• SECURITIES AND EXCHANGE BOARD OF INDIA

Circular No. Cir/IMD/DF/10/2010 Dated 18.08.2010 Transferability of Mutual Fund units

This circular is issued in exercise of powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of regulation 77 of SEBI (Mutual Funds) Regulations, 1996 to protect the interests of Investors in securities and to promote the development of and to regulate the securities market by facilitating demat form freely transferable from the date of the issue of said addendum which shall be not later than October 1, 2010.

• RESERVE BANK OF INDIA

Press Release No. 2010-2011/258 Dated 17.08.2010Issue of Rs.10/- Denomination banknotes

The Reserve Bank of India will shortly issue Rs.10/- denomination banknotes with inset letter 'S' in both numbering panels in Mahatma Gandhi Series with new/improved security features bearing the signature of Dr. D. Subbarao, Governor.

Press Release No. 2010-2011/256 Dated 17.08.2010Infrastructure Financing: Global Pattern and the Indian Experience: RBI Staff Study

The present press release acknowledges the phenomenal transformation of some of the South-East Asian nations was preceded by and later reinforced by substantial investments in physical infrastructure. It points out the the means adopted by these nations to address gaps in infrastructure availability. The study also highlights the measures taken by the Reserve Bank of India in ensuring provision of adequate bank finance to infrastructure.

Press Release No. 2010-2011/249 Dated 16.08.2010 RBI and 926 branches of Banks to accept Advance Income Tax

For the convenience of the income tax assesses and to avoid standing in long queues 926 computerized branches of public and private sector banks will receive advance income tax in Mumbai and Navi Mumbai.

Press Release No 2010-2011/251 Dated 16.08.2010 RBI releases Winter 2009 issue of its Occasional Papers

RBI released Winter 2009 issue of its Occasional Papers and the following press release discusses about Occasional Papers and also the papers titled 'International Monetary Fund and Civil Society Organisations : A Dialogue', 'External Sector Openness and Purchasing Power Parity in India : An Annotation, Foreign Portfolio Flows and their Impact on Financial Markets in India' and Trade Pattern in SAARC Countries : Emerging Trends and Issues'.

IDMD

Circular No. IDMD/906/08.02.033/2010-11 Dated 16.08.2010 Particulars for auction of Government of India Dated Securities

Government of India have offered to sell (re-issue) of (a) "7.46 percent Government Stock 2017 " for a notified amount of Rs.4,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(3)-W&M/2010 dated August 16, 2010. The present notification deals with particulars by which Reserve Bank of India at Mumbai will conduct the auctions on August 20, 2010.

Press Release No 2010-2011/234 Dated 13.08.2010 RBI clarifies on compounding of contraventions under Foreign Exchange Management Act (FEMA), 1999

The Reserve Bank of India has urged that persons who have contravened provisions of FEMA should not take upon themselves, suo moto or on the basis of external advice, to decide whether a particular contravention is of a technical or minor in nature and, hence, no compounding application need be submitted to the Reserve Bank.The persons concerned should, therefore, in their own interest, submit their applications for compounding of contravention under FEMA to the Reserve Bank at the earliest opportunity.

DNBS

Circular No DNBS (PD) CC. No. 197/03.10.001/2010-11 Dated 12.08.2010 Regulatory Framework for Core Investment Companies (CICs)

Regulatory Framework for Core Investment Companies as announced in the Annual Policy 2010-2011 -1.Core Investment Companies (CICs) were not considered as carrying on the business of acquisition of shares and securities in the following circumstances, 2.Systemically Important NBFCs,All Core Investment Companies, 3.Systemic Importance of Core Investment Companies, 4.Constraints faced by Core Investment Companies, 5.Constraints faced by Core Investment Companies, 6. Regulatory Framework for Core Investment Companies, 7.Transition Period, Action plan to comply with Conditions and Submission of annual statutory auditors certificate.

Press Release No 2010-2011/215 Dated 10.08.2010 Reserve Bank of India releases its Occasional Papers

The Reserve Bank of India has today released the Monsoon 2009 issue of the Reserve Bank of India Occasional Papers It contains papers on the important themes of its policy alongwith special notes and book reviews. The first paper is titled 'Dynamics of Financial Globalisation and Growth, the paper finds that a dynamic long-run relationship exists between economic growth and financial openness. The second paper titled 'Estimation of Potential Output in India' it implies that the issue of estimating potential output is, critically important in understanding the overall inflationary dynamics in an economy. The paper 'Impact of Agricultural Credit on Agriculture Production: An Empirical Analysis in India' suggests that the direct agriculture credit amount has a positive and statistically significant impact on agriculture output and its effect is immediate. The paper titled 'Micro Finance and Financial Inclusion of Women: An Evaluation' analyse the geographical spread of micro finance institutions, access and affordability of micro finance for women borrowers and movement of women borrowers out of Self Help Groups .

• MINISTRY OF FINANCE

SERVICE TAX

Circular No. 127/9/2010 - ST Dated 16.08.2010 Service tax on commercial training and coaching - clarification whether 'donation' is 'consideration' - regarding

By the present circular it is concluded that service tax is not leviable on charitable Foundation imparting free livelihood training to the poor and marginalized youth since the donation or grant-in-aid is not linked to specific trainee or training and settled that unless the link or nexus between the amount and the taxable activity can be established, the amount cannot be subjected to service tax.

• MINISTRY OF ECONOMIC AFFAIRS

Notification No. 4 (3)-W&M/2010(i) Dated 09.08.2010 Auction for Sale (Re-issue ) of '7.80 per cent Government Stock, 2020'

Government of India notifies sale (reissue) of '7.80 per cent Government Stock, 2020' (hereinafter called 'the Stock') for an aggregate amount of Rs. 5,000 crore (nominal). In the present circular Method of Issue, Allotment to Non-competitive, Bidders, Place and date of auction ,When Issued Trading, Tenure, Date of issue and payment for the stock and Interest are mentioned.

• CENTRAL BOARD OF DIRECT TAXES

Notification No. 68/2010 Dated 05.08.2010Archery association of India" specifies as the association purposes of section 80G of the Income-tax Act, 1961

 Section 80G deals with deduction in respect of donations to certain funds, chari­table institutions, etc. Sub-section (2)(C) of this section says that sum referred to in this provision for the purposes of deduction is the one paid by the Assessee, being a Company, in the previous year as donations to the Indian Olympic Association or to any other association or institution established in India, as the Central Government may, having regard to the prescribed guidelines, by notification in the Official Gazette, specify in this behalf the development of infrastructure for sports and games or the sponsorship of sports and games, in India.

CBEC Excise

Circular No. 932/22/2010-CX Dated 04.08.2010 Administrative Control over Export Oriented Units by the Central Excise formations - reg

This Circular issued in respect of the decision arrived at by the Board in the meeting held on 16.4.10 that the jurisdiction over the EOU/EHTP/STP even in the port cities should be with the Central Excise formations which will facilitate uniform and better administration/control of such EOUs, and, also facilitate the shift to GST regime in future. In the meeting it was further decided that the shift in the process of administration, including handing over of all the records etc. of EOUs from Customs formations to the respective Central Excise formations can be effected latest by 31st July 2010. 

• PRESS INFORMATION BUREAU

Dated 11.08.2010 Interest Rate on Employees Provident Fund Accounts

The present release was issued that the Central Board of Trustees, Employees' Provident Fund [CBT (EPF)] would most likely by 04.09.2010 declare that rate of interest on EPF Accounts for the year 2010-11 based on the income receivable on the corpus.

• INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Circular No. IRDA/Legal/MAD/HC/Madurai/C-8 Dated 05.08.2010Transition from Referral Arrangement to Corporate Agency

The representation made towards the practice of General Insurance Companies of engaging their employees to assess losses on the ground that the provisions of Section 64UM of the Insurance Act, 1938 (Act) mandated the assignment of surveying losses to 'approved' insurance surveyors and loss assessors (SLAs) which must mean 'independent approved SLAs' and not an approved SLA who is an employee of any insurer since the employees of the insurers could not be termed as 'independent' to assess the losses, free from any form of influence or bias and hence sought the discontinuation of such a practice being allegedly violative of Section 64UM(2) of the Insurance Act, 1938(Act). Pursuant to direction of the Madras High Court in regard to early disposal of representations, following order was passed by Authority.