three Ordinances
Dated 29.10.2002 : The President has promulgated the Restructuring of the Unit Trust of India (UTI) and Repeal of the Unit Trust of India Act, 1963 Ordinance 2002, the Securities and Exchange Board of India (SEBI) (Amendment) Ordinance, 2002 and the Metro Railways (Operation and Maintenance) Ordinance, 2002. With this, the three Ordinances numbered as 5, 6 and 7 of the year 2002 respectively have been notified in the Gazette of India and come into force with immediate effect.
Last date for filing of IT returns extended
Dated 29.10.2002 : The Central Board of Direct Taxes has extended the last date for filing of return of income from October 31, 2002 to March 31, 2003 in the case of persons required to file return of income for assessment year 2002-03 in terms of first proviso to sub-section (1) of section 139 of the Income Tax Act, 1961.
Disclaimer
(1) While all reasonable care has been taken to ensure that the information provided in the "round up" and on the website is fair and accurate the company and its promoters and employees shall not in any way be responsible for the consequences of any action taken on the basis of reliance upon the contents of this "round up".
(2) This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name under our various referral programs. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.
