Free Email Subscription - Daily New Updates (Verification Email Will Be Sent)

India: Financial Sector Assessment Program 2017 — Detailed Assessment Reports (DARs)

Jan 19, 2018: Ministry of Finance, PIB —  The two main reports of the 2017 India Financial Sector Assessment Programme (FSAP) – the Financial System Stability Assessment (FSSA) and Financial Sector Assessment (FSA), were released by the International Monetary Fund (IMF) and the World Bank, respectively on their websites on December 21, 2017.

In continuation, the IMF and the World Bank today released two Detailed Assessment Reports (DARs) relating to the 2017 India FSAP. The report providing ‘Detailed Assessment of Observance—Basel Core Principles for Effective Banking Supervision’ has been released by the IMF and the World Bank and the report providing ‘Detailed Assessment of Observance of Clearing Corporation of India Limited (CCIL) Central Counterparty (CCP) and Trade Repository (TR)’, was released by the World Bank.

India welcomes these assessment reports by the joint IMF-World Bank team conforming to the highest international standards.

National CSR Data Portal & Corporate Data Portal - Launched By Union Minister For Finance & Corporate Affairs In Delhi

Jan 19, 2018: Shri Arun Jaitley, Union Minister for Finance and Corporate Affairs launched the National CSR Data Portal & Corporate Data Portal today in the presence of Shri P.P. Chaudhary, Minister of State for Corporate Affairs and Law & Justice.

Shri Arun Jaitley said that the initiative is a significant step towards driving accountability and transparency for corporate India. By making the portals accessible to general public, it will ensure high level of compliance and also in institutionalising and consolidating the CSR activities.

[RBI] Census On Foreign Liabilities & Assets Of Indian Direct Investment Companies 2016-17 – Data Release

Jan 19, 2018: Today, the Reserve Bank released the provisional results of the 2016-17 round of the annual census on foreign liabilities and assets (FLA) of Indian direct investment companies. This census covers Indian companies that have cross-border liabilities and assets arising on account of foreign direct investment (FDI) in India and/or overseas direct investment (ODI).

Of the 18,667 companies that responded, 17,020 companies had FDI/ODI in their balance sheets in March 2017. Over 80 per cent of the 15,169 companies that reported inward FDI were subsidiaries of foreign companies (i.e., single foreign investor holding above 50 per cent of total equity).

[SEBI] Online Filing System For Offer Documents, Schemes Of Arrangement, Takeovers & Buy-backs

SEBI circular no. SEBI/HO/CFD/DIL1/CIR/P/2018/011 dated January 19, 2018 regarding 'online Filing System for Offer Documents, Schemes of Arrangement, Takeovers and Buy backs' is reproduced below:—

1. In order to facilitate ease of operations in terms of seeking observations on draft offer documents, draft letter of offers and draft schemes of arrangement under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and SEBI (Buy Back of Securities) Regulations, 1998 and various circulars issued thereunder, SEBI has introduced an online system for filings related to public issues, rights issues, institutional placement programme, schemes of arrangement, takeovers and buy backs.

[SEBI] 3rd Report Submitted By Alternative Investment Policy Advisory Committee (Public Comments Invited)

Jan 19, 2018: 1. To solicit the comments/views from public on suggestions pertaining to the third report submitted by Alternative Investment Policy Advisory Committee.

Background:
2. SEBI had constituted a standing committee ‘Alternative Investment Policy Advisory Committee' (AIPAC) under chairmanship of Shri. N. R. Narayana Murthy in March 2015. AIPAC has submitted its third report to SEBI with various recommendations stated therein.

[SEBI] Operational Modalities For Participation By Strategic Investors In InvITs & REITs

SEBI circular no. SEBI/HO/DDHS/CIR/P/2018/10 dated January 18, 2018 regarding participation by Strategic Investor(s) in InvITs and REITs, is as under:-

1. SEBI (Infrastructure Investment Trusts) Regulations, 2014 (“InvIT Regulations”) define strategic investors under Regulation 2(1)(zza) of the InvIT Regulations and allows them to participate in InvITs. Further, SEBI (Real Estate Investment Trusts) Regulations, 2014 (“REIT Regulations”) vide amendment notification dated December 15, 2017, inter-alia, define strategic investors under Regulation 2(1)(ztb) of the REIT Regulations and allows them to participate in REITs.

25th GST Council Meeting — Recommendations

Jan 18, 2018: 25th meeting of GST Council was convened on 18th January 2018 (Thursday) at Vigyan Bhawan, New Delhi, India.

A. Policy Changes recommended by the 25th GST Council Meeting

The Union Finance Minister Shri Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi today. The following Policy Changes have been recommended by the GST Council in its 25th meeting held today:

[Customs] Exchange Rate Notification w.e.f. 19th January, 2018

CBEC has notified the rate of exchange of one unit of foreign currency equivalent to Indian rupees relating to imported and export goods, in its notification no. 6/2018 - Customs (N.T.) dated 18th January, 2018 (w.e.f. 19th January, 2018). The contents of the said notification is reproduced as under:

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.1/2018-CUSTOMS (N.T.), dated 4th January, 2018 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 19th January, 2018, 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.

[Customs-Exemption] Temporary Import Of Professional Equipment & Sports Goods Under A.T.A. Carnet

Central Board of Excise and Customs Notification No. 4/2018 - Customs dated 18th January, 2018.— In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods as specified in Schedule given below, when imported into India, from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the integrated tax leviable thereon under sub-section (7) of section 3 of the said Customs Tariff Act, subject to the conditions that:-

[Anti-dumping Duty] Revocation Of Notification No. 40/2012-Customs (ADD) Dt. 30-Aug-2012

Ministry of Finance (Department of Revenue) Notification No. 40/2012 - Customs (ADD), dated 30-08-2012, was regarding levying of anti-dumping duty on imports of Metronidazole, originating in, or exported from People's Republic of China, for a further period of five years.
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -  - - - - - - - 
“Ministry of Finance (Department of Revenue) Notification No. 2/2018-Customs (ADD) dated the 17th January, 2018.— In exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) read with rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Antidumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government hereby rescinds the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 40/2012-Customs (ADD), dated the 30th August, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub section (i) vide number G.S.R. 657 (E), dated the 30th August, 2012, except as respects things done or omitted to be done before such rescission.

[IBBI] Disclosures By Insolvency Professionals & Other Professionals Appointed By Insolvency Professionals Conducting Resolution Processes

Insolvency and Bankruptcy Board of India issued Circular No. IP/005/2018 dated 16th January, 2018 addressed to all Registered Insolvency Professionals and all Registered Insolvency Professional Agencies, regarding 'disclosures by Insolvency Professionals and other Professionals appointed by Insolvency Professionals conducting Resolution Processes'. The contents of the circular is reproduced as under:-

1. The Insolvency and Bankruptcy Code, 2016 read with regulations made thereunder provide for appointment of an insolvency professional [(Interim Resolution Professional (IRP) / Resolution Professional (RP)] to conduct the resolution process (Corporate Insolvency Resolution Process and the Fast Track Process) and discharge other duties. These authorise the Insolvency Professional to appoint registered valuers, accountants, legal and other professionals to assist him in discharge of his duties in resolution process.

[IBBI] Fees Payable To An Insolvency Professional & To Other Professionals Appointed By An Insolvency Professional

Insolvency and Bankruptcy Board of India issued Circular No. IP/004/2018 dated 16th January, 2018 addressed to all Registered Insolvency Professionals and all Registered Insolvency Professional Agencies, regarding 'fees payable to an insolvency professional and to other professionals appointed by an insolvency professional'. The contents of the circular is reproduced as under:-

1. Section 206 of the Insolvency and Bankruptcy Code, 2016 (Code) provides that only a person registered as an insolvency professional with the Insolvency and Bankruptcy Board of India (IBBI) can render services as an insolvency professional under the Code. Section 23 read with section 5(27) of the Code requires that an insolvency professional, who is appointed as an interim resolution professional or a resolution professional, shall conduct the entire corporate insolvency resolution process, including fast track process. In terms of section 5(13) of the Code, ‘the fees payable to any person acting as a resolution professional’ is included in ‘insolvency resolution process cost’, which needs to be paid in priority.

Foreign Exchange Earnings Through Tourism In India In December 2017

Jan 17, 2018: Ministry of Tourism estimates monthly Foreign Exchange Earnings (FEEs) through tourism in India, both in rupee and dollar terms based on the credit data of Travel Head from Balance of Payments of RBI.

The highlights of the estimates of FEEs from tourism in India for December 2017 and Jan-Dec 2017 are as below:

Foreign Exchange Earnings (FEEs) through Tourism (in Rs. terms)
FEEs during the month of December 2017 were Rs. 19,514 crore as compared to Rs. 16,558 crore in December 2016 and Rs. 14,152 crore in December 2015.
The growth rate in FEEs in rupee terms in December 2017 over December 2016 has increased to 17.9%, compared to 17.0% in December 2016 over December 2015.
FEEs during 2017 were Rs. 1,80,379  crore with a growth of 17.0% over 2016. Whereas, the FEEs during 2016 were Rs.1,54,146  crore with a growth of 14.0% over 2015.

Foreign Exchange Earnings (FEEs) through Tourism (in US $ terms)

Direct Tax Collections Grow 18.7% Upto 15th January, 2018 (FY 2017-2018)

Jan 17, 2018: Provisional figures of Direct Tax collections up to 15th January, 2018 show that net collections are at Rs. 6.89 lakh crore which is 18.7% higher than the net collections for the corresponding period of last year. The net Direct Tax collections represent 70.3% of the total Budget Estimates of Direct Taxes for F.Y. 2017-18 (Rs. 9.8 lakh crore). Gross collections (before adjusting for refunds) have increased by 13.5% to Rs. 8.11 lakh crore during April, 2017 to 15th January, 2018. Refunds amounting to Rs.1.22 lakh crore have been issued during April, 2017 to 15th January, 2018.

There has been consistent and significant improvement in the position of Direct Tax collections during the current fiscal across all parameters. The growth rate of Total Gross DT Collections has improved from 10.0% in Q1, to 10.3% in Q2, to 12.6% in Q3 and to 13.5% as on 15th January, 2018. Similarly, the growth rate of Total Net DT Collections has climbed up from 14.8% in Q1, to 15.8% in Q2, to 18.2% in Q3 and to 18.7% as on 15th January, 2018.

IP Competition For College & University Students Launched By 'Cell For IPR Promotion And Management (CIPAM), DIPP'

Jan 15, 2018: The Cell for IPR Promotion and Management (CIPAM), Department of Industrial Policy and Promotion (DIPP), in collaboration with ASSOCHAM and ERICSSON India, has launched a one of its kind Intellectual Property (IP) Competition ‘IPrism’ for college and university students. (http://iprism.co.in/)

This competition invites students to submit films on piracy & counterfeiting under two categories of 30 and 60 seconds. Another category in the competition is for a mobile gaming app on IP. The last date for receiving entries is 31st March, 2018. Cash prizes worth INR 4 lacs will be given to the winning teams along with mementos, certificates and recognition on the official CIPAM website (www.cipam.gov.in). The competition aims to foster a culture of innovation and creativity in the younger generation. It will provide young creators a unique opportunity to see their creations recognized on a national platform.

India's Foreign Trade: December, 2017

Jan 15, 2018: Stats on India's Foreign Trade for December, 2017 as released by Ministry of Commerce & Industry, Department of Commerce (Economic Division), is as follows:

I. MERCHANDISE TRADE

EXPORTS (including re-exports)

Exports during December 2017 have exhibited positive growth of 12.36 per cent in dollar terms vis-à-vis December 2016. Exports have been on a positive trajectory since August 2016 to December 2017 with a dip of 1.1 per cent in the month of October 2017.

Data On India’s International Trade In Services: November, 2017

Jan 15, 2018: The Reserve Bank releases monthly data on India’s international trade in services with a lag of around 45 days.


The value of exports and imports of services during the month of November 2017 are given in the following Table.


Table: International Trade in Services

(US$ Million)


Month

Receipts (Exports)

Payments (Imports)

November-17

15,392

9,647

[India] Wholesale Price Index For All Commodities For Dec 2017 Declined By 0.5% (Provisional) From Previous Month

Jan 15, 2018: Index Numbers of Wholesale Price in India (Base: 2011-12=100) — Review for the month of December, 2017.

The official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for the month of December, 2017 declined by 0.5 percent to 115.7 (provisional) from 116.3 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 3.58% (provisional) for the month of December, 2017 (over December, 2016) as compared to 3.93% (provisional) for the previous month and 2.10% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.21% compared to a build up rate of 3.71% in the corresponding period of the previous year,

Inflation for important commodities / commodity groups is indicated in Annex-I and Annex-II.

The movement of the index for the various commodity groups is summarized below:-

PRIMARY ARTICLES (Weight 22.62%)

15.2% Growth In Foreign Tourist Arrivals In December, 2017 Over December, 2016

48.3% Growth in Foreign Tourist Arrivals on e-Tourist visa in December, 2017 Over December, 2016 2016

Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) & FTAs on e- Tourist Visa on the basis of Nationality-wise, Port-wise data received from Bureau of Immigration (BOI).                                         

The following are the important highlights regarding FTAs and FTAs on e-Tourist Visa during the month of December, 2017:                                                                                                   

Foreign Tourist Arrivals (FTAs):

 o The number of FTAs in December, 2017 was 11.76 lakh as compared to FTAs of 10.21 lakh in December, 2016 and 9.13 lakh in December, 2015.

Reporting Of U.S. Tax Identification Numbers (TINs) For Pre-existing Accounts By Financial Institutions

Jan 15, 2018: India and USA have signed the Inter-Governmental Agreement (IGA) under FATCA in 2015. To enhance the effectiveness of information exchange and transparency, both the sides committed to establish, by January 1, 2017, rules requiring their Reporting Financial Institutions (RFIs) to obtain the Tax Identity Number (TIN) of each reportable person having a reportable account as of June 30, 2014 (pre-existing account).The Income-tax Rules, accordingly, provide for reporting of U.S. TIN from the year 2017 onwards in respect of any pre-existing account. (Source: CBDT)

ADDITIONAL INFO