• RESERVE BANK OF INDIA

Notification No. DBOD. AML. BC. No. 50/14.01.001/2010-11 dated 26.10.2010

RBI released a notification to clarify that with a view to contain the risk of fraud, banks need to rely on employer's certification only in case of entities of repute and, in addition, accept at least one of the officially valid documents as prescribed by Prevention of Money Laundering Rules such as Passports, driving license, voter identity card or utility bills for KYC purposes for opening bank account of salaried employees of corporates and other entities.

UBD Circular No. UBD. CO. BPD (PCB) No. 18 /12.05.001/2010-11 dated 26.10.2010

RBI released a circular asking banks to ensure that the required minimum information on NEFT/NECS/ECS transactions is printed in the passbooks and account statements of the customers, after receiving several complaints on incomplete details about the remitter (or beneficiary) and / or the source of credit(or debit) in the pass books/account statements etc in case of NEFT/NECS/ECS transfers, resulting in customers not being able to identify the source of credit particularly where multiple credits are afforded to their accounts through these products.

DNBS Circular No : DNBS (PD) CC.No.203/03.10.001/2010-2011 dated 22.10.2010

RBI has released a notification which specifies that long term infrastructure bonds issued for the purpose of Sec 80CCF of IT Act, 1961 by Infrastructure Finance Companies shall not be treated as 'public deposit' within the meaning of paragraph 2(1) (xii) of the NBFC Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

Circular No : DPSS No.914/02.14.003/2010-2011 dated 25.10.2010

RBI released a notification to clarify that mandate of RBI circulars on online card transactions shall cover all transactions using cards issued in India, for payments on merchant site where no outflow of foreign exchange is contemplated. The linkage to an overseas website/payment gateway cannot be the basis for permitting relaxations from implementing the mandate. It is not presently applicable for use of cards issued outside India, on Indian merchant sites.

• SECURITIES AND EXCHANGE BOARD OF INDIA

Derivatives Circular No. CIR/DNPD/6/2010 dated 27.10.2010

SEBI has issued a circular in exercise of the powers conferred under Section 11 (1) of the SEBI Act, 1992, to provide flexibility to stock exchanges by allowing them to offer European- style or American- style contracts. A stock exchange is required to choose a particular style and offer options contracts of the same style on all eligible stocks. Any modification shall require prior approval of SEBI.

Integrated Surveillance Circular No. SEBI/Cir/ISD/2 /2010 dated 26.10.2010

SEBI released a circular in exercise of powers conferred by sub-section (1) of Section 11 of the SEBI Act, 1992, to clarify that while computing the requirement of minimum 50% shareholding of non-promoters in dematerialised form in a company, the government holding in non promoter category stands excluded.

Board Meeting PR No. 231/2010

The Securities Exchange Board of India has introduced a host of policy measures to regulate financial markets, including doubling retail investors cap to Rs 2 lacs in IPO, allowing public issue for insurance companies, prescribing rights issue framework for Indian Depository Receipts (IDR's),  tightening preferential norms for promoter or any promoter group entity with respect to warrants etc.

SEBI Circular - Cir / IMD / DF / 15/ 2010 dated 22.10. 2010

The merger of Mutual Fund schemes is governed by SEBI (Mutual Funds) Regulations, 1996. In order to facilitate merger of mutual fund schemes, SEBI has now decided that merger or consolidation shall not be seen as change in fundamental attributes of the surviving scheme, if the fundamental attributes of the surviving scheme do not change, and the mutual fund is able to demonstrate that the circumstances merit merger/ consolidation. The mutual fund is required to file such a proposal with SEBI, and the letter to unit-holders can only be issued after the final observations of SEBI have been incorporated.

• MINISTRY OF FINANCE

CBEC 

Excise Circular No. 936/26/2010-CX dated 27.10.2010

The Central Board of Excise & Customs has released a circular to clarify that after-sale service and pre-delivery inspection charges are liable to be included in the assessable value under Section 4 of the Central Excise Act 1944.

Excise Notification No. 33/2010 dated 19.10.2010

In exercise of the powers conferred by sub- section(1) of section 5A of the Central Excise Act, 1944, the Central Government exempted all goods falling under the Schedule to the Central Excise Tariff Act,1985, only when supplied to the United Nations or an international organisation for their official use.

Press Release From File No. 402/92/2006-MC (45 of 2010) dated 22.10.2010

The Income Tax department issued an order raising a tax demand of Rs.11,217.95 crore on Vodafone International Holdings BV, treating it as an assessee in default under section 201(1) of the Income Tax Act, 1961, for failure to deduct tax as required under section 195 of the Act before making a payment of US $11,076 million to Hutchison Telecommunications Ltd. The tax demand is to be paid within 30 days of the receipt of the notice of demand.

• INSURANCE REGULATORY DEVELOPMENT AUTHORITY

Circular No. IRDA/ACT/CIR/VIP/170/10/2010 dated 21.10.2010

The Insurance Regulatory & Development Authority has issued a circular for suspension of sale of universal life policies (ULP'S) which were promoted as an alternative to unit-linked insurance plans, after it received several complaints on the sale practices of the insurers in ULP segment.

• PRESS INFORMATION BUREAU

India and Malaysia Sign Comprehensive Economic Cooperation Agreement (CECA)

India and Malaysia have signed Comprehensive Economic Cooperation Agreement (CECA) aimed at doubling bilateral trade in the next 5 years, and promoting investment cooperation between the two nations across multiple sectors.

Warehousing (Development and Regulation) Act, 2007 comes into Force with effect from 26.10.2010

The Warehousing (Development and Regulation) Act, 2007 has come into force with effect from 25th October, 2010. The Government has decided to constitute Warehousing Development and Regulatory Authority (WDRA) under the Act to register and accredit warehouses intending to issue negotiable warehouse receipts and put in place a system of quality certification and grading of commodities with a view to protecting the interests of holders of warehouse receipts against negligence, malpractices and fraud.

• MINISTRY OF COMMERCE AND INDUSTRY

Discontinuation of anti dumping duty on Mica Pearl Pigments excluding cosmetic and automotive grade

Having regard to the Customs Tariff Act, 1975 as amended in 1995 and the Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, definitive Anti Dumping Duty on imports of Mica Pearl Pigments originating in or exported from USA & European Union, was imposed by the government of India vide Customs Notification No. 30/2005 dated 21 March, 2005. Now, on the basis of the application made by the domestic industry requesting withdrawal of imposition of anti-dumping duty, the anti dumping duty on Mica Pearl Pigments excluding cosmetic and automotive grade originating in or exported form subject countries as imposed by Customs as per Notification No. 30/2005 dated 21.3.2005 stands withdrawn.

Geographical Indication notification extending additional protection

In exercise of the powers conferred by sub-section (2) of Section 22 of the Geographical Indication of Goods (Registration and Protection) Act, 1999, Wines and Spirits have been extended additional protection under sub-section (3) of Section 22 of the said Act.

Declaration regarding import of ODS

Members of trade and industry filing applications for advance authorisations/ DFIA have been advised to submit declaration regarding clearance for import of Ozone Depleting Substance (ODS) alongwith their application.

Customs Notification No. 111/2010 dated 27.10. 2010

Anti dumping duty on 1-Phenyl-3-Methyl-5-Pyrazolone from China to continue

Anti-dumping duty on imports of 1-Phenyl-3-Methyl-5-Pyrazolone, originating in, or exported from, Peoples Republic of China imposed, vide the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 1/2006-Customs, dated the 10th January, 2006, shall remain in force up to 30th June, 2011, unless the notification is revoked earlier.

Customs Circular No. 40/2010 dated 28.10. 2010

Revised Form of Bond to be furnished for availing duty exemption under Advance License and EPCG Schemes

Circular No.58/2004-Cus dated 21.10.2004 prescribes form of bond to be furnished for availing duty exemption under Advance License and EPCG Schemes. Since there are conditions in the EPCG notification which an authorization holder should fulfill at the time of import for being eligible for duty exemption, condition 1 of the prescribed form of bond has been changed as under :

"1. I/we, the obligor(s) fulfill all the conditions of the said notification and shall observe and comply with all its terms and conditions."