Receive Daily Updates by Email (Free Subscription)

[SEBI] Prudential Limits in Sector Exposure for Housing Finance Companies (HFCs)

SEBI Circular SEBI/HO/IMD/DF2/CIR/P/2017/14 dated February 22, 2017 to all Mutual Funds/Asset Management Companies (AMCs)/ Trustee Companies/Boards of Trustees of Mutual Funds

1. Presently, the guidelines for sectoral exposure in debt oriented mutual fund schemes put a limit of 25% at the sector level and an additional exposure not exceeding 10% (over and above the limit of 25%) in financial services sector only to HFCs. In light of the role of HFCs especially in affordable housing and to further the Government’s goal under Pradhan Mantri Aawas Yojana (PMAY), it has now been decided to increase additional exposure limits provided for HFCs in financial services sector from 10% to 15%.

2. Therefore, in partial modification to SEBI circular SEBI/HO/IMD/DF2/CIR/P/2016/68 dated August 10, 2016, the para on sector exposure shall read as under:

A Measure of Finance-Neutral Output Gap for India (RBI WPS (DEPR): 03/2017)

Reserve Bank of India placed on its website today a Working Paper titled “A Measure of Finance-Neutral Output Gap for India” by Deba Prasad Rath, Pratik Mitra and Joice John under the Reserve Bank of India Working Paper Series.

In the Indian context, the present literature on estimation of potential output - the level of output that an economy can produce sustainably over the medium term - is based on an understanding that sustainability is characterised as output consistent with low and stable inflation.

However, there are episodes when economic growth has been on an unsustainable path in spite of stable inflation suggesting that there could be other sources instilling imbalance into the system.

Fixed Term Employment Workmen for Made-Up Sector: Ministry of Labour and Employment Notifies Draft Rules

Ministry of Labour and Employment Notification dated 10th February, 2017

G.S.R. 122(E).— The following draft of certain rules further to amend the Industrial Employment (Standing Orders) Central Rules, 1946 which the Central Government proposes to make, in exercise of the powers conferred by section 15 of the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), is hereby published as required by sub-section (1) of the said section for information of all persons likely to be affected thereby and notice is hereby given that the said draft rules will be taken up for consideration after the expiry of thirty days from the date on which the copies of the Gazette of India in which this notification is published are made available to the public;

Objections or suggestions, if any, may be addressed to the Joint Secretary, Ministry of Labour and Employment (Industrial Relations Policy Legal Section), Shram Shakti Bhavan, Rafi Marg, New Delhi-110001;

The objections or suggestions which may be received from any person with respect to the said draft rules before the expiry of the aforesaid period from the date of publication of this notification in the Official Gazette, shall be considered by the Central Government.

Draft rules

1. These rules may be called the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2017.

[Tax] Amendment in the Notification S.O. 576(E), dated the 23rd of May, 2003

Ministry of Finance Department of Revenue (CBDT) Notification 12/2017 dated the 21st of February, 2017

In exercise of the powers conferred by sub-section (2) of section 138 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to all the relevant factors, hereby makes the following amendment in the notification of Government of India in the Ministry of Finance, Department of Revenue (Central Board of Direct Taxes) published in the Gazette of India, Part II, Section 3, Sub-section (ii) vide number S.O. 576(E), dated the 23rd of May, 2003, namely:-

In the said notification, in the proviso, in clause (ii), for the words and figures, "the notifications issued under section 138 from time to time", the words, brackets and figures, "provisions of sub-section (1) of section 138 of the Act" shall be substituted and shall be deemed to have been substituted with effect from 23rd May, 2003.

The Explanatory Memorandum as appended in Annexure.

[Service Tax] Services by the operators of Common Effluent Treatment Plant by way of treatment of effluent from the 1st of July 2012 to 31st of March 2015


Whereas, the Central Government is satisfied that in the period commencing on and from the 1st of July 2012 and ending with the 31st of March, 2015 (hereinafter referred to as the said period) according to a practice that was generally prevalent, there was non levy of service tax, on the services by the operators of Common Effluent Treatment Plant by way of treatment of effluent and this service was liable to service tax, in the said period, which was not being paid according to the said practice.

Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act, 1994 (32 of 1994), the Central Government hereby directs that the service tax payable on the said services by the operators of Common Effluent Treatment Plant, under section 66B of the Finance Act, 1994 but for the said practice, during the said period, shall not be required to be paid.

RBI (Mumbai Office) Close on February 21 for Public Transactions

The Mumbai Offices of the Reserve Bank of India will remain closed on February 21, 2017 on account of Municipal Corporation Elections in Greater Mumbai, Thane and Ulhasnagar.

How to Obtain and Use a Police Report

Laws Applicable: United States of America(USA)

An incident attracting the attention of a police officer almost always generates a police report. If you are involved in such an incident, for example, a car accident, it is advisable you get a copy of the report soonest possible.

Getting a copy
You can look up the agency’s number in the phonebook or the internet, call them and request a copy of the report. Sometimes you will be asked for a small fee to cover administrative costs like photocopying and mailing. In some cases, you will be asked to pick up the report in person while others will mail it to you.

Using a Police report in an Injury Case
A police report can give you some leverage while negotiating in a personal injury case even though it may not be admissible in a court of law. You can use it in your opening arguments during informal settlement discussions with the other side’s lawyer or insurance. The police report helps establish facts and conclusions like the day, date, location and circumstances of the incident.

[SEBI Circular] Participation in Derivatives Market by Mutual Funds

SEBI Circular SEBI/HO/IMD/DF2/CIR/P/2017/13 dated February 20, 2017 to all Mutual Funds/Asset Management Companies (AMCs)/ Trustee Companies/Boards of Trustees of Mutual Funds

1. In terms of SEBI circular no. DNPD/Cir-29/2005 dated September 14, 2005, existing schemes of the Mutual Funds, whose Scheme Information Documents (SIDs) do not envisage investments in derivatives, are required to obtain positive consent from majority of the unit holders before commencing investment in derivatives. An exit option has to be provided to the dissenting unit holders and such option is to be kept open for a period of one month prior to the scheme commencing trading in derivatives.

Draft Rationalisation of Forms and Reports under Certain Labour Laws Rules, 2017 - Objections or Suggestions Invited

Ministry of Labour and Employment Notification dated the 9th February, 2017

The Rationalisation of Forms and Reports under Certain Labour Laws Rules, 2017 - LINK

G.S.R. 116(E).– Whereas, for the ease of, and for the expedient compliance of the requirements of certain labour related laws referred to herein and for the purpose of rationalization of forms and reports so as to provide trust based efficient public service delivery, it has become essential to frame separate rules;

And whereas, the intention to provide for combined and simplified forms and reports is to sub-serve the purposes, electronically or otherwise, of the said labour related laws and the rules made thereunder, wherein provisions have been made for use of such forms and reports;

Applicability of Service Tax on the services by way of transportation of goods by a vessel from a place outside India to the customs station in India w.r.t. goods intended for transshipment to any country outside India

Department of Revenue (Tax Research Unit) Circular No.204/2/2017-Service Tax Dated-16th February, 2017

1. Representations seeking clarification on levy of service tax on the services by way of transportation of goods by a vessel from a place outside India to the customs station in India with respect to goods intended for transshipment to any country outside India.

2. In this regard, it is mentioned that the goods landing at Indian ports which are destined for any other country are allowed to be transshipped through Indian territory without payment of Customs duty in India. This is subject to the condition that such goods imported into a customs station are mentioned in the import manifest or the import report, as the case may be, as for transhipment to any place outside India. [Section 54(2) of the Customs Act, 1962]. Further, Goods Imported (Conditions of Transhipment) Regulations, 1995 have been prescribed for the procedure to be followed for transhipment of such goods.

[Central Excise] Periodicity of CAS-4 Certificates

Central Board of Excise and Customs(CBEC) | Instruction | F. NO. 206/01/2017-CX 6 | Dated the 16th of February, 2017 | To, Principal Chief Commissioners/ Chief Commissioners of Central Excise (All), Principal Chief Commissioners/ Chief Commissioners of Central Excise and Service Tax (All) and Directors General, DGCEI

1. Kind attention is invited to Board’s Circular No. 692/08/2003-CX dated 13th February, 2003 by which it was clarified that cost of production of captively consumed goods shall be done strictly in accordance with CAS-4.

2. Instances have been highlighted during C &AG audit that some assessees are not preparing CAS-4 certificates even after substantial time lapse from ending of financial year and filing of Tax Audit reports and therefore these assessees could not calculate the differential duty.

3. In this regard, it is directed that assessees should be requested that CAS-4 certificate of the financial year ending on 31st March shall be issued by 31st December of the next financial year.

[Customs] Expansion of 24x7 Customs clearance and clarification of levy of MOT charges in CFSs attached to 24x7 ports

Central Board of Excise & Customs(CBEC) Circular No. 04/2017-Customs dated 16-Feb-2017

1. CBEC had on a pilot basis introduced 24x7 customs clearance at 4 designated Air cargo complexes and 4 sea ports in respect of facilitated Bills of Entry and factory stuffed containers and goods shipped under free shipping bills [Circular No. 22/2012-Cus refers].

Subsequently, vide instruction from F. No. 450/25/2009-CusIV dated 31.5.13, the facility of 24x7 clearance [on pilot basis] was simultaneously extended to another 13 Air cargo complexes and to include all shipping bills free or otherwise filed at the said Air cargo complexes.

Since the clearances were run on pilot basis, therefore, on 31.12.14 [Circular 19/2014- Customs], CBEC allowed the facility of 24x7 customs clearance for goods covered by facilitated Bills of Entry and specified exports i. e. factory stuffed containers and goods shipped under free shipping bills on permanent basis at the designated 18 Sea Ports (including the 4 sea ports designated earlier). Currently, this facility is available at 19 Sea ports with Krishnapatnam having been added later. On the airside also this facility was made available on permanent basis for facilitated Bills of Entry and all shipping bills at the designated 17 Air Cargo Complex.

Now It Is Easier To File Petition For Poor: Middle Income Group Scheme Introduced By Supreme Court

Now, it is easier for the middle and relatively lower income group to avail and enjoy the legal services of the country. The Hon’ble Supreme Court of India has introduced the Middle Income Group Scheme. It is a self supporting scheme which provides legal services to the middle income group citizens i.e. citizens whose gross income is not exceeding Rs. 60,000 per month or Rs. 7,50,000 per annum.

The members of the governing body to whom the management of the Society is entrusted as required under Section 2 of the Societies Registration Act, 1860, as applicable to the National Capital Territory of Delhi includes Hon’ble Chief Justice of India as Patron-in-Chief, Attorney General for India as Ex-officio Vice-President, Solicitor General of India as Honorary Secretary and other senior advocates of the Apex Court as its members. 

As per the Supreme Court rules it is only through advocates on record cases can be filed before it.

A sum of Rs.500/- shall be payable to the Supreme Court Middle Income Group Legal Aid Society (SCMIGLAS) as service charges.

[Customs] Exchange Rate Notification w.e.f. 17th February, 2017

Central Board of Excise and Customs(CBEC) Notification No. 12/2017 - Customs (N.T.) dated 16th February, 2017



In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Central Board of Excise and Customs No.09/2017-CUSTOMS (N.T.), dated 2nd February, 2017, except as respects things done or omitted to be done before such supersession, the Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currencies specified in column (2) of each of Schedule I and Schedule II annexed hereto, into Indian currency or vice versa, shall, with effect from 17th February, 2017, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.

SCHEDULE-I

Pay IT Dues In Advance at RBI Or At Authorised Bank Branches – March 2017

The Reserve Bank of India has appealed to income tax assessees to remit their income tax dues sufficiently in advance of the due date. It has also stated that assessees can use alternate channels like select branches of agency banks or the facility of online payment of taxes offered by these banks. These will obviate the inconvenience involved in standing in long queues at the Reserve Bank offices.

It is observed that the rush for remitting Income –Tax dues through the Reserve Bank of India has been far too heavy towards the end of March every year and it becomes difficult for the Reserve Bank to cope with the pressure of issuing receipts although additional counters to the maximum extent possible are provided for the purpose.

[Banking] Reimbursement of Merchant Discount Rate(MDR)

RBI Notification DGBA.GAD.No.2128/44.02.001/2016-17 dated February 16, 2017 for all Agency Banks

1. The Government of India (GoI) has decided to absorb the Merchant Discount Rate (MDR) charges in respect of debit card transactions while making payments to GoI. The Office Memoranda issued by the Office of Controller General of Accounts dated December 14 and 15, 2016 and Central Board of Direct Taxes dated January 30, 2017 in this regard are enclosed. Agency banks may also be guided by the extant RBI Circulars regarding the applicable MDR rates.

[RBI] Forward Rate Agreement (FRA) and Interest Rate Swap (IRS) - Withdrawal of Fortnightly Return

RBI Notification FMRD.DIRD.13/14.01.019/2016-17 dated February 16, 2017 to all Market Participants

1. Attention is invited to the RBI notification ref. no. MPD.BC.187/07.01.279/1999-2000 dated July 07, 1999. As per the notification, banks were advised to submit a fortnightly return on FRA/IRS to Monetary Policy Department with a copy to various RBI departments.

2. In a further step towards rationalization of returns it has been decided to withdraw the said return with immediate effect. The banks are hereby advised to stop sending the hardcopy of the said return to RBI.

[RBI] Issuance of Rupee Denominated Bonds Overseas – Multilateral and Regional Financial Institutions as Investors

RBI A. P. (DIR Series) Circular No.31 dated February 16, 2017 to all Authorised Dealer Category – I Banks

1. Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to paragraph No. 4 of A. P. (DIR Series) Circular No. 60 dated April 13, 2016 and paragraph No. 3.3.3 of Master Direction No.5 dated January 1, 2016 on ‘External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers’ as amended from time to time about the criteria of recognized investors in the Rupee denominated bonds issued overseas.

2. In order to provide more choices of investors to Indian entities issuing Rupee denominated bonds abroad, it has been decided to also permit Multilateral and Regional Financial Institutions where India is a member country, to invest in these Rupee denominated bonds.

Amendment in Reg. 70 & Insertion of New Reg. 111A & 111B in SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009

Securities and Exchange Board of India(SEBI) Gazette Notification dated the 15th February, 2017

No. SEBI/LAD/NRO/GN/2016-17/030. ─ In exercise of the powers conferred under section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to further amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, namely:-

1. These regulations may be called the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2017.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009:-

Amendment in Regulation 2 and Seventh Schedule of SEBI (Mutual Funds) Regulations, 1996

Securities and Exchange Board of India(SEBI) Gazette Notification dated 15th February, 2017

No. SEBI/LAD/NRO/GN/2016-17/031 - In exercise of the powers conferred by section 30 read with clause (c) of sub-section (2) of section 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, namely:-

1. These Regulations may be called the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2017.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996,

Amendment in Regulation 7 of Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996

Securities and Exchange Board of India(SEBI) Gazette Notification dated the 15th February, 2017

No. SEBI/LAD/NRO/GN/2016-17/034. - In exercise of the powers conferred by Section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with Section 25 of the Depositories Act, 1996 (22 of 1996), the Board hereby makes the following Regulations to further amend the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996, namely:—

1. These Regulations may be called the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2017.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996,–
i. in Regulation 7, in sub-regulation (eb),-
(a) after words “share capital”, for the symbol “ : ”, the symbol “ ; ” shall be substituted.
(b) The proviso shall be omitted.

Amendment in Regulation 18 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012

Securities and Exchange Board of India(SEBI) Gazette Notification dated the 15th February, 2017

No. SEBI/LAD/NRO/GN/2016-17/033. - In exercise of the powers conferred by sections 4, 8A and 31 of the Securities Contracts (Regulation) Act, 1956 read with sections 11 and 30 of the Securities and Exchange Board of India Act, 1992, the Securities and Exchange Board of India hereby makes the following regulations to further amend the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012, namely:—

1. These regulations may be called the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Second Amendment) Regulations, 2017.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012,
(I) in regulation 18, in sub-regulation (4),-
(a) after the words “share capital”, for the symbol “ : ” the symbol “ . ” shall be substituted;
(b) the proviso shall be omitted.

Amendment in Regulation 37 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Securities and Exchange Board of India(SEBI) Gazette Notification dated February 15, 2017

No. SEBI/LAD/NRO/GN/2016-17/029 .─ In exercise of the powers conferred by section 11, sub section (2) of section 11A and section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with section 31 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Securities and Exchange Board of India hereby makes the following regulations to further amend the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, namely:-

1. These regulations may be called the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2017.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, in regulation 37, after sub-regulation (5),the following sub-regulation and proviso may be inserted, namely,-

Cabinet Approves Acquisition of Subsidiary Banks of State Bank of India

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved the acquisition by the State Bank of India of its subsidiary banks namely State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore. 

The Cabinet also approved the introduction of a Bill in Parliament to repeal the State Bank of India (Subsidiary Banks) Act, 1959 and the State Bank of Hyderabad Act, 1956.

The merger is likely to result in recurring savings, estimated at more than Rs. 1,000 crore in the first year, through a combination of enhanced operational efficiency and reduced cost of funds.  Existing customers of subsidiary banks will benefit from access to SBI’s global network.  The merger will also lead to better management of high value credit exposures through focused monitoring and control over cash flows instead of separate monitoring by six different banks.

Amendment in Reg. 4 of SEBI (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015

Securities and Exchange Board of India(SEBI) Gazette Notification dated the 15th of February, 2017

No. SEBI/LAD/NRO/GN/2016-17/032.─ In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Securities and Exchange Board of India hereby makes the following regulations to further amend the Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015, namely,─

1. These regulations may be called the Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) (Amendment) Regulations, 2017.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015,-
(I) In regulation 4, for clause (c), the following shall be substituted, namely-

Notification for Allowing Private Banks for Collection of EPFO Funds

Ministry of Labour and Employment Gazette Notification dated the 4th January, 2017

G.S.R. 6(E).—In exercise of the powers conferred by section 5 read with sub-section (1) of section 7 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby makes the following Scheme further to amend the Employees’ Provident Funds Scheme, 1952, namely:-

1. (1) This Scheme may be called the Employees' Provident Funds (Amendment) Scheme, 2017.
(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Employees’ Provident Funds Scheme, 1952,-
(a) in paragraph 38, in sub-paragraph (1), after the words and letters “or through PayGov platform”, the words “or through scheduled banks in India including private sector banks” shall be inserted;
(b) in paragraph 48, after the words and letters “or through PayGov platform”, the words “or through
scheduled banks in India including private sector banks” shall be inserted.