Withdrawal of recognition to the Capital Stock Exchange Kerala Ltd., Trivandrum

Notification No. SO174(E) Dated 07.02.2002 : SEBI granted recognition to The Capital Stock Exchange Kerala Ltd. PB. No. 459, Centre Plaza, Vizuthakad, Trivandrum, under Section 4 of the Securities Contracts (Regulation) Act, 1956 vide Notification File No. SEBI/LE/14627/99 dated August 19,1999 subject to fulfilling of certain conditions stated therein. The said Stock Exchange failed to fulfill the conditions as mentioned in the Gazette Notification within the extended period also. As such the recognition granted to The Capital Stock Exchange Kerala Ltd., is withdrawn.

Derivatives

Scheme of FII Trading in all Exchange Traded Derivative Contracts

Circular No. SMD/DC/CIR-11/02 Dated 12.02.2002 : The SEBI Board vide meeting dated December 28, 2001 has permitted FIIs to trade in all exchange traded derivative contracts and laid down the position limits for the trading of FIIs and their sub-accounts. RBI vide circular ECO.CO.FII/515/11.01.01/(16) 2000-01 dated February 4, 2002 permitted FIIs to trade in all the exchange traded derivative contracts subject to the position limits prescribed hereunder. The FIIs shall be under obligation to adhere to the position limits prescribed for them and their sub-accounts. The FIIs shall also comply with the procedure for trading, settlement and reporting as prescribed by the derivative exchange / Clearing House / Clearing Corporation from time to time.

Notifications under section 10 (23) & (23C) – Details as specified

Notification Nos. 30 to 40/2002 Dated 07.02.2002 & 08.02.2002 : The details of the various notifications issued in exercise of the powers conferred under section 10(23) & 10(23C) is given containing the Date and the No. of the Notification and the name of the enterprises approved with a mention of the Assessment Years they are approved for.

Excise (Tariff)

Valuation of goods manufactured on job-work

Circular No. 619/10/2002 Dated 19.02.2002 : The method of valuation of goods manufactured on job work basis has been examined by the Board and the Board has issued instructions in this regard in response to a number of representations received from the trade as well as the Commissioners. These instructions are contained in the said notification.. It has been clarified that the pending cases on valuation of goods manufactured on job-work basis may be decided on the basis of these instructions.

Removal of goods by 100% EOUs to DTA – Non levy of duty under Section 3(1) of Central Excise Act, 1944

Circular No. 618/9/2002-CX Dated 13.02.2002 : In the light of the Supreme Court’s judgement in case of SIV Industries Vs. CCE [ 2000 (117) ELT (281) SC ] it is clarified that prior to 11.5.2001 the clearances from EOUs if not allowed to be sold in India, shall continue to be chargeable to duty under main Section 3(1) of Central Excise Act, 1944.

Customs (Tariff)

Anti Dumping Duty

Notification No.19 /2002 Dated15.02.2002 : Anti dumping duty imposed on import of Ferro silicon

Notification No. 18/2002 Dated 15.02.2002 : Anti dumping duty imposed on import of D(-) Para Hydroxy Phenyl Glycine Base

Notification No.17/2002 Dated 11.02.2002 : Anti dumping duty imposed on Flexible Slabstock Polyol

References received from the Field Formations without the approval of Commissioner of Customs concerned

Drawback Circular No. 12/2002 Dated 12.02.2002 : It has been experienced that officers in the rank of Deputy Commissioner/ Assistant Commissioner and even Appraiser/Superintendent have been sending references to the Board along with the sealed samples of the consignments blandly seeking clarification as to the classification of the goods in question under various entries of the Drawback Table. This is highly irregular. This leads to avoidable harassment of the trade and adversely impacting the exports. It has therefore been clarified that any reference to the Board can be made only by the Chief Commissioner of Customs or the Commissioner of Customs.

All Industry Rate of Drawback in respect of Ready-made Garments

Circular No. 11/2002 Dated 11.02.2002 : It is clarified here that the Circular No. 10/2001-Customs was issued in the perspective of previous Drawback Table i.e. 2000-2001 when the entries were generic. This was intended to restrict drawback only in respect of Babies' Garments or certain other Ladies' Garments which though were exported in sets but availed duty drawback as single garment and had the limitation drawback cap of Rs. 65/- per price i.e. individually. Therefore, it was decided that such garments if packed together and also billed together could be eligible for drawback only as "Sets" and not as individual garments. However, in the current Table 2001-2002, many specific entries have been created with individual drawback rates and caps. Moreover, the word `Set' has not been mentioned. Therefore, SS Nos. 62.09 and 62.10 are intended to cover only those items which do not find specific mention SS Nos. 62.01 to 62.08 of Chapter 62 of the Drawback Table.

Service Tax Department

Audit of Service Tax assesses/records

Circular No. 38/1/2002-CX Dated 07.02.2002 : Instructions have been issued in partial modification of Board’s Circular No.19/13/96 dt.21.11.1996 wherein instructions were issued for auditing of assesses providing services relating to telephones, insurance and stock broking.

Department of Economic Affairs

Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) (Amendment) Scheme, 2002

Notification No. GSR100(E) Dated 13.02.2002 : The Central Government has notified the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) (Amendment) Scheme, 2002 to further amend the Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 that shall come into force with retrospective effect from 02.02.2001.

Ministry of Law, Justice and Company Affairs

Department of Company Affairs

Guidelines for submitting application under section 295/372A

A Check List has been issued to ensure that certain information and documents have been furnished while submitting the application in respect of loans/corporate guarantee or furnishing security under section 295 & 372 A of the Companies Act, 1956.

Guidelines for filing statutory applications under Section 212

Guidelines have been issued in respect of information & documents to be furnished while submitting applications seeking exemption under section 212 of the Companies Act,1956.

Guidelines for filing statutory applications under Section 211

Guidelines have been issued in respect of information & documents to be furnished while submitting applications seeking exemption under section 211 of the Companies Act,1956.

Reserve Bank Of India

AP Dir Series

Indian Direct Investment Outside India

Circular No. AP(DIR Series)Circular No 23 Dated 19.02.2002 : It is clarified that the general permission under Regulation 6 of Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2000 does not include investment proposals which envisage setting up a holding company or a Special Purpose Vehicle abroad, which would in turn set up one or more step down subsidiaries as operating units. It is also clarified that Indian parties which are defaulters to the banking system in India and whose names appear in the Defaulters List published/circulated by the Reserve Bank are not eligible to make overseas investments under the automatic route in terms of clause (v) of sub-regulation (2) of Regulation 6 of the said Regulation.

Exim Bank’s Line of Credit of US$ 5 million to Eastern and Southern African Trade and Development Bank (PTA Bank)

Circular No. A.P.(DI R Series) Circular No.22 Dated 14.02.2002 : Export Import Bank of India (Exim Bank) has concluded an agreement with the Eastern and Southern African Trade and Development Bank (PTA Bank) on November 12, 2001 making available to the latter, a line of credit upto an aggregate sum of US$ 5 million (U.S. Dollar Five Million only). The credit has become effective from December 12, 2001, and is available for financing Indian export of eligible goods and related services to buyers in the PTA Bank member countries viz. Burundi, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Somalia, Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

Two-way fungibility of ADRs/GDRs

Circular No. AP (DIR Series) Circular No 21 Dated 13.02.2002 : It is clarified that Notifications Nos.FEMA 20/2000-RB dated May 3, 2000 and No. FEMA 41/2001-RB dated March 2, 2001 have laid down the enabling provisions for the operation of two-way fungibility. The operationalisation of two-way fungibility of ADRs/GDRs is now final in terms of the provisions of the Operative Guidelines mentioned the circular.

DBOD

Foreign Direct Investment (FDI) in the Banking Sector

Circular No. DBOD No BP BC 68 /21.01.055/2001-02 Dated 16.02.2002 : The present position in respect of Foreign Direct Investment (FDI) in the Banking Sector has been clarified in a consolidated form in response to the various enquiries received by the RBI.

Subordinated debt for inclusion in Tier II capital –Head Office borrowings in foreign currency by Foreign Banks operating in India

Circular No. DBOD No IBS BC 65/23.10.015/2001-02 Dated 14.02.2002 : To ensure transparency and uniformity it is proposed to issue detailed guidelines for raising subordinated debt through Head Office borrowings in foreign currency for inclusion in Tier II capital. As such Guidelines have been issued which are enclosed as an Annexure to the said Circular.

Press Release

Investment by FIIs/NRIs/PIOs in shares of Indian companies (Bharti Tele Ventures Ltd.)

Press Release No. 930/2001-2002 Dated 18.02.2002 : The Reserve Bank of India on February 18, 2002 has notified that no further purchases of shares of Bharti Tele Ventures Ltd., should be made on behalf of foreign institutional investors (FIIs)/ non-resident Indians (NRIs) and persons of Indian origin (PIOs) under the portfolio investment scheme (PIS) without obtaining prior clearance of the Reserve Bank. The Reserve Bank has stated that the net purchases of equity shares of the company in the secondary markets have reached the limit of 47 per cent of its paid up equity capital.

Ministry of Commerce and Industry

Directorate General Of Foreign Trade

Placement of quantity of 10,000 MTs of sugar from the freesale quota of 2001-2002 season

Policy Circular No. 26 (RE –2001)/1997-2002 Dated 20.02.2002 : It has been decided to allocate a quantity of 10,000 MTs of sugar out of freesale portion of 2001-2002 season’s production for export to Maldives under Articles VIII and IX of the Trade Agreement between Government of India and the Government of Maldives for the year 2002 and place it at the disposal of M/s Indian Sugar Exim Corporation Ltd., New Delhi for export to Maldives.

Port restrictions on import of natural rubber :

It is clarified that the port restrictions as per notification no. 41 (RE-2001)/97-02 dated 19.12.2001 shall be applicable on import of natural rubber made by EOUs and units in EPZ. However, these restrictions shall not be applicable on import of natural rubber made by units in SEZ.

Applicability of Policy Circular No. 23 dated 22.10.1997 to all VABALs Issued from 01.04.1992 onwards

Policy Circular No. 24 (RE-01)/2001-2002 Dated 12. 2.2002 : Policy Circular No. 23 /97-98 dated 22.10.1997 which was issued on the subject relating to procedure for dealing with cases of suspected misdeclaration of value in applications for Licences issued between 1.4.1993 and 6.3.1995. . References have been received from port offices to clarify whether Policy Circular No. 23 dated 22.10.97 is applicable to VABALs issued prior to 1.4.1993. It is clarified that the intention of the said Policy Circular No.23 dated 22.10.97 being to cover all VABALs issued from 01.04.1992 onwards, the said Circular is applicable to all VABALs issued from 1.4.1992 onwards.

Ministry of Consumer Affairs, Food and Public Distribution

Recognition of Central India Commercial Exchange Ltd., Gwalior

Notification No. SO202(E) Dated 15.02.2002 : The Central Government in consultation with the Forward Markets Commission granted recognition to the Central India Commercial Exchange Ltd., Gwalior for a period of five years from 1st March, 2002 to 28th February, 2007 (both days inclusive) in respect of forward contracts in Gur.

Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) on Special Foodstuffs Order, 2002

Notification No. GSR104(E) Dated 15.02.2002 : The Central Government notified the Removal of (Licensing requirements, Stock limits and Movement Restrictions) on Specified Foodstuffs Order, 2002 that shall come into force within 30 days from the date of publication in the Official Gazette.

Renewal of recognition to Kanpur Commodity Exchange Limited

Notification No : SO179(E) Dated 08.02.2002 : The Central Government in consultation with Forward Markets Commission granted the renewal of recognition to the Kanpur Commodity Exchange Ltd., Kanpur from 19th April, 2002 to 31st March, 2004 (both days inclusive) in respect of forward contracts in Rapeseed/Mustard seed, its oil and oil cake.

Ministry of Labour

Prohibition of employment of contract labour specified as in the schedule

Notification No. SO168(E) Dated 06.02.2002 : The Central Government, in consultation with the Central Advisory Contract Labour Board and having regard to the conditions of work and benefits provided for the contract labour and other relevant factors prohibited the employment of contract labour in the process, operation or work specified in the Schedule given in the said notification, in the establishment of the Telephone Bhavan, Calcutta Telephones with effect from the date of publication of this notification in the Official Gazette.

Ministry of Petroleum and Natural Gas

Right of user – Vizag-Secunderabad Pipeline Project

Notification No. SO203(E) Dated 13.02.2002 : The Central Government declared that the right of user in the land specified in the Schedule appended to the said notification is acquired for laying the pipeline for the transportation of liquefied petroleum gas through Vizag-Secunderabad Pipeline Project in the State of Andhra Pradesh by the Gas Authority of India Limited. The Central Government has directed that the right of user in the land for laying the pipeline shall, instead of vesting in the Central Government, vest on the date of the publication of the declaration, in the Gas Authority of India Limited, proposing to iay the pipeline and thereupon the right of such user in the land shall, subject to the terms and conditions so imposed, vest in the Gas Authority of India, free from all encumbrances.

PIB (Press Information Bureau) Releases

DCA imposes stringent norms for Company loans to Directors and their relations

Dated 18.02.2002 : The Department of Company Affairs (DCA) has issued guidelines providing stringent norms for loans or corporate guarantee or furnishing security under Sections 295 and 372A of the Companies Act, 1956 to the directors of the companies or their relations.

Investor Clinics For Creating Awareness

Dated 14.02.2002 : The Institute of Company Secretaries of India has planned to set up Investor Clinics for creating awareness among the gullible investors. The proposed investor clinics will organize seminars on investor education programmes and bring out booklets and pamphlets in English, Hindi and other languages. Besides, development of software and website on investors education is underway.

Jurisdiction of Company Law Board extended

Dated 13.02.2002 : The Company Law Board (CLB) has issued a notification amending the CLB Regulations, 1991 to provide for extension of its jurisdiction to cover the newly created States of Chhattisgarh, Jharkhand and Uttaranchal with immediate effect.

Government promulgates Cost Audit Report Rules

Dated 12.02.2002 : The Department of Company Affairs (DCA) has issued a notification promulgating the Cost Audit Report Rules, in super session of the Cost Audit (Report) Rules, 1996 while protecting action taken under the 1996 Rules. The new rules, which come into force with immediate effect, have been promulgated under sub-section (4) of Section 233B read with sub-section (1) of Section 227 and Clause (b) of sub-section (1) of Section 642 of the Companies Act, 1956.

Accounting Standards

The Institute of Chartered Accountants of India has issued three new Accounting Standard as under :

Accounting Standard 24 - Discontinuing Operations

Accounting Standard 25 - Interim Financial Reporting

Accounting Standard 27 - Financial Reporting of interests in Joint Ventures

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

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Disclaimer: 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.