• Reserve Bank Of India

RBI A.P. (DIR Series) Circular No. 52 Dated 11.06.2008-Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR

Special currency basket has been revised from Rs. 60.5828 to Rs. 62.5198 with effect from May 23, 2008. Bank are advised that further revision has taken place on May 20, 2008 and consequently, the rupee value of the special currency basket has been fixed at Rs. 62.5198 from the above-mentioned date.

RBI MPD Circular No. MPD.BC. 300/07.01.279/2007-08 Dated 11.06.2008 -Standing Liquidity Facilities for Banks and Primary Dealers

The fixed repo rate under the Liquidity Adjustment Facility has been revised to 8.00 per cent with effect from June 12, 2008; consequently, standing Liquidity Facilities and Primary Dealers would be available to the Banks from the Reserve Bank at the said repo rate from the Reserve Bank of India from the above mentioned date.

RBI RPCD Circular No. RPCD.No.PLFS.BC. 76 /05.04.02/2007-08 Dated 13.06.2008 - Union Budget - 2008-09 - Agricultural Debt Waiver and Debt Relief Scheme, 2008

Agricultural Debt Waiver and Debt Relief Scheme, 2008 provides that an farmer classified as 'other farmer' eligible for OTS relief require to give an undertaking agreeing to pay his share in not more than three instalments and the first two instalments shall be for an amount not less than one-third of his share

When the eligible amount of loan is waived of small and marginal farmers, the lending institution would issue certificate, mentioning the eligible amount waived. The lending institution would take an acknowledgment after issuance of certificate.

RBI DNBS Circular No. DNBS (PD) C.C. No. 114 /03. 02.059/2007-08 Dated 17.06.2008 - Section 45-IA, 45K and 45L of the RBI Act - Grant of CoR - Requirement of minimum NOF of Rs. 200 lakh for all deposit taking NBFCs

The Reserve Bank of India under section 45-IA of the RBI Act, 1934 made it mandatory that companies in order to carry on business of NBFI must have Certificate of Registration (CoR) from the RBI itself and have Net Owned Fund Rs. 200 lakh to begin the same.

This is done to strengthen the financial system in general and in the public interest it is reviewed.

The said bank also in the public interest and with the objective of enabling Bank to regulate the credit system to the benefit of the country directed every non-banking financial company under specified sections may freeze their deposits, may bring down public deposits as per the latest table by March 31, 2009 given, can accept public deposits upto the revised ceiling prescribed in said table, may submit statutory auditor's certificate certifying its NOF and may apply to the RBI for proper dispensation in regard to fail to achieve the prescribed ceiling within due time period.

RBI UBD Circular No. UBD.BPD. (PCB). No 56 /16.20.000/2007-08 Dated 17.06.2008 - Valuation of Non-SLR securities issued by the Government of India

The Government of India, at regular interval issued many special securities that do not comply with the SLR requirements of UCB's. Such govt. securities entail a high degree of illiquidity spread and be valued by taking a mark-up points (bps) above the corresponding growth on govt. of India securities.

RBI UBD Circular No. UBD.PCB.Cir.No. 55/13.05.000/2007-08 Dated 17.06.2008 - Union Budget - 2008-09 - Agricultural Debt Waiver and Debt Relief Scheme, 2008- UCBs

As per item no. 7 of the scheme the farmers who are given category of 'other farmer ' eligible for OTS would give an undertaking to pay their share in three installments before September 30, 2008; March 31, 2008 and June 30, 2009.

As per item no. 9 of the captioned scheme, in the case of small and marginal farmers, the lending institution would issue a certificate that the loan has been waived.

In the case of other farmers, after grant of OTS relief the lending institution would issue a certificate in regard that the loan account has been settled to the realization of lending institution.

RBI UBD Circular No. UBD.BPD. (PCB). No 56 /16.20.000/2007-08 Dated 17.06.2008 - Valuation of Non-SLR securities issued by the Government of India

The Government of India at regular interval issued special securities and these are governed by a separate specified terms and conditions and bear a high degree of illiquidity spread. These non-SLR securities would be valued by applying a mark-up of 50 basis points (bps).

It has also been decided that all securities that do not have SLR category, may be valued at a spread of 25 bps above the corresponding yield on Government of India securities w.e.f., financial year 2008-09.

• Press Information BUREAU

PIB Release Dated 12.6.2008 Agreement between India and Syrian Arab Republic for the Avoidance of Double Taxation ( DTAA) and Prevention of Fiscal Evasion with respect to Taxes on Income

The Union Cabinet has approved an agreement signed between India and Syrian Arab Republic to avoid double Taxation and the Prevention of Fiscal Evasion in relation to taxes on income. Its objective is to deter and reduce burden of double taxation on the same taxpayer in two countries with the aim to promote trade and investment between the two countries. It would facilitate tax stability to the residents of India and Syria and also stimulate mutual economic cooperation.

India has signed such bilateral agreements with 72 countries till now.

• Ministry of Corporate Affairs

Notification No SO1270(E) Dated 30.05.2008-National Advisory Committee On Accounting Standards - Constituted

The Central Government constituted a National Advisory Committee on Accounting Standards comprising twelve members to advise the Central Government on the formulation and laying down of accounting policies and standards for adoption by companies or class of companies under the Companies Act., 1956 (1 of 1956). It would come into effect from the date of publication in the Official Gazette.

• Directorate General of Foreign Trade (DGFT)

Policy Circular No. 11(RE-2008)/2004-2009 Dated 06.06.2008 - Ban/restriction on export of non-basmati rice - clarification regarding.

In pursuant to the ban imposed on export of non-basmati rice vide Notification No.77 dated 7.2.2008, and Para 4 of Notification No.93 dated 1st April, 2008, the exports under transitional arrangements as provided under Para 1.5 of the Foreign trade policy, 2004-09 shall not be permitted and the facilities permissible under the same will be permitted.

Public Notice No. 28/(RE-2008)/2004-09 Dated 09.06.2008 - Amendments in the Handbook of Procedures (Vol. I)

Director General of Foreign Trade made the amendment in the handbook of procedures (Vol.I) by substituting Sl.No. of Aayaat Niryaat Form (ANF-8) with Central Excise attested invoices showing Terminal excise duty paid.

In addition to it, sub paras 2a, 2e and 3d in the guidelines would be replaced with Supply invoices, Original input stage invoices and Original input invoices certified by the Central Excise authorities respectively.

• Industrial Policy and Promotion

Press Note No. 7 (2008 Series) Dated 16.06.2008 Consolidated policy on Foreign Direct Investment

After review of the policy on Foreign Direct Investment (FDI) has been undertaken, a summary of the FDI policy and regulations applicable in various sectors and activities after incorporating the policy changes up to 31-3-2008 is provided as consolidated policy on Foreign Direct Investment.

• Indirect Taxation

Custom

CBEC Customs Non-Tariff Notification No. 73/2008-Customs (N.T.) Dated 16.06.2008 -Amendment to the Notification No. 36/2001-Cus (N.T.), dated, the 3rd August 2001

Central Board of Excise and Customs has by amendment to the notification No. 36/2001-Cus (N.T.), dated, the 3rd August 2001 notifies Tariff value of 12 items, i.e., Crude Palm Oil, RBD Palm Oil, Others-Palm Oil, Crude Palmolein, RBD Palmolein, Others-Palmolein, Crude Soyabean Oil, Brass Scrap (all grades) and Poppy seeds.

CBEC Customs Notification No. 79/2008 Dated 13.06.2008- Exemption to the iron ores and concentrates from the duty of customs leviable

The Central Government in the public interest let off all kinds of iron ores and concentrates comes under Heading No. 11 of the second schedule to the Customs Tariff Act, 1975 (51 of 1975) at the time of export out of India.

Excise

CBEC Excise Notification No. 39/2008 Dated 13.06.2008 - Amendment to the First Schedule of the said Central Excise Tariff Act

The Central Government has increased excise duty (Central Value Added Tax) leviavble on motor vehicles and motorcars coming under certain specified tariff item of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), due to certain unavoidable circumstances.

• Telecom Regulatory Authority of India

Press Release No. 58/2008 Dated 17.06.2008 - TRAI Releases Stakeholders comments on Consultation Paper on "Issues related to Internet Telephony"

TRAI has invited views/comments of the stakeholders on "Issues related to Internet Telephony" at its website. The date of consultation process has been extended till 16th June, 2008, in view of the significance of the issues, need for large participation of stakeholders and on the request of some stakeholders.