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The UPA Government introduced on 27th July 2010, the Securities and Insurance Laws (Amendment and Validation) Bill, 2010 (74 of 2010) to replace Securities and Insurance Laws (Amendment and Validation) Ordinance, 2010

The Bill has been introduced to further amend the Reserve Bank of India Act, 1934, the Insurance Act, 1938, the Securities Contracts (Regulation) Act, 1956 and the Securities and Exchange Board of India Act, 1992. Summary of the changes proposed by the said bill is laid down as under.

Amendments Proposed:

  • To Repeal Securities and Insurance Laws (Amendment and Validation) Ordinance, 2010

  • In Reserve Bank of India Act, 1934

    • Insertion of chapter IIIE under the heading “Joint Mechanism”.

    • Section 45Y under this chapter stipulates that difference of opinion between regulators over jurisdiction of hybrid or composite products to be referred to the Joint Committee

    • Governor of the Reserve Bank of India to be the Vice-Chairperson of the Joint Committee.

    • Secretary, Department of Economic Affairs in the Ministry of Finance to be the member of Finance.

    • Incase of any difference of opinion between regulators only Governor of Reserve Bank of India, the Chairman of IRDA, the Chairman of SEBI and the Chairperson of Pension Fund Regulatory and Development Authority to make a reference to Joint Committee.

  • In the Insurance Act, 1938

    • In Section 2 after clause 11 of the Act, Explanation deemed to have inserted wef 9th April 2010 to the effect that:

      • Life Insurance Business shall include any unit linked insurance policy or scrips or any such instrument of script which provides a component of:

        • Investment; and

        • Insurance issued by an insurer referred to in section 2(9) of the Act;

  • In the Securities Contracts (Regulation) Act, 1956

    • In Section 2(h) after sub-clause (id) of the Act, Explanation deemed to have inserted wef 9th April 2010 to the effect that:

      • Securities shall not:

        • Any unit linked insurance policy or scrips or any such instrument of script which provides:

          • a combined benefit risk on the life of the persons and investment by such persons; and

          • issued by an insurer referred to in section 2(9) of the Act;

  • In the Securities and Exchange Board of India Act, 1992

    • In Section 12(1B), Explanation deemed to have been inserted wef 9th April 2010 to the effect that:

      • A collective investment scheme or mutual fund shall not include:

        • Any unit linked insurance policy or scrips or any such instrument of unit which provides:

          • a component of investment besides the component of insurance issued by an insurer;

  • Miscellaneous

    • The Provisions of the above mentioned Act as proposed to be amended:

      • Shall have and shall be deemed to always have effect as if the provisions had been in force at all material times;

      • Any unit linked insurance policy or scrips or any such instrument or unit, by whatever name called – issued or purported to have been issued before 9th April 2010:

        • Shall be deemed and always deemed to have been validly issued;

        • Not to be called in question in any Court of law or other Authority on the ground of it being issued without a certificate of registration under –

          • Any law for the time being in force; or

          • Without following any procedure under any law for the time being in force;

By an insurer or any other person.

Academy of Scientific and Innovative Research Bill 2010 Introduced in Lok Sabha 

Ministry of Science and Technology today introduced the Academy of Scientific And Innovative Research Bill 2010 in Lok Sabha with the purpose to establish Academy of Scientific & Innovative Research, as an institution of national importance with powers to award degrees.

Court should not interfere in public agencies functioning

The Supreme Court on 27.07.2010 has ruled that the court cannot issue directions to the State Electricity Boards to maintain uninterrupted power supply in their respective states and government hospitals since shortage of power is a common phenomenon in the entire country.

Sohrabuddin Sheikh fake encounter case

On 26.07.2010, The CBI (Central Bureau of Investigations) Judge AY Dave on July 25 has sent former Home Minister, Amit Shah to judicial custody till 07.08.2010. Shah has been charged with murder, kidnapping, extortion and destruction of evidence in the fake encounter killings of gangster Sohrabuddin and his wife Kauser Bi in the year 2005.

Secondary packing not part of Excise math: Supreme Court

In a breather to the assessees, the Supreme Court has ruled that the cost of secondary packing for the purpose of convenience of customers and transportation of goods cannot be included in the value of the goods for assessment of excise duty. The court partly allowed the appeal of the assessee , National Leather Cloth Manufacturing. It was engaged in the manufacture of coated fabrics. "We, therefore, hold that the cost of secondary packing in hessian cloth cannot be included in the value of the goods in terms of section 4(4)( d)( i) of the Act (Central Excise Act, 1944 ) for the purpose of assessment of excise duty" , said a bench comprising Justice DK Jain and Justice Anil R Dave. The price of goods declared by the assessee in the price list, as required under Rule 173C of the Central Excise Rules, 1944 was approved by the Revenue from time to time.

GST can make India a $2-trillion economy

Finance Minister, Pranab Mukherjee, who had proposed a three-tier structure for the new indirect tax regime on 21.07.2010, quoting NCAER estimates that, "Well-designed GST will see an increase of 2 to 2.5 per cent in the GDP."

GST will subsume all the indirect levies like excise, VAT, local taxes, et cetera

Petroleum products, alcohol and power are out of GST net

The Centre and the States have agreed to leave out alcohol, petroleum products and electricity duty out of the proposed Goods and Services Tax (GST) system.

The consumers of these products will not be affected by any tax rate changes arising out of the implementation of the GST.As currently, alcohol and electricity are State subjects for taxation purposes. Petroleum products are already out of the existing VAT (value added tax) regime, and sales of these products are subject to sales tax determined by the States. At present, it is only the States that can levy tax at the retail stage, and not the Centre.

Reform measures for small savings

The Government has set up a Committee headed by Deputy Governor, Reserve Bank of India, Ms Shyamala Gopinath, to undertake a comprehensive review of the National Small Savings Fund (NSSF).

This is in keeping with one of the recommendations of the Thirteenth Finance Commission, that the design and implementation of the NSSF be examined with a view to introducing transparency, market-linked rates and other necessary reforms.

Order of the District Court in the matter of Hilton Trademark issue upheld by Rajasthan High Court

 

In the appeal, Hon’ble Rajasthan High Court has upheld the impugned Judgment restraining US-based hospitality chain Hilton from using its trade name in India on the ground that it sounds similar to that of a local hotel operating under the name and style of Hilltone.

The Hon’ble High Court observed that impugned Judgment could not be stayed because the local Hotel, namely Hilltone is pursuing their business under the registration done prior to that of the other party i.e. Hilton.

The impugned Judgment has put a restrain on Hilton from using any kind of misleading logo and mark, which can cause confusion among the public. Hilton was further directed to not to carry on the business of hotel and food items under such deceptively similar trademark.

 

 

  

• INTERNATIONAL

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An Oklahoma Abortion Law Raises New and Different Rights Questions

The Oklahoma legislature has passed several abortion measures, a number of which required overriding the Governor's veto. One of the laws prevents a patient from suing her doctor for failing to reveal the presence of a fetal abnormality.

The structure of this law is different in kind from that of other abortion restrictions, and it accordingly calls for a separate analysis. I will here analyze how the Oklahoma law differs from garden-variety abortion restrictions and whether we ought therefore to view it in a different light.

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Lawsuit over rights to film 'Precious' settled LOS ANGELES (AP)

Court records show a lawsuit between two film companies over the rights to the film "Precious" has been dismissed. and The Weinstein Co.and Lionsgate Films sued each other in February 2009 over rights to the film, which went on to win two Academy awards.
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