• PRESS INFORMATION BUREAU

PIB Dated 23.10.2008 - Companies Bill, 2008 Introduced in Lok Sabha

The Companies Bill, 2008 was introduced in Lok Sabha, proposing to modernize the structure for corporate regulation in India and represents a major reform statement by the Government to promote the development of the Indian corporate sector through enlightened regulation. The Bill provides for the basic principles for all aspects of internal governance of corporate entities and a framework for their regulation enabling the corporate sector in India to operate in a regulatory environment of best international practices that foster entrepreneurship, investment and growth.

PIB Dated 21.10.2008 - Limited Liability Partenership Bill, 2008 introduced in Rajya Sabha

The Limited Liability Partnership Bill, 2008 was introduced in Rajya Sabha , providing for the formation and regulation of limited liability partnerships and for matters connected therewith or incidental thereto. The Bill has taken in tune with recommendations made by the Standing Committee and other relevant inputs, it proposes to enable entrepreneurial and professional expertise initiative to organize, combine and operate in an innovative and efficient manner. It aspires to provide framework that provides flexibility suited to requirements of service, knowledge and technology based enterprises.

PIB Dated 21.10.2008 - Law Commission submits its 211th Report on "Laws on Registration of Marriage and Divorce - A Proposal for Consolidation and Reform"

The Law Commission of India has submitted its 211th Report on "Laws on Registration of Marriage and Divorce - A Proposal for Consolidation and Reform". The subject was taken up suo motu in tune of the directions of the Supreme Court dated 14.2.2006 in Seema v. Ashwani Kumar [2006 (2) SCC 578] that all marriages shall be compulsorily registered and that the State Governments shall initiate action for rule-making in this regard.

It is recommended by the Law Commission that enactment of a "Marriage and Divorce Registration Act" to be made applicable in the whole of India and to all citizens irrespective of their religion and personal law and without any exceptions or exemptions. consequently, the Births, Deaths and Marriages Registration Act, 1886 be repealed and Births and Deaths Registration Act, 1969 be re-named as "Births, Deaths and Marriages Registration Act" with a provision that officials working and records maintained under the former Act shall be deemed to be working and maintained under the latter Act.

PIB Dated 21.10.2008 - The Law Commission of India submits its 212^th Report on "Laws of Civil Marriages in India - A Proposal to Resolve Certain Conflicts"

The Law Commission of India has submitted its 212th Report on "Laws of Civil Marriages in India - A Proposal to Resolve Certain Conflicts". The Subject was taken up suo motu for a pressing need to amend the Special Marriage Act, 1954 and the Foreign Marriage Act, 1969.Despite the fact that these enactments are meant equally for all communities of India, yet they contain few provisions which greatly restrain people of certain communities to avail them. Law Commission has suggested certain amendments in both the Special Marriage Act, 1954 and the Foreign Marriage Act, 1969 so that their provisions become uniformly available to a larger number of marriages of all Indian communities.

• SECURITIES AND EXCHANGE BOARD OF INDIA

Mutual Fund Circular No. SEBI/IMD/CIR No. 10/141712/08- Dated 20.10.2008 - Standardising format of Abridged Schemewise Annual Report Format and reduction in time period for dispatch to the unitholders - Amendments to SEBI (Mutual Funds) Regulations, 1996

SEBI has decided to increase the discretion permitted, in order to ensure that the value of debt securities reflects the current market scenario in calculation of net asset value. The guidelines issued vide this circular will come in to effect immediately.

PMD Circular No. SEBI/CFD/DIL/CG/2/2008/23/10 Dated 23.10.2008 -Corporate Governance in listed Companies - Clause 49 of the Listing Agreement

SEBI has amended Clause 49 of the Equity Listing Agreement , in order to further clarify the previous amendment inter-alia including a provision stating that if the non-executive Chairman is a promoter or is related to promoters or persons occupying management positions at the board level or at one level below the board, at least one-half of the board of the company should consist of independent directors. SEBI has decided to provide explanation to the existing Clause 49 clarifying on the previous amendment where the promoter of a listed company is a listed or unlisted entity.

SMD Circular No. MRD/DSA/SE/Dep/Cust/CIR-30/08 Dated 23.10.2008 - Foreign investments in infrastructure companies in securities markets

SEBI has Clarified that the words 'secondary market' as mentioned in the Clause (c) of Para 1 of the Circular no. MRD/DSA/SE/Dep/Cust/Cir-23/06 dated December 22, 2006 prescribing that FII will be allowed only through purchases in the secondary market shall mean the following -

"In respect of exchanges that are not listed, FIIs purchase of shares of such exchanges can be through transactions outside of the exchange provided it is not an initial allotment. However, if the exchange is listed, transactions by FIIs should be done through the exchange."

SMD Circular No. MRD/DMS/Cir-29/2008 Dated 21.10.2008 - Internal Audit for stock brokers/trading members/clearing members

It has been decided by the SEBI that stock brokers/trading members/clearing members shall carry out complete internal audit on a half yearly basis by chartered accountants, company secretaries or cost and management accountants who are in practice and who do not have any conflict of interest. Stock Exchanges has been advised to make necessary amendments to the relevant bye-laws, rules and regulations implementing the said decision and bring the provisions of this circular to the notice of the member brokers /clearing members of the Exchange and also to disseminate the same on the website.

Press Release No. PR No.239/2008 Dated 27.10.2008 - Consolidation of holdings under Takeover Regulations

SEBI has decided to allow consolidation through creeping acquisition upto 5% to persons        holding 55% and above but below 75%, provided condition that such acquisition can only be via open market purchases in the normal segment, and for the purpose, no consolidation via bulk/ block/ negotiated deal or through preferential allotment would be permitted. Further, it has been decided to automatically exempt increase/ consolidation upto 5% per annum as a result of buy back by a company, as earlier, it was mandatory to sought exemption under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations

• RESERVE BANK OF INDIA

RBI Press Release No. 2008-2009/555 Dated 24.10.2008 - RBI Governor announces Mid-term Review of Annual Policy for 2008-09

RBI has announced the Mid-term Review of Annual Policy for the Year 2008-09 in a meeting with Chief Executives of major commercial banks. The Mid-term Review consists of two parts namely, Part A. Mid-term Review of the Annual Statement on Monetary Policy for the Year 2008-09; and Part B. Mid-term Review of the Annual Statement on Developmental and Regulatory Policies for the Year 2008-09. As a result, Bank Rate, Repo Rate and Reverse Repo Rate CRR kept unchanged and the flexibility to conduct overnight repo or longer-term repo including the right to accept or reject tender(s) under the LAF, wholly or partially, is retained. The Reserve Bank will endeavour to bring down inflation to a tolerable level of below 5 per cent at the earliest, while aiming for convergence with the global average inflation of around 3.0 per cent over the medium-term.

A.P. (DIR Series) Circular No. 26 Dated 22.10.2008 - External Commercial Borrowings Policy: Liberalisation

As per a review, the External Commercial Borrowings (ECB) experiences some modifications. The ECB up to USD 500 million per borrower per financial year would be permitted for Rupee expenditure and / or foreign currency expenditure for permissible end - uses under the Automatic Route. Like wise payment. Also, the borrowers from outside will be extended the flexibility to either keep these funds off-shore as above or keep it with the overseas branches / subsidiaries of Indian banks abroad or to remit these funds to India for credit to their Rupee accounts with AD Category I banks in India, pending utilization for permissible end-uses, for obtaining license/permit for 3G Spectrum will be considered an eligible end and other directions. These are issued under sections 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999).