• MINISTRY OF FINANCE

Service Tax

Circular No. 126/8/2010 - ST Dated 10.08.2010

The present Circular has been issued in form of clarification in relation to underwriting commission received by the Primary dealers for auction of Government Securities. The circular says that the conclusion drawn is that Government Securities are not securities of a body corporate. The concluding lines further suggest that Service Tax liability does not arise on Underwriting Fee or Underwriting Commission received by the Primary Dealers during the course of the dealing in Government Securities.

CBEC CUSTOMS

Circular No. 26/2010 Dated 09.08.2010

Thepresent circular was issued in relation to Notification No. 13/2010-Customs dated 19.02.2010 pertaining to exemption from Customs duty on specified goods imported for the purpose of organising CWG games. The present circular clarifies that suppliers/ contractors/vendors appointed by the OC, CWG would not be eligible for the benefit under the referred notification.

• RESERVE BANK OF INDIA

DBOD

Notification No. DBOD. AML.No.2329/14.01.037/2010-11 Dated 09.08.2010

On review Financial Action Task Force (FATF) has identified certain jurisdictions which have strategic AML/CFT deficiencies. FATF, vide its statement dated June 25, 2010 (copy enclosed) has called upon jurisdictions listed in the statement to complete the implementation of their action plan within the timeframe. The FATF, in the statement has called upon its members to consider the information given in the statement. All banks and All India Financial Institutions are accordingly advised to consider the information contained in the enclosed statement.

Press Release No. 2010-2011/189 Dated 04.08.2010 RBI places the draft report of the Internal Group on Introduction of Credit Default Swaps (CDS) for Corporate Bonds for Public Comments

The Reserve Bank of India released draft report on introduction of CDS for corporate bonds inviting public comments. The Draft guidelines on introduction of CDS were first issued in 2003 and then in 2007. However, issuance of final guidelines was deferred due to risk of management practices then prevailing in the banking system and also the experiences relating to the financial crisis.

Press Release No. 2010-2011/188 Dated 04.08.2010 Half Yearly Report on Management of Foreign Exchange Reserves

The Reserve Bank of India on 04.08.2010 has released the 14th half-yearly report on management of foreign exchange reserves with reference to March 2010.The Reserve Bank had commenced a process of compiling half yearly reports and placing them in the public domain with a lag of about three months for bringing about more transparency and also for enhancing the level of disclosure.

IDMD

Circular No. IDMD/589/08.02.033/2010-11 Dated 02.08.2010 Auction of Government of India Dated Securities

Government of India have offered to sell (re-issue) of (a) "7.46 percent Government Stock 2017 " for a notified amount of Rs.5,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(3)-W&M/2010 dated August 2, 2010, (b) "8.13 percent Government Stock 2022 "for a notified amount of Rs 5,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(3)-W&M/2010(i) dated August 2, 2010 and (c) "8.32 percent Government Stock 2032" for a notified amount of Rs. 3,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(3)-W&M/2010(ii) dated August 2, 2010.

• Insurance Regulatory and Development Authority

Circular No. IRDA/Life/Cir/Misc/126/08/2010 Dated 09.08.2010

The present circular is in regard to Regulations relating to referral arrangements. The Regulations effectively means that existing referral entities which does not qualify for sharing data have to be terminated right away. Further, some entities which have referral agreements with insurers could be eligible for data sharing in the new regime also.

• Securities and Exchange Board of India

Mutual Fund

Circular No. Cir/IMD/DF/8/2010 Dated 06.08.2010

The present Circular is issued by SEBI in exercise of powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992 with a view of notification No. LAD-NRO/ GN/2010-11/13/13945 dated July 29, 2010 by amendment makes Fund of Fund schemes, existing as on July 29, 2010, shall, with the approval of trustees, adopt either of the total expense structures laid out in Regulation 52(6)(a) and change the total expense structure after giving the unit holders an option to exit in accordance with Regulation 18(15A).

FII

Circular No. CIR/IMD/FIIC/9/2010 Dated 06.08.2010 Allocation of Government debt & Corporate debt investment limits to FIIs

Under Circular IMD/FII&C/37/2009 dated February 06, 2009, the modalities for the allocation methodology through the bidding process based on the assessment of the allocation and the utilization of the limits to FIIs for investments in Corporate Debt and Government Debt, it has been decided to allocate the unutilized limits subject to certain conditions.

• MINISTRY OF ECONOMIC AFFAIRS

Press Release No. 2010-2011/175 Dated 02.08.2010 Discussion Paper on Engagement of 'for-profit' Companies as Business Correspondents

The Reserve Bank of India on 02.08.2010 released on its website, a Discussion Paper on "Engagement of 'for profit' Companies as Business Correspondents (BCs)" to seek the views/comments of banks, non-banking financial institutions, 'for-profit' companies, regulators, academicians, NGOs and the public at large.

Notification No. GSR639(E) Dated 28.07.2010 Senior Citizens Savings Scheme (Amendment) Rules, 2010

Senior Citizens Savings Scheme (Amendment) Rules, 2010 amended the Senior Citizens Savings Scheme Rules, 2004 which included that in case of death of a depositor before maturity, the account shall be closed and deposit refunded with interest to the nominee .

• MINISTRY OF COMMERCE AND INDUSTRY

DGFT

Notification No. 53/2009-2014 Dated 03.08.2010 Amendments made in Table A of the Schedule 2 of the Foreign Trade (Development & Regulation) Act, 1992

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with Para 1.3 and 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes following amendments in Table A of the Schedule 2 of the ITC(HS) Classification of Export and Import Items, by inserting entry at Serial No. 7A .

• Press Information Bureau

Dated 03.08.2010 Investment Upto Rs. 20000/- In Longterm Infrastructure Bonds Allowed As Deduction U/S 80ccf Of Income Tax Act 1961,Amendment w.e.f.1.4.2011

The Finance Act, 2010 has inserted a new section 80CCF in the Income Tax Act, 1961, which provides that an amount upto the extent of Rs. 20,000/- paid or deposited during the financial years 2010-11 as subscription to long-term infrastructure bonds shall be allowed as deduction in computing the income of an individual or a Hindu Undivided Family. This amendment takes effect from 1.4.2011 and is applicable for the subscriptions to eligible/notified infrastructure bonds made during the Financial Year 2010-11.

• TELECOM REGULATORY AUTHORITY OF INDIA

Notification No. 6-7/2010 - B&CS. Dated 30.07.2010 The Telecommunication (Broadcasting And Cable Services) Interconnection (Sixth Amendment) Regulations, 2010 (No. 4 Of 2010)

The Telecom Regulatory Authority of India has amended the Telecommunication (Broadcasting and Cable Services) Interconnection Regulation, 2004 (13 of 2004). This amendment regulation has made following amendments in the parent regulation :

(i) Substitution of sub-clause (l) and (m) of Regulation 2; (ii) Substitution of certain text in sub-regulation 3.2 and 3.5 of Regulation 3; (iii) Substitution of certain text in sub-regulation 4.1 and 4.2 of Regulation 4; (iv) Substitution of certain text in sub-regulation 13.2A.1, 13.2A.2, 13.2A.3, 13.2A.4, 13.2A.5, 13.2A.6 of Regulation 13.2A; and (v) Substitution of certain text in sub-regulation 13.2B.1 and 13.2B.2 of Regulation 13.2B