• DIRECTORATE GENERAL OF FOREIGN TRADE

Public Notice No. 18/(RE-2010)/2009-2014 dated 15.12.2010-Allocation of Raw Sugar for export under tariff rate quota to USA for the US fiscal year 2011 through M/s. Indian Sugar Exim Corporation Ltd, New Delhi.

Director General of Foreign Trade, vide this notification, has allocated total quantity of 8,200 MTs of Raw Sugar, H.S. Code No. 1701 00 00 { in the Schedule 2 of ITC(HS) Classification of Export & Import Items} out of non-levy (free sale) quota of 2010-2011(October, 2010 to September,2011) for export under tariff rate quota to USA for the US fiscal year 2011 (October 1, 2010 to September 30, 2011) through M/s. Indian Sugar Exim Corporation Ltd, New Delhi.

• MINISTRY OF FINANCE

CBEC Customs Non-Tariff

Notification No. 100/2010 Customs (N.T.) dated 15.12.2010 - Amendment to notification No. 36/2001-Cus (N. T.) dated 03.08.2001 wherein tariff value of Brass Scrap (all grades) substituted with new value for per metric ton

Vide this notification, the Board has made further amendment in the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 36/2001-Cus (N. T.), dated the 3rd August 2001, wherein tariff value of tariff item 7404 00 22 i.e Brass Scrap (all grades) has been substituted with new value of $4189 for per metric ton.

• RESERVE BANK OF INDIA

Press Release No. 2010-2011/844 dated 16.12.2010- Mid-Quarter Monetary Policy Review of December 2010

RBI has decided as a monetary measure to retain the repo rate at 6.25 percent and the reverse repo rate at 5.25 percent under the Reserve Bank's liquidity adjustment facility (LAF), and retain the cash reserve ratio (CRR) at 6.0 percent of net demand and time liabilities (NDTL) of scheduled banks.

It has been decided now to, firstly, reduce the statutory liquidity ratio (SLR) of scheduled commercial banks (SCBs) from 25 percent of their NDTL to 24 percent with effect from December 18, 2010 and secondly, conduct open market operation (OMO) auctions for purchase of government securities for an aggregate amount of Rs 48,000 crore in the next one month, the schedule for which is being issued separately. The above two measures are expected to inject liquidity on an enduring basis of the order of Rs 48,000 crore. The additional liquidity support under the LAF announced by the Reserve Bank on November 29, 2010 will now be available up to the extent of 1.0 percent (instead of 2.0 percent) of the NDTL of Scheduled Commercial Banks from December 18, 2010 to January 28, 2011.

RPCD

Circular No. RPCD.GSSD. BC.No.30 /09.01.01/2010 -11 Dated 15.12.2010- Guidelines issued after revision of para 4.36 of Group Life Insurance Scheme therein Rs.12, 000 to be payable by LIC in the event of death due to accident

Swarnajayanti Gram Swarozgar Yojana (SGSY) and para 4.36 of the SGSY guidelines was issued by the Government of India. Vide this notification, para 4.36 of the guidelines has been amended and revised, in terms of which, under the Group Life Insurance Scheme, Rs. 6000 shall become payable by LIC to the nominee of the deceased in case of natural death; and in the event of death due to accident, a sum of Rs. 12,000 shall become payable by LIC.

DBOD

Circular No. DBOD.Ret.BC. 67/12.02.001/2010-11 dated 16.12.2010-Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR)

It has been decided to reduce the Statutory Liquidity Ratio (SLR) for Scheduled Commercial Banks from 25 per cent of their Net Demand and Time Liabilities (NDTL) to 24 per cent with effect from December 18, 2010 as announced vide notification DBOD. No. Ret. BC.66 /12.02.001/2010-11 dated December 16, 2010.

MISC-OTHER 

Circular No. DPSS (CO) EPPD No. 1309 / 04.03.01 / 2010-11 dated 13.12.2010-Credit to NRE account through RTGS / NEFT / NECS / ECS - Issuance of Foreign Inward Remittance Certificate (FIRC) to be issued by the bank which has received the proceeds in foreign exchange

References were received from member banks on issuance of FIRC to the beneficiaries for inward remittance to NRE accounts received through credit push systems like RTGS, NEFT, NECS and ECS. Vide this circular, the following was clarified :

In terms of para 3.A.6 of Exchange Control Manual read with AD (MA series) circular No. 11 dated May 16, 2000, FIRC should not be issued against remittance for credit to NRE account.

Further, FIRC is to be issued by the bank which has received the proceeds in foreign exchange, i.e., the bank which converts the foreign currency into rupees is required to issue FIRC.

AP Dir

Circular No. A.P. (DIR Series) Circular No. 24, A.P. (FL/RL Series) Circular No. 05 dated 13.12.2010-Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Second Amendment Rules, 2010-Obligation of Authorised Persons

Government of India vide its Notification No. 10/2010-E.S./F.No.6/8/2009-E.S. dated June 16, 2010, had amended the Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005.

Any failure to comply with the requirements of the said Rules as amended, to the extent they are applicable to foreign exchange transactions, shall also be treated as failure to comply with the directions issued by the Reserve Bank of India under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

Circular No. A.P. (DIR Series) Circular No. 23 dated 10.12.2010-Directions issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 regarding Credit Agreement under the LOC of USD 42 million for the purpose of financing Kakobola Hydroelectric Power Project in Congo.

The directions in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999. Export-Import Bank of India (Exim Bank) had concluded an Agreement dated August 05, 2010 with the Government of the Democratic Republic of Congo, making available to the latter, a Line of Credit (LOC) of USD 42 million (USD forty two million) for financing eligible goods and services including consultancy services from India for the purpose of financing Kakobola Hydroelectric Power Project in Congo. The goods and services including consultancy services from India for exports under this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. The Credit Agreement under the LOC is effective from November 19, 2010 and the date of execution of Agreement is August 05, 2010. 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 the case of project exports and 72 months (August 04, 2016) from the execution date of the Credit Agreement in the case of supply contracts. Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by the Reserve Bank from time to time.

• SECURITIES AND EXCHANGE BOARD OF INDIA

Circular No. MRD/DP/ 37 /2010 dated 14.12.2010- No objection to beneficial owner (BO) to authorize acceptance of third party address and as correspondence address

SEBI had received representations from market intermediaries seeking guidance and clarifications whether to accept and capture the address of some person other than the beneficial owner (BO) as a correspondence address in the details of the demat account of the beneficial owner.

SEBI has stated that it has no objection to a BO authorizing the capture of an address of a third party as a correspondence address, provided that the Depository Participant (DP) ensures that all prescribed 'Know Your Client' norms are fulfilled for the third party also. The DP has to obtain proof of identity and proof of address for the third party. The DP has to ensure that customer due diligence norms as specified in Rule 9 of Prevention of Money Laundering Rules, 2005 are complied with in respect of the third party.

Circular No. CFD/DIL/10/2010 dated 16.12.2010- Amendments to the Equity Listing Agreement

SEBI has decided to effect certain amendments to the Equity Listing Agreement ("the LA") with respect to various continuous disclosures made by listed entities.

A gist of the said amendments is as follows:-

I) Insertion of Clause 54 - Maintenance of a website(I) Amendments to Clause 35 - Disclosure relating to shareholding pattern

(a) Disclosure of shareholding pattern prior to listing of securities

(b) Disclosure of shareholding pattern of listed entities pursuant to material changes in the capital structure

(c) Disclosure in respect of Depository Receipts

(II) Amendments to Clause 40A - Minimum public shareholding

(III) Amendments to Clause 5A - Uniform procedure for dealing with unclaimed shares

(iv) Amendment to Clause 20 & 22- Corporate Announcement

(V) Amendment to Clause 21 - Notice Period

(VI) Insertion of Clause 53 - Disclosures regarding agreements with the media companies

The provisions of para (2)(I)(a), 2(I)(b) and (2)(I)(c), (2)(II), (2) (III) and 2 (VI) are to be applicable with immediate effect. The provisions of para (2)(IV) and (2)(V) to be applicable for all board/shareholders' meetings convened for this purpose on or after January 01, 2011. The provisions of para (2)(VII) are to be applicable with effect from April 01, 2011.

• INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Circular No. IRDA/NL/PR/CRE/208/12/2010 and Circular No :IRDA/ NL/ CIR/ Cre/ 205/12/ 2010 dated13.12.2010 - New guidelines on Trade Credit Insurance to come into force with immediate effect

IRDA has reviewed the credit insurance products being offered by Indian Insurers and is of the view that there is a need to standardize the features of these products and their administration. To ensure that the business of trade credit insurance is carried out according to sound insurance principles, IRDA has issued these guidelines under Section 14(1) and 14(2)(e) of the IRDA Act, 1999. The guidelines come into force with immediate effect and will require insurers to file revised product in line with File & Use guidelines and these guidelines.

The guidelines define various terms associated with trade credit insurance such as buyer, maximum liability, credit limit, insolvency, factoring, etc. It also gives the scope of cover under trade credit insurance policy. Any trade credit insurance policies to be issued by the insurer will be subject to the File & Use and the credit insurance guidelines. The guidelines specify basic requirements of a trade credit insurance product which includes that policyholder should necessarily be a supplier of goods and services and his loss is for non-receipt of trade receivables. The guidelines also specify conditions on trade credit insurance from insurer's perspective and policyholder perspective.

An insurer will have well defined internal underwriting, risk management and claims settlement guidelines approved by the Board of Directors for writing this class of business. These guidelines also specify the creation of premium, claims, IBNR and IBNER reserves on actuarial basis. The net retention of the insurer for trade credit shall not exceed 2% of his net worth. These guidelines also specify insurer to have qualified, experienced and trained employees dealing with trade credit insurance.

• TELECOM REGULATORY AUTHORITY OF INDIA

Notification No. 305-17/2010-QoS dated 14.12.2010- The Telecom Commercial Communications Customer Preference (Amendment) Regulations, 2010

These regulations are called the Telecom Commercial Communications Customer Preference (Amendment) Regulations, 2010. Salient features are :

In sub-regulation (2) of regulation 1 of the principle regulations, for clause (b) the following clause is to be substituted: 

"Regulation 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22 of these regulations shall come into force, as may be specified by the Authority, from time to time." and clause (c) should be deleted.

In regulation 25 of the principal regulations, for clause (b), the following clause shall be substituted: 

"Regulation 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18 of the Telecom Unsolicited Commercial Communications Regulations, 2007 ( 4 of 2007) shall remain in force till such time, as may be specified by the Authority, from time to time." and clause (c) is to be deleted.

Press Release No. 65/2010 dated14.12.2010-TRAI issues "The Telecom Commercial Communications Customer Preference (Amendment) Regulations, 2010"

The Telecom Regulatory Authority of India (TRAI) today issued "The Telecom Commercial Communications Customer Preference (Amendment) Regulations, 2010". The Telecom Regulatory Authority of India (TRAI) had issued "The Telecom Commercial Communications Customer Preference Regulations, 2010" on 1st December 2010. Some regulations were required to be implemented with effect from 15th day of December 2010 and rest from 1st January, 2011.

However, having regard to the aspect of security audit of the website to be created for the purpose of these regulations and the other processes involved, the Telecom Regulatory Authority of India has found it necessary to redetermine the dates for implementation of the aforesaid regulations. Accordingly, some of the relevant regulations have been amended so as to come into force, from dates as may be specified by the Authority, from time to time.

• MINISTRY OF POWER

Notification No. L-7/145(160)/2008 dated 14.12.2010- Central Electricity Regulatory Commission (Fees and Charges of Regional Load Despatch Centre and other related matters) (First Amendment) Regulations, 2010.

These Regulations have been made to amend the Central Electricity Regulatory Commission (fees and charges of Regional Load Despatch Centre and other related matters) Regulation, 2009, and are called the Central Electricity Regulatory Commission (Fees and Charges of Regional Load Despatch Centre and other related matters) (First Amendment) Regulations, 2010. Salient features are as follows :

Amendment of Regulation 5:-Clauses (4), (5) and (6) of Regulation 5 of the principal regulations shall be substituted as under :

"(4) Where after the truing up, the tariff recovered exceeds the tariff approved by the Commission under these regulations, the Power System Operation Company shall refund to the users, the excess amount so recovered along with simple interest at the rates specified in the proviso to this regulation.

(5) Where after the truing up, the tariff recovered is less than the tariff approved by the Commission under these regulations, the Power System Operation Company shall recover from the users, the under-recovered amount along with simple interest at the rates specified in the proviso to this regulation.

(6) The amount under-recovered or over-recovered, along with simple interest at the rates specified in the proviso to this regulation, shall be recovered or refunded by the Power System Operation Company in six equal monthly Installments starting within three months from the date of the tariff order issued by the Commission after the truing up exercise"

Amendment of Regulations 15: The following new clause shall be added at the end of Regulation 15 of principal regulations :

"(4) The actual expenditure towards Annual Maintenance Contract (AMC), after prudence check, shall be considered in arriving at the Operation and Maintenance Expenses during 2009-10 to 2013-14"

Amendment of Regulation 24: The following clause shall be added at the end of Regulation 24 of the principal regulations :

"(6) Notwithstanding anything contained in these regulations, a generating station or each stage of the generating station where the scheduling, accounting and metering is done separately for each stage shall be considered as a user for the purpose of registration and registration fee shall be paid accordingly"

Correction in Appendix III: Change in the depreciation rates against certain items.