Circular No. SMD/Policy/Cir-04 /2002 Dated 30.01.2002 : Pursuant to discussion in the meeting of the Group on Risk Management Systems for the Equity Markets which met on December 19, 2001 it was decided to shorten the rolling settlement cycle from the present T+5 to T+3. The compulsory rolling settlement on T+3 basis would commence from April 01, 2002. The stock exchanges have been advised to make the necessary arrangements/ modifications in their systems to implement the rolling settlement on T+3 basis for all listed securities from 01.04.2002.

Implementation of decisions taken at the meeting of Group on Risk Management Systems for the Equity Markets

Circular No. SMD/Policy/Cir-03/2002 Dated 30.01.2002 : Pursuant to the discussions in the meeting of the Group on Risk Management Systems for the Equity Markets held on August 14, 2001 decisions regarding disclosure of the scrip wise delivery ratio, 'No Delivery Period' on account of book closure/record dates, reference price for close out were taken. All the Stock Exchanges are advised to take steps for the implementation of these decisions.

Primary Market Division

Amendments to the SEBI (Disclosure and Investor Protection) Guidelines, 2000

Circular No. RMB (Compendium) Series Circular No. 3 (2001- 2002) Dated 11.01.2002: The Board, in its meeting held on March 15, 2001, considered and approved certain modifications in the SEBI (DIP) Guidelines in order to introduce the facility of issue of debt securities without issue of equity, for companies desirous of coming out with a public issue. Accordingly, amendments have been made in Chapter VIII relating to Other Issue Requirements.

Regulations

Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2002

Notification No. SO127(E) Dated 29.01.2002 : Amendments have been made in Regulation 3 and 20 that shall come into force on 29.01.2002.

Depositories and Custodian

List of Scrips to trade under the Rolling Settlement Mode of the Stock Exchanges

Circular No. D&CC/FITTC/CIR – 06/2002 Dated 31.01.2002 : As per the information provided by both the depositories the list of scrips that have established connectivity with them as on December 31, 2001 is given .These scrips would be traded in the normal rolling settlement mode with effect from March 31, 2002.

Ministry of Finance

Central Board of Direct Taxes

Income-tax (Second Amendment) Rules, 2002

Notification No. SO151(E) Dated 04.02.2002 : The Central Board of Direct Taxes notified the Income tax (Second Amendment) Rules, 2002 to further amend the Income tax Rules, 1962. Amendments have been made in Rule 3 that shall come into force with retrospective effect from 01.04.2001.

Income-Tax (First Amendment) Rules, 2002

Notification No. SO152(E) Dated 04.02.2002 : The Central Board of Direct Taxes notified Income Tax ( First Amendment) Rules, 2002 to further amend the Income tax Rules, 1962.Amendments have been made in Rule 6F that shall come into force on 04.02.2002.

Income-tax deduction from salaries during the financial year 2001-2002 u/s 192 of the Income-tax Act, 1961

Circular No.1/2002 Dated 04.02.2002 : It has been decided that no tax deduction at source be made under Section 192 of the Income-tax Act for the Financial Year 2001-02 in respect of the value of perquisites received in non-monetary form for assessees having income under the head “Salaries” (exclusive of such perquisites) not exceeding Rs.1 lakh, or received in the form of free or concessional tickets received by employees of airlines or railways.

Excise (Tariff)

Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 – difficulties clarified

Circular No. 617/8/2002-CX Dated 06.02.2002 : It has been clarified that goods received duty free can be removed to another eligible manufacturer under the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. However, the recipient manufacturer would require registration under Rule 3 of the said Rules. As regards sending goods outside the factory for test, repair, refining and re-conditioning and return thereof, Commissioner of Central Excise can allow such movement by exercising the supplementary powers as contained in Rule 31 of Central Excise (No. 2) Rules, 2001.

Classification of Shikakai Powder under chapter 14 or Chapter 33 of CET Act

Circular No.616/7/2002-CX Dated 06.02.2002 : It is clarified that Shikakai Powder would be classifiable under Chapter 33 of CETA and chargeable to excise duty. As such all pending disputes / assessments on the issue may be settled in the light of this clarification.

Availment of accumulated MODVAT / CENVAT Credit on molasses for payment of duty on sugar

Circular No.615/6/2002 Dated 04.02.2002 : It has been clarified that each case has to be decided on its merits in the light of guidelines given in the said notification and Cenvat issue settled accordingly. As such utilization of credit may vary depending on the situation and the notification gives all possible situation which can arise.

Eligibility for the benefit of Notification No. 8/97-CE dated 1.3.97 to DTA sales by 100% EOUs

Circular No. 614/5/2002 Dated 31.01.2002 : It is clarified that the benefit of notification No. 8/97-CE dated 1.3.97 shall not be available to those EOUs which use imported consumables.

Furnishing of security/surety by Merchant Exporters

Circular No. 613/4/2002 Dated 31.01.2002 : It has been clarified that no security/surety is required in respect of Merchant Exporters who are registered with Recognised Export Promotion Councils.

Exemption of goods falling in Chapter 27 of Schedule 1 & 2 of the Central Excise Tariff Act, cleared from Assam Oil Division, IOC, Digboi

Notification No. 3/2002 Dated 29.01.2002 : The Central Government has exempted goods falling in Chapter 27 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and the Second Schedule to that Act, respectively, and cleared from Assam Oil Division, Indian Oil Corporation, Digboi, from so much of each of the rate of the duties of excise set forth thereon in the said First Schedule and the Second Schedule as is in excess of the amount calculated at fifty per cent of each of the duties of excise leviable thereon under section 3 of the said Central Excise Act, 1944.

Customs (Tariff)

Anti Dumping Duty

Notification No. 15/2002 Dated 08.02.2002 : Anti dumping duty imposed on Partially Oriented Yarn (POY) of polyesters.

Notification Nos.14/2002 & 15/2002 both Dated 07.02.2002 : Anti dumping duty imposed on Vitamin AD3 500/100 & Diclofenac Sodium

Classification of Uninterrupted Power Supply System (UPSS) under the Customs and Central Excise Tariff

Circular No.10/2002 Dated 04.02.2002 : In Circular No. 22/2000-Customs dated 22.03.2000 it was clarified pending assessments of UPSS may be finalized by classifying them under sub-heading 8543.89 and bank guarantees taken in this regard may be enforced. Subsequent to this a five-Member bench of CEGAT, New Delhi has decided in the case of M/s. Luminous Electronics Ltd. that UPSS would merit classification under heading 85.04. The Department has filed a civil appeal against the order of CEGAT. The Custom Houses may, therefore, clear such goods on a provisional assessment basis under heading 85.04 by taking a simple bond, but without any bank guarantee for the differential duty i.e. between the duty chargeable under heading 85.43 and that chargeable under heading 85.04.

Import of Pets by Passengers

Circular No. 9/2002 Dated 30.01.2002 : It is reiterated that bonafide pet animals brought by passengers may be allowed to be brought into the country only against a import sanitary permit issued by the Department of Animal Husbandry & Dairying or against an import licence to be issued by the DGFT as is done in the case of other live animals.

Admissibility of all Industry rates of Drawback under SS No. 64.13 (Leather Sandals)

Circular No. 8/2002 Dated 30.01.2002 : It is clarified that a Sandal is an open type of footwear having an upper part not covering the entire foot.

Amendment to Notification No. 17/2001-Customs

Notification No.12/2001- 2002 Dated 30.01.2002 : In the Table serial no.69 has been substituted, in the Annexure a new condition 6A has been inserted and a new List 36 has been inserted.

Transfer of Goods imported/procured by EOUs/EPZ/STP/EHTP to SEZ Units

Circular No. 7/2002 Dated 29.01.2002 : EOU/EPZ/STP/EHTP units are allowed to transfer the goods imported/ procured or goods manufactured/ processed in such units to the units in SEZ.

Department of Economic Affairs

Establishment of Debts Recovery Tribunals No. 3 at Kolkata

Notification No. GSR84(E) Dated 06.02.2002 : The Central Government has notified the establishment of the Kolkata Debts Recovery Tribunal No. 3. The said notification also lays down the area of jurisdiction of the three Debt Recovery Tribunals.

Establishment of the Debts Recovery Tribunal at Lucknow

Notification No. GSR71(E) Dated 31.01.2002 : The Central Government notified the establishment of the Debts Recovery Tribunal at Lucknow. The said notification also lays down the area of jurisdiction of the two Debts Recovery Tribunals set up in State of Uttar Pradesh.

The Life Insurance Corporation of India Class III Employees (Special Allowance for Passing Examination) Amendment Rules, 2002

Notification No.GSR56(E) Dated 22.01.2002 : The Central Government has notified the Life Insurance Corporation of India Class III Employees (Special Allowance for passing Examination) Amendment Rules, 2002 to further amend the Life Insurance Corporation of India Class III Employees (Special Allowance for passing Examination) Rules, 1988 that shall come into force on the 22.01.2002. The Amendment Rules have added new Rule 3A.

The Life Insurance Corporation of India (Special Allowance for In-House Development of Actuarial Capability) Rules, 2002

Notification No. GSR55(E) Dated 22.01.2002 : The Central Government has notified Life Insurance Corporation of India (Special Allowance for In-House Development of Acturial Capability) Rules, 2002 that shall come into force on 22.01.2002 and shall apply to all confirmed employees of the Corporation.

Reserve Bank of India

DBS Series

Additional disclosures in the published annual reports

Circular No.DBS FID No C-14/01.02.00/2001-02 Dated 08.02.2002 : The FIs are advised to disclose the movement in the provisions held towards (a) Non-performing assets; and (b) Depreciation in investment portfolio, in the format enclosed to the said notification, in their published annual reports, with effect from the financial year 2001-02, as part of the "Notes to Accounts" so as to enable the auditors to authenticate this information. The disclosure should be made even if the information may be contained elsewhere in the published annual report.

Asset classification of the Projects Under Implementation (PUI) – Time overrun

Circular No. DBS FID No C-11/01.02.00/2001-02 Dated 31.01.2002 : It has been recognised that unduly long time overrun in a project adversely affects its viability and the quality of the asset deteriorated, so a need has been felt to evolve an objective and definite time-frame for completion of projects so as to ensure that the loan assets relating to projects under implementation are appropriately classified and asset quality correctly reflected. In this regard it has been decided to group the projects under implementation into three categories for the purpose of determining the date when the project ought to be completed.

Treatment of Restructured accounts

Circular No. DBS FID No C- /01.02.00/2001-02 Dated 31.01.2002 : Clarifications have been issued for the issues raised by some financial institutions on the treatment of restructured accounts.

DBOD

Banks not to undertake third party advertisement on their ATM Network

Circular No. DBOD No BL BC 62/22.01.001/2002 Dated 28.01.2002 : It is observed that the activity of displaying the products of other manufacturers / dealers / vendors on ATM screens by banks for a fee amounts to advertising which is not a permitted activity in which a bank can engage under section 6 (1) of the Banking Regulation Act, 1949. It is, therefore, advised that banks should not undertake such activities on their ATM Network. There is, however, no objection to banks utilising the ATM screens for displaying their own products.

IDMC

Guidelines on Counter party limits and Inter-Corporate Deposits

Circular No. IDMC No PDRS/3369/03.64.00/2001-02 Dated 17.01.2002 : In the context of Primary dealers sourcing their funds through Inter-Corporate Deposits (ICD) and deploying in "non-SLR bonds", it was felt necessary to have guidelines on account of the liquidity and credit risk associated with such transactions. PDs are exposed to "funding-liquidity risk" arising from any inability to roll-over such deposits as also "market-liquidity risk" arising from the relative illiquidity of the non-SLR bond portfolios. For these reasons, ICDs should be raised sparingly and not used as a continuous source of funds. After proper and due consideration of the risks involved, the Board of Directors of the PD should lay down the policy in this regard, which among others should include the guidelines prescribed in this Circular.

Press Releases

Liberalisation in Export Procedures-Delegation to Authorised Dealers

Press Release No. 864/2001- 2002 Dated 31.01.2002 : In some of the press reports, it has been stated that the Reserve Bank of India has eased export realisation norms for bills upto US$ one lakh and exporters are eligible to retain export proceeds abroad beyond 180 days. The Reserve Bank of India has clarified that there is no change in the norms prescribed for the period of realisation of export bills. However, authorised dealers have now been delegated authority to grant extension of time for realising export bills in certain cases where extension is necessitated which was so far, being granted only by the Reserve Bank.

Ministry of Commerce and Industry

Directorate General Of Foreign Trade

Year 2001-2002 to be treated as a blank year and deferring of monitoring of NFE of the EOU/EPZ/EHTP/STP and SEZ units

Public Notice No. 70 (RE-01)/ 1997-2002 Dated 08.02.2002 : It has been decided to treat 2001-2002 as a blank year and monitoring of NFE of the EOU/EPZ/EHTP/STP and SEZ units is deferred for one year i.e 1.4.2001 to 31.3.2002.

Re-fixation of Indian Rupee value for deferred payment contracts between India and USSR

Public Notice No. 66(RE-2001)/97-02 Dated 01.02.2002 : It is informed that in pursuance of the relevant provisions contained in the Indo-USSR deferred payments protocol dated the 30th April, 1981 and 23rd December, 1985 between the Government of India and the erstwhile USSR, the Reserve Bank of India have further revised the Indian Rupee Value of the Special Currency Basket in the manner indicated below:-

Effective from	Rupee value
22.11.2001	52.3956

Revalidation of DEPB licence for embroidered silk items

Public Notice No. 65(RE-01)/1997-2002 Dated 01.02.2002 : It has been decided that the validity period of DEPB licences issued in respect of embroidered silk items under DEPB Sr. Nos 74, 75 & 76 shall be extended for a period of six months from the date of issuance of this Public Notice. For this purpose , the licence holders may apply to the concerned Regional Licencing Authorities within a period of 60 days from the date of issuance of this Public Notice with a request and and a TR/ demand draft for Rs 200.

Regularisation of Value Based Advance Licence

Policy Circular No. 23(RE-01)/2001-2002 Dated 01.02.2002 : It has been clarified by the Policy Review Committee meeting that in case of Value Based Advance Licence, the import entitlement is with reference to value addition and not minimum value addition as is the case with Quantity Based Advance Licences. Therefore, if a firm fails to achieve declared value addition, the case of the firm has to be regularized as per Policy Circular No.28/2000-2001 dated 22.9.2001, irrespective of the fact that minimum prescribed value addition has been achieved, where shortfall in terms of quantity or value or both is not more than 15% of total export obligation imposed. In case where shortfall is more than 15%, such VABAL has to be converted into QABAL.

Positive Value Addition Stipulation for Advance Licence for Deemed Exports

Policy Circular No. 22(RE-01)/2001-2002 Dated 01.02.2002 : In the light of Policy Review Committee decision and the earlier clarification, it is clarified that in the case of an Advance Licence for Deemed Exports, only positive value addition is stipulated as is the case with the other categories of Advance Licences.

Policy for import of cinematograph films and other films

Public Notice No. 64/1997-2002 Dated 29.01.2002 : The Director General of Foreign Trade notified the policy for import of cinematograph films and other films (including film on video tape, compact video disc, laser video disc or digital video disc).

Department of Industrial Policy and Promotion

Draft Explosives (Amendment) Rules, 2002

Notification No. GSR82(E) Dated 05.02.2002 : The Central Government has notified the draft of Explosives (Amendment) Rules, 2002 to further amend the Explosives Rules,1983.

Ministry of Law, Justice and Company Affairs

Department of Company Affairs

Companies (Acceptance of Deposits) Amendment Rules, 2002

Notification No.GSR77(E) Dated 04.02.2002 : The Central Government in consultation with the Reserve Bank of India notified the Companies (Acceptance of Deposits) Amendment Rules, 2002 to further amend the Companies (Acceptance of Deposits) Rules, 1975 so as to reduce the rate of interest on public deposits from 14% to 12.5% w.e.f 04.02.2002.

Ministry of Consumer Affairs, Food and Public Distribution

Minimum Price Payable by owners of the Vacuum Pan Process Sugar Factory - as specified

Notification No. GSR81(E) Dated 05.02.2002 : The Central Government has fixed the minimum price that shall be payable by the owners of the vacuum pan process sugar factory or their agents for sugarcane delivered at the gate of the factory or any purchasing centre for the sugar year 2001-2002 ending the 30th September, 2002 subject to the rebates payable thereof under Clause 3A of the said Order.

National Sugar Institute, Kanpur (Assistant Professor of Sugar Engineering) Recruitment Rules, 2002

Notification No.GSR79(E) Dated 04.02.2002 : The National Sugar Institute, Kanpur (Assistant Professor of Sugar Engineering Recruitment Rules, 2002 have been notified that shall come into force on the 04.02.2002.

Ministry of Health and Family Welfare

Draft Drugs and Cosmetics (Amendment) Rules, 2002

Notification No. GSR86(E) Dated 06.02.2002 : The Central Government has notified the draft of Drugs and Cosmetics (Amendment) Rules, 2002.

Draft Drugs and Magic Remedies (Objectionable Advertisements) Amendment Rules, 2002

Notification No.GSR85(E) Dated 06.02.2002 : The Central Government has notified the draft of the Drugs and Magic Remedies (Objectionable Advertisements) Amendment Rules, 2002 to further amend the Drugs and Magic Remedies (Objectionable Advertisements) Rules, 1955.

Ministry of Labour

Advisory Committee for Beedi Workers Welfare Fund for the State of Madhya Pradesh

Notification No. SO134(E) Dated 31.01.2002 : The Central Government constituted an Advisory Committee for Beedi Workers Welfare Fund for the State of Madhya Pradesh and appointed persons to the said Committee for a period of three years.

Advisory Committee on matters arising out of the Iron Ore, Manganese Ore and Chrome Ore Mines Labour Welfare Fund Act

Notification No.SO133 Dated 31.01.2002 : The Central Government constituted as an Advisory Committee and appointed persons to the said Committee for the State of Karnataka to advice the Central Government on the matters arising out of the administration of the Iron Ore, Manganese Ore and Chrome Ore Mines Labour Welfare Fund Act, including matters relating to the application of the Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Fund, for a period of three years.

Ministry of Petroleum and Natural Gas

Acquisition of right of user land – LPG Pipeline from Kandla to Samakhiari

Notification No. SO155(E) Dated 04.02.2002 : The Central Government declared that the right of user in the land specified in the Schedule appended to said notification is acquired for laying the pipeline for transport of Liquefied Petroleum Gas from Kandla to Sainakhiari in the State of Gujarat by the Gas Authority of India Limited.

Acquisition of right of user in the land – Pipeline for Transport of LPG through Vizag – Secunderabad Pipeline Project

Notification No. SO153(E) Dated 04.02.2002 : The Central Government declared that the right of user in the land specified in the Schedule appended to said notification is acquired for laying the pipeline for transport of Liquefied Petroleum Gas through Vizag - Secunderabad Pipeline Project in the State of Andhra Pradesh by the Gas Authority of India Limited.

PIB (Press Information Bureau) Releases

Appointment of Judges of the Allahabad High Court

Dated 11.02.2002 : The President appointed (1) Shri Shambhu Nath Srivastava, (2) Shri Ram Chandra ‘Deepak’, (3) Shri Karuna Kant Misra (4) Shri Satya Poot Mehrotra, (5) Shri Vineet Saran and (6) Shri Rakesh Tiwari to be Judges of the Allahabad High Court, in that order of seniority, with effect from the date they assume charge of their respective office.

Government promulgates Cost Accounting Records (Electricity Industry) Rules

Dated 08.02.2002 : The Department of Company Affairs (DCA) has issued a notification promulgating the Cost Accounting Records (Electricity Industry) Rules, 2001 with immediate effect. The rules promulgated under sub-section 1 of Section 642 read with Clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956, shall apply to companies engaged in generation of electricity from thermal power, gas turbine, hydro-electric power, atomic power, wind power and any other source of energy. Besides, it will apply to transmission and bulk supply of electricity, distribution and retail supply of power.

Appointment of New Judges of the Calcutta High Court

Dated : 01.02.2002 : The President appointed (1) Shri Maharaj Sinha, (2) Shri Jayanta Kumar Biswas and (3) Kumari Indira Banerjee to be the judges of the Calcutta High Court, in that order to seniority, with effect from the date they assume charge of their respective office.

Full Text of the Notifications\Circulars\Acts\Bills\Other information is available on our site "www.manupatra.com."

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