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Legislative and Regulatory Update
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[No.43]
March 11, 2003 |
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SEBI
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Depositories and Custodian
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Calendar for the implementation of T+2 rolling settlement w. e. f. April 1, 2003
Circular No. D&CC/FITTC/CIR-20/2003 Dated 04.03.2003 : It has been decided to shorten the settlement cycle from the existing T+3 rolling settlement to T+2 rolling settlement w. e. f. April 1, 2003. After detailed deliberations with various market participants, a time schedule for the implementation of T+2 rolling settlement from April 1, 2003 was prescribed by SEBI on January 3, 2003. The Custodians shall adhere to the following activities for implementation of T+2 rolling settlement w.e.f. April 1, 2003.
1. Confirmation of the institutional trades by the custodians latest by 11.00 a.m. on T+1.
An exception window would be provided by the exchanges for late confirmations for an additional fee but in any case the confirmation should be made before 1:00 p.m. on T+1.
2. The Custodians shall issue instructions in the physical form upto 4 p.m. and in electronic form upto 6 p.m. on T+1 to the DPs for pay-in of securities.
3. Pay-in to be made before 10:30 a.m. on T+2.
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Calendar for the implementation of T+2 rolling settlement w. e. f. April 1, 2003
Circular No. DCC/FITTC/CIR-19/2003 Dated 04.03.2003 : It has been decided to shorten the settlement cycle from the existing T+3 rolling settlement to T+2 rolling settlement w. e. f. April 1, 2003. In order to ensure the smooth implementation of T+2 rolling settlement by April 1, 2003 and to facilitate the implementation of T+1 rolling settlement from April 1, 2004, the Depositories have been advised to initiate the following steps:
1. Implementation of real time online connectivity between the Depositories.
2. Depositories would be required to design a system so that the exchanges / Clearing House / Clearing Corporation would be able to implement a system of online transmission of client-wise pay-in obligations to the depository so that the depository in turn could download the security pay-in instructions to DPs in respect of the investor maintaining account with them.
3. Depositories are also required to put up systems to facilitate settlement of transactions by the Clearing House / Clearing Corporation arising out of securities lending and borrowing to meet shortages of pay-in obligations.
Press Releases
Press Release No. PR 57/2003 Dated 03.03.2003 : As a part of SEBI’s policy for regulatory transparency, SEBI has been eliciting comments from the market participants and public on various issues from time to time. In accordance with this policy, SEBI has put up a discussion paper on the subject of "Codes of Conduct for regulated entities".
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Department of Company Affairs
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Notification No. SO 250(E) Dated 01.03.2003 : Central Government has notified the rate of interest at eight percent as applicable on the subscriptions made to the Fund on or after the 1st day of March, 2003.
Notification No. SO217(E) Dated 25.02.2003 : The Central Government has made the Tamilnadu Corporation for Industrial Infrastructure Development Limited (TACID) and State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) Amalgamation Order, 2003 to provide for the amalgamation of the Tamil Nadu Corporation for Industrial Infrastructure Development Limited (TACID), with the State Industries Promotion Corporation of Tamil Nadu Limited
(SIPCOT).
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Department of Revenue
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Notification No. GSR129(E) Dated 26.02.2003 : In Schedule II, serial number 1 Alprazolam and the entries relating thereto has been omitted.
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CBDT
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Notification No. 36/2003 Dated 24.02.2003, No. 38/2003 Dated 25.02.2003, No. 41/2003 to 45/2003 Dated 28.02.2003 :
Shri Saibaba Sansthan, Ahmednagar, Maharashtra, has been Notified for Section 10 (23C)(v)
Nuclear Power Corporation of India Limited Bonds Specified For section 10 (15) (iv) Item (h)
M/s Jnana Probhodhini Samshodhan Sanstha, PUNE approved for section 35 (1) (iii)
M/S BAIF Development Research Foundation Approved For Section 35 (1) (ii)
M/S Centre For Wind Energy Technology, Chennai Approved For Section 35 (1) (ii)
"Madhya Pradesh Mahila Kalyan Samiti, Bhopal" Notified For Section 10 (23C) (iv)
"Nanded Sikh Gurudwara Sachkhand Shri Hazur Abchalnagar Sahib, Nanded" notified for section 10 (23C) (v)
"Sant Shri Asharam Ashram, Ahmedabad, Gujarat" notified for section 10 (23C) (iv)
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CBEC Excise Tariff
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Circular No. 13/697/2003 Dated 27.02.2003 : The Department has given its view that the clarification issued vide Serial No.4 of Board’s Circular No.643/34/2002-CX dated 1.7.2002 will apply to goods assessed under Section 4A also. In other words, if the cost of reusable containers (glass bottles, crates, etc) is amortised and included in the cost of the product itself, the question of adding any further amount towards this account does not arise, except where audit of accounts reveals that the cost of the reusable container has not been amortised and included in the value of product.
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CBEC Excise Non Tariff
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Notification No. 7/2003 NT Dated 13.02.2003 : In rule 3, in sub-rule (3), after the proviso, the following Proviso has been inserted, namely:-
"Provided further that the CENVAT credit of the duty paid on the inputs used in the manufacture final products cleared after availing of the exemption under the notifications number 39/2001-Central Excise, dated the 31st July, 2001
[G.S.R. 565(E) dated the 31st July, 2001], 56/2002-Central Excise dated the 14th November, 2002[G.S.R. 764 (E) dated 14th November, 2002] and 57/2002-Central Excise dated the 14th November, 2002[G.S.R. 765 (E) dated 14th November, 2002], shall respectively be utilised only for payment of duty on final products, in respect of which exemption under the said notifications number 39/2001-Central Excise dated the 31st July, 2001, 56/2002- Central Excise dated 14th November, 57/2002- Central Excise dated 14th November, 2002, is availed.
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CBEC Customs Tariff
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Notification No. 38/2003-Customs Dated 04.03.2003 : The Central Government has imposed on all imports of Citric acid, imported from, Indonesia and Thailand, an anti-dumping duty at the specified rate.
Circular No. 13 /2003-Cus. Dated 03.03.2003 : With
reference to Board’s Circular No. 6/2002-Cus. dated 23/1/2002 on the above-mentioned subject, representations have been received by the Board as to what would be the examination norms for exports by EOUs and units in
SEZs. It has been pointed out that such exports are undertaken under the Free Shipping Bills, but certain export incentives are available to them. The matter has been examined and it is clarified that exports by EOUs and units in SEZs shall be governed by examination norms, as applicable for
EPCG/DEEC schemes, prescribed in para 2.1 (D) of the Circular No. 6/2002-Cus. dated 23.1.2002. However, if the export consignment of EOUs or SEZs unit has been sealed by Customs/Central Excise Officer, the norms at para 2.1 (A) of the said Circular will apply. The norms prescribed in para 2.1(B) of the said Circular for exports under ‘free shipping bill’ is applicable to only those exports which are not under any export promotion scheme.
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CBEC Customs Non Tariff
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Notification No. 20/2003 NT Dated 03.03.2003 : In rule 6, in sub rule 1 clause (a) regarding filing of application for determination of the amount or rate of drawback, within sixty days of the relevant date, has been substituted. Amendments have also been made in sub rule (2) and (3) of rule 6, sub rule (1), (2) and (3) of rule 7, Rule 9, 13 and 15.
Notification No. 19/2003 NT Dated 03.03.2003 : 1. In rule 2, for clause (c), the following clause has been substituted,
‘(c) "export", with its grammatical variations and cognate expressions, means taking out of India to a place outside India or taking out from a place in Domestic Tariff Area
(DTA) to a special economic zone and includes loading of provisions or store or equipment for use on board a vessel or aircraft proceeding to a foreign port"
2. In rule 16A, in sub-rule (1), Foreign Exchange Management Act, 1999 (42 of 1999) has been substituted for Foreign Exchange Regulation Act, 1973 (46 of 1973) wherever it occurs.
3. The Proviso "Provided that the time-limit referred to in this sub-rule shall not be applicable to the goods exported from the Domestic Tariff Area to a special economic zone." has been added at the end of Rule 16A.
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Department of Economic Affairs
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Notification No. GSR174(E) Dated 01.03.2003 : In rule 7,
(a) under Table-P, for the words, "For deposits made on or after 1st March, 2002", the words, "For deposits made on or after 1st March, 2002 but before 1st March, 2003" have been substituted.
(b) Table-Q For deposits made on or after 1st March, 2003 has been inserted after Table P.
Notification No. GSR175(E) Dated 01.03.2003 : Amendments have been made in Rule 9, 10, 11 and 12 apart from the insertion of Table 41, 42 and 43.
Notification No. GSR176(E) Dated 01.03.2003 : In rule 8, in sub-rule (1),-
(i) in clause (g), for the words, "the 1st day of March, 2002", the words, "the 1st day of March, 2002 but before the 1st day of March, 2003" have been substituted,
(ii) after clause (g), the following clause has been inserted, namely:-
"(h) 8 per cent. per annum in respect of deposits made on or after the 1st day of March, 2003."
per
annum on National Savings Scheme
Notification No. GSR177(E) Dated 01.03.2003 : The Central Government has notified that the balances at the credit of the subscribers of the National Savings Scheme, on or after the 1st day of March, 2003, shall bear interest at the rate of seven-and-a-half percent per annum.
Notification No. GSR178(E) Dated 01.03.2003 : In rule 6, in sub-rule (1), for clause (iv), the following clauses have been substituted,
"(iv) For the period commencing from the 1st day of March, 2002 but before the 1st day of March, 2003, the interest at the rate of eight-and-a-half per cent. per annum shall be allowed for a calendar month on the lowest balance at credit of an account between the close of the tenth day and the end of the month and such interest shall be calculated and credited to the account at the end of each year.
(v) On and from the 1st day of March, 2003, the interest at the rate of seven-and-a-half per cent. per annum shall be allowed for a calendar month on the lowest balance at credit of an account between the close of the tenth day and 'the end of the month and such interest shall be calculated and credited in the account at the end of each year"
Notification No. GSR179(E)Dated 01.03.2003 : In Rule 15 ,
sub Rule (6) and Table have been inserted and in Rule 16, in sub rule (4) clause (iv) and Table have been inserted.
Notification No. GSR180(E) Dated 01.03.2003 : Rule 12 and 13 have been amended.
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RBI
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Circular No .A.P.(DIR Series) Circular No.86 Dated 04.03.03 : Export-Import Bank of India
(Exim Bank) has concluded an agreement with Seychelles Marketing Board on November 25, 2002 making available to the latter, a line of credit (LOC) up to an aggregate sum of USD 5 million (US Dollar Five Million only). The credit has become effective from December 5, 2002 and is available for financing exports from India of eligible goods and related services to buyers in the borrower’s country i.e. Republic of Seychelles. The eligible goods will include initial spares, drawings and designs together with services related thereto.
Circular No. A.P.(DIR Series) Circular No.85 Dated 04.03.03 : The Government of India have extended a line of credit of USD 10 million (US Dollar Ten Million only) to the Royal Government of Cambodia under a credit agreement entered into, between the two Governments on November 6, 2002. The credit will be available to the Royal Government of Cambodia for import from India of capital goods of Indian manufacture including original spare parts and accessories purchased together with the capital goods and included in the original contract as also project and consultancy services connected with the project as specified.
Circular No. A.P.(DIR Series) Circular No.84 Dated 03.03.03 : With a view to further simplifying and liberalising the procedure for import and in consultation with Foreign Exchange Dealers’ Association of India
(FEDAI), it has been decided to allow authorised dealers to open stand-by Letters of Credit on behalf of their importer constituents for import into India any goods, import of which is permissible under the EXIM Policy. Detailed guidelines for issuance of such stand-by letters of credit are being issued by the
FEDAI. It will, therefore, be in order for authorised dealers to open stand-by Letters of Credit for import of goods into India on behalf of their constituents subject to adherence to the guidelines issued by
FEDAI.
Circular No. A.P.(DIR Series) Circular No.83 Dated 01.03.03 : Indian companies are permitted to make investment without prior approval of the Reserve Bank, up to an amount of USD 100 million. As a part of further lilberalisation it has been decided as under :
i. The limit of 50 per cent of net worth for market purchases of foreign exchange for investment in JV/WOS abroad is enhanced to 100 per cent of the net worth of the investing company.
ii. An Indian company with a proven track record would now be eligible to invest up to 100 per cent of its net worth within the overall limit of USD 100 million by way of market purchases for investment in a foreign entity engaged in any bonafide business activity.
Circular No. A.P.(DIR Series) Circular No.82 Dated 01.03.03 : With reference to A.P.(DIR Series) Circular No.22 dated September 17, 2002 in terms of which automatic route for prepayment of ECBs was liberalised and made available to all category of borrowers without any conditions upto USD 100 million if prepaid out of local resources/market purchases, it has now been decided to remove the ceiling of USD 100 million for prepayment out of local resources/market purchases. Authorised Dealers may therefore, allow remittances towards prepayment of outstanding ECBs without any limit.
Notification No. DNBS (PD) CC.No. /02.01/2002-03 Dated 03.03.2003 : It has been decided that, keeping in view the prevailing interest rates in the entire financial system, the maximum interest rate payable on public deposits of NBFCs should be revised to 11 per cent per annum on and from March 4, 2003. It is clarified that this is the maximum permissible rate an NBFC can pay on its public deposits and they are free to offer lower rates, as indeed most of them do. The new rate of interest is applicable to fresh public deposits and renewals of matured public deposits.
Notification No. DNBS. 166/ CGM(CSM) - 2003 Dated 03.03.2003 : The Reserve Bank of India, for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, has amended the Miscellaneous Non-Banking Companies (Reserve Bank) Directions, 1977, contained in Notification No. DNBC. 39 / DG (H)-77 dated June 20, 1977 as follows,
1. In paragraph 9A, for the words and figures, "November 1, 2001", the words and figures "March 4, 2003" has been substituted.
2. In paragraph 9A, in clause (a), for the word "twelve and a half", the words "eleven" has been substituted.
Notification No. DNBS. 165 / CGM(CSM) - 2003 Dated 03.03.2003 : In Paragraph 4, sub-paragraph (7) has been substituted by the following ,
"(7) On and from March 4, 2003 no non-banking financial company shall invite or accept or renew public deposit at a rate of interest exceeding eleven per cent per annum. Interest may be paid or compounded at rests which shall not be shorter than monthly rests."
Notification No. CO.DT. 13.01.289/H-2961/2002-03 Dated 28.02.2003 : It has been decided by Government of India vide their Notification F.No.4(13)-W&M/2002 dated February 28, 2003 that the issue of 7% Savings Bond, 2002 shall
cease with effect from the close of business on February 28, 2003. Accordingly, offices have been advised to
refrain from accepting fresh applications in respect of the captioned Scheme with immediate effect. The existing interest rate will continue to apply on the captioned Bonds till maturity.
Notification No. CO.DT. 13.01.272/H-2962/2002-03 Dated 28.02.2003 : It has been decided by the Government of India vide their Notification No. F.4(5)W&M/2002(1) dated February 28, 2003 that the issue of 8% Relief Bonds, 2002 shall
cease with effect from the close of business on February 28, 2003. Government of India, vide their Notification F.4(5)-W&M/2002 dated February 28, 2003 had also notified withdrawal of post maturity interest payable on the matured but unencashed or maturing Relief Bonds pertaining to the Schemes announced earlier with effect from the close of business on February 28, 2003. Accordingly, offices are advised to refrain from accepting fresh applications in respect of the captioned Scheme with immediate effect. The existing interest rates will continue to apply on all Relief Bonds till their maturity. The post-maturity interest on the matured but unencashed bonds may be paid to the investors upto February 28, 2003 as per the extant instructions already issued in this regard.
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DGFT
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Trade Notice No. 22/2002 Dated 06.03.2003 : It has been observed that exporters have not been following the procedures laid down in Public Notice No. 63 while applying for supplementary DEPB claims, Exporters have been asked to follow the same for the benefit of Trade.
Public Notice No. 67/2002-07 Dated 04.03.2003 : In exercise of the powers conferred under Paragraphs 2.4 and 2.29 of the Export & Import Policy, 2002-2007 , the Director General of Foreign Trade has decided to release a further additional quota for export of onion for the year 2002-03 for export upto 31.3.2003 to the following agencies:
(i) Spices Trading Corporation Ltd., ( STCL) - 15,000MTs
(ii) The Karnataka State Co-operative Marketing Federation Ltd.,( KSCMF) - 3,000MTs
Trade Notice No.5/2003 Dated 03.03.2003 : With reference to the Trade Notice No. 4 dated 19.2.2003 on the subject of supplementary DEPB application on account of factoring of special additional duty (SAD) in computation of DEPB rates, procedure for the same has been prescribed.
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Department of Commerce
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Notification No. 14/53/2002-DGAD Dated 03.03.2003 and No. 59/1/2001-DGAD Dated 24.02.2003 : Anti-Dumping Investigations Concerning Import of Sun/Dust Control Polyester Film Originating in or Exported from Taiwan and UAE has been initiated and Final Findings regarding Anti-Dumping Investigation Concerning Import of Lead Acid Batteries Originating in or Exported from Taiwan, Singapore and Hong Kong have been published.
Notification No. SO247(E) Dated 28.02.2003 : In the Tea (Marketing) Control Order, 2003, in paragraphs 3 and 4, for the words, "sixty days", the words "ninety days" have been substituted.
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Department of Consumer Affiars
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Notification No. GSR113(E)/Ess.Com./Sugarcane Dated 20.02.2003 : In clause 3 A, proviso (i), has been substituted which says that in the case of sugarcane delivered at any purchasing centre and the same being transported to the factory by the owner by rail or by road using his own transport a rebate shall be made from the minimum price or the agreed price, as the case may be, which shall be fixed by the Central Government or the State Government having regard to the actual cost of transportation in the area, authorizing the concerned district magistrate to issue a certificate indicating the actual distance from the purchasing centre to the factory and the rate per kilometre applicable, and the owner shall accordingly make the rebate.
In clause 4A of the said Order, proviso (i) has been substituted providing rebate for delivery to khandsari unit in the manner same as above.
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Department of Information Technology
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Notification No.GSR181(E) Dated 27.02.2003 : The Central Government, after consultation with the Cyber Regulations Advisory Committee, has prescribed the procedure for blocking of websites wherein Computer Emergency Response Team--India has been created as a single authority for issue of instructions in the context of blocking of websites.
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Press Information Bureau |
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Dated 07.03.2003 : The Government has clarified that no inordinate delay is being caused in taking action on the applications for appointment of notary public. Appointment of a notary is a statutory appointment which is done under the Notaries Act and the Rules made there under, which prescribe detailed procedure to be followed for appointment of a notary.
Dated 07.03.2003 : The Delimitation Commission has been constituted on July 12,2002 under the provisions of the Delimitation Act, 2002 with Shri Justice Kuldip Singh, a retired Judge of the Supreme Court as its Chairperson and Shri B.B.Tandon, Election Commissioner in the Election Commission of India (nominated by the Chief Election Commissioner), and the State Election Commissioner of the concerned States or Union Territories as its ex officio members.
Dated 06.03.2003 : The Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 66 dated 4/3/2003 notifying additional standard input-output norms for 25 new export items and amendments/ corrections / deletions in the standard input-output norms for 43 existing export items. Out of the 25 new norms, 9 norms relate to the chemicals & allied products, 10 norms relate to engineering products, 3 norms relate to plastic products and 3 norms relate to sports goods.
Dated 03.03.2003 : The Department of Information Technology has constituted an Advisory Body with the approval of the Hon’ble Chief Justice of India and Hon’ble Minister of Communication & Information Technology on use of modern technology in Judicial system.
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Supreme Court |
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The question in the present case is whether cellular operators are liable to pay interest without reference to the extended effective date as demanded by the appellants. The Department's stand is that the expression "for the purpose of calculation of outstanding licence fee" used in Clause (ix) will only cover licence fee as such and not outstanding interest.
The Hon'ble Supreme Court held that when the effective date stood postponed by a period of six months then that is the date from which the licencee fee will have to be reckoned and appropriate calculation made both for purposes of licence fee and interest. Unless the licence fee becomes due the question of payment of interest will not arise. However, the learned Additional Solicitor General submitted that there are two components namely, the licence fee and interest which was payable. In respect of one component the effective date was extended but not in respect of the other. But
the Court held that payment of interest is dependent upon the licence fee becoming due. Interest is not independent of the licence fee and when the licence fee had to be paid from a particular date, the interest would not accrue from a date prior to the licence fee becoming due for payment.
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