• MINISTRY OF FINANCE

SERVICE TAX

Notification No.38/2011 Dated 14.06.2011 Service Tax Exemption on Service provided in relation to transport of goods by rail extended till 'January, 2012'

On account of high inflation, the government has decided to defer the service tax levy on transport of goods by rail till first day of January, 2012. Accordingly, notification No.07/2010-Service Tax, dated the 27th February, 2010 stands amended.

CBEC Excise

Circular No. 946/07/2011 Dated 01.06.2011 Writing off of arrears of Central Excise duty and Customs duty - Constitution of Committees to advise the authority for writing off of arrears-reg

CBEC has decided to constitute three - member Committees of Chief Commissioners and Commissioners, which will examine the proposals for write off of irrecoverable arrears and recommend deserving cases to the authority competent to order such write off in terms of the Board's Circular dated 21.9.1990.

CBEC Excise Non-Tariff

Notification No. 14/ 2011-(N.T) Dated 03.06.2011 Exempts manufacturing unit engaged in the manufacture of recorded smart cards falling under sub-heading 8523 from the operation of the Central Excise Rules, 2002

CBEC has exempted every manufacturing unit engaged in the manufacture of recorded smart cards falling under sub-heading 8523 where manufacturer of such goods has a centralized billing or accounting system in respect of such goods manufactured by different manufacturing units from the operation of the Central Excise Rules, 2002

CBEC Customs

Notification No. 47/2011 Dated 14.06.2011 Imposition of anti- dumping duty on of on Pentaerythritol originating in or exported from China PR and imported into India

On the basis of the final findings of the designated authority, Central govt has imposed anti- dumping duty at the rate of US $ 515 per MT on imports of Pentaerythritol originating in or exported from China PR and imported into India.

Instruction From File No. 450/60/2011-Cus. IV Dated 08.06.2011 Monitoring of fresh Fruit and Vegetable Import from Europe for E.Colli bacterial contamination - regarding

As precautionary measure CBEC has decided that Food Safety and Standards Authority of India (FSSAI) would test samples of fresh Fruits and Vegetables consignments imported from Europe into India for E.Colli bacteria. Accordingly, directed all officers in charge of Ports, Airports, ICDs / CFSs, Land Customs Stations to ensure that clearance of such fresh Fruits and Vegetables imported from Europe is allowed only after complying with the above requirements and obtaining 'No Objection Certificate' from FSSAI.

• RESERVE BANK OF INDIA

A.P. (DIR Series)

Circular No. 71 Dated 14.06.2011 Exim Bank's Line of Credit of USD 36.56 million to the Government of the United Republic of Tanzania

Export-Import Bank of India has concluded an Agreement dated March 28, 2011 with the Government of the United Republic of Tanzania making available to the latter, a Line of Credit (LoC) of USD 36.56 million (USD thirty six million and five hundred sixty thousand) for financing eligible goods and services including consultancy services from India for the purpose of financing the purchase of 723 vehicles under the India Africa Fund into Tanzania.

Circular No. 70 Dated 09.06.2011 Remittance of assets by foreign nationals-Opening of NRO Accounts

In order to facilitate the foreign nationals to collect their pending dues in India, AD Category-I banks may permit foreign nationals employed in India holding valid visas are eligible to maintain resident accounts, to re-designate their resident account maintained in India as NRO account on leaving the country after their employment to enable them to receive their pending bonafide dues, subject to the conditions provided therein.

DBOD

Circular No. DBOD.BP.BC.No.99 /21.04.132/2010-11 Dated 10.06.2011 Prudential Guidelines on Restructuring of Advances by Banks - To remain applicable till the FY ending March 31, 2013

RBI has decided that the alternative option of computing diminution in the fair value of advances extended by small and rural branches on restructuring will remain applicable for another two years, i.e. till the financial year ending March 31, 2013.

DNBS

Circular No. DNBS (PD) CC.No. 222/03.10.001/2010-11 Dated 14.06.2011 Investment Abroad by NBFCs

NBFCs desirous of making any overseas investment is required to obtain 'No Objection' (NoC) of the Department of Non-Banking Supervision of Reserve Bank before making Overseas Investment investment, from the Regional Office of the Bank in whose jurisdiction the head office of the company is registered. Accordingly, Reserve Bank may issue a NOC to a NBFC, subject to the NBFC fulfilling the conditions enumerated in the Directions issued in this regard by Reserve Bank.

Circular No. DNBS.(PD)229 / CGM(US)-2011 Dated 14.06.2011 Non-Banking Financial Companies (Opening of Branch/Subsidiary/Joint Venture/ Representative Office or Undertaking Investment Abroad by NBFCs) Directions, 2011

Reserve Bank of India having considered it necessary in the public interest and being satisfied that for the purpose of enabling the Bank to regulate the credit system to the advantage of the country has issued Non-Banking Financial Companies (Opening of Branch/Subsidiary/Joint Venture/ Representative Office or Undertaking Investment Abroad by NBFCs) Directions, 2011, which shall come into force with immediate effect, i.e 14.06.2011.

OTHER

Circular No. DPSS.CO.OSD. No. 2764/06.11.001/2010-2011 Dated 14.06.2011 Directions for submission of system audit reports from CISA qualified Auditor- clarified

RBI has clarified that the Directions for submission of system audit reports from CISA qualified Auditor are applicable to only those entities which operate a payment system under the Payment and Settlement Systems Act, 2007. Accordingly, the requirement of system audits is not applicable where a bank/entity is a participant in various payment systems such as RTGS, NEFT, CFMS, ECS, NECS, Card payment systems (Visa, MasterCard, etc.), ATM networks (illustratively like NFS, BANCS) etc.

Circular No. DPSS (CO) EPPD No. /2649/ 04.03.01/2010-11 Dated 02.06.2011 Retail Electronic Payment Systems NEFT / NECS / RECS / ECS Levy of Processing Charges

RBI has decided to permit clearing houses / processing centers to levy charges on the originating banks for retail electronic payment products (NEFT, NECS, RECS and ECS). These charges will be applicable from July 01, 2011. All Clearing Houses / processing centres are accordingly required to put in place a system of recovering their processing charges.

Press Release

Press Release No. 2010-2011/1810 Dated 13.06.2011 RBI to issue Non-Sequential Numbered Banknotes in Denomination of '500'

With a view to enhancing operational efficiency and cost effectiveness in banknote printing at banknote presses, it has been decided to issue, to begin with, fresh banknotes of ` 500 denomination in packets, which may not necessarily all be sequentially numbered.

Press Release No. 2010-2011/1814 Dated 14.06.2011 Financial Stability Report June

The Reserve Bank of India presented its assessment of the health of India's financial sector in its Financial Stability Report (FSR), released. The report reflects the Reserve Bank's continuing endeavour to communicate its assessment of the incipient risks to financial sector stability.

Press Release No. 2010-2011/1824 Dated 16.06.2011 Mid-Quarter Monetary Policy Review: June 2011

RBI has decided to increase the repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.25 per cent to 7.5 per cent with immediate effect. Consequent to the above increase in the repo rate, the reverse repo rate under the LAF will stand automatically adjusted to 6.5 per cent and the marginal standing facility (MSF) rate to 8.5 per cent with immediate effect.

• PRESS INFORMATION Bureau

Dated 10.06.2011 Government Notifies the Collection of Statistics Rules, 2011 Under the Collection of Statistics Act, 2008

The Collection of Statistics Act, 2008 repealing the Collection of Statistics Act, 1953 was enacted by the Parliament on 7th January 2009 and was brought into force on 11th June 2010. The Rules under the Act, namely, the Collection of Statistics Rules, 2011 were notified on 16th May 2011.The Rules made under the Act provide for designating a nodal officer at the Centre and in each State/ UT who would advice the concerned line Ministries on steps to be taken to avoid unnecessary duplication.

• SECURITIES AND EXCHANGE BOARD OF INDIA

FII

Circular No. CIR/IMD/FIIC/7/2011 Dated 15.06.2011 Clarification on new reporting format of Offshore Derivative Instruments & Participatory Notes activity

SEBI has issued clarification on new reporting format of Offshore Derivative Instruments & Participatory Notes activity granting further time for implementation of the reports and that the first monthly summary report shall be submitted for the month of September, 2011 before 7th October, 2011.

PMD

Circular No. CIR/CFD/DIL/3/2011 Dated 03.06.2011 Redemption of Indian Depository Receipts (IDRs) into Underlying Equity Shares

SEBI has decided that after the completion of one year from the date of issuance of IDRs, redemption of the IDRs shall be permitted only if the IDRs are infrequently traded on the stock exchange(s) in India. The issuer company shall test the frequency of trading of IDRs on a half yearly basis ending on June and December of every year and if they are considered "infrequently traded", it shall be the trigger event for redemption.

SMD

Circular No. SEBI/MIRSD/Cir/04/2011 Dated 15.06.2011 Standardisation of Rating Symbols and Definitions

SEBI has issued standard symbols and their definitions for long and short term debt instruments, structured finance instruments and mutual funds schemes in line with international practices. Accordingly, CRAs are directed to adopt standard symbols and definitions within four months.

SMD

Circular No. CIR/OIAE/2/2011 Dated 03.06.2011 Processing of investor complaints against listed companies in SEBI Complaints Redress System (SCORES)

SEBI has commenced processing of investor complaints in a centralized web based complaints redress system 'SCORES' requiring all complaints pertaining to companies to be filed electronically sent through SCORES. Accordingly, supercedes the Circular No.OIAE/Cir-1/2009 dated November 25, 2009 so far as it relates to Annexure-C to the said Circular wherein the companies had to submit physical ATRs on the complaints forwarded by SEBI to them.

Circular No. CIR/MIRSD/03/2011 Dated 09.06.2011 Pre- funded instruments / Electronic fund transfers

SEBI has decided that if the aggregate value of pre-funded instruments is ` 50,000/- or more, per day per client, the stock brokers may accept the instruments only if the same are accompanied by the name of the bank account holder and number of the bank account debited for the purpose, duly certified by the issuing bank.

• MINISTRY OF COMMERCE

DGFT

Notification No. 57 (RE-2010)/2009-14 Dated 09.06.2011 Quantity restriction of 65 lakh bales on export of cotton during Cotton Season, 2010-11

Cap on export of cotton during the current Cotton Season is increased to 65 lakh bales from 55 lakh bales as was notified earlier. Other conditions remain unchanged.