Section 45-IA, 45K and 45L of the RBI Act –Deposit Taking NBFC- Grant of Certificate of Registration – Requirement of minimum Net Owned Fund of Rs. 200 lakh for all deposit taking NBFCs

To

All deposit taking NBFCs

 

RBI/2007-08/369 DNBS (PD) C.C. No. 114 /03. 02.059/2007-08, 17th June 2008

(a) As a first step, NBFCs having minimum NOF of less than Rs. 200 lakh may freeze their deposits at the level currently held by them.

(b) Further, Asset Finance Companies (AFC) having minimum investment grade credit rating and CRAR of 12% may bring down public deposits to a level that is 1.5 times their NOF while all other companies may bring down their public deposits to a level equal to their NOF by March 31, 2009.(As per Annex).

(c) Those companies which are presently eligible to accept public deposits upto a certain level, but have, for any reason, not accepted deposits upto that level will be permitted to accept public deposits upto the revised  ceiling prescribed  above.

(d) Companies on attaining the NOF of Rs.200 lakh may submit statutory auditor's certificate certifying its NOF. 

(e) The NBFCs failing to achieve the prescribed ceiling within the stipulated time period, may apply to the Reserve Bank for appropriate dispensation in this regard which may be considered on case to case basis.

THE ICSI 6th ALL INDIA NATIONAL MOOT COURT COMPETITION 2008 - RELIVE Co.LTD case

Yes, r u ready to answer these questions..........

 

1.      RELIVE Co.LTD countered the petition on the following grounds, among others:

(1)   RELIVE was under no obligation to pay the alleged debt, if any, as all obligations pertaining to the said contract had been transferred to RELAY Co. LTD by virtue of the demerger.

(2)   Further, the alleged debt was one in respect of which, a bonafide dispute had been raised by RELIVE CO.LTD.

(3)   The machinery of winding up was being used by PL. to coerce the company into making payment of the alleged debt, which RELIVE is under no obligation to pay.

2.      PL.'s contentions, among others, were as follows:

(1)   By terminating the contract, RELIVE had confirmed that it was the relevant party to the contract and therefore, all remedies for PL. lay against RELIVE.

(2)   There was no bonafide dispute, as the liability remained undisputed till the date of demand under Section 434(1) (a). This dispute was merely raised for the purpose of covering up the Company's inability to meet its payment obligations.

(3)   The Company was unreasonably refusing to pay the debt without just cause and with malafide intentions and therefore, the Court could order winding up in such instances.

Yes,

 

Its ICSI Moot Court 2008, the case, which covers Clauses in the Agreement, Demerger, Winding Up, HR issues & lot more.

 

CS friends, believe me, just participation itself can bring a lot of positive change in you.  I assure, you can find a new you in you.

 

So, stop thinking, start reading http://www.icsi.edu/WebModules/LinksOfWeeks/Moot%20Court%20Competn-2008-Case.doc

 

All you have to do is, be thorough with every letter in 13 points of the case.

 

Just remmember, The eloquent man is he who is no eloquent speaker, but who is inwardly drunk with a certain belief.

 

So, read the case as many times as possible.

 

You have to make Submissions from both sides, I mean as a petitioner & as a defendant.  You have make ready all the Court documents with Blue (for petitioners) & Red (for Defendants) and you should know the Court Etiquettes, like My Lord....Do check out http://www.icsi.edu/WebModules/LinksOfWeeks/Moot%20Court%20Competn-2008-Rules.doc

 

Don't say, you don't know, just get to know.  Exams got over, do some brainstorming sessions now, I believe, its the right time for all this.  If you qualify a single round, you can go to the next round to different places, ALL @ Institue's expense.  You can meet so many professional frens, get to know their ideas & learn...........

 

Come on, lets see......how many here, really have the guts to learn.

 

For further details, http://www.icsi.edu/WebModules/LinksOfWeeks/mootcourt2008.htm

 

Keep mootin....

Foreign Direct Investment Policy

Consolidated policy on Foreign Direct Investment.   DIPP issued a Press Note  (7/2008) dated 16th June 2008 detailing the summary of the FDI policy and regulations applicable in various sectors and activities after incorporating the policy changes up to 31-3-2008 .The press note gives details of sectors in whcih FDI is prohibited and sector specific FDI cap , entry route and other conditions .The said press note can be accessed at http://siadipp.nic.in/policy/changes/pn7_2008.pdf.

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RBI Draft Master Circular for public comments

The Reserve Bank has today placed the draft master circular on Foreign Investments in India on its website for public comments. The feedback may be sent to the Chief General Manager-in-Charge, Foreign Exchange Department, Foreign Investment Division, Reserve Bank of India, 11th Floor, Shahid Bhagat Singh Road, Mumbai – 400 001 on or before June 20,2008. The feedback can also be sent by fax to 022-22610623/30 or can be e-mailed.   The Master Circular has been updated taking into account all the Notifications and Circulars issued till date. This Master Circular also covers (i) Acquisition of immovable property;(ii) Establishment of Branch/Liaison Office in India; and (iii) Investment in capital of partnership firms or proprietary concern.   The said circular can be viewed at http://rbidocs.rbi.org.in/rdocs/content/pdfs/85015.pdf..

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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/

STANDING COMMITTEE ON COMMERCE INVITES SUGGESTIONS OF PUBLIC ON ‘FOREIGN AND DOMESTIC INVESTMENT IN RETAIL SECTOR’

STANDING COMMITTEE ON COMMERCE INVITES SUGGESTIONS OF PUBLIC ON 'FOREIGN AND DOMESTIC INVESTMENT IN RETAIL SECTOR'

          The Committee has already heard some oral evidence and has also undertaken on-the-spot study visits to some places.  Nevertheless, the Committee would like to receive inputs from a wider cross section of stakeholders and the public at large. 

            The Department Related Parliamentary Standing Committee on Commerce, headed by Dr. Murli Manohar Joshi, M.P., is examining the subject of "Foreign and Domestic Investment in Retail Sector". 

            Those desirous of submitting their views and suggestions to the Committee may send their written memoranda (either in English or Hindi) on the above subject to Shri Surinder Kumar Watts, Director, Rajya Sabha Secretariat, 240, Second Floor, Parliament House Annexe, New Delhi-110001 (Tel: 23034240 and Fax: 23013158) or e-mail at watts@sansad.nic.in within thirty days from the date of publication of this Press Release.  Those desirous of being heard in person may indicate their willingness in their written suggestions/ views. 

            The memorandum submitted to the Committee would form part of the records of the Committee and would be treated as confidential and would not be circulated or disclosed to anyone, violation of which would constitute a breach of privilege of the Committee.

Consultative paper on amendments to SEBI (Prohibition of Insider Trading) Regulations, 1992

Dear All,

 

Consultative paper on amendments to SEBI (Prohibition of Insider Trading) Regulations, 1992

 

Objective of proposed Amendment in SEBI Insider Trading Regulations.  Click the link above.

 

To harmonize requirements of acquisition/sale of shares reported under the SEBI (Prohibition of Insider Trading) Regulations, 1992 and the requirements of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 it was proposed that transaction disclosures made under either regulation (with the same or higher level of disclosure) should be deemed to be good disclosure under the other. It was also proposed to increase the harmonization between the two in terms of threshold limits set.

 

Reduce disclosure time limit under Regulation 13 from total 9 days to 2 days in order to prompt dissemination of price sensitive information and to make it in line with SEBI Takeover regulations.

 

You can send your comment by e-mail upto 26th June, 2008 to jyotis@sebi.gov.in and sunilk@sebi.gov.in

 

Also please find attached Consultative paper for your detailed reference.

 

Thanks & Regards

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

[FEMA]Export of Goods and Services - Payments of Claims by Insurance Companies-Write off & deleting export bills from XOS statement

RBI/2007-08/353 A.P. (DIR Series) Circular No. 49 dated 3rd June 2008

Dear All,

 

As per A. P. (DIR Series) Circular No.22 dated September 24, 2003, AD banks were permitted to write off the export bills and delete them from the XOS statement in respect of outstanding export bills where claims were settled by ECGC.

 

Reserve Bank has received representations from Exporters / Trade bodies for extending the 'write off' facility applicable to the claims settled by all insurance companies which are registered with Insurance Regulatory and Development Authority (IRDA). In view of the representations received and in order to liberalise further the procedures, it has been announced in the Annual Policy Statement for the Year 2008-09 (para 133), to permit AD Category – I banks to write off, in addition to the claims settled by ECGC, the outstanding export bills settled by other insurance companies which are regulated by IRDA.

 

Accordingly, AD Category – I banks shall henceforth, on an application received from the exporter, supported by a documentary evidence from ECGC / insurance companies registered with IRDA, confirming that the claim in respect of the outstanding export bills has been settled and that the export incentives, if any, have been surrendered, write-off the relative export bills and delete them from the XOS statement. Such write-off will not be restricted to the limit of 10 per cent indicated in paragraph C 18(b) of the A. P. (DIR Series) Circular No.12 dated September 9, 2000.

 

It is clarified that the claims settled in Rupees by ECGC / insurance companies should not be construed as export realisation in foreign exchange and claim amount should not be allowed to be credited to Exchange Earners' Foreign Currency Account (EEFC) maintained in terms of Regulation 4 of FEMA Notification No.FEMA 10/2000-RB dated May 3, 2000.

 

Thanks & Regards

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

[FEMA]Overseas Investments - Liberalisation / Rationalisation, Energy & Natural Resource >400%(Networth) - PRBI; Unincorporated Oil Entities by Navratnas,OVL&OIL - Automatic Route & FormODI;for other Indian Entities >400%(Networth) - PRBI&FormODI; FT

Dear All,

  

The RBI has made the following changes in Foreign Exchange Management (Transfer or issue of any foreign security) Regulations, 2001 vide A. P. (DIR Series) Circular No. 48 dated 3^rd June 2008.

Overseas Investment in Energy and Natural Resources Sectors

As you aware of that in terms of A. P. (Dir Series) Circular No. 11 dated September 26, 2007, an Indian Party is allowed to make direct investment in Joint Ventures and / or Wholly Owned Subsidiaries outside India up to 400 per cent of the net worth as on the date of the last audited balance sheet, under the Automatic Route. With a view to provide greater flexibility to Indian parties for investment abroad, it has been decided, in consultation with the Government of India, to allow Indian companies to invest in excess of 400 per cent of their net worth, as on the date of the last audited balance sheet, in the energy and natural resources sectors such as oil, gas, coal and mineral ores. The investments in excess of 400 per cent of the net worth shall be made only with the prior approval of the Reserve Bank.

Investment in Overseas Unincorporated Entities in Oil Sector

As you aware of that In terms of A. P. (DIR Series) Circular No. 59 dated May 18, 2007, Navaratna Public Sector Undertakings (PSUs) are allowed to invest in overseas unincorporated entities in oil sector (i.e. for exploration and drilling for oil and natural gas, etc.), which are duly approved by the Government of India, without any limits, under the automatic route. This facility is now extended to ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL).

With a view to further liberalise the procedure, it has now been decided, in consultation with the Government of India, to allow a similar facility to other Indian entities (it means including private corporate) to invest in overseas unincorporated entities in oil sector. AD Category – I banks may allow remittance up to 400 per cent of the net worth of the Indian company after ensuring that the proposal has been approved by the competent authority and is duly supported by a certified copy of the Board Resolution approving such investment. Applications by Indian companies, other than by Navaratna PSUs, ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL), for investment in excess of 400 per cent of the net worth of the company as on the date of the last audited balance sheet, in overseas unincorporated entities, where such investments are approved by the Competent authority, should be referred by AD Category - I banks to the Reserve Bank for prior approval, as per the procedure laid down in A. P. (DIR Series) Circular No. 68 dated June 1, 2007.

All investments in unincorporated entities overseas would be required to comply with the reporting requirements as prescribed in Regulation 15 (iii) of Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004], as amended from time to time. Further, all such investments in unincorporated entities overseas by both Navaratna PSUs and other entities will be required to be reported in form ODI, including Annual Performance Report (APR) [cf A. P. (Dir Series) Circular No. 68 dated June 1, 2007.

Capitalisation of Exports

In terms of Regulation 11(1) of Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004], as amended from time to time, an Indian Party making direct investment outside India in accordance with the Regulations, by way of capitalization, in full or part of the amount due to the Indian Party from the foreign entity on account of payment for export of plant, machinery, equipment and other goods / software to the foreign entity, has to obtain the prior approval of the Reserve Bank where such export proceeds have remained unrealized beyond a period of six months from the date of exports. In order to align this provision with the Foreign Trade Policy, Indian parties may, henceforth, approach the Reserve Bank for capitalization of export proceeds only in cases where the exports remain outstanding beyond the prescribed period of realisation.

 

Necessary amendments to Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security), Regulations, 2004] are being issued separately.

 

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

[FEMA]Export of Goods and Services-Realisation and Repatriation of Export Proceeds <=12 months

 

As per extant provisions of the FEMA, the amount representing the full export value of goods or software exported should be realised and repatriated to India within six months from the date of export.

 

RBI has been receiving representations from Exporters / Trade bodies to extend the period of realisation of export proceeds in view of the external environment. It has, therefore, been, in consultation with Government of India, announced in the Annual Policy Statement for the Year 2008-09 (para 134) to enhance the present period of realization and repatriation to India of the amount representing the full export value of goods or software exported, from six months to twelve months from the date of export, subject to review after one year.  To give effect above said amendment RBI vides its A. P. (DIR Series) Circular No. 50 dated 3d June 2008 has made necessary changes in the relevant guideline. The provisions in regard to period of realization and repatriation to India of the full export value of goods or software exported by a unit situated in Special Economic Zone (SEZ) as well as exports made to warehouses established outside India with the permission of Reserve Bank remain unchanged.

Thanks & Regards

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

[FEMA]ECB by Services Sector <= USD 100million - Approval Route

Dear All,

 

External Commercial Borrowings (ECB) by Services Sector -Liberalization

As per present ECB guidelines, borrowers in the services sector are not eligible to avail ECB under the Automatic Route.

Vide A P. (DIR Series) Circular No. 46 dated 2^nd June 2008, It has been decided, in consultation with the Government of India, to allow entities in the service sector viz. hotels, hospitals and software companies to avail ECB up to USD 100 million, per financial year, for the purpose of import of capital goods under the Approval Route. All other aspects of ECB policy shall remain unchanged.

It is also clarified that the existing guidelines on trade credit, allowing companies including those in the services sector, to avail trade credit up to USD 20 million per import transaction, for a period less than 3 years, for import of capital goods, shall continue.

This amendment to ECB guidelines will come into force with immediate effect.

Necessary amendments to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 dated May 3, 2000 are being issued separately.

Also you can refer earlier AP DIR Circulars (A. P. (DIR Series) Circular No. 87 dated April 17, 2004].  A. P. (DIR Series) Circular No. 5 dated August 1, 2005 for your better understanding.

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

Non Deposit taking, Systematically Important Non Banking Financial Company (NBFC ND SI), Asset Size >= 100 crores - RBI draft guidelines

The Reserve Bank of India (RBI) placed on its website draft guidelines in respect of capital adequacy, liquidity and disclosure norms of non-deposit taking, systemically important non-banking financial companies (NBFC-ND-SI) for public comments. In keeping with its consultative approach, the Reserve Bank has placed the draft guidelines on its website (www.rbi.org.in) for study by a wider audience. Comments/suggestions may be sent to the Chief General Manager-in-Charge, Department of Non-Banking Supervision, Reserve Bank of India, Central Office, 2nd Floor, Centre-I, World Trade Centre, Cuffe Parade, Mumbai-400005 or by email at the earliest but within 30 days of the publication of the guidelines.

It may be recalled that an announcement was made in Annual Monetary Policy Statement of 2008-09 (paragraph 216) that  "it is observed that many systemically important non deposit taking NBFCs are highly leveraged and  use short term sources to fund their activities. In light of international developments and increasing exposure to these systemically important NBFCs, it has now been decided to review the regulations in respect of capital adequacy, liquidity and disclosure norms. Revised instructions will be issued by May 31, 2008."

 

Please find attached herewith said guideliens for your comment.

 

Source: RBI Press Release : 2007-2008/1540 dated 2nd May 2008