• SECURITIES EXCHANGE BOARD OF INDIA

Press Release No. 325/2009 Dated 28.10.2009 - SEBI signs MoU with DFSA, Dubai

Securities and Exchange Board of India (SEBI) signed a bi-lateral Memorandum of Understanding (MoU) with Dubai Financial Services Authority (DFSA) on assistance and mutual cooperation. The MoU was signed to establish a general framework for cooperation and consultation and mutual assistance between the regulatory authorities, in order to facilitate the fulfilling of their regulatory responsibilities.

Circular No. ISD/AML/CIR-2/2009 Dated 23.10.2009 - Combating Financing of Terrorism (CFT) under Unlawful Activities (Prevention) Act, 1967 - Directions to Stock Exchanges, Depositories and All Registered Intermediaries

The Central Government has issued an Order dated August 27, 2009 detailing the procedure for implementation of Section 51A of Unlawful Activities (Prevention) Amendment Act, 2008 (UAPA) for prevention of, and for coping with terrorist activities. In terms of the said section, the Central Government is empowered to freeze, seize or attach funds and other financial assets or economic resources held by, on behalf of or at the direction of the individuals or entities Listed in the Schedule to the Order. Stock exchanges, depositories and registered intermediaries are therefore directed to ensure expeditious and effective implementation of the procedure laid down in the UAPA Order dated August 27, 2009.

• RESERVE BANK OF INDIA

Press Release No. 2009-2010/658 Dated 03.11.2009- Draft guidelines on issuance of Non-Convertible Debentures (NCDs) of maturity less than one year

The Reserve Bank of India has issued draft guidelines on the issuance of Non-Convertible Debentures (NCDs) of maturity less than one year. The High Level Co-ordination Committee on Financial Markets (HLCCFM) had taken the view that these instruments need to be regulated as they have systemic implications and such instruments, being money market instruments should be regulated by the Reserve Bank.

A.P. (DIR Series) Circular No.13 Dated 29.10.2009- Opening of Diamond Dollar Accounts (DDAs) - Modification

The Government has notified the relaxation of eligibility criteria with regard to opening and maintaining of Diamond Dollar Accounts (DDAs) by eligible firms and companies subject to certain terms and conditions. Accordingly, Authorised Dealer Category-I banks are advised to note the revised eligibility criteria notified by the Government while permitting eligible firms and companies to open and maintain DDAs with them and are also advised to be guided by Foreign Trade Policy (FTP) in force from time to time, in future with regard to same.

A.P. (DIR Series) Circular No.14 Dated 30.10.2009- Participants under ACU Mechanism-Inclusion of Maldives Monetary Authority

The Maldives Monetary Authority (MMA) has been admitted in the Asian Clearing Union as a Member and will commence ACU operations with effect from January 1, 2010. AD Category - I banks are therefore, directed to follow the provisions contained in the Memorandum of Procedure for Channelling Transactions through Asian Clearing Union (ACU) [Memorandum ACM] and the regulations contained in the concerned FEMA Notification issued in this regard.

• INDIRECT TAXATION

Custom Tariff 

Notification No. 122/2009 Dated 05.11.2009 - Provisional safeguard duty on imports of Soda Ash into India from People's Republic of China

The Central Government has imposed a safeguard duty at the rate of 20% ad valorem on Soda Ash when imported into India from the People's Republic of China based on the findings that increased imports of Soda Ash into India from the People's Republic of China had caused and threatened to cause market disruption to the domestic industry of Soda Ash. The Safeguard duty imposed under this notification shall be levied with effect for one year from the date of imposition of the provisional Safeguard duty, and shall remain in force upto and inclusive of the 19th April, 2010.

Instruction from File No. 354/189/2009-TRU dated 04.11.2009- Applicability of indirect taxes on packaged software

Partial exemption from excise duty was provided to packaged or canned software on that portion of the value which represents the consideration for the transfer of the right to use for commercial exploitation vide notification no.22/2009-CE dated 07.07. 2009. Similar exemption from (countervailing duty) CVD was provided vide notification No. 80/2009-Customs dated 07.07.2009 on such software. These exemptions were notified to ensure that while importing or manufacturing packaged software, the importer/manufacturer is spared from paying customs duty/excise duty on the value attributable to transfer of 'right to use'. Therefore, it is directed that assessment of the shrink wrapped packaged software should be done keeping in view the said exemptions.

CBEC Excise Non-Tariff

Notification No. 25/2009-N.T.Dated 06.11.2009- Excise duty exemption on specified products of Village Industries under KVIC

The Central Govt notifies the exemption from whole of excise duty to specified goods under Khadi and Village Industries Commission (KVIC) provided said goods are genuine products of a village industry and have been marketed by or with the assistance of the KVIC and the manufacturer of said goods produces a certificate from the said Commission to the effect that such goods are the genuine products of a village industry and that such goods have been marketed by or with the assistance of the said Commission.