• INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Circular No. IRDA/F&I/CIR/AML/16/02/2010 Dated 03.02.2010 - Additional stipulations in accordance with the Prevention of Money Laundering Amendment Rules, 2009

IRDA has issued certain stipulations for effective compliance of Prevention of Money Laundering Amendment Rules, 2009 wherein Insurance companies are advised to report any suspicious transactions as defined under clause 3.1.6, to FIU-IND (Financial Intelligence Unit-India) (including attempted transactions, whether or not made in cash) irrespective of the monetary value involved in such transactions; to establish identity of customers in compliance with KYC norms and to report all transactions involving receipts by non-profit organizations (either in the form of assignments and/or in the form of top-up remittances) of value more than Rupees ten lakhs, or its equivalent in foreign currency, to FIU-IND by 15th day of next succeeding month.

• CENTRAL BOARD OF DIRECT TAXES

Notification No. 07/2010 Dated 03.02.2010 - Indian Railway Finance Corporation (IRFC) to issue tax free secured, redeemable, non-convertible Railway Bonds

The Central Government has authorized Indian Railway Finance Corporation (IRFC) to issue, during Financial Year 2009-10, tax free secured, redeemable, non-convertible Railway Bonds of Rs. 1,000 each in case of public issue and Rs. 1,00,000 each in other cases, aggregating to an amount of five thousand crore rupees only, carrying an interest rate in the range of 6.50% to 7.25% per annum, depending upon the size and tenor of a tranche. The benefit under the said item shall be admissible only if the holder of such bonds registers his or her name and the holding with the said Corporation.

• SECURITIES AND EXCHANGE BOARD OF INDIA

Mutual Fund

Circular No. SEBI/IMD/CIR No. 17/ 193751/2010 Dated 04.02.2010 - Standard warning in Advertisements by Mutual Funds

SEBI has decided that, with effect from May 01, 2010, the standard warning in audiovisual advertisement with regard to risk of Mutual Funds shall be displayed as "Mutual Fund investments are subject to market risks, read all scheme related documents carefully"; No addition or deletion of words shall be made in the standard warning and that both the visual and the voice over of the standard warning will be run for at least 5 seconds. Accordingly, all mutual funds shall comply with the above requirements in letter and spirit.

Press Release

Press Release No. 26/2010 Dated 04.02.2010 - SEBI appoints Administrator for implementation of Justice D. P. Wadhwa Committee Report on reallocation in the matter of IPO irregularities

SEBI, in pursuance of Justice Wadhwa Committee Report, has appointed Shri Vijay Ranjan as an Administrator for implementation of recommendations of Justice D. P. Wadhwa Committee Report on reallocation in the matter of IPO irregularities. This is in view of the proceedings initiated by SEBI in the matter of IPO irregularities against certain key operators and financiers involved in the irregularities, to penalize them and disgorge the ill-gotten gains these entities had made.

Press Release No. 2009-2010/1076 Dated 03.02.2010 - RBI withdraws Short-term Forex Loans facility for NBFCs and HFCs

The Reserve Bank of India has withdrawn, with immediate effect, the facility of short-term foreign currency borrowings provided to Non-Banking Finance Companies-Non-Deposit Taking-Systemically Important (NBFC-ND-SI) and the Housing Finance Companies (HFCs). Earlier, the Reserve Bank had, as a temporary measure, allowed NBFCs-ND-SI on October 31, 2008 and Housing Finance Companies on November 17, 2008, to raise short-term foreign currency borrowings not exceeding 50 per cent of the Net Owned Funds (NOF) or USD 10 million, whichever was higher, for refinancing their short-term liabilities subject to terms and conditions.

• RESERVE BANK OF INDIA

A.P. DIR (Series)

Circular No. A. P. (DIR Series) Circular No. 30 Dated 01.02.2010 - Export and Import of Currency

The Government of India has amended clauses (a) and (c) of sub-regulation (1) of Regulation 3 of Foreign Exchange Management (Export and Import of Currency) Regulations, 2000, notified vide Notification No. FEMA 6 /RB-2000 dated May 3, 2000. Accordingly, any person resident in India,

i) may take outside India (other than to Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.7,500 (Rupees seven thousand five hundred only) per person; and

ii) who had gone out of India on a temporary visit, may bring into India at the time of his return from any place outside India (other than from Nepal and Bhutan), currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.7,500 (Rupees seven thousand five hundred only) per person.

Circular No. A.P. (DIR Series) Circular No.31 Dated 05.02.2010 - Exim Bank's Line of Credit of USD 36 million to the Government of the Republic of Mali

Export-Import Bank of India (Exim Bank) has concluded an Agreement dated October 12, 2009 with the Government of the Republic of Mali making available to the latter, a Line of Credit (LOC) of USD 36 million (USD thirty six million) for financing eligible goods, machinery, equipment and services including consultancy services from India for the purpose of completion of Mali-Ivory Coast Interconnection Link for integrating the national power grids between Ivory Coast and the Republic of Mali. The Credit Agreement under the LOC is effective from January 18, 2010 and date of execution of Agreement is October 12, 2009. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in case of project exports and 72 months (October 11, 2015) from the execution date of the Credit Agreement in case of supply contracts.

DNBS

Notification No. DNBS (PD).CC. No 167 /03.10.01 /2009-10 Dated 04.02.2010 - Compliance with FDI norms-Half yearly certificate from Statutory Auditors of NBFCs

Non Banking Financial Companies (NBFCs) having FDI whether under automatic route or under approval route have to comply with the stipulated minimum capitalisation norms and other relevant terms and conditions, as amended from time to time under which FDI is permitted. Accordingly, these NBFCs are required to submit a certificate from their Statutory Auditors on half yearly basis (half year ending September and March) certifying compliance with the existing terms and conditions of FDI. Such certificate may be submitted not later than one month from the close of the half year to which the certificate pertains, to the Regional Office in whose jurisdiction the head office of the company is registered.