Modifications in the guidelines for valuation of securities

Circular No. MFD/CIR No 14/442/2002 Dated 20.02.2002 : After examining the representation made by the Association of Mutual Funds in India (AMFI) regarding the guidelines for valuation of securities issued by SEBI vide circulars dated September 18, 2000, modifications have been made in the matter under the following headings :

    1.    Traded Securities

    2.    Thinly Traded Debt Security

    3.    Construction of Risk Free Benchmark

    4.    Mark up/ Mark down yield

    5.    Application of Benchmark yield for valuation on the date of its release by any agency suggested by
           AMFI

    6.    Valuation of Government Securities

Regulations

Securities And Exchange Board Of India (Insider Trading) (Amendment) Regulations, 2002

Dated 20.02.2002 : The Board has issued SEBI (Insider Trading) (Amendment) Regulations, 2002 to amend the Securities and Exchange Board of India (Insider Trading) Regulations,1992.

Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2002

Notification No. SO220(E) Dated 20.02.2002 : The board has issued the SEBI (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2002.-Amendment in Regulation 16 C and Schedule-III.

Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2002

Notification No. SO219(E) Dated 20.02.2002 : The board has issued the SEBI (Mutual Funds) (Amendment) Regulations, 2002.-Amendment in Regulation 56.

Ministry of Finance

Central Board of Direct Taxes

DTAA Between India & Ireland

Notification No. 45/2002 Dated 20.02.2002 : The Central Government has directed that all the provisions of the Convention between the Government of the Republic of India and the Government of Ireland for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and capital gains which entered into force on 26th December, 2001, shall be given effect to in the Union of India

CBEC Excise

Excisability of Hot Asphalt Mix

Circular No. 623/14/2002 Dated 25.02.2002 : Ministry of Law has opined that the Asphalt Hot Mix does not amount to "manufacture" as contemplated by Section 2(f) of the Central Excise Act, 1944 which has been accepted by the Board and accordingly it is clarified that Hot Asphalt Mix is not an excisable commodity.

Classification of flavoured tea

Circular No. 622/13/2002 Dated 21.02.2002 : Considering the doubts raised about classification of flavored tea, whether under sub-heading 2101.20 as a" preparation with a basis of tea" or under sub-heading 0902.00 simply as " tea", it is clarified that "flavored tea" would be rightly classifiable under sub-heading 0902.00

Refund of Central Excise duty to diplomatic missions

Circular No. 621/12//2002 Dated 21.02.2002 : Refunds would be governed by the conditions mentioned in notifn. No.3/2001 CE dt 1.3.2001(sl.No.250) and the time limit for making the refund claim would be one year from the date of purchase of the goods by the diplomatic mission or consular office

Difficulties faced by SSI

Circular No. 620/11/2002 Dated 20.02.2002 : In consideration of the representations received from the Trade especially from Small Scale Industries regarding issue of certificate as a proof of payment of Central Excise Duty, the Board has desired that whenever requests by Small Scale Industries are made for issue of certificates as proof of duty payment, the same may be issued, as a matter of trade facilitation after due verification, without causing any harassment or delay.

CBEC Excise-Non Tariff

Notification of the proper form for the purposes of rule 30A

Notification No. 3/2002 Dated 22.02.2002 : In pursuance of rule 30A of the Central Excise (No.2) Rules, 2001, the Board has notified "Form ARE. 4" as the proper form for the purposes of the rule.

Rules amending the Central Excise (No.2) Rules, 2001

Notification No. 2/2002 Dated 22.02.2002 : In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government has made rules further to amend the Central Excise (No.2) Rules, 2001.

Amendment of Central Excise (No.2) Rules, 2001 for Budget Day restrictions and related instructions

Circular No. 201/18/2002- CX 6 Dated 22.02.2002 : Notification No.2/2002-CE(NT), dated 22nd February, 2002 which amends the Central Excise (No.2) Rules, 2001 to insert a new rule 30A relating to Budget Day restrictions has been issued on 22nd February 2002 and the same has come into force with effect from the date of its issue and would be applied to the Budget presented on 28th. of February, 2002.

Customs (Tariff)

Anti Dumping Duty

Notification No. 20/2002 Dated 22.02.2002 : Anti-dumping duty imposed on Isopropyl Alcohol at the specified rate

Carriage of coastal cargo from one Indian port to another port in foreign going vessels

Circular No. 15/2002 Dated 25.02.2002 : It has been decided by the Board that Indian flag foreign going vessels operating in routes covering more than one Indian port to a port outside India and vice versa, shall be allowed to carry coastal containers along-with imported/export cargo between two Indian ports. The provisions of the Customs Act, 1962 relating to coastal cargo as also other statutory provisions, guidelines and instructions in this regard shall apply to such containers.

Mis-declaration of constitution of textile fabrics and classification thereof

Circular No. 14/2002 Dated 22.02.2002 : In view of the case of misdeclaration of classification which has been reported to the Board, the Custom Houses have been advised to keep a watch over imports to ensure that the goods, namely, polyester woven fabrics are classified correctly and charged to duty accordingly.

Appointment of custodians of EPZs /ICDs /CFSs

Circular No.13/2002 Dated 22.02.2002 : Board has clarified that all Central as well as State Public Sector Undertakings (PSUs) appointed as custodians of EPZs/ICDs/CFSs, are exempt from the requirement of bank guarantee or other form of security prescribed under the said circular. The PSUs may be appointed as custodians on execution of a bond equal to the value of the goods likely to be stored in the premises for a period of 30 days.

Service Tax

Providing service of third party inspection and certification whether liable to Service Tax

Order No. 1/1/2002-ST Dated 26.02.2002 : In view of the doubts raised as to whether " third party inspections and certifications" carried out by certifying agencies in respect of marine as well as non-marine equipments, can be considered as a service provided by a "consulting engineer"

Introduction of Service Tax Code (STC) Number based on Permanent Account Number (PAN) allotted by the Income Tax

Circular No. 40/03/2002 Dated 21.02.2002 : In continuation of Board's Circular No. 35/3/2001-CX.4 (F. No. 137/24/99-CX.4) dated 27.08.2001 further instructions have been given in the allotment of STC Number to Service Tax assesses

Service Tax on Clearing and Forwarding Agents

Circular No. 39/2/2002 Dated 20.02.2002 : Considering the doubts regarding, whether Service Tax is livable on ICDs/CFS dealing with import/export cargo as C&F agents, the Board has clarified that ICDs/CFS can not be considered as C&F agents on the grounds mentioned in Circular.

Department of Economic Affairs

G.N. Bajpai Appointed as the Chairman, SEBI

Notification No. SO215(E) Dated 19.02.2002 : the Central Government has appointed Shri G. N. Bajpai, Chairman, Life Insurance Corporation of India as the Chairman of the Securities and Exchange Board of India for a period of three years from the date he assumes charge of office of Chairman or until further orders, whichever is earlier.

RBI

Financing of Infrastructure Projects

Circular No. IECD No /08.12.01/2001-02 Dated 20.02.2002 : In the light of paragraph 71 of the Mid-Term Review of Monetary and Credit Policy for the year 2001-2002 announced by Governor on October 22, 2001 and after a review of the matter, some of the instructions relating to criteria for financing, inter-institutional guarantees and Group Exposure Limit for infrastructure projects have been modified and banks/financial institutions have been advised on certain matters.

Investment by FIIs/NRIs/PIOs in shares of Indian companies

Press Release No. 930/2001-2002 Dated18.02.2002 : The Reserve Bank of India 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

Application for certification of Export Performance of units in the pharma and biotechnology sectors by the RLA’s as per Customs Notification 10/2002

Public Notice No. 71 (RE-01)/ 1997-2002 Dated 22.02.2002 : The Central Board of Excise and Customs (CBEC) has vide Notification No 10/2002 dated 21.01.2002 permitted the duty free imports of goods upto one percent of the FOB value of exports during the preceding financial year specified in List 27A by units in the Pharmaceutical and Biotechnology sectors having export turnover of Rs 20 Crores and above during the preceding licensing year if such importer has Research and Development wing which is registered with the Department of Scientific and Industrial Research in the Ministry of Science and Technology.

Placement of quantity of 8500 MTs of Raw Sugar from the Freesale Quota of 2000-2002 Season (October 1, 2001 to September, 30, 2002) for export of Preferential Raw Sugar Tariff Rate Quota for the fiscal year 2002 (October 1, 2001 to September, 30, 2002) to USA

Policy Circular No. 27 (RE-2001)/1997-2002 Dated 20.02.2002 : In para 3 of the Policy Circular No.20 (RE-2001)/1997-2002 dated 22nd January 2002 on the above subject, the condition of pre-shipment certificate by Export Inspection Council has been deleted.

Industrial Policy and Promotion

Draft Patents Amendment Rules, 2002

Notification No. SO225(E) Dated 21.02.2002 : The draft of Patents Amendment Rules, 2002, further to amend the Patents Rules, 1972, which the Central Government proposes to make has been published, for the information of all persons likely to be affected thereby and notice has been given that the said draft shall be taken into consideration on or after the expiry of a period of thirty days from the date the copies of the Gazette containing the notification are made available to the general public.

Ministry of Environment and Forest

Notification No. SO233(E) Dated 19.02.2002 : Corrigendum to S.O. 1197(E) dated 5th December, 2001

Ministry of Personnel,Public Grievances and Pensions

Personnel and Training

Central Secretariat Service Section Officers’ Grade/Stenographers’ Grade ‘B’ (Limited Departmental Competitive Examination) Amendment Regulation, 2002

Notification No. SO222(E) Dated 21.02.2002 : The Ministry of Personnel, Public Grievances and Pensions ( Department of Personnel and Training), in consultation with the Union Public Service Commission has made regulations, further to amend the Central Secretariat Service Section Officers' Grade/Stenographers' Grade 'B' (Limited Departmental Competitive Examination) Regulations, 1964.

PIB

Amendment of procedural law for expeditious disposal of cases

Dated 19.02.2002 : A Bill titled "The Code of Civil Procedure (Amendment) Bill, 2000" introduced in the Parliament on December 22, 2000, is pending for consideration and passing. With the passage of this Bill, civil cases would be decided expeditiously in a time bound frame.

Exempt Labour Coops From Income Tax And Dual Sales Tax : Advisory Council

Dated 20.02.2002 : The Union Ministry of Agriculture has advised all Central Government agencies and State Governments to issue necessary notifications for giving preferential treatments in awarding works to Labour Cooperatives.

New Export Strategy

Dated 26.02.2002 :The Medium Term Export Strategy (MTES) for the period 2002-2007, has been announced. Focus products have been identified by examining the import basket of major trading partners and India’s export basket.

Duty Concession On Ethanol And Revision Of Consumer Prices Of Retail Products

Dated 28.02.2002 :The excise duty concession on ethanol to be used for doping in petrol announced by the Finance Minister in his Budget Speech in Parliament has been welcomed. With a view to promote use of environment friendly auto fuels, Finance Minister has proposed an exemption @ 75 paise per litre in the excise duty on petrol mixed with 5% ethanol.

Bills

Finance bill 2002-Introduced in Lok Sabha on 28th Feb 2002.

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.

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