New Format Cheque under Cheque Truncation System (CTS) Standard issued by RBI, in addition to MICR, yet to be notified

"CTS-2010 Standard" for Cheque Forms – Specifications

RBI has proposed a New Cheque Truncation System (CTS) and a Model of proposed cheque, the effective date of which will be intimated soon.

It has since been decided to prescribe certain benchmarks towards achieving
standardisation of cheques issued by banks across the country. These include provision of mandatory minimum security features on cheque forms like quality of paper, watermark, bank’s logo in invisible ink, void pantograph, etc., and standardisation of field placements on cheques. In addition, certain desirable features are also being suggested which could be implemented by banks based on their need and risk perception. The set
of minimum security features would not only ensure uniformity across all cheque forms issued by banks in the country but also help presenting banks while scrutinising /recognising cheques of drawee banks in an image-based processing scenario. The homogeneity in security features is expected to act as a deterrent against cheque frauds, while the standardisation of field placements on cheque forms would enable straightthrough-processing (STP) by use of optical / image character recognition technology (MICR).

Source: RBI Circular DPSS.CO.CHD.No.1832/04.07.05/2009-2010 dated February 22, 2010

New NBFC Classification: AFC, IFC, Investment & Loan company as per RBI

Consequent upon re-classification of NBFCs, in the proposed structure the following categories of NBFCs will emerge:

1. Asset Finance Company
2. Investment Company
3. Loan Company
4. Infrastructure Finance Company (IFC) – a new category as notified by RBI vide DNBS.PD. CC No.168 /03.02.089 /2009-10 dated 12th February 2010.

Websites/Blogs/astrology predictions or advice/Newspaper Advertisements/SMS’s/Emails/rumours NO Papa...Only SEBI Registered Intermediaries for Investments

SEBI PR No.36/2010 dated 10th February 2010

Caution to investors

Securities and Exchange Board of India (SEBI) is a regulatory body established by an Act of Parliament to protect the interests of investors in the securities market, to promote the development of, to regulate the securities market and for matters connected therewith or incidental thereto.

The following caution is issued by SEBI in the interest of investors.

SEBI has observed a proliferation of websites that offer investment advice to investors. Many of these websites offer investment advice not backed by any reasonable basis and prima facie appear to be misguiding. Investors should realize that when they follow such advice they are exposing themselves to undue risk in using unconfirmed information available on such Websites/Blogs/astrology predictions or advice/Newspaper Advertisements/SMS’s/Emails/rumours/ advice rendered through television or print media and trading tips on an intra-day basis, short term basis or long term basis. The public in general is advised not to fall prey to or be lured by such sources of information promising quick gains and unrealistic high returns. It is advised that investors should take well informed investment decisions.

The following may be borne in mind:

· Deal only with/ through SEBI registered intermediaries.

· Do not get carried away by advertisements promising unrealistic gains and windfall profits.

· Do not invest based on market rumours or unconfirmed or unauthentic news.

· Be aware that advice through television or print media does not mean that it is the opinion of the channel or publisher.

· Be extra cautious while using information available from media sources such as Websites/ Blogs/ Newspaper Advertisements/ SMS’s Emails/rumours/ advice through television or print media for information and tips for intra-day, short term or long term investing.

· Do not be guided by astrological predictions on share prices and market movements.

· Do not make investment decisions on the basis of implicit/explicit promises made by anyone.

· Do not be unduly influenced by indicative returns.

· Do not be unduly influenced by Bull Runs/Bear Runs while making investment decisions.

Records to be maintained from transaction, Non profit organisation included, Suspicious transaction defined in amendment of Money Laundering Rules 2009

Notification No 13/2009/F.No. 6/8/2009- ES & G.S.R 816(E) dated 12th November 2009

Prevention of Money-laundering Act (PMLA), 2002 read with Rules is amended by 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)  Amendment Rules, 2009

Rule 2(1)(ca) “non profit organisation” means any entity or organisation that is registered as a trust or a society under the Societies Registration Act, 1860 (21 of 1860) or any  similar State legislation or a company registered under section 25 of the Companies Act, 1956 (1 of 1956);

Rule 3(BA) all  transactions involving receipts by non-profit organisations of  value  more than  Rs. 10 lakh, or its equivalent in foreign currency; Kindly note, Rule 3 deals with Maintenance of records of transactions (nature and value) by banking company or financial institution or intermediary. [thus, covering Charitable trusts, whether temples, churches or mosques, non-government organisations (NGOs), educational institutions or societies and other Non-profit organisations, even Section 25 Company – see definition above]

Rule 6  Retention of records of transactions– The records referred to in rule 3 shall be maintained for a period of ten years from the date of [the word CESSATION OF is removed] transactions between the client and the banking company, financial institution or intermediary, as the case may be.  [Hence, the 10 year period begins from the date of transaction itself].

Rule 2(fa)  “Regulator” means a person or an authority or a Government which is vested with the power to license, authorise, register, regulate or supervise the activity of banking companies, financial institutions or intermediaries, as the case may be;

Rule 2(g)  “Suspicious transaction" means a transaction referred to in clause (h) [which defines the term transaction], including an attempted transaction, whether or not made in cash, which to a person acting in good faith -

(a) gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act, regardless of the value involved; or

(b) appears to be made in circumstances of unusual or unjustified complexity; or

(c) appears to have no economic rationale or bonafide purpose; or

(d) gives  rise  to  a  reasonable  ground  of  suspicion  that  it may involve financing of the activities relating to terrorism;

Rule 8 after sub-rule (3),  the following proviso shall be inserted at the end, namely:-

“Provided that a banking company, financial institution or intermediary, as the case may be, and its employees shall keep the fact  of furnishing information in respect of transactions referred to in clause (D) of sub-rule (1) of rule 3 strictly confidential.  [Thus, the records of transactions are made STRICTLY CONFIDENTIAL!]

In rule 9,-
(a)   for sub-rules (1) and (2), the following sub-rules shall be substituted, namely:-

“(1) Every banking company, financial institution and intermediary, as the case may be, shall,

(a)  at the time of commencement of an account-based relationship, identify its clients, verify their identity and obtain information on the purpose and intended nature of the business relationship,  and

(b) in all other cases, verify identity while carrying out:

(i) transaction of an amount equal to or exceeding rupees fifty thousand, whether conducted as a   single transaction or several transactions that appear to be connected, or

(ii)  any international  money transfer operations.

(1A) Every banking company, financial institution and intermediary, as the case may be, shall identify the beneficial owner and take all reasonable steps to verify his identity.

(1B) Every banking company, financial institution and intermediary, as the case may be, shall exercise ongoing due diligence with respect to the business relationship with every client and closely examine the transactions in order to ensure that they are consistent with their knowledge of the customer, his business  and risk profile.

(1C) No banking company, financial institution or intermediary, as the case may be, shall  keep any anonymous account or account in fictitious names.

(2) Where the client is an individual, he shall for the purpose of sub-rule (1), submit to the banking company, financial institution and intermediary, as the case may be, one certified copy of an ‘officially valid document’ containing details of his identity and address, one recent photograph and such other documents including in respect of the nature of business and financial status of the client as may be required by the banking company or the financial institution or the intermediary, as the case may be.

Provided that photograph need not be submitted by a client falling under clause (b) of sub-rule (1).”;

(b)   after sub-rule (6),  the following sub-rule shall be inserted, namely:-

“(6 A) Where the client is a  juridical person, the banking company, financial institution and intermediary, as the case may be, shall verify that any person purporting to act on behalf of  such client is so authorised and verify the identity of that person.”;

(c) for sub-rule (7), the following sub-rule shall be substituted, namely:-

“ (7) (i)The regulator shall issue guidelines incorporating the requirements of sub- rules (1) to (6A) above and may prescribe enhanced measures to verify the client’s identity taking into consideration type of client, business relationship or nature and value of transactions.

(ii) Every banking company, financial institution and intermediary as the case may be, shall formulate and implement a Client Identification Programme to determine the true identity of its clients, incorporating requirements of sub-rules (1) to (6A) and guidelines issued under clause (i) above.

Prevention of Money Laundering Act (PMLA), 2002 can be downloaded here.   Click here for SEBI Master circular on Money Laundering.

Accordingly, all authorized persons are advised to furnish Suspicious Transaction Report (STR) to FIU-IND in respect of their money changing activities within 7 days of arriving at a conclusion that a transaction, including attempted transaction, whether or not made in cash, or a series of transaction integrally connected are of suspicious nature. The formats of STR, both manual and electronic, have been made available by FIU-IND in their website http://fiuindia.gov.in. [A.P. (DIR Series) Circular No.15 & A.P. (FL/RL Series) Circular No.02 dated November 19, 2009]

Priority lending to Training centres & consultancy services registered as Micro or Small enterprise – RBI instructs banks

Priority Sector Lending – Categorisation of activities under service under the Micro Small & Medium Enterprises Development (MSMED) Act, 2006

Understand the broad CATEGORIES OF PRIORITY SECTOR,
(i) Agriculture (Direct and Indirect finance)
(ii) Small Enterprises (Direct and Indirect Finance)
(iii) Retail Trade
(iv) Micro Credit
(v) Education loans
(vi) Housing loans

Understand about MSMED from http://yehseeyes.blogspot.com/search?q=MSMED

It has been decided to include loans granted by banks in respect of following activities under Micro and Small (Service) Enterprises within the priority sector, provided such enterprises satisfy the definition of Micro and Small (Service) Enterprises in respect of investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006) (i.e. not exceeding Rs. 10 lakh and Rs. 2 crore respectively).

1. Consultancy Services including Management Services;
2. Composite Broker Services in Risk and Insurance Management;
3. Third Party Administration (TPA) Services for Medical Insurance Claims of Policy Holders;
4. Seed Grading Services;
5. Training-cum-Incubator Centre;
6. Educational Institutions;
7. Training Institutes;
8. Retail Trade;
9. Practice of Law, i.e. legal services;
10. Trading in medical instruments (brand new);
11. Placement and Management Consultancy Services; and
12. Advertising agency and Training centres

Accordingly, there will be no separate category for "Retail Trade" under priority sector. Loans granted by banks for Retail Trade [i.e. advances granted to retail traders dealing in essential commodities (fair price shops), consumer co-operative stores; and advances granted to private retail traders with credit limits not exceeding Rs. 20 lakh) would henceforth be part of the Small (Service) Enterprises.

The commercial banks may report such loans under the head "Total credit to Small Enterprises" in the half-yearly (Ad-hoc) [under 2 (a) and 2 (ii)] and yearly (final) [under 14, 15, 19, 20 and 21] return on priority sector advances.

For All Primary (Urban) Co-operative Banks (read this circular UBD.CO.BPD(PCB) Cir.No.50/09.09.001/2009-10 dated March  25, 2010)

Source: RBI/2009-10/164 RPCD.CO.Plan.BC. 24 /04.09.01/2009-10 dated 18th September 2009

The Prevention of Money Laundering (Amendment) Act, 2009 [PMLA] has come into force with effect from 1st June 2009 & Master Circular – RBI/SEBI & Multi Level Marketing (MLM) firms

Download RBI Master Circular on Money Laundering / Know Your Customer (KYC).  This is in continuation of the same.

Preservation  Period of Records

The Prevention of Money Laundering (Amendment) Act, 2009 (No. 21 of 2009) has come into force with effect from June 01, 2009 as notified by the Government. In terms of Sub-Section 2(a) of Section 12 of The Prevention of Money Laundering (Amendment) Act, 2009 (PMLA, 2009), the records referred to in clause (a) of Sub-Section (1) of Section 12 shall be maintained for a period of ten years from the date of transaction between the clients and the banking company and in terms of Sub-Section 2(b) of Section 12 of the Act ibid, the records referred to in clause (c) of Sub-Section (1) of Section 12 shall be maintained for a period of ten years from the date of cessation of transaction between the clients and the banking company.

Accordingly, in modification of paragraph 2.16(iii) (a) of the above said master circular dated July 1, 2009, banks are advised to maintain for at least ten years from the date of transaction between the bank and the client, all necessary records of transactions referred to at Rule 3 of 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 (PMLA Rules), both domestic or international, which will permit reconstruction of individual transactions (including the amounts and types of currency involved, if any) so as to provide, if necessary, evidence for prosecution of persons involved in criminal activity.

However, records pertaining to the identification of the customer and his address (e.g. copies of documents like passports, identity cards, driving licenses, PAN card, utility bills etc.) obtained while opening the account and during the course of business relationship, as indicated in paragraph 2.16(iii)(b) of the above said master circular dated July 1, 2009, would continue to be preserved for at least ten years after the business relationship is ended as required under Rule 10 of the Rules ibid.

Accounts of Politically Exposed Persons (PEPs)

Detailed guidelines on Customer Due Diligence (CDD) measures to be made applicable to Politically Exposed Person (PEP) and their family members or close relatives are contained in paragraph 2.5(iv) of the master circular.  It is further advised  that in the event of an existing customer or the beneficial owner of an existing account,subsequently becoming a PEP, banks should obtain senior management approval to continue the business relationship and subject the account to the CDD measures as applicable to the customers of PEP category including enhanced monitoring on an ongoing basis.

Principal Officer

Banks have been advised in Para 2.15 of the master circular referred to above that banks should appoint a senior management officer to be designated as Principal Officer and the role and responsibilities of the Principal Officer have been detailed therein. With a view to enable the Principal Officer to discharge his responsibilities,  it is advised that that the Principal Officer and other appropriate staff should have timely access to customer identification data and other CDD information, transaction records and other relevant information. Further, banks should ensure that the Principal Officer is able to act independently and report directly to the senior management  or  to the Board of Directors.

Source: RBI/2009-10/152 DBOD. AML.BC. No.43 /14.01.001/2009-10 dated 11/09/2009

Further, in view of opening and conduct of the accounts of Multi Level Marketing (MLM) firms, we (RBI) advise that banks should be careful in opening accounts of the marketing/trading agencies etc. Especially, strict compliance with KYC and AML guidelines contained in circulars UBD.CO.BPD (PCB) No. 1/12.05.001/2008-09 dated July 02, 2008 and UBD.PCB. Cir. 30/09.161.00/2004-05 dated December 15, 2004 issued by RBI should be ensured in the matter.

In cases where accounts have already been opened in the names of the marketing agencies, retail traders, investment firms, the banks may undertake quick reviews. Wherever large number of cheque books has been issued to such firms, the relative decision may be reviewed in the light of the following:

• Whether the cheque books have been issued to customers on the basis of their express request and after following the internal processes laid down in the matter.
• Whether the number of cheque books is consistent with/matching the profile of the customers as also their nature of business operations.

Even where the volume of transactions/profile of the customers apparently justify the number of cheque books issued, special ongoing monitoring of the operations in the accounts of such types of firms should be made especially if large volumes of small cash deposits are being made in those accounts and withdrawals are being made there from, through cheques written for small amounts, either across the counters or through clearing. In respect of such account holders banks may, in specific cases, call for the data from the account holders on the number and aggregate amount of post dated cheques issued. The data/information so collected should be analysed in select cases to rule out the possibility of the firms being engaged in deposit taking activities. Certain indicative parameters for selecting accounts for further scrutiny and action are the bunching of dates of the post dated cheques, the uniformity in the amounts of cheques etc. These data should be analysed together with data on cash deposits of small amounts on previous distant dates resembling the deposit contracting/mobilizations dates in terms of similar bunching and uniformity of amounts.

Please acknowledge receipt. Also, unusual operations noticed during the above review may be immediately reported to us and other appropriate authorities, such as, Financial Intelligence Unit (FIU-IND), Department of Revenue, Ministry of Finance, Government of India, Hotel Samrat (6th Floor), Chanakyapuri, New Delhi - 110 021.

Source: RBI/2009-10/158 UBD. CO. BPD. PCB.Cir. No.9/12.05.001 / 2009-10 dated 16/09/2009

10&12th Standard Marks for 100% Company Secretary Course fees, says ICSI by Students Education Fund Trust scheme-60/75/90%

The Council of the Institute of Company Secretaries of India (ICSI) in its 182^nd meeting held on 31.08.2008 has approved creation of ‘ICSI Students Education Fund Trust’ (for details, click here) to financially assist the economically backward students as part of its social responsibility & to promote/ encourage academically bright students to attract the best available talent to the profession.

STAGE	CATEGORIES OF STUDENTS / ELIGIBILITY CRITERIA
	For Students with Family Income below Rs.60,000 per annum	For Students with Family Income above Rs.60,000 but below Rs.1,00,000 per annum	For Academically Bright Students without any limit on their Family Income
Foundation Programme	60% Marks in both Matriculation & Senior Secondary Stages	75% Marks in both Matriculation & Senior Secondary Stages	90% Marks in both Matriculation & Senior Secondary Stages
Executive Programme	60% Marks in both Matriculation & Senior Secondary Stages and  60% Marks in Bachelor’s Degree Stage	75% Marks in both Matriculation & Senior Secondary Stages and 60% Marks in Bachelor’s Degree Stage	90% Marks in both Matriculation & Senior Secondary Stages and 85% Marks in Bachelor’s Degree Stage

ECONOMICALLY BACKWARD STUDENTS WITH GOOD ACADEMIC RECORD &  ACADEMICALLY BRIGHT STUDENTS

Economically backward students securing 60% 0r 75% marks (as above) should submit the Income Certificate issued by the competent authority of the State / Central Government should be submitted.

Academically bright students & Economically backward students (without furnishing income certificate) may become eligible students under this scheme provided they secure 90% marks (as above).

Eligible Students shall be fully exempted from paying the Registration/ Admission Fee, Postal Tuition Fee, Exemption Fee and other fees normally required to be paid by the students at the time of admission & examination fees for the first attempt and first available opportunity to appear for CS exams.

This applies for the eligible students from Senior Secondary Stage to CS Foundation Programme and

• also for such students, the exemption from paying the Registration/ Admission Fee, Postal Tuition Fee, Exemption Fee and other fees normally required to be paid by the students at the time of admission to CS Executive Program PROVIDED they also pass CS Foundation Programme at their first attempt and first available opportunity to appear for CS exams.
• also for such students, the exemption from paying the Registration/ Admission Fee, Postal Tuition Fee, Exemption Fee and other fees normally required to be paid by the students at the time of admission to CS Professional Program PROVIDED they also pass CS Executive Programme at their first attempt and first available opportunity to appear for CS exams.

• SUBJECT TO OTHER SCHOLARSHIPS, if any.

   

  Students desirous of availing the financial assistance may submit their application in the prescribed format (please click here) along with all supporting documents, including Income Certificate & enclose copies of all relevant documents / certificates / marks sheets, duly attested by a Gazetted Officer/Member of the Institute to Director (Student Services), The Institute of Company Secretaries of India , C-37, Sector – 62, Noida – 201 309.

  I think, soon one can see, school students aiming their marks to get Company Secretary Course fee exemption, saying, I got This Much & I aim to become a Company Secretary !!! (like Doctors / Engineers having Cut-off marks)

  Enjoy CS Studies & Updates…Keep readin…

All PAN details online & you can verify it too now, keep filing

Thanks Ms. Monica Bhardwaj of CS Mysore 

Dear Professionals,

 

To enable eligible Entities verify Permanent Account Numbers (PANs), Income Tax Department (ITD) has authorized National Securities Depository Limited (NSDL) to launch an online PAN verification service for verification of PANs by authorized entities.

Entities who can avail of this facility:

• Government Agencies (Central/State)
• Reserve Bank of India
• Banks
• Depositories
• Depository Participants
• Mutual Funds
• Companies (Required to furnish Annual Information Return)
• Credit card Companies / Institutions
• Any other entity required to furnish Annual Information Return
• Stock Exchanges
• Companies and Government deductor (Required to file TDS/TCS return)

Service

This service has three modes of verification:
(1) Screen based verification
(2) File based verification
(3) Software (API) Based Verification

It would not be possible to mail you all the details since they are very exhaustive.

You will be required to visit the following links to get the exact details viz.
1. For Charges:
http://www.tin-nsdl.com/onlinepancharges.asp

2. For Pre-Requisites:
http://www.tin-nsdl.com/onlinepanprereq.asp

3. For Registration:
http://www.tin-nsdl.com/onlinepanreg.asp

4. For Registration Status Tracking
http://www.tin-nsdl.com/onlinepanregstatus.asp

5. For Authorisation:
http://www.tin-nsdl.com/onlinepanauth.asp

6. For Uploading Procedure:
http://www.tin-nsdl.com/onlinepanupproc.asp

All this is links are on the left panel of the below webpage: 
http://www.tin-nsdl.com/onlinepanintro.asp

Enjoy filing....

Swipe freely your Debit & ATM cards without any second thought now…

<>Customer charges for use of ATMs for cash withdrawal and balance enquiry RBI/2007-2008/260 DPSS No.1405 / 02.10.02 / 2007-2008 dated 10th March 2009 </> Sr.No. Service Charges (i) For use of own ATMs for any purpose Free (with immediate effect) (2) For use of other bank ATMs for balance enquiries Free (with immediate effect) (3) For use of other bank ATMs for cash withdrawals Free - with effect from April 1, 2009. For the services at (1) and (2) above, the customer will not be levied any charge under any other head and the service will be totally free. The service charges for the following types of cash withdrawal transactions may be determined by the banks themselves: (a) cash withdrawal with the use of credit cards (b) cash withdrawal in an ATM located abroad. Read the RBI circular in 83421.pdf

ICSI members-Company Secretary/PCS, download logos for visiting card & office stationery

The Vice President of India unveiled the New LOGO of the Institute of Company Secretaries of India (ICSI) and the logo to be used by Company Secretaries. This new logo of the Institute of Company Secretaries of India (ICSI) stands for stability and integrity. The core of the new identity "Connecting for collective growth" is epitomized by four alphabets signifying a mature and multifaceted profession. The words CS in the centre of the identity integrate to form an upward arrow embodying the Institutes' Vision of growth and excellence in corporate governance. Set in a deep blue colour, the bold and elegant masthead lends it an air of authority and leadership. This corporate identity program has been designed with a view to creating a cohesive brand image for the profession of Company Secretaries.



Members can save this picture for use in their Stationeries...Right click the logo below and click "Save Picture As". Now, you can see CS logos everywhere, even we will be part of quiz contests and what now. Do comment your views on the new logo. Its now, up to us to popularise the same, so that every individual recognise CS as a professional for Corporate Legal Areas.



Enjoy CS...

Online Grievance Redressal facility for Indians, a Government of India Initiative

Credit to Mr. Kotharis

Lodge Your Grievance now to Government of India

Its India, where unimaginable is also possible !



Government of India has an online Grievance forum at http://darpg- grievance. nic.in/

Can you imagine this is happening in INDIA?

The govt. wants people to use this tool to highlight the problems they faced while dealing with Government officials or departments like Passport Office, Electricity board, BSNL/MTNL, Railways etc.

I know many people will say that these things don't work in India, but this actually works as one of our colleague in CSC found. The guy I'm talking about lives in Faridabad. Couple of months back, the Faridabad Municipal Corporation laid new roads in his area and the residents were very happy about it. But 2 weeks later, BSNL dug up the newly laid roads to install new cables which annoyed all the residents including this guy. But it was only this guy! Who used the above listed grievance forum to highlight his concern. And to his surprise, BSNL and Municipal Corporation of Faridabad were served a show cause notice and the guy received a copy of the notice in one week. Government has asked the MC and BSNL about the goof up as it's clear that both the government departments were not in sync at all.

So use this grievance forum and educate others who don't know about this facility. This way we can at least raise our concerns instead of just talking about the ' System ' in India.

Filing RTI Complaints online, yes e-filing of RTI applications

Filing of RTI applications online now possible

Thanks Mr. CS Dattatri of CS Mysore

 

File your Complaint Now

 

Filing queries under the Right to Information (RTI) Act has become a matter of minutes with the Central Information Commission (CIC) launching an online system for submission of appeals.

"The new system was started last week. Now all Internet and tech savvy RTI users can file their complaints and appeals online," a CIC official said Tuesday.

The RTI Act was passed by parliament in 2005 for promoting transparency and accountability in the functioning of government departments.

Every department has a public information officer (PIO) to whom RTI applications can be submitted. However, if the user does not get the information or receives incomplete information, he can file first an appeal with the appellate authority within the same department. In case the applicant still remains unsatisfied, he can file a second appeal to their respective information commission.

Now, the applicants will just have to log on to the website of CIC (www.cic.gov.in) and click on the 'RTI complaints and appeal' link, which will provide them with an application form.

"Filling of the form is very easy. The user has to just fill mandatory fields like name, address, citizenship status, ministry, department or public authority that the appeal is against and whether the complainant is below the poverty line," the CIC official said.

The applicant may also fill other details like whether he has applied to any PIO for information related to their complaint and whether the issue at hand is a matter of life or liberty. "The applicants can even upload documents related to their complaint. The applicants will also be able to check the status of their complaints online," the official added.

The official said that people living outside the national capital and abroad would be benefited the most since the online system would help them save both time and resources, ending their dependence on the postal department.

RBI - Mobile Payments in India - Operative Guidelines for Banks

Dear All,

With the rapid growth in the number of mobile phone subscribers in India banks have been exploring the feasibility of using mobile phones as an alternative channel of delivery of banking services. A few banks have started offering information based services like balance enquiry, stop payment instruction of cheques, record of last five transactions, location of nearest ATM/branch etc. Acceptance of transfer of funds instruction for credit to beneficiaries of same/or another bank in favour of pre-registered beneficiaries have also commenced in a few banks. Considering that the technology is relatively new and due care needs to be taken on security of financial transactions, the Reserve Bank of India has felt the need for a set of operating guidelines that can be adopted by banks.

Accordingly the Reserve Bank has prepared a 'Draft Operating Guidelines for Mobile Payments in India', in consultation with banks and a few industry bodies. The draft guidlines are placed on the website for public comments. Comments can be sent latest by June 30, 2008 to the Chief General Manager, Reserve Bank of India, Department of Payment and Settlement Systems, Central Office, 14th floor, Central Office Building, S.B.S. Marg, Mumbai 400001 or faxed to 022-22659566. Comments can also be e-mailed.

You can access draft guideline for your perusal and comment

Source: Press Release : 2007-2008/1589 dated 12th June 2008.

Thanks & Regards

--
Alagar
Investment Banking
Karvy Investor Services Limited
Chennai
Tel: 044-28151034/3445/3658
Moble: 919884731993/ 919790906827
e-mail: alagar.muthu@karvy.com


--
Vj
Trezrrr every pulsss
http://yehseeyes.blogspot.com/

Agricultural Debt Waiver and Debt Relief Scheme, 2008

RBI / 2007-2008/ 330
RPCD.No.PLFS. BC.72 /05.04.02/2007- 08 - 23/5/08

The Chairman/Managing Director
All Scheduled Commercial Banks (including Local Area Banks)

Dear Sir,

Union Budget – 2008-09 – Agricultural Debt Waiver and Debt Relief Scheme, 2008

As you are aware, the Hon'ble Finance Minister, in his Budget Speech (paragraph 73) for 2008-09 has announced a debt waiver and debt relief Scheme for farmers, for implementation by all scheduled commercial banks, besides RRBs and co-operative credit institutions.

2. The detailed Scheme notified by the Government of India along with necessary explanations is enclosed. The scheduled commercial banks (including Local Area Banks) may take necessary action towards implementation of the Scheme at the earliest. The implementation of the Debt Waiver and Debt Relief Scheme should be completed by June 30, 2008.

3. Further communication in respect of this Scheme would follow.

4. In case of RRBs and co-operatives, a separate circular is being issued by NABARD.

Find the Scheme here

RBI - Claim Settlement of Missing persons, like Evidence Act & Suitable Grievance Redressal Mechanism for Banks (not RRB's)

Settlement of claims in respect of missing persons

A query has been raised regarding the system which should be followed by banks (not Regional Rural Bank) in case a claim is received from a nominee / legal heirs for settlement of claim in respect of missing persons.

2. The settlement of claims in respect of missing persons would be governed by the provisions of Section 107 / 108 of the Indian Evidence Act, 1872. Section 107 deals with presumption of continuance and Section 108 deals with presumption of death. As per the provisions of Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of seven years from the date of his/her being reported missing. As such, the nominee / legal heirs have to raise an express presumption of death of the subscriber under Section 107/108 of the Indian Evidence Act before a competent court. If the court presumes that he/she is dead, then the claim in respect of a missing person can be settled on the basis of the same.

3. Banks are advised to formulate a policy which would enable them to settle the claims of a missing person after considering the legal opinion and taking into account the facts and circumstances of each case. Further, keeping in view the imperative need to avoid inconvenience and undue hardship to the common person, banks are advised that keeping in view their risk management systems, they may fix a threshold limit, up to which claims in respect of missing persons could be settled without insisting on production of any documentation other than (i) FIR and the non-traceable report issued by police authorities and (ii) letter of indemnity.

Relevant Notification in http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=4157&Mode=0

Grievance Redressal Mechanism in banks

Please refer to our Circular DBOD.No.Leg BC.60/09.07.005/2006-07 dated February 22, 2007 wherein instructions were issued to banks regarding analysis and disclosure of complaints. In this connection, it may be mentioned that a proper analysis and disclosure of complaints would be possible only if there is an effective machinery for redressal of grievances in banks. Banks (not Regional Rural Banks) are therefore advised to ensure that a suitable mechanism exists for receiving and addressing complaints from its customers / constituents with specific emphasis on resolving such complaints fairly and expeditiously regardless of the source of the complaints.

2. Banks are also advised to:

(i) Ensure that the complaint registers are kept at prominent place in their branches which would make it possible for the customers to enter their complaints.

(ii) Have a system of acknowledging the complaints, where the complaints are received through letters / forms.

(iii) Fix a time frame for resolving the complaints received at different levels.

(iv) Ensure that redressal of complaints emanating from rural areas and those relating to financial assistance to Priority Sector and Government's Poverty Alleviation Programmes also forms part of the above process.

(v) Prominently display at the branches, the names of the officials who can be contacted for redressal of complaints, together with their direct telephone number, fax number, complete address (not Post Box No.) and e-mail address etc. for proper and timely contact by the customers and for enhancing the effectiveness of the redressal machinery.

3. Further, in terms of our circular no. BC.60 dated February 22, 2007, banks are required to disclose the brief details regarding the number of complaints alongwith their financial results. This statement should include all the complaints received at the Head Office / Controlling Office level as also the complaints received at the branch level. However, where the complaints are redressed within the next working day, banks need not include the same in the statement of complaints. This is expected to serve as an incentive to the banks and their branches to redress the complaints within the next working day.

4. Where the complaints are not redressed within one month, the concerned branch / controlling office should forward a copy of the same to the concerned Nodal Officer under the Banking Ombudsman Scheme and keep him updated regarding the status of the complaint. This would enable the Nodal Officer to deal with any reference received from the Banking Ombudsman regarding the complaint more effectively. Further, it is also necessary that the customer is made aware of his rights to approach the concerned Banking Ombudsman in case he is not satisfied with the bank's response. As such, in the final letter sent to the customer regarding redressal of the complaint, banks should indicate that the complainant can also approach the concerned Banking Ombudsman. The details of the concerned Banking Ombudsman should also be included in the letter.

5. Banks are also advised to give wide publicity to the grievance redressal machinery through advertisements and also by placing them on their web sites.

Relevant Notification in http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=4158&Mode=0
Yes, keep updatin...

Pay tax electronically, if your 4th Digit of PAN is "C" & Taxpayers know your Rights

Yes,

As CBDT mandated electronic payment of tax by Company & a person (other than a company), to whom provisions of Section 44AB are applicable [hereinafter collectively referred as "Taxpayers"], w.e.f. 1.4.2008, RBI has notified RBI/2007-08/280 DGBA.GAD. No. H. 10875 / 42.01.038/ 2007-08, by which, the banks shall not accept physical challans from such assessees across the counter.

You are a Corporate Assessee, so your 4th digit in the PAN is "C" and yes, pay tax only through electronic payment facility. The responsibility of making e- payment rests primarily with the taxpayer. Hence, the word of taxpayers should be taken as final.

Taxpayers, know your rights,

1. the acknowledgement for e-payment should be made available immediately on screen by the bank concerned. [check out your immediate acknowledgement]

2. the transaction id of e-payment should be reflected in the bank's statement. [check your bank statement for Transaction-Id]

3. each bank should prominently display on its e-payment gateway page, the official /s to be contacted in case the taxpayer faces any difficulty in making the payment, completing the e-transaction, generating the counterfoil etc. [feel free to contact the banking official for doubts]

4. also, banks are mandated to give the Income Tax Department and NSDL, a list of officials with contact particulars, to be contacted if required for any problems faced by ITD or taxpayers. [find out the name & contact details of your official from the list]

Keep payin electronically...Vj

Development Banking for CS Final

Just get the essence of the subject like this...Its like...the
following points are nothing but the reproduction of the material but
its concise and you can read it many a times, making your CS Final
Exams, just a flow of writin...Every exam in CS Final is very
interestin Provided, u have the right approach to study it. Do
comment your understanding & needs. You have every right to
critically review my writing, only then I can improve, please help.

DEVELOPMENT BANKING – the gap filler

It is a multi-purpose financial institution. Financial institution
concerned with providing all types of financial assistance to business
units, in the form of loans, underwriting, investment, guarantee
operations & promotional activities – economic development in general
& industrial development.

I. EVOLUTION:
1. Institutionalism (1948-55)
2. Expansion (1955-64)
I. CONSOLIDATION & INNOVATION (1964-76):
1. Introduction of Consortium financing;
2. Industry potential survey & concessional finance for Backward areas;
3. Introduction of Loan convertibility clause, merchant banking, etc…
4. Creation of Technical consultancy organisation & Management
Development Institute (MDI, Gurgaon).
I. STABILITY & GROWTH (1976-84): Increased sanctioning & disbursement
of loans; creation of Entrepreneurship Development Institute of India,
1983.
I. DIVERSIFICATION & CHANGE (1984-92):
1. Increase in project financing and fund & fee based services;
2. Introduction of Credit Rating Agencies (CRA);
3. Guidelines for appointment of nominee directors.
I. RE-ORIENTATION (1992 onwards):
1. Establishment of commercial banks, investment banks & mutual funds;
2. IFCI which was formed as a statutory corporation is converted into company.

SNO. DEVELOPMENT BANKING; COMMERCIAL BANKING
1. Project oriented; Security oriented;
2. Influencing & collecting savings & re-channelising them to people
in need; It has an additional function of generating money;
3. Liabilities are not converted into cash-on-demand; Substantially
there are demand deposits & only banks are authorised to accept
deposits withdrawable by cheque;
4. For medium & long term needs; For short term credit requirements;
5. Funds drawn from budgetary resources of Central Government, RBI
borrowings, foreign lines of credit & bond borrowings; Funds from
deposits of public & corporate sector (demand deposits).
6. CREDIT FUNCTION; Also MONETARY FUNCTION.

GROWTH OF DEVELOPMENT BANKING – for long term investment credit;
FOR i) Industry: IDBI, SIDBI, IFCI, ICICI [(P) sector], IIBI, SFC, SIDC;
ii)Agriculture: NABARD;
iii)Exports: EXIM;
iv) Housing: NHB;
v) Infrastructure: IDFC;
In economic development of a country, development banking act as
"partners in progress" & proceed on "anticipated income theory" i.e.,
dues are expected to be realised out of the anticipated income of the
borrowers. The common functions include, Direct Investment /
Underwriting / Guaranteeing / Securing…

INDUSTRIAL FINANCIAL CORPORATION OF INDIA LTD (IFCI) – 1948
Making medium & long term credit more readily available to eligible
industrial concerns in India when, normal banking accommodation is
"inappropriate" OR recourse to capital market is "impracticable".

NODAL AGENCY for "sugar development fund" & "jute modernisation fund".

FUNCTIONS:
1. Financial assistance to industrial concerns for new, expansion,
diversification & modernisation projects in corporate & co-operative
sector;
2. Merchant banking (fund & fee), foreign & rupee currency loans;
3. Underwriting/direct subscription/guarantees;
4. Subsidiaries include IFCI financial/custodial/investor service;
5. Established MDI, Gurgaon for management training.

STATE FINANCE CORPORATION (SFC) ACT 1951: for meeting term credit
needs of small & medium industries. It complements IFCI. It raises
resources as 'trustee securities', borrows up to 2x(paid-up) from RBI,
borrow from SG/FI/Scheduled Commercial Banks within the prescribed
limits. The business includes factoring, money market, endorsing
letter of credit, trustee for debenture holders, etc…

PRIME LENDING RATE: interest rate at which bank or financial
institution is willing to lend to its prime customers (near zero
risk), so that the earnings from lending will cover, all costs &
expenses and leave adequate enough margin to service its capital. It
can be short term (<=3years) or long term (>3years). The components
include,
1. Fund cost (Deposits + Own funds); 2. Staff cost (Fund mobilisation
+ loans/advances); 3. Overheads; 4. Write-off bad & doubtful debts; 5.
Premium for Asset-Liability mismatch.
INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDIA (ICICI) 1955: as a result of international co-operative effort (by World Bank with GOI
support) to foster private investment in India & to promote industries
in (P) sector.

FUNCTIONS: (as a Universal Bank)
1. Underwriting/direct subscription/guaranteeing/merchant banking, etc…
2. Merchant banking & Project Counselling for NRIs.
3. Foreign currency assistance for 3crores project.
4. Provides risk & loan capital for creation/expansion/modernisation
of Productive Facilities & encourages others to invest.
5. Credit facilities to indigenous manufacturers & equipment leasing services.

INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI) – 1964 as a Wholly Owned
Subsidiary (WoS) of RBI, later converted into autonomous body to serve
as an APEX institution for term finance in an industry.

FUNCTIONS:
1. Established National Securities Depository Ltd., & Entrepreneurial
Development Institute at Ahmedabad.
2. Planning, promoting, co-ordinating,… the working of & assisting the
development of & to fill gaps.
3. Conducting surveys, R&D, techno-economic studies & Investment research.
4. Re-discounting to push up sales by Indigenous manufacturers.
5. Advise Government in disinvestment.
6. Entered International market with floating rate note issue.
7. Direct loans under Project Finance Scheme for 5crores with
convertibility up to 20% of loans into equity.

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI): an APEX bank for
tiny, small & cottage sector, established as a WoS of IDBI & it
administers SID fund & National Equity fund.

FUNCTIONS:
1. Direct assistance through project, equipment & infrastructure financing;
2. Indirect financing through 100% refinancing if repayment on
quarterly basis to loans for a period of 25years;
3. Equity type assistance including Seed Capital scheme, self
employment for ex-servicemen, et al.
4. Commercial exploitation of lab-tested technology in association
with CSIR (Council for Scientific & Industrial Research).

INDUSTRIAL INVESTMENT BANK OF INDIA (IIBI), 1997 as a Government
Company; an AIFI (All India Financial Institution) providing financial
assistance to SICK & Non-Sick industries (medium & large scale)
needing modernisation, diversification & technological updation by way
of term loans, bridging urgent liquidity gaps, etc… The ancillary
services include Consultancy (Viability Report), Merchant banking
(Scheme of M&A) & equipment leasing. The repayment period of 10years
is based on surplus generation capacity. The schemes include Short
term loans, Short term Working capital loans & Asset credit scheme.

VENTURE CAPITAL: provides initial support to new companies (with sound
project ideas) using high technology & have potential for high profits
but suffer from capital inadequacy.

SEBI (VENTURE CAPITAL FUNDS (VCF) REGULATIONS), 1996:
1. Venture fund incorporated in India can exit the company within
1year of going public or stay invested, foregoing the Tax Pass Through
Benefit (TPTB).
2. Foreign funds not incorporated in India have no TPTB though
registered with SEBI.
3. Acquisition of shares will be exempt form Takeover Code.
4. Investor in Venture Fund for 5lakhs & Minimum corpus of the fund to
be 5crores & investment in a company up to 25%.
5. Mutual fund can invest till 5% (Corpus) in open-ended schemes & 10%
(Corpus) in close-ended schemes.
6. VCF can invest in IPO as QIB (Qualified Institutional Buyer).

EXPORT IMPORT (EXIM) BANK 1982 established as a statutory corporation
from IDBI providing financial assistance to exporters/importers & to
promote country's international trade. The operations include deferred
payment @ post-shipment stage, multi-currency financing for project
exporters & term loans to SEZ.

FUNCTIONS:
I. Loans to Indian companies:
1. Direct financial assistance through Risk syndication facility;
2. Facilities for deemed exports & overseas investment financing;
3. Pre-shipment credit if cycle time of export contract is >3months;
II. Loans to foreign Government & Financial Institution:
1. Overseas Buyers Credit: Foreign importers for Indian goods/services;
2. Line of Credit (LoC) to foreign government & re-lending facility to
bank overseas;
Foreign BuyerBANK OverseasEXIM (Intermediary)Suppliers.
III. Loans to commercial bank in India:
1. Export bills re-discounting; 100% re-finance of export credit;
2. Guaranteeing of obligation for execution of export contracts & also
in-principle approval for such contracts at bid stage if its worth
beyond 2crores.

Joint venture with Global Trace Finance for forfeiting & factoring;
Got award for "Export Development" from ADFIAP Awards, 2002;
Book for "Business practises of Successful Indian Exporters";
"EXIMius centre" at Bangalore;

UNIT TRUST OF INDIA (UTI) 1963 as statutory public sector investment
institution.
STEP1: Mobilise savings through sale of units under schemes;
STEP2: Invest in good companies;
STEP3: Distribute tax-free dividend to unit-holders.

TRIPLE ADVANTAGE to small investors as to SAFETY, STEADY RETURN &
LIQUIDITY, also benefit of leaving task of portfolio management to
experts.

SCHEMES include OPEN ENDED – tailored to suit the needs of different
categories of peoples & different purposes; CLOSE ENDED – Income &
Growth schemes. Thus, SUPER MARKET for instruments.

SUGGESTIONS of Deepak Parekh Committee: for sustaining investor
confidence & strengthening about US64 scheme by taking a) Measures to
provide financial support by enhancing promoter's stake, GOI
participation, etc…; b) Measures for qualitative changes in funding of
UTI through independent trustees in Board, reconstitute AMC,
NAV-driven schemes, etc...

LIFE INSURANCE CORPORATION (LIC) 1956: accumulate in the form of "life
fund" & is the single largest investor to subscribe/underwrite/provide
term loans;

Accretion to "Controlled Fund" invested as per Insurance Act, 1938:
<=20% in CG Marketable securities; <=25% (including above) as loan to
National Housing bank; <=50% (including above) in CG/SG securities;
<=75% (including above) in Social Oriented sectors; Balance (25%) as
per commercial judgement subject to Prudential Norms.

Investment for General Insurance Corporation (GIC) being <=20% in
CG/SG securities; <=15% to housing loans; <=55% to market sector &
Balance to Social Oriented Sectors.

NATIONAL BANK FOR AGRICULTURAL & RURAL DEVELOPMENT (NABARD) 1981 by merging agricultural credit & rural planning cell of RBI &
Agricultural Refinance Development Corporation (ARDC) as APEX
Development bank for promotion of agriculture, SSI, cottage & village
industries & economic activities in rural areas.

FUNCTIONS
*. CREDIT FUNCTION:
1. Refinance <=18months for seasonal agriculture, marketing of inputs,
& other production & marketing activities; conversion & rescheduling
of loans <=7years from out of "National Rural Credit
(Stabilisation/Long term operations) Fund".
2. Medium/Long term credit assistance to Banks/FI.
3. Incorporated the "Co-operative Development Fund" & Rural
Infrastructure Development Fund (RIDF) for quicker completion of
on-going projects.
*. DEVELOPMENT FUNCTION:
1. Assist & act as agents to Government & RBI for rural development efforts;
2. Assist SG to contribute to share capital of eligible institutions.
*. REGULATORY FUNCTION:
1. For Regional Rural Banks & Co-operative banks, NOT being Primary banks;
2. Undertake inspection & required to file returns & documents.

NATIONAL HOUSING BANK (NHB) 1987: Principal Agency of APEX institution
in housing finance & support services.

FUNCTIONS:
1. Promotion & Development: Equity support & conducts training;
2. Regulation & Supervision: S24 – power to inspect & call
information; S30 – regulate/prohibit issue of
Prospectus/Advertisement; S31 – collect information & issue
directions.
3. Financing: Equity & Re-financing for Land development & shelter
projects, Infrastructure projects & Slum re-development schemes;
front-end charge up to 2% of sanctiond amount.
4. Housing Finance Company (HFC) accepts deposits from public
(12-84months) & can give interest <=15% p.a. but such limit will not
apply if Net Owned Funds (NoF) >= 50lakhs.
5. HFC should have a minimum credit rating of "A" grade.
The major amendment being on default of loan, apply to Recovery
Officer, NOT under Transfer of Property Act.

LOAN SYNDICATION:
STEP1: When prospective borrower, approaches the Financial Institution
(Lead Manager/Mandated Institution) & request it to arrange for
credit;
STEP2: Such financial institution prepares Information Memorandum with
details of projects, credit requirements, terms, etc…
STEP3: Such information memorandum is for Prospective Lenders to
participate in credit offer;
STEP4: Such prospective lenders do Independent Evaluation of Borrower,
Project & Credit offer;
STEP5: Meeting of Financial Institution (FI) & prospective lenders for
finalisation & appoint Agent FI by entering into agreement with limits
for agency services;
STEP6: Such Agent FI communicates to borrower who then offers his
written consent & then executes documents based on "Single Window
Clearance".
STEP7:
Credit deposition by FIDisbursement of amountRepaymentProrata entitlement.

METHODS – Loan Syndication:
1. Direct Lending: Executing Independent loan agreement & Several liability;
2. Participation Method: Agent FI is the only lending bank.

Thats it...this chapter...come on...u r nearin Victory.....Enjoy passin...Vj

Special Purpose Acquisition Companies (SPACs)

Special Purpose Acquisition Companies (SPACs): on the rise

Thank you Amit Yadav...

Special Purpose Acquisition Companies (SPACs) that are also known as "blank check companies" are gradually acquiring prominence in the Indian markets. It is worth briefly examining these entities and their advantages as well as the risks surrounding them.

SPACs are essentially shell entities with no business operations, and which raise funds from the public through an initial public offering (IPO). These funds are raised on the basis that they will be utilised by the SPAC to acquire one or more companies in the future so as to provide returns to their shareholders. The details of the future acquisitions or even the identity of the target entities are not known at the time of the IPO. The investors in the IPO largely rely on the management skills and reputation of the founders of the SPAC while making investments. SPACs are usually committed to a time-frame within which they are required to make acquisitions. In case the committed time elapses without any acquisitions, the investments will have to be returned to the shareholders with certain carrying costs..

SPACs have acquired prominence internationally, especially in the US and in Europe. last year, there were 66 initial public offerings for SPACs, raising a total of $12 billion. Many of these SPACs have also successfully implemented acquisitions. What is important to note, however, SPACs are yet not traded on the main stock exchanges around the world. For example, neither the NYSE nor NASDAQ permits listing of SPACs, resulting in most of the existing US listings taking place on the American Stock Exchange (AMEX). Even on the London Stock Exchanges, SPACs are usually listed on its AIM segment. The cautious approach adopted by the more prominent exchanges is owed to the innate risks and uncertainties involved in listing entities that do not have existing businesses (or even fairly concrete business plans) at the time of their public offering of securities.

The SPAC phenomenon is catching on in India as well. It has been reported by VC Circle that several SPACs have been formed in order to pursue acquisitions of Indian companies. These SPACs have been listed on both the AMEX as well as the LSE AIM. The reverse trend is also assuming importance, whereby Indian companies are contemplating SPACs that would be used to aid their acquisition of foreign companies. This trend can be gathered from HCL's plans to set up an SPAC for overseas acquisitions. HCL's example is important on two counts. First, it indicates the utility of SPACs for Indian companies as a means of financing overseas acquisitions. Second, it indicates that SPACs are not confined to financial investors, and that it can be used by strategic investors as well for acquisitions. With more avenues being made available for SPAC listings (in case the current NYSE and NASDAQ proposals to allow SPAC listings take effect), it is likely that SPACs would become more prominent in acquisitions both by Indian companies and of Indian companies.

That leaves the crucial question of whether SPACs can be listed in India. It seems to me that the current disclosure requirements of SEBI as well as the listing requirements of the stock exchanges would not permit a company such as an SPAC to be listed on the Indian stock exchanges. This is because the SPAC has no business whatsoever or even a track record, but only certain broad business plans to acquire target companies that are yet to be identified. This creates uncertainties and risks to investors. Unless the existing regulations are amended to create a separate category of listings for SPACs, or unless specific waivers are granted from the applicability of the disclosure guidelines for IPOs to such companies, Indian listings would be unlikely. At the same time, it would be prudent for the regulatory authority (being SEBI) and the Indian stock exchanges to tread cautiously on this front, and to permit such listings only after assessing the experience (and success) of SPACs world-over and those specifically involving Indian promoters or Indian target companies. SPAC investors need proper protection as they are signing "blank checks" after all.

SEBI reduces the burden of the Retail investors at the cost of Distributors and High networth investors

The Securities and Exchange Board of India (Sebi) reduced the costs for mutual fund investors by doing away with the initial issue fee for close-ended schemes. Currently, initial issue expenses on closed-ended funds are amortised over the period of the fund. It allows funds to spend the amount collected as fees (currently, about 6 per cent for a three-year fund) in stages and not at one go.

Following the Sebi move in 2006 to scrap the amortisation benefit for open-ended schemes, there was a spurt in closed-ended schemes.

Sebi said all mutual fund schemes will henceforth meet sales, marketing and other such expenses from the entry load. Bulk of the initial issue expenses normally pocketed by mutual fund distributors, who in turn refund certain amount to High networth invesrtors. Now, the Distributors have to rely more on their advisory services as the revenue through initial issue expenses collected by the fund has been swiped by SEBI. Read more at .....http://www.sebi.gov.in/Index.jsp?contentDisp=WhatsNewScroll&FilePath=/circulars/2008/mfdcir1108.html

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What is a recession?

What is a recession? Recession means...

It is a protracted slowdown of the economy. T
The slowdown is usually classified as a recession if it lasts at least six months [means, >= 6m].

The technical definition is ‘two consecutive quarters in which the gross domestic product (GDP) decreases’.

The GDP is all the goods, services and products a country produces.

The typical symptoms of a recession are:
1. People buying less (retail decline).n Decrease in factory output.
2. Growing unemployment (In the US, unemployment recently rose to 5 per cent, another sign of an imminent recession).
3. Slump in personal incomes.
4. A dipping stock market.

Continue http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=711bb451-c39e-44bb-87ca-273b479fe172

Courtesy - Hindustan Times