• INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Circular No. IRDA/F&A/CIR/CG/081/05/2011 dated 02.05.2011 Compliance with Corporate Governance Guidelines

The Insurance Regulatory and Development Authority has issued guidelines for compliance of Corporate Governance Guidelines. These guidelines stipulates for Annual Filing of Compliance Status, Filling up of the Vacancy to the Post of Independent Director on the Board and Optional Committees

• MINISTRY OF FINANCE

CBEC Customs

Instruction from file No. 401/81/2011-Cus.III dated 04.05.2011 Manual filing and processing of bills of entry / shipping bills - stringent checks required to prevent misuse -reg

DRI has detected several cases in which bills of entry/shipping bills were processed manually or manual clearance was allowed on EDI documents. In order to redress the issue, instructions have been issued to decided that only in the rarest of rare and genuine cases manual processing and clearance will be allowed and data for manual documents is compulsorily entered and transmitted at all locations within the stipulated time period.

CBEC Customs Non-Tariff

Order from file No. 437/73/2010-Cus. IV dated Show Cause Notice by Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai to M/s Starwin Tex, Coimbatore and M/s S & H Inc., Coimbatore respectively, to the Commissioner of Customs (Adjudication), Chennai for adjudication

The Board has issued Show Cause Notice F.No.VIII/26/10/2008-Starwin, CBE dated 31.03.2009 and Show Cause Notice F.No.VIII/26/10/2008-S & H Inc., CBE dated 31.03.09 issued by Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai to M/s Starwin Tex, Coimbatore and M/s S & H Inc., Coimbatore respectively, to the Commissioner of Customs (Adjudication), Chennai for adjudication

Service Tax

Circular No. 138/07/ 2011- ST dated 06.05.2011 Services provided by the subcontractors / consultants and other service providers are classifiable as per Section 65 A of the Finance Act, 1994

Works Contract service (WCS) providers engage sub-contractors who provide services such as Architect's Service, Consulting Engineer's Service, Construction of Complex Service, Design Services, Erection Commissioning or Installation Service, Management, Maintenance or Repair Service etc. are classifiable as per Section 65 A of the Finance Act, 1994 under respective sub clauses (105) of Section 65 of the Finance Act, 1944 and chargeable to service tax accordingly

CBEC Customs

Circular No. 22/2011 dated 04.05.2011 Project Imports Regulations, 1986 (PIR) - Instructions

The review conducted on working of 'Project Imports' scheme revealed some systemic as well as compliance weaknesses relating to grant of project imports benefits and finalization of project imports cases. Hence recommendations have been made by made by C&AG is that the Government should fix a realistic time frame for finalization of assessments of project import cases after submission of the requisite documents by the importers to ensure that there is no loss of revenue .

• MINISTRY OF POWER

Notification No. L-7/145(160)/2008-CERC dated 02.05.2011 Central Electricity Regulatory Commission (Terms and Conditions of Tariff)(First Amendment) Regulations, 2011

The Central Electricity Regulatory Commission has made regulations to amend the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2009 by adding a new clause (4) after clause (3) of Regulation 5 of the principal regulations.

• RESERVE BANK OF INDIA

A.P. DIR

Circular No. 59 dated 06.05.2011 Foreign Exchange Management Act, 1999 - Import of rough, cut and polished diamonds

The Suppliers' and Buyers' credit (trade credit) including the usance period of Letters of Credit opened for import of rough, cut and polished diamonds should not exceed 90 days from the date of shipment. The revised directions will come into force with immediate effect

Circular No. 58 dated 02.05.2011 - Opening of Escrow Accounts for FDI transactions

The Escrow mechanism facilitates FDI transactions in cases where parties to the share purchase agreement desire to complete the due diligence process before they finalize the agreement for the same. To provide operational flexibility and ease the procedure for such transactions, it has been decided to permit AD Category - I banks to open and maintain, without prior approval of the Reserve Bank, non-interest bearing Escrow accounts in Indian Rupees in India on behalf of residents and/or non-residents, towards payment of share purchase consideration and / or provide Escrow facilities for keeping securities to facilitate FDI transactions subject to the terms and conditions

DBOD

Circular No. DBOD No. Ret. BC. 92 /12.02.001/2010-11 dated 09.05.2011 - All Scheduled Commercial Banks (Excluding Regional Rural Banks) Section 24 Of The Banking Regulation Act, 1949-Maintenance Of Statutory Liquidity Ratio (SLR)

Scheduled Commercial Banks (SCBs) may borrow overnight up to one per cent of their respective Net Demand and Time Liabilities (NDTL) under the Marginal Standing Facility (MSF) Scheme effective from the fortnight beginning on May 07, 2011.

Circular No. DBOD.No.Ret.BC. 91/12.02.001/2010-11 dated 09.05.2011 - Reserve Bank of India hereby specifies the India asset that every scheduled commercial bank shall continue to maintain

Reserve Bank of India has specified that every scheduled commercial bank shall continue to maintain in India assets, the value of which shall not, at the close of business on any day, be less than 24 per cent of the total net demand and time liabilities in India as on the last Friday of the second preceding fortnight as prescribed vide notification DBOD.No.Ret.BC.66/12.02.001/2010-11

DPSS

Circular No. DPSS.CO.No.2502 /02.23.02/ 2010-11 dated 04.05.2011 Mobile Banking Transactions in India - Operative Guidelines for Banks

The Reserve Bank of India has enhanced the cap of Mobile banking transactions in from ` 1000/- to ` 5000/- without end-to-end encryption with effect from the date of this circular.

MPD

Circular No. MPD.BC.343 /07.01.279/2010-11 dated 03.05.2011 Standing Liquidity Facilities for Banks and Primary Dealers

The Standing Liquidity Facilities provided to banks (export credit refinance) and Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the revised repo rate, i.e., at 7.25 per cent with effect from 3rd May, 2011

• MINISTRY OF HOME AFFAIRS

Notification No. SO909(E) dated 29.04.2011 Appointed date of enforcement of the Foreign Contribution (Regulation) Act, 2010

The Central Government has notified that Foreign Contribution (Regulation) Act, 2010 (42 of 2010), would be effective from 1st day of May, 2011