• SECURITY EXCHANGE BOARD OF INDIA

Press Release No. PR No. 127/2008 Dated: 20.06. 2008- Allocation Of Debt Investment Limits By The Indian Government

The Government of India has while reviewing External Commercial Borrowing policy, increased the cumulative debt investment limits from US $3.2 billion to US $5 billion and US $1.5 billion to US $3 billion for FII investments in Government Securities and Corporate Debt. Allocation of the enhanced limits has been done on a 'first come first served' basis subject to a ceiling of US $200 million per registered entity. Allotted entities are require to utilize allocated limits within 15 days, otherwise the same will be withdrawn and allotted to the entities in the waitlist.

Press Release No: PR No: 123/2008 Dated: 19.06.2008- Regulations Of Issue And Listing Of Debt Securities By SEBI

SEBI has notified Regulations for Issue and Listing of Debt Securities to provide for simplified regulatory framework for issuance and listing of non-convertible debt securities (excluding bonds issued by Governments) issued by any company, public sector undertaking or statutory corporations. It will not apply to issue and listing of, securitized debt instruments and security receipts for which separate regulatory regime is in place. In case of public issues, while the disclosures specified under Schedule II of the Companies Act, 1956 shall be made, the Regulations require additional disclosures about the issuer and the instrument such as nature of instruments, rating rationale, face value, issue size, etc. Regulations prescribe certifications to be filed by merchant bankers with regard to due diligence, adequate disclosures, and credit rating while doing away with requirement of filing of draft offer documents with SEBI. The Regulations enables electronic disclosures and made requirements of requirements for advertisements more simplified. Further, by these Regulations while listing of securities issued to the public is mandatory, the issuers may also list their debt securities issued on private placement basis subject to compliance of simplified regulatory requirements as provided in the Regulations.

Circular No: SEBI/IMD/Cir No.7/129592/08 Dated: 23.06.2008- Parking Of Funds In Short Term Deposits Of Scheduled Commercial Banks By Mutual Funds- Pending Deployment

It is clarified that SEBI circular no. SEBI/IMD/CIR No.1/91171/07 dated April 16, 2007 on the captioned subject, shall not apply to term deposits placed as margins for trading in cash and derivative markets. Further, circular no. SEBI/IMD/CIR NO. 8/ 107311/ 07 DATED. OCT 26, 2007 stands withdrawn. All term deposits as margins will be placed under a separate heading and under a half yearly portfolio statement.

Circular No: MRD/DOP/ SE/ CIR-19/08 DATED: 25.06. 2008- Establishment Of Connectivity With Both Depositories Nsdl And Cdsl- Companies Elgible For Shifting From Trade For Trade Segment (Tfts) Rolling Segment

On the basis of the information provided by the depositories the specified companies have established connectivity with both the depositories, namely, Nsdl And Cdsl. The stock exchange may consider shifting the trading in these securities to the rolling settlement subject to certain conditions. At least 50% of holdings (not promoter holding) are in dematerialized mode prior to the shifting, for which its registrar and RTA shall certify the companies and there are no other grounds/reasons for continuation of the trading in TFTS.

• RESERVE BANK OF INDIA

Circular No: RPCD.CO.RF.AML.BC.NO.81/07.40.00/2007-08 Dated: 25.06.08- Prevention Of Money Laundering Act, 2002- Obligation Of Banks In Terms Of Rules Notified, There Under

The RBI has laid down the guidelines under Section 35A of the Banking Regulation Act, 1949 which clarified that information maintained regarding transaction with the clients has to be reported to the Director, Financial Intelligence Unit-India (FIU-IND).

Banks are advised to put in place an appropriate software application to throw alerts when the transactions are inconsistent with risk categorization and update profile of customers and in case of banks, where all the branches are not yet fully computerized to ensure CTR and STR, the Principal Officer of the bank are required to cull out the transaction details from branches which are not computerized and suitably arrange to feed the data into an electronic file with the help of the editable electronic utilities of CTR / STR as have been made available by FIU-IND on their website.

It is further clarified that cash transaction reporting by branches to their Principal Officer should always be submitted on monthly basis and the Principal Officer, in turn, should ensure to submit CTR for every month to FIU-IND within the prescribed time schedule.

Press Release No. 2007-2008/1653 Dated: 25.06.2008- Government Securities Get Investor Friendly

The government securities issued by the Government of India have become investor friendly with additional features such as automatic redemption facility and nomination facility. Holder of the government security can create pledge, hypothecation or lien in respect of such security. The title to a government security of deceased holders can be recognized on the basis of any valid admissible document in a court of law. To facilitate the receipt of the redemption amount of government securities the holders can give their details in an electronic clearing service mandate form to the PDO, RBI if issued by the same.

The recognition and conferment of title to a government security of deceased sole holder or joint holders will be done on the basis of a decree, order or direction passed by a competent court on the basis of a certificate issue or order passed by other authority empowered under any statute.

Circular No: RPCD.NO. PLFS.BC.80/05.04.02/2007-08 Dated: 24.06.2008- Union Budget 2008-09- Agricultural Debt Waiver And Debt Relief Scheme, 2008

The union budget 2008-09 has pronounced the agricultural debt waiver and debt relief scheme, 2008. it is clarified that if the loan is a standalone loan for putting up only sheds and fences then it shall not be covered under the 'eligible amount' as defined in the scheme. The modification is available to all branches and incase of RBI and cooperatives, the instructions will be issued by NABARD.

Circular No: RPCD.CO.RF.BC.NO.79/07.02.03/2007-08 Dated 23.06.08- Valuation Of Non-SLR Securities Issued By The Government Of India

The Government of India has issued a circular regarding the valuation of non-SLR securities. It states that the current valuation of non-SLR securities shall be valued by marking 50 basis points (bps) above the corresponding yield on Government of India securities. All special securities issued by the Government, directly beneficiary to the entities and do not have SLR status shall be valued by 25bps above corresponding yield of Government of India securities, which would come into force from the financial year of 2008-09. The special securities comprise of oil bonds, fertilizer bonds, bonds issued to SBI, UTI, IFCI, and IDBI and erstwhile shipping development finance corporation.

Circular No: UBD.PCB.CIR NO. 57/16.74.00/2008-09 Dated: 24.06.2008- Wilful Defaulters and action there Against By UCB

In pursuant to Supreme Court's Order relating to writ petition titled Common Cause (A registered Society) Vs. Union of India & Anr. RBI has decided to expand the scope of definition of "willful default". Accordingly, scope of definition of willful defaulter has been widened by including unit defaulted in meeting its payment / repayment obligation to the lender and has also disposed of or removed the movable fixed assets or immovable property given by it for the purpose of securing a term loan without the knowledge of the bank / lender.

• INDIRECT TAX

Service tax

Service Tax Notification No : 29/2008-ST Dated : 26.06.2008-Exemption to specified taxable service of supply of a goods carriage in relation to transport of goods by road

Central Government hereby exempts the taxable service of supply of a goods carriage, without transfer of right of possession and effective control of such goods carriage provided by any person to a goods transport agency for the use of said goods transport agency to provide any service to a customer in relation to transport of goods by road in the said goods carriage from the whole of the service tax leviable under section 66 of the Finance Act, 1994.

• DIRECT TAXATION

CBDT Notification No : 70/2008 Dated: 18.06.2008- Agreement between the Government of the Republic of India and the Government of the Republic of Botswana for the avoidance of double taxation

Central Government in exercise of the powers conferred by section 90 of the Income-tax Act, 1961, directs that all the provisions of the Agreement between the Government of the Republic of India and the Government of the Republic of Botswana for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income signed in India on the 8th day of December, 2006, shall be given effect to in the Union of India with effect from the 1st day of April, 2009.

• PRESS INFORMATION BUREAU

Department / Board : PIB Dated : 26.06.2008 - Revised Central Sector Scheme "Capital Investment Subsidy for Construction / renovation of Rural Godowns" during XI Plan

Cabinet Committee on Economic Affairs gave its approval to the implementation of the revised scheme, after incorporating the Specified modifications in its Operational Guidelines. The revised scheme on "Capital Investment Subsidy for Construction / renovation of Rural Godowns" help in creation of scientific storage capacity with allied facilities in rural areas to meet the requirements of farmers for storing farm produce and processed farm produce and agricultural inputs. It will strengthen agricultural marketing infrastructure in the country by paving the way for the introduction of a national system of warehouse receipts and improve marketability of the agriculture products by promotion of grading, standardization and quality control of agricultural produces.

• DIRECTORATE GENERAL OF FOREIGN TRADE

DGFT Policy Circular No : 12(RE-2008)/2004-2009 Dated : 27.06.2008-Guidelines for import of Rough Marble Blocks/ Slabs for the year 2008-09

On Consideration of the various representations received from the various associations of marble manufacturers/processors for review of the regime governing import of marble, Government has framed Guidelines for import of Rough Marble Blocks/ Slabs for the year 2008-09. Guidelines deals with the manner in which the applications for import under the specified Exim Codes will be considered.