• MINISTRY OF FINANCE

Service Tax

Circular No. 131/ 13/ 2010 - ST dated 07.12.2010

A doubt had been raised whether renting of electricity meter by a service provider rendering the service of transmission or distribution of electricity is covered by the exemption. The matter was examined. It is a general practice among electricity transmission (TRANSCO) / distribution companies (DISCOM) to install electricity meters at the premises of the consumers, to measure the amount of electricity consumed by them, and 'hire charges' are collected periodically.

Supply of electricity meters for hire to the consumers being an essential activity having direct and close nexus with transmission and distribution of electricity, the same is covered by the exemption for transmission and distribution of electricity.

CBEC Customs

Circular No. 43/2010 dated 06.12.2010

Anti Dumping Duty on parts/components of Compact Fluorescent Lamps (CFL) from China and Hong Kong as per Customs Notification No.138/2002-Customs dated 10.12.2002 - Vide this notification it has been stated that when any article such as CFL is imported in CKD/SKD condition, its classification for purpose of assessment would be done as complete or finished article in terms of the said Rule 2(a). Accordingly, when anti-dumping duty is attracted on any article, then it is also to be levied if the said article is imported in CKD/SKD condition either together in one lot or in part shipments.

Notification No. 120/2010 dated 01.12.2010

Whereas in the matter of imports of Phenol, falling under sub heading 2907 11 10 or 2707 99 00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from, Thailand and Japan (hereinafter referred as the subject countries) and imported into India, the designated authority in its preliminary findings had come to the conclusion that -(a)the subject goods had been exported to India from the subject countries below its normal value;(b)the domestic industry had suffered material injury; (c)the injury had been caused by the dumped imports from subject countries;

and had recommended imposition of provisional anti-dumping duty on the imports of subject goods, originating in, or exported from, the subject countries;

And whereas, on the basis of the aforesaid findings of the designated authority, the Central Government had imposed provisional anti-dumping duty on the subject goods on the 19th April,2010;

And whereas, the designated authority, in its final findings had come to the conclusion that various parameters have established positive dumping margin as well as material injury to the domestic industry caused by such dumped imports of Phenol originating in, or exported, from Thailand and Japan and imported into India;

Now, therefore, in exercise of the powers conferred by sub-section (1) read with sub-section (5) of section 9A of the said Customs Tariff Act, 1975 read with rules 18 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, on the basis of the aforesaid findings of the designated authority, hereby imposes on the subject goods, an anti-dumping duty at the rate indicated in the Table, for a period of five years w.e.f.19.04.2010.

Notification No. 121/2010 dated 01.12.2010

Central Government, vide this notification, has made further amendments in the exemption to the specified goods under section 25(1) of the Customs Act, 1962, with the addition of the Central African Republic as serial number 26, to the schedule notified vide GSR 590(E) dated 13.08.2010.

• MINISTRY OF CORPORATE AFFAIRS

Circular No. 06/2010 dated 03.12.2010

Ministry had launched a Scheme namely, "Easy Exit Scheme, 2010" under Section 560 of the Companies Act, 1956 during May-Aug, 2010, in order to give an opportunity to the defunct companies, for getting their names struck off from the Register of Companies. A large number of companies availed this scheme. However, on huge demand from corporate sector, the Ministry has decided to re-launch the Scheme as, "Easy Exit Scheme, 2011" under Section 560 of the Companies Act, 1956.The Scheme shall come into force on January 1, 2011 and shall remain in force up to January 31, 2011.

• MINISTRY OF COMMERCE AND INDUSTRY

DGFT

Public Notice No. 17/(RE-2010)/2009-2014 dated 06.12.2010

Amendment made in Para 2.27 of Handbook of Procedures, Vol. I, 2009-2014 (RE- 2010), in view of Customs Notification No.16 dated 27.02.2010, where all the exporters will be able to import duty free samples upto Rs.3,00,000. Earlier only gems and jewellery sector was allowed this benefit, for the rest the limit was Rs.1,00,000.This harmonises the HBP with Customs notification dated 27.2.2010.

• RESERVE BANK OF INDIA

Press Release No. 2010-2011/606 dated 01.11.2010

The Reserve Bank of India released developments on Second Quarter Review of Monetary Policy 2010-11 announced on November 02, 2010. Overall assessment was done that uncertain global outlook, and the dominance of supply rigidities in certain sectors that impart rigidity to the inflation path, pose greater challenge for monetary policy in its objective of anchoring inflationary expectations without hurting growth.

Press Release No. 2010-2011/615 dated 01.11.2010

Reserve Bank released its Second Quarter Review of Monetary Policy for 2010-11. At the heart of the policy was a further increase in the repo and reverse repo rates by 25 basis points each. Accordingly, the repo rate stands raised to 6.25 percent and the reverse repo rate to 5.25 percent. The cash reserve ratio (CRR) has been left unchanged at 6 percent of net demand and time liabilities (NDTL) of banks.

Based purely on current growth and inflation trends, the Reserve Bank believes that the likelihood of further rate actions in the immediate future is relatively low.

25 Banks welcomed the Reserve Bank's policy stance. They agreed that the monetary measures announced by the Reserve Bank were appropriate in the current domestic growth-inflation dynamics. Apart from monetary measures, discussions with banks focused on four specific issues, i.e., (i) liquidity situation; (ii) housing credit, price and risk; (iii) customer service; and (iv) external sector management.

AP (DIR Series)

Circular No. A.P. (DIR Series) Circular No. 22 dated 03.12.2010

Export-Import Bank of India (Exim Bank) has concluded an Agreement dated September 13, 2010 with the Government of Lao People's Democratic Republic (Lao PDR) making available to the latter, a Line of Credit (LOC) of USD 72.55 million (USD seventy two million five hundred fifty thousand) for financing eligible goods and services including consultancy services from India.

The goods and services including consultancy services from India are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. Out of the total credit by Exim Bank under this Agreement, the goods and services including consultancy services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India, and the remaining 25 per cent goods and services (other than consultancy services) may be procured by the seller for the purpose of Eligible Contract from outside India.

DBOD

Circular No. DBOD No. CID. BC.64/20.16.042/2010-11 dated 01.12.2010-

Reference to earlier notification where it was advised that 'Certificate of Registration' was issued to Experian Credit Information Company of India Private Ltd. and Equifax Credit Information Services Private Ltd. respectively.

Now it is stated that, on November 25, 2010 'Certificate of Registration' has been issued to High Mark Credit Information Services Private Limited to commence the business of credit information. Their address is High Mark Credit Information Services Pvt. Ltd. 402, 4th Floor, Sheil Estate 158, C.S.T.Road Kalina, Santacruz (East) Mumbai - 400 098

Circular No. DBOD. AML. BC. No. 65/14 .01.001/2010-11 dated 07.12.2010

Reserve Bank of India vide this circular has issued guidelines on Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/ Combating of Financing of Terrorism (CFT). "Money mules" can be used to launder the proceeds of fraud schemes (e.g., phishing and identity theft) by criminals who gain illegal access to deposit accounts by recruiting third parties to act as "money mules." Many a times the address and contact details of such mules are found to be fake or not upto date, making it difficult for enforcement agencies to locate the account holder.

Banks are advised to strictly adhere to the guidelines on KYC/AML/CFT issued from time to time and to those relating to periodical updation of customer identification data after the account is opened and also to monitoring of transactions in order to protect themselves and their customers from misuse by such fraudsters.

DNBS

Circular No. DNBS.PD/ CC.No. 204 / 03.05.002/2010-11 dated 01.12.2010

The Reserve Bank vide this circular stated that every NBFC shall prepare its balance sheet and profit and loss account as on March 31 every year and extension of date of balance sheet requires prior approval of RBI. Every non-banking financial company shall finalise its balance sheet within a period of 3 months from the date to which it pertains in para 12 of the Directions.

IDMD

Circular No. IDMD.PCD.No. 24/14.03.03/2010-11 dated 06.12.2010

Reserve Bank vide this circular notified partial modification of the Issuance of Non-Convertible Debentures (Reserve Bank) Directions, 2010 dated June 23, 2010 and has issued an amendment Direction, i.e., Issuance of Non-Convertible Debentures (Reserve Bank) (Amendment) Directions, 2010.Following has been permitted :

a. Financial Institutions (FIs) to invest in NCDs of maturity up to one year; b. Non-Banking Financial Companies including Primary Dealers that do not maintain a working capital limit to issue NCDs of maturity up to one year; and c. FIIs to invest in NCDs of maturity up to one year subject to extant provisions of FEMA and SEBI

• SECURITIES AND EXCHANGE BOARD OF INDIA

Mutual Fund

Circular No. Cir/IMD/DF/20/2010 dated 06.12.2010

In modification of an earlier circular, it has been decided that physical verification of gold underlying the Gold ETF units shall be carried out by statutory auditors of mutual fund schemes and reported to trustees on half yearly basis. The confirmation on physical verification of gold as above shall also form part of half yearly report by trustees to SEBI which shall come into effect from the half yearly report ending April 2011 by trustees to SEBI. All other conditions in the said circular remain unchanged.

Press Release No. 264/2010 dated 03.12.2010

As per an earlier circular dated 26.11.2010, investment limits for Government debt long term, corporate bonds, long term infrastructure & corporate debt old limit were available for allocation to the FIIs/ sub-accounts in the open bidding platform. The bidding for these limits took place on the BSE offered platform on December 02, 2010.

Under Government debt long term limits, out of Rs 22,795 crore available, Rs 22,000 crore was bid for and allocated. In the corporate bond long term infrastructure category, Rs 22,000 crore was available and Rs 20,100 crore was bid for and allocated.

Pursuant to the bidding, 31 successful bids were allocated in government debt long term category. In corporate bond long term infrastructure category, 19 successful bids were allocated in limits. In corporate debt old limit category, 17 successful bids were allocated.

Secondary Market Department

Circular No. MRD/DP/35/2010 dated 01.12.2010

It was observed from the information provided by the depositories that the companies listed in Annexure 'A' had established connectivity with both the depositories during the months of July and August 2010.

The stock exchanges are advised to consider shifting the trading in these securities from TFTS to normal Rolling Settlement, where at least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode, before shifting the trading in the securities of the company from TFTS to normal Rolling Settlement.

For this purpose, the listed companies shall obtain a certificate from their Registrar and Transfer Agent (RTA) and submit the same to the stock exchange/s. The Stock Exchanges are advised to report all the action taken in the Monthly/Quarterly Development Report to SEBI.

• TELECOM REGULATORY AUTHORITY OF INDIA

Press Release No. 64/2010 dated 08.12.2010

The Telecom Regulatory Authority of India (TRAI) issued recommendations on 'National Broadband Plan'. An effective National Broadband network would greatly facilitate inclusive growth of the country by including the large rural population in governance and decision making process and extend to the rural areas.

Currently in India, the penetration of broadband is 0.8% as against the teledensity of 60.99 as of Sep'2010. Now a National Broadband Network will be established. This Network will be established in two phases. The first phase covering all cities, urban areas and Gram Panchayats will be completed by the year 2012. Phase II will see the extension of the network to all the habitations having a population more than 500, to be completed by the year 2013. This network will be established at a cost of about Rs 60,000 crore. It will be financed by USO fund and the loan given/ guaranteed by Central Government.

The program is expected to bring immense benefit when fully operational. The estimated revenue of NOFA and all SOFA is expected to be Rs 26,000 crore per year. The objective of national broadband network is to provide Fibre to home in 63 cities covered under JNURM, Fibre to kerb in all other cities (0.5 Km from any residence). In order to enable cable industry to go fully digital, the recommendations of TRAI dated 5th august 2010 on "Implementation of digital addressable system in India" will need to be implemented on priority basis.

• PRESS INFORMATION BEREAU

PIB Release dated 01.12.2010

The Union Cabinet approved the proposal to amend Fundamental Rule (FR) 56 (d) to provide for extension in service, to the Foreign Secretary for such period or periods as may be considered necessary in public interest, subject to the condition that the total term as Foreign Secretary does not exceed two years. This is in view of the assignment of Foreign Secretary having increasingly acquired critical dimensions from the national security and strategic perspective, and the need to ensure continuity and swiftness in the decision making process.

PIB Release dated 01.12.2010

Union Finance Minister, Shri Pranab Mukherjee launched the new website of the Department of Disinvestment (www.divest.nic.in) and said that in the age of information technology and Right to Information the website acts like a window to the department and provides information at the click of the mouse and also said that the new website is user friendly and makes available information in a more organized and systematic fashion. New features of the website include Fact Sheets on Forthcoming, Current and Post Public Offers which would be useful to all users i.e. Investors, CPSEs, Intermediaries, and Researchers etc.

The Department has launched this website to provide primary credible data, to all kinds of users- Investors, PSUs, intermediaries, academicians, researchers, media as well as any person or organization having an interest in the disinvestment process. 49 listed CPSEs have nearly 25% of the total market capitalization of all listed companies on BSE.

PIB Release dated 01.12.2010

The Telecom Regulatory Authority of India (TRAI) issued "The Telecom Commercial Communications Customer Preference Regulations, 2010". This Regulation covers both commercial calls as well as SMSs. It will be effective from 1st January, 2011.

Customer registration will be effective within seven days of registration .The customer can register by ringing up 1909 or sending SMS to 1909. This service will be toll free and the customer will be given a Registration number. The procedure for registration of telemarketers with TRAI has also been simplified. All telemarketers now have the facility of registering online. The registration will be immediate on payment of registration fee. Telemarketers currently registered with DOT should reregister.

The defaulting telemarketers will be liable to pay heavy penalties. First offence Rs. 25,000/-; Second offence Rs 75,000/-; Third offence Rs. 80,000/-; Fourth offence Rs.1,20,000/-; Fifth offence Rs. 1,50,000/-; and Sixth offence Rs.2,50,000/-.The telemarketer will be blacklisted on commission of the sixth offence. The telecom providers resources of the blacklisted telemarketer will be disconnected by all the services and will not be restored for a period of two years.

PIB Release dated 01.12.2010

Minister of Overseas Indian Affairs, Shri Vayalar Ravi gave information by a written reply in the Rajya Sabha that the Government has recently amended the Emigration Rules, 1983 vide Emigration (Amendment) Rules, 2009 notified on 09.07.2009. Major highlights of the amended rules are as follows:

Validity period of a new registration certificate has been increased from the existing 5 years to 10 years maximum; the amount of security to be furnished by the recruiting agent in the form of bank guarantee has been increased to Rs twenty lacs. Application fee for registration certificate has been increased from Rs five thousand to Rs twenty five thousand.

The application for registration now will have to be accompanied by a copy of the applicant's bachelor's degree or two years diploma or equivalent. The service charges to be collected by the recruiting agent can be a maximum of Rs twenty thousand. The foreign employer will have to furnish a bank guarantee of ten thousand rupees per worker subject to a minimum of Rs one Lac and a maximum of Rs twenty Lacs. The fee for appeal to the central Government has been increased from existing Rs two hundred to Rs two thousand.

PIB Release dated 03.12.2010

DGCA had issued directions on November 19, 2010 to keep the passengers informed of pricing pattern of airlines. Scheduled domestic airlines held a meeting with DGCA on November 22, 2010 and sought time till December 1, 2010 to furnish their action plan. In response the airlines had proposed domestic fares be categorized into four slabs based on distance. Replies from the airlines were examined. Meanwhile Tariff Analysis Unit set up in DGCA has been asked to vigorously monitor tariff of scheduled domestic airlines on regular basis. The Unit will continue to report any abrupt increase in airfares to the notice of DGCA so that timely directive is issued to the concerned airline.

The Ministry of Civil Aviation has decided to set up an Economic Advisory Council (EAC) in the Ministry of Civil Aviation . The EAC shall meet once in a quarter, deliberate on these issues and advise the Ministry of Civil Aviation from time to time.  The first meeting of the EAC will be held on December 10, 2010. The Minister of Civil Aviation will attend this meeting.