SEBI

Publication of audited annual accounts by mutual funds

Circular No. MFD/CIR/15/041/2002 Dated 14.03.2002 : Considering the representation by AMFI, Regulation 56 of Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 has been amended so that publishing of scheme wise annual report or abridged annual report in the newspapers by the mutual funds would not be required now. However, the mutual funds shall continue to send the annual report or abridged annual report to the unit holders.

Ministry of Finance

CBDT

Income-tax (Fourth Amendment) Rules, 2002

Notification No. 69/2002 Dated 22.03.2002 : Amendment to Rule 89 and Rule 101

Press Note on Tax treatment of deep discount Bonds and Strips - Clarification

Dated 20.03.2002 : The tax treatment in respect of bonds which are issued after the issue of the circular is specified in the present circular on deep discount bonds, and it does not seek to impose the modified treatment on existing bond-holders. Non-corporate persons who invest small amounts in new issues (face value upto Rs.1 lakh) can still opt for the old system.

Specification of Tax Free Bonds of Swarna Jayanti Rural Housing Finance 2000 - 2001

Notification No. 61/2002 No. SO316(E) Dated 19.03.2002 : The Central Government has specified tax-free Bonds of the National Housing Bank-Swarna Jayanti Rural Housing Finance, 2000-2001 of rupees one lakh each carrying an interest of 7.5% per annum for a period of ten years for an amount of rupees one hundred crores only bearing distinctive numbers from D-00001 to D-10000 issued during 2000-2001 by the National Housing Bank for the purpose of clause (15) of section 10 of the Income-tax Act, 1961 (43 of 1961).

Letters of Exchange between the Indian and Irish Authorities

Notification No. 59/2002, No. GSR212(E) Dated 19.03.2002 : The Exchange letter (between Indian and Irish authorities) as given in this Notification is to be annexed with Notification No. 45/2002.

Exemption of Saurashtra Kidney Research Institute, Rajkot

Notification No. 58/2002, SO313(E) Dated18.03.2002 Notification U/s 35AC : The Central Government, has specified the scheme or project of Saurashtra Kidney Research Institute at Rajkot, Gujarat, for the purpose of sub-section (1) read with clause (b) to the explanation to Section 35AC of the Income-tax Act, 1961(43 of 1961)

Iqbal Mohamed Trust, Ooty - Institution Approved U/s 35 AC

Notification No. 57/2002, SO312(E) Dated 18.03.2002 : The Central Government has approved Iqbal Mohamed Trust and specified the eligible projects or schemes under section 35AC of the Income-tax Act, 1961 (43 of 1961)

Power Generation Project, Chennai - Enterprise approved U/s 10(23G)

Notification No. 55/2002 Dated 06.03.2002 : It is notified that Power Generation Project at Basin Bridge, Chennai, Tamil Nadu for generation of 4 X 50 MW (200 MW) Diesel Engine Power Station of M/s GMR Power Corporation Pvt. Ltd. has been approved by the Central Government for the purpose of section 10(23G) of the Income-tax Act, 1961, read with rule 2E of the Income-tax Rules, 1962, for the assessment years 2002-2003, 2003-2004 and 2004-2005.

M/s North Eastern Electric power Corporation Ltd., Shillong – Enterprise approved U/s 10(23G)

Notification No. 54/2002 Dated 06.03.2002 : It is notified that M/s North Eastern Electric power Corporation Ltd., Shillong has been approved by the Central Government for their Projects Rangadi Hydro Electric Power Project 3 X 135 MW located at Arunachal Pradesh and Doyand Hydro Electric Power Project 3 x 25 MW located at Nagaland, for the purpose of section 10(23G) of the Income-tax Act, 1961, read with rule 2E of the Income-tax Rules, 1962, for the assessment years 2002-2003, 2003-2004 and 2004-2005.

CBEC Excise

Closure of Banks on 31.3.2002 and collection of Central Excise duty

Circular No. 629/20/2002-CX Dated 19.03.2002 : It has been decided that In terms of rule 8 of the Central Excise Rules, 2002 an assessee availing facility of fortnightly payment of duty has to deposit the duty for the second fortnight of March by 31st day of the month. The duty liability would be deemed to be discharged only when the amount payable is credited to the account of the Government by the specified date.

Central Excise - Removal of cops/cones etc. under erstwhile Rule 96E for conversion into Hank Yarn

Circular No. 628/19/2002-CX Dated 19.03.2002 : Board with a view that plain reeled Hanks are used only by the Handloom Sector, charging duty on the intermediate goods i.e. cotton yarn on cops/cones etc. would nullify the purpose of exemption, has decided that all such cases pending disposal and kept in call Book should be taken out and decided expeditiously keeping the above into consideration.

Pre-audit/ Post audit of refund/ rebate claims

Circular No. 18/627/2002 Dated 15.03.2002 : In view of the requests for revision in monetary limit of the claims for which selective post audit could take place to enable Audit wings to devote time to more important areas of work the Board has decided that :

    i)     All claims involving a refund or rebate of duty of Rs. 5 lakhs or more shall be subjected to pre-audit as per the existing practice.
    ii)     The claims of refund or rebate of amount below Rs. 50,000/- may be post audited on the basis of the random selection by
            Deputy/Assistant Commissioner (Audit). The selection can be made in such a way that 25 per cent of the claims are post-audited.
    iii)     The claims of refund or rebate for amount between Rs. 50,000/- and Rs. 5 lakhs should be compulsorily post-audited.

Payment of excise duty on the goods on which duty was imposed in the Budget of 2002-03

TRU letter Dated 07.03.2002 : Excise duty at the rate of 4% has been imposed on certain goods in this year’s budget which applies if the assessee does not opt for the CENVAT credit scheme. If the assessee opts for the CENVAT credit scheme, the rate of duty applicable is 16%.

Export warehousing – Extension of facility in Raigad District in Maharashtra and East Midnapore District in West Bengal – regarding

Circular No. 626/17/2002-CX Dated 06.03.2002 : In consideration of the representations received from the trade as well as from the field formations to include Raigad District of Maharashtra and East Midnapur District of West Bengal in the list of places where warehouses may be established, mentioned in Board’s Circular No. 581/18/2001-CX, dated 29th June 2001 , the Board has decided to amend the said Circular to include these districts.

CBEC Excise-Non Tariff

Appointment of designated authorities for the areas as specified

Notification No. 14/2002-NT Dated 08.03.2002 : The Central Board of Excise and Customs has specified the jurisdiction of Chief Commissioner of Central Excise, Commissioner of Central Excise and Commissioner of Central Excise (Appeals) respectively as mentioned in the notification, for the purposes of the Central Excise Act, 1944 (1 of 1944) and the rules made there under.

CBEC Customs-Tariff

Grant of All Industry Rate of Drawback on export of Bicycles under Advance Licence Scheme- regarding

Draw Back Circular No. 20/2002 Dated 21.03.2002 : After taking into account the duty incidence on the specified 22 components, it is clarified that field formations can allow drawback to the exports of complete bicycles.

All Industry Rates of Drawback 2001-2002

Drawback Circular No. 19/2002 Dated 15.03.2002 : Considering the representations received from the Indian Silk Export Promotion Council, the Central Government has revised the rates for the silk fabrics falling under SS No. 50.01, handloom/ powerloom lungies made of silk falling under SS No. 62.28 and Silk made-ups falling under SS No. 62.30, through the notification No. 19-Cus(N.T.) dated 15th March, 2002.

Customs procedure for export of container cargo from ICDs/CFSs in India to Bangladesh and Nepal through LCSs

Circular No. 18/2002 Dated 13.03.2002 : Board has decided to allow movement of export cargo from ICDs/CFSs to Nepal and Bangladesh through Land Customs Stations under the procedure as mentioned in the notification.

Extension of the jurisdiction of the Customs Act, 1962 and the Customs Tariff Act, 1975

Circular No. 17/2002 Dated 13.03.2002 : The jurisdiction of the Customs Act, 1962 and the Customs Tariff Act, 1975 has been extended to whole of the EEZ and Continental Shelf of India.

Service tax

Amendment to Notification No. 5/96

Notification No. 3/2002, No. GSR213(E) Dated 19.03.2002 : Amendment to Notification No. 5/96 Service Tax Dtd 3.4.96

Services rendered by the Chit Funds not to fall under the category of Taxable services

Circular No. 41/4/2002 Dated 15.03.2002 : It has been clarified that “banking and other financial services” does not include the service rendered by chit funds. Accordingly, the service rendered by chit funds would not fall in the category of taxable service as defined in section 65 (72)(zm) of the Finance Act, 1994.

Department of Revenue

Narcotic Drugs and Psychotropic Substances (Amendment) Rules, 2002

Notification No. GSR214(E) Dated 19.03.2002 : Amendment in Rule 65 and Schedule I and insertion of Schedule III.

RBI(MPD)

Interest Rate Ceilings on Rupee Export Credit

Circular No. MPD212/07.01.279/2001-02 Dated 11.03.2002 : The validity of the reduction in the ceiling of interest rates charged by scheduled commercial banks on pre-shipment and post-shipment rupee export credit by one percentage point across the board announced on September 24, 2001 has been extended for a further period of six months. Consequently it would remain in force up to September 30, 2002.

FEMA

Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Fourth Amendment) Regulations, 2002

Notification No. FEMA 55 /2002-RB Dated 07.03.2002 : Amendment in Regulation 18, Renumbering of the Schedule as Schedule 1 and Insertion of Schedule 2

AP(DIR)Series

Issue of Foreign Currency Convertible Bonds(FCCBs)

Circular No. AP(DIR Series) Circular No 29 Dated 11.03.2002 : It has been decided to allow an Indian company or a body corporate, created by an Act of Parliament to issue FCCBs not exceeding US $ 50 million in any one financial year to a person resident outside India under the automatic route without the approval from Government or the Reserve Bank.

DBOD

Special One Time Settlement Scheme for Small and Marginal Farmers

Notification No. DBOD.No.BP.BC.80 / 21.04.117 /2001-02 Dated 22.03.2002 : The Hon'ble Finance Minister in his Budget speech 2002-03 has announced that a special OTS scheme for small and marginal farmers will be announced by RBI to cover loans upto Rs 50,000 according to which the Boards of public sector banks may formulate a policy for recovery of these loans, keeping certain parameters in view.

Issue and pricing of shares by private sector banks

Notification No. DBOD.No.PSBS.BC.79 /16.13.100/2001-2002 Dated 20.03.2002 : Separate Guidelines have been issued by RBI for issue and pricing of shares (in case of IPO, Rights issue, Bonus issue, Preferential issue) by Private Sector Banks.

Adoption of 90 days’ norm for recognition of loan impairment – Application of interest at monthly rests

Notification No. DBOD No. Dir. BC. 73/13.03.00/2001-02 Dated 09.03.2002 : It has been decided that banks may move over to charging of interest on loans/advances at monthly rests subject to certain conditions mentioned in the notification.

IECD

Rupee Export Credit Interest Rates

Notification No. IECD No.17/04.02.01/2001-02 Dated 15.03.2002 : It has been decided that the validity of the reduction in the interest rates on rupee export credit would remain in force for a further period of six months i.e. upto September 30,2002. The rates of interest applicable upto September 30, 2002 have been incorporated in the Annexure to the Directive DBOD.No.BC.75 /13.07.01/2002 dated March 15, 2002.

Press Release

Lock-in Period for Repatriation of Sale Proceeds
Press Release No. 1063/2001-2002 Dated 22.03.2002 : Lock-in Period for Repatriation of Sale Proceeds of Immovable Properties for NRIs/PIOs has been removed.

NRIs/PIOs permitted to remit $100,000 per year out of Inherited Assets

Press Release No. 1058/2001-2002 Dated 21.03.2002 : NRIs/PIOs have been permitted to remit $100,000 per year out of Inherited Assets

RBI to relax timeframe for investments in Government securities and other approved securities by urban banks on a case-by-case basis

Dated 21.03.2002 : The Reserve Bank of India has decided to consider, on a case to case basis, extension of timeframe for investment in Government and other approved securities by urban cooperative banks as part of SLR investments. The relaxation has been made in order to smoothen the process of compliance in respect of banks that may have difficulties in complying with RBI norms on SLR investments.

RBI liberalises norms for issue and pricing of shares of private sector banks

Dated 20.03.2002 : The Reserve Bank of India has liberalised the norms for issue and pricing of shares by private sector banks according to which, all private sector banks - listed or unlisted - will be free to issue bonus and rights issues without prior approval of the Reserve Bank.

RBI’s final approval to BOB Capital Markets

Press Release No. 1036/2002-2003 Dated 16.03.2002 : The Reserve Bank of India has granted final approval to BOB Capital Markets Ltd., to operate as a Primary Dealer in the Government Securities Market.

Sale of State Government Loans on tap

Press Release No. 1005/2001-02 Dated 08.03.2002 : The Governments of 26 States have offered to sell on tap 8.00 per cent State Development Loan, 2012 having a maturity of ten years. The sale being held at the respective Regional Offices of the Reserve Bank of India and at Mumbai (for all 26 States), on March 13, 2002.

Ministry of Commerce and Industry

DGFT

Guidelines for import of Rough Marble Blocks/Slabs

Circular No. 29(RE-01)/1997-2002 Dated 14.3.2002 : It is clarified that “The EXIM Facilitation Committee (EFC)” would consider the applications of the eligible applicants in the manner and subject to other conditions mentioned in the notifications.

Notification of New Agri Export Zones

Public Notice No. 73(RE-01)/ 1997-2002 Dated 08.03.2002 : The Director General of Foreign Trade has made amendment in Handbook (Vol 1)(RE-01), 1997-2002- Agri Export Zones notified.

Industrial Policy and Promotion

Export of Onions (Release of Quota)

Notification No. 50 (RE-2001)/1997-2002 Dated 22.03.2002 : The Central Government has made amendments in the "ITC(HS) Classifications of Export and Import Items, 1997-2002 (incorporating amendments made upto 31st August,1998)" by making additions against the Code No. 0703(1) in the Table B of Schedule 2 of the said ITC(HS) relating to "onions (all varieties other than Bangalore Rose onion and Krishnapuram onions)".

Oil India Limited, Dibrugarh – Exempted From the Provision of Rule 31(2) of the Explosive Rules

Notification No. SO294(E) Dated 07.03.2002 : Central Government has exempted the Oil India Limited, Assam, from the provisions of sub-rule (2) of rule 31 of the Explosives Rules, 1983 for import of certain explosives from the Owen Oil Tools subject to fulfillment of certain conditions.

Ministry of Petroleum

Motor Spirit and High Speed Diesel (Regulation of Supply and Distribution and Prevention of Malpractices) (Amendment) Order, 2002

Notification No. GSR211(E) Dated 15.03.2002 : Amendment in Clause 2 and Clause 3 and insertion of Schedule-IV

Acquisition of Right of User in Land - Vishakapatnam - Secunderabad Pipeline Project

Notification No. SO300(E) Dated 13.03.2002 : The Central Government has declared its intention to acquire the right of user in the land for the purpose of laying the pipeline for the transportation of Liquid Petroleum Gas through Vishakapatnam - Secunderabad pipeline project in the State of Andhra Pradesh.

Liquefied Petroleum Gas (Regulation of Supply and distribution) Amendment Order, 2002

Notification No. GSR177(E) Dated 06.03.2002 : The Central Government has made the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Amendment Order, 2002 - Amendment in Clause 3 and Schedule to the order.

Guidelines for Granting of Authorization to Market Transportation Fuels

Resolution No. P-23015/1/2001-Mkt Dated 08.01.2002 : The Government of India after taking into account the recommendations of the Report "Indian Hydrocarbon Vision - 2025",have decided to grant authorization to market transportation fuels, namely, MS, HSD and ATF to the new entrants including the private sector.

Ministry of Law, Justice and Company Affairs

Department of Company Affairs

Release of Search Facilities on filing status of Balance Sheets and Annual Returns on DCA Website

Press Note No. 01/2002 Dated 14.03.2002 : In order to provide information to the public on availability of a particular Balance Sheet or Annual Return with the respective Registrar of Companies (ROC), Search Facilities under the following headings were released on Department of Company Affairs website for the benefit of the public

    (a)    Company Directory
    (b)    Names Approved for Registration
    (c)    ROC Fee Computation
    (d)    ROC Forms
    (e)    Status of Investors' Grievances

Report of the Expert Group on Nidhi Companies

An Expert Group has been constituted to examine the representations received from the Chamber of Nidhis and several existing Nidhi companies pursuant to the issue of Notifications Nos. GSR.555(E) and 556(E) dated 26.7.2001 and give recommendations with regard to the 18 issues against which the Chamber of Nidhis/Nidhi Companies have made representations and to suggest the modifications/relaxations by amendment of corresponding provisions in the said Notifications.

Ministry of consumer affairs Food Public Distribution

Manufacture of Non Standard Tape Measures - as Specified

Notification No. SO303(E) Dated 14.03.2002 : the Central Government has permitted M/s. Freemans Measures Limited and M/S FMI Limited, Ludhiana to manufacture the specified non-standard tape measures exclusively for export purposes for a period of one year from the date of publication of this order, subject to certain conditions

Standards of Weights and Measures (Numeration) Amendment Rules, 2002

Notification No. GSR208(E) Dated 14.03.2002 : Amendment in Rule 2, Rule 3 and Schedule to Rule 3

Indian Institute of Legal Metrology (Amendment) Rules, 2002

Notification No. GSR207(E) Dated 14.03.2002 : Amendment in Rule 8

Ministry of personnel

Extension of the term

Notification No. SO318(E) Dated 20.03.2002 : Extension of the term of Justice K. Venkataswami Commission of Inquiry by further Six months

Ministry of Labour

Non-applicability of Minimum Wages (Central) Rules, 1950 - Mumbai Ports Trusts

Notification No. SO306(E) Dated 15.03.2002 : The Central Government has directed that the provisions of Section 2 (h), Section 14 and Rule 25 of the Minimum Wages (Central) Rules, 1950 shall not apply to the employees engaged in the scheduled employments in Mumbai Port Trust, having regard to certain conditions.

Press Information Bureau

Guidelines for issue of Permission to offer Internet Telephony Services

Dated 21.03.2002 : The New Telecom Policy'99 envisaged opening up of Internet Telephony whereupon the Government has decided to permit the Internet Service Providers (ISPs) to process and carry voice signals with effect from 1st April, 2002, subject to the some broad guidelines in this behalf.

Maran Clears FDI Proposals Worth Rs. 1113 Crore

Dated 21.03.2002 : Shri Murasoli Maran, Union Minister of Commerce & Industry, has cleared 57 Foreign Direct Investment (FDI) proposals involving FDI worth Rs. 1113 Crore.

Proceedings Of Cases In High Courts On Internet

Dated 21.03.2002 : The Government has planned to put the proceedings and other day today information of cases taken up in the High Courts on Internet.

No Bench Of Gujarat High Court At Rajkot

Dated 20.03.2002 : In response to the request from the Government of Gujarat, the Chief Justice of the Gujarat High Court has said that it would not be in the interest of the institution to have a Circuit Bench of that High Court at Rajkot.

Amendment To Essential Commodities Act

Dated 19.03.2002 : The central government has issued the Removal of (Licensing requirements, Stock limits and Movement Restrictions) on Specified Foodstuffs Order, 2002 under the Essential Commodities Act, 1955, allowing dealers to freely buy, stock and sell certain commodities, which were classified as essential commodities, with effect from March 15, 2002.

Anti Dumping duties on CTL Plate exports to USA

Dated 19.03.2002 : The US Department of Commerce has imposed anti-dumping and countervailing duties of 72.49 per cent and 12.82 per cent respectively on cut to length carbon steel plate imports from India.

Banking Industry to continue as public utility service for another 6 months

Dated 19.03.2002 : The Central Government has declared services in the Banking Industry as a public utility service under the Industrial Dispute Act, 1947 for another six months with immediate effect.

Five Year Exim Policy to be announced on March 31

Dated 16.03.2002 : The new 5-year Export & Import (Exim) Policy for the period 2002-2007 would be announced on 31st March 2002 .The aim of the policy would be to achieve at least 1% share of the global trade (as against 0.67% at present) and a compound annual growth rate of 11.9% over the next 5 years to increase India’s exports to a level of US $ 80 billion by the end of the Plan period.

Government accepts TRAI recommendations on opening up of Internet telephony

Dated 15.03.2002 : Accepting the recommendations of TRAI in this behalf, Government has decided to allow Internet Telephony from April 1,2002. The customers of ISPs would be able to avail this service from their Personal Computers (PCs) capable of processing voice signals or other IP based Customer Premises Equipment (CPE).

Law Minister allays fears of women on domestic violence bill

Dated 15.03.2002 : The Department Related Standing Committee of Parliament where the Domestic Violence Bill most likely would go for a better scrutiny, would address the apprehensions of women groups over the Bill.

Licenses to law graduates

Dated 14.03.2002 : In reply to a question from Shri V.V. Rao in the Lok Sabha, the Union Minister of Law, Justice and Company Affairs, Shri Arun Jaitley informed that the Bar Council of India is not aware of any instance of issuing licences by the State Bar Councils to the law graduates for starting practice in courts without verifying their certificates.

Bills Inroduced in Budget Session of Parliament.

Apart from Finance Bill 2002 following more bills have been introduced.

Constitution (Scheduled Castes And Scheduled Tribes) Orders (Amendment) Bill, 2002

Constitution (Scheduled Castes) Order (Amendment) Bill, 2002

Infant Milk Substitutes, Feeding Bottles And Infant Foods (Regulation Of Production, Supply And Distribution) Amendment Bill, 2002

Prevention Of Terrorism Bill, 2002

Protection From Domestic Violence Bill, 2002

Salaries And Allowances Of Officers Of Parliament And Leaders Of Opposition In Parliament (Amendment) Bill, 2002

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

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