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Thursday, August 7, 2008

EEFC Current Accounts, no more interests because of no Interest Rate from 1.11.08

Yes,
 
RBI has reviewed & will withdraw the facility of, Interest on Exchange Earners' Foreign Currency (EEFC) accounts, to the extent of outstanding balances of USD 1 million per exporter from 1st November 2008, which will be existing till 31st October 2008, as said.
 
Till 31.10.2008 - EEFC A/C - Interest will be credited for Actual Balance OR USD 1 million per Exporter, whichever is less.
From 01.11.2008 - EEFC A/C - only be permitted to be opened and maintained in the form of Non-Interest bearing Current Accounts.
 

Exchange Traded Currency Futures (ETCF) in Recognised Stock Exchanges for Person Resident in India (PRII)

Yes, now Person Resident In India (PRII) can trade in CURRENCY FUTURES through Recognised Stock Exchanges from the Country. Yes, yet another product in the line of Over The Counter (OTC)

Futures - a STANDARDISED Contract(coz Stock Exchange will act as a Counter Party, if a party to the contract defaults) traded on a Futures Exchange to buy or sell a certain Underlying Instrument @ a certain Date in the Future @ a Specified Price.

Currency Futures - Futures Contract of a Specified Currency.

Exchange Traded Currency Futures (ETCF) Contract - Such Currency Futures Contract are LISTED in the Stock Exchange, thereby confering a BENEFIT on them to be traded in Open Market. Thus facilitating efficient price discovery, enabling better counterparty credit risk management, having wider participation, trading of standardized product, reduce transaction costs, et al.

Persons Resident In India (PRII) are permitted to participate in the currency futures market in India subject to directions contained in the Currency Futures (Reserve Bank) Directions, 2008 [Notification No.FED.1/DG(SG)-2008 dated August 6, 2008] (Directions) issued by the Reserve Bank of India, a copy of which is annexed (Annex-I).

Do read the full RBI Notification in RBI/2008-09/122 A.P. (DIR Series) Circular No. 05 dated 6th August 2008

Also read the relevant SEBI Circular http://www.sebi.gov.in/circulars/2008/dnpdcir38.pdf

Saturday, August 2, 2008

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

Filing of RTI applications online now possible
 
 
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.

Friday, August 1, 2008

[SEBI-ASBA] now Block your Share Application money in your Account itself, till allotment

ASBA - Applications Supported by Blocked Amount
 
Yes, this is a way to subscribe for Shares through Book Building, which is in addition to the existing way of subscription.  It helps to block the application money in your very own Bank Account.  Your normal Bank Account itself will serve the purpose.  No special request to be given in this regard, provided your bank is an SCSB.
 
The banks with ASBA facility are called "Self Certified Syndicate Bank" (SCSB), the list of which is maintained by SEBI.  Check out whether your bank is there in the list from www.sebi.gov.in
 
Ask yourself, Are you a Retail Investor who is DIRECTLY bidding @ Cut Off in a Book Built issue and has no plans to change your Bid.  In Book Building, three type of Prices to be known,
1. Floor Price - the lowest price fixed in the issue;
2. Cap Price - the highest price fixed in the issue;
3. Cut Off Price - the Final Price, which is determined by the Company & Merchant Banker in consultation with Stock Exchange.
 
 

Saturday, July 26, 2008

Wealth Tax planning ideas for CS Final & professionals

Manoj Singh Bisht on Taxing

Taxing, no more TAXING, yes its interesting with us. Lets start with the most interesting Tax, as its on your wealth. Relax, we are giving you the way out, as usual. Enjoy taxin...

These ideas will help for CS Final friends & all other professionals for their preparations & practice.

TAX PLANNING MEASURES IN RELATION TO WEALTH TAX

Tax Planning is a crucial work to be done, in case of Wealth tax u should keep the following points in your mind:

    • Companies should not invest in unproductive taxable assets like jewellery, motor cars etc. If the assessee has extra funds for investing in assets then use those funds only for investing in non-taxable funds.
    • Avoid the transactions which attracts the inclusion of deemed assets in the Net Wealth.
    • An individual and HUF should not keep cash in excess of Rs. 50,000. Any excess should be kept in a Bank.
    • assesses other than individuals and HUF should not keep cash in excess of what is shown in their books of account , this will help in avoiding the inclusion of cash in assets for computation of Net Wealth.
    • The exemptions under section 5 should be availed of.
    • Always use borrowed funds for investing in taxable assets since there is a deduction available for borrowed debts under the Act, and thus use the owned funds for investment in non-taxable assets.

Do comment your views for betterment & to make it more interestin...

 

Friday, July 25, 2008

FTP Customs Update [Customs Circular No.12 dated 24th July 2008]

Thanks Mr. Anantha Krishna from CS Mysore

FTP Amendment Summary

  • Changes/amendments in the EOU/EHTP/STP and Gems and Jewellery Export Promotion Schemes-
  • Net Foreign Exchange Earnings (NFE)
  • Rationalization of calculation of NFE with rate of depreciation allowed on the capital goods
  • Clearance or debonding of capital goods in the event of non achievement of positive NFE
  • Exit from EOU scheme to EPCG scheme
  • Exit from EOU scheme to Advance Authorization Scheme
  • Recovery of duty in event of non fulfillment of export obligation in the block period of 5 years
  • Accountal of inputs in accordance with Standard Inputs-Output Norms (SION)
  • Flexibility for DTA sale for the units manufacturing and exporting multiple products
  • Payment of duty on DTA clearances on monthly basis.
  • Anti dumping duty foregone to be paid by the units on DTA clearances
  • New optional scheme of payment of excise duty only on DTA clearances for EOUs in  textile/granite sector
  • Supply of goods from DTA under benefit of deemed export are to be treated as imported goods
  • Supplies of accessories like tags, labels, printed bags, stickers, belts, buttons or hangers to DTA unit for export by EOUs
  • Goods procured on High Sea Sale basis in Indian rupee to be counted towards NFE obligation
  • Setting up service unit under EOU/STP/EHTP/BTP scheme
  • Exemption for the goods required for production of services within the unit
  • Duty free re-import of goods by EOU/STP/EHTP/BTP unit from exhibition
  • Limit increased for duty free procurement and export of spares/components
  • Direct supply of goods to buyer from sub-contractor abroad
  • Sale and lease back of capital goods by EOU/EHTP/BTP/STP unit scheme
  • Replacement of imported or indigenously procured goods
  • Time bound disposal of application for re-export of goods
  • Change of location of an EOU/STP/EHTP/BTP unit
  • Parameter for 'unblemished track record' to be observed for EOU/STP/EHTP/BTP unit
  • GEMS & JEWELLERY EXPORT PROMOTION SCHEME
  • Replenishment Authorization for import of Consumables.
  • Re-import of plain/studded precious metal jewellery
  • Monitoring the foreign exchange realization/remittance in respect of export made out of the duty free gold/silver/platinum
  • Time Period for re-import of unsold stock of branded jewellery
  • Export on consignment basis
  • Export and re-import of cut and polished diamonds for certification and grading
  • Export by Post

Find details in Customs Circular No.12 dated 24th July 2008 

 

PUBLIC NOTICE No.53 /(RE-2008) 2004-09

Dated: 23rd July 2008

In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy 2004-09, Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures (Vol. I):

1. Second sentence of paragraph 6.10.1 shall be substituted as under:-

"NFE earnings shall be calculated cumulatively in the block period as per para 6.5 of FTP, according to the formula given below."

2. In Appendix 14-I-A,  entry against column XVI may be substituted as under: .

"Net Foreign Exchange Earning

Average NFE on FOB value of exports

in block period, as per  para 6.5 of FTP"

 

3 In Appendix 14-I-E para (ii) shall be amended to read as under:

"The unit would be required to achieve positive NFE as prescribed in the EOU scheme for the block period as per para 6.5 of FTP, failing which it would be liable for penal action."

4. In Appendix 14-I-F, clause 1 of the agreement shall be amended to  read as:-

"The unit shall achieve positive NFE as per para 6.5 of FTP."

5. In Appendix 14-I-G-

(a) Para 3(ii) and (iii) shall be substituted as under :

"(ii) For failure to achieve positive NFE, after completion of one year from the date of commencement of production, a cautionary letter may be issued; at the end of 3rd or subsequent year,  Show cause notice will be issued if positive NFE is not achieved; after completion of block period as per para 6.5 of FTP, Development Commissioner would initiate penal action under the FT(D&R)Act, 1992. Final decision may be taken as far as possible within six months and positively within one year."

(b) para 3(iv) shall be renumbered as 3(iii).

6. In Appendix 14-I-H,-

a) in para I (h), in the second sentence, the words "within a block of 5 years"shall be substituted by the words  "within the block period as per para 6.5 of FTP"

b) In Annexure A,  and the Calculation Chart to be certified by Chartered Accountant, the words "last five years " wherever they appear,  shall be substituted by the words " block period as per para 6.5 of FTP"

This issues in Public interest.

Sd/-
(R.S. GUJRAL)
DIRECTOR GENERAL OF FOREIGN TRADE
EX-OFFICIO ADDITIONAL SECRETARY TO THE GOVT OF INDIA

(Issued from file No F. No. 01/92/180/ 45 /AM09/PC-VI )

 

With Regards,
Anantha Krishna T.

Wipro Technologies
D Block, III Floor, 'A' Wing, Doddakannelli, Sarjapur Road, Bangalore 560 035
Ph: 91-80-39877000 ; Dir 25056758; Ext. 6758,
Email: anantha.krishna@wipro.com Website: www.wipro.com

Mobile : +919980557170

Wednesday, July 23, 2008

CS Exam Results Company Secretary (ICSI)

Yes,

Even CS results started coming earlier as LEARN LABZ has arrived. Yes, still remember the days when time starts ticking but refuses to surpass the 5 PM on either 25th August or 25th February.

Now, you are relaxed by 5 hours (just think, its 5 hours), really a very big reason to cherish, nourish or whatsoever. I know friends, how much turmoil inside you BUT once you cross the Well, you will also start giving lectures like me. Best thing is, you have to wait 5 hours lesser now.

Trying my level best to make you enter your next level in CS exams, the most exciting and very interesting way. Do have a look @ our New Idea of viewing Law in http://csexecutiveprogram.blogspot.com/

Yes, we have ventured into CS and for sure, we will win!!!

Come on, its everything within us, Pass / Fail is what ICSI declares, but ultimately the Real Understanding is one & only ourselves.

Wait for excitements, as its LIFE. Life is a "XXX"; yesterday is an Xperience, Today is Xperiment and tomorrow is Xpectation. But in RESULTS, you have a very limited scope, is that by which you can only EXPECT it on 25th August 2008 by 12 noon @ http://www.icsi.edu/ (that too @ site's intention).

Again, just remember, RESULTS are PAST TENSE though its Expected in FUTURE.

Keep Experimenting...

Monday, July 14, 2008

[FEMA-ECB] No Objection (NoC) from Category I Authorised Dealer for Creation of Charge or Issue of Guarantee, though Borrower has the Choice of Security to be issued

Amendments to the ECB guidelines VIDE RBI/2008-09/92 A. P. (DIR Series) Circular No. 01 dated 11th July 2008, which shall come into force with immediate effect, subject to review from time to time.

Under the extant ECB guidelines, the choice of security to be provided to the overseas lender / supplier for securing ECB is left to the borrower. However, creation of charge over immoveable assets and financial securities, such as shares, in favour of the overseas lender is subject to Regulation 8 of Notification No. FEMA 21/RB-2000 dated May 3, 2000 and Regulation 3 of Notification No. FEMA 20/RB-2000 dated May 3, 2000, respectively, as amended from time to time.

Now, it is resolved to get "No Objection Certificate" [NoC] from Category - I Authorised Dealer for

(a)                 (a) Creation of Charge on Immovable Assets

(b) Creation of Charge over Financial Securities

(c) Issue of Corporate or Personal Guarantee

AD Category – I banks may invariably specify that the 'no objection' is issued from the foreign exchange angle under the provisions of FEMA, 1999 and should not be construed as an approval by any other statutory authority or Government under any other laws / regulations. If further approval or permission is required from any other regulatory / statutory authority or Government under the relevant laws / regulations, the applicant should take the approval of the authority concerned before undertaking the transaction. Further, the 'no objection' should not be construed as regularizing or validating any irregularities, contravention or other lapses, if any, under the provisions of FEMA or any other laws or regulations.

Hence, following steps to be considered:

Step 1: AD Category - I banks may ensure and satisfy themselves that

(i)             the underlying ECB is strictly in COMPLIANCE with the extant ECB guidelines;

(ii)            there exists a security clause in the Loan Agreement REQUIRING the borrower to create charge on immovable assets / financial securities / furnish corporate or personal guarantee;

(iii)           the loan agreement has been SIGNED by both the lender and the borrower, and

(iv)          the borrower has obtained Loan Registration Number (LRN) from the Reserve Bank.

Step 2: In case of, Creation of Charge on Immovable Assets

(i)             'No objection' shall be granted only to a RESIDENT ECB borrower.

(ii)            The period of such charge on immovable assets has to be CO-TERMINUS with the maturity of the underlying ECB. [Period of Charge = Maturity of such ECB]

(iii)           Such 'no objection' should NOT be construed as a PERMISSION to acquire immovable asset (property) in India, by the overseas lender / security trustee.

(iv)          In the event of enforcement / invocation of the charge, the immovable asset (property) will have to be SOLD only to a person resident in India [PRII] and the sale proceeds shall be REPATRIATED to liquidate the outstanding ECB.

Step 3: In case of, Creation of Charge over Financial Securities [Pledge of Shares, etc…]

(i)             The period of such pledge shall be CO-TERMINUS with the maturity of the underlying ECB. [Period of Charge = Maturity of such ECB]

(ii)            In case of INVOCATION of pledge, transfer shall be in accordance with the extant FDI policy. 

(iii)           A CERTIFICATE from the Statutory Auditor of the company that the ECB proceeds have been / will be utilized for the permitted end-use/s.

Step 4: In case of, Issue of Corporate or Personal Guarantee

i)              BOARD RESOLUTION for issue of corporate guarantee from the company issuing such guarantees, specifying names of the officials authorised to execute such guarantees on behalf of the company or in individual capacity.

ii)             Specific REQUESTS from individuals to issue personal guarantee indicating DETAILS of the ECB.

iii)            Ensuring that the period of such corporate or personal guarantee is CO-TERMINUS with the maturity of the underlying ECB. [Period of Guarantee = Maturity of such ECB]

Step 5: AD Category - I banks to give 'NoC', on completing the above formalities

AD Category - I banks to CONVEY 'no objection' under the Foreign Exchange Management Act (FEMA), 1999 for creation of charge on immovable assets, financial securities and issue of corporate or personal guarantees in favour of overseas lender / security trustee, to secure the ECB to be raised by the borrower.

Friday, July 11, 2008

[Learn Labz] Company Secretary Executive Program Full Day session [27.7.2008] on Securities Law @ Chennai

Yes, ------------------INVITING you ALL------------------


The Research has begun.....to increase the SUPPLY of Company Secretaries from Chennai.

Learn Labz has Arrived ! Forget your Study ISSUES, we are here to experiment & find SOLUTIONS for you. Now, the first Introductory Brainstorming Labz on Module II of CS Executive Program, Paper 6: "Securities Law & Compliances". Yes, in the Labz way of learning. Enjoy & relish with us for the Whole Day.


Check out the Knowledge Revolution from Chennai with Eminent Specialists & Technicians on every topic of Securities Law. Feel the pulse.


The Learning sessions are divided as follows: [on 27.7.2008]

Learn Labz Session

Timing

Topic of Research

Registration

0800 AM to 0830 AM

Registration & Interaction

Issue of the Day

0830 AM to 0930 AM

Discussion on "Securities Law"as a part of CS Executive Program

Labz I

0930 AM to 1130 AM

SEBI, SCRA, Stock Exchanges, Credit Rating & Depositories

Labz II

1130 AM to 0130 PM

DIP Guidelines, including ESOP, Bonus, ADR, IDR & Others

Labz III

0215 PM to 0415 PM

Intermediaries, Instruments, Mutual Fund, CIS, VCF, Money & Debt Market

Labz IV

0415 PM to 0615 PM

Listing Agreement, Buy Back & Investor Protection



You can submit your Registration Form now.


Details in http://csexecutiveprogram.blogspot.com/


Mail in csexecutiveprogram@gmail.com


For Learn Labz....experimenting with learning

Wednesday, July 2, 2008

RBI Master Circulars List 2008

Yes, RBI releases Master Circular every year on 1st of July consolidating ALL  the amendments pertaining to that year in a particular area.  Its really a task to summarise such circulars. So, am just providing the links of the same, which may be used for ready-reference regarding the particular area.  The intention is to get to know, such things exists.






Master Circular – "Non-Banking Financial (DeposiMaster Circular – "Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998"t Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007"





Master Circular – "Non-Banking Financial (Non - Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007"





Master Circular on Non-Resident Ordinary Rupee (NRO) Account





Master Circular on Remittance Facilities for Non-Resident Indians/Persons of Indian Origin / Foreign Nationals





Master Circular on Miscellaneous Remittances from India – Facilities for Residents





Master Circular – Foreign Contribution ( Regulation ) Act, 1976 – Obligations of Banks in Regulating Receipt of Foreign Contributions by Associations / Organizations in India





Master Circular – Operational Guidelines to Primary Dealers





Master Circular – "Non-Banking Financial Companies Auditor's Report (Reserve Bank) Directions, 1998"





Master Circular on Capital Adequacy Standards and Risk Management Guidelines for standalone Primary Dealers





Master Circular – "Reserve Bank of India (Non-Banking Financial Companies) Returns Specifications 1997"





Master Circular- Exemptions from the provisions of RBI Act, 1934





Master Circular on New " Self Employment Scheme for Rehabilitation of Manual Scavengers" (SRMS) from the Ministry of Social Justice & Empowerment for rehabilitation of all the remaining scavengers and their dependents by March 2009





Master Circular-Frauds – Future approach towards monitoring of frauds in NBFCs





Master Circular – "Miscellaneous Non-Banking Companies (Reserve Bank) Directions, 1977"





Guidelines for Issue of Commercial Paper





Master Circular – "Mortgage Guarantee Company (Reserve Bank) Guidelines, 2008"





Guidelines for Issue of Certificates of Deposit





Master Circular – "Mortgage Guarantee Companies Prudential Norms (Reserve Bank) Directions, 2008" and " Mortgage Guarantee Companies Investment (Reserve Bank) Directions, 2008"





Master Circular on Call/Notice Money Market Operations





Master Circular – "Residuary Non-Banking Companies (Reserve Bank) Directions, 1987"





The Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003





Master Circular on directions/instructions issued to the Securitisation Companies/ Reconstruction Companies





Master Circular - Disclosure in Financial Statements - Notes to Accounts





Master Circular - Bank Finance to Non-Banking Financial Companies (NBFCs)





Master Circular - Guidelines for Relief Measures by Banks in areas affected by Natural Calamities





Master Circular on Priority Sector Lending- Special Programmes- Swarnajayanti Gram Swarozgar Yojana (SGSY)





Master Circular-Priority Sector Lending - Credit facilities to Minority Communities





Master Circular Priority Sector Lending-Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)





Master Circular Priority Sector Lending- Special Programmes Swarna Jayanti Shahari Rozgar Yojana (SJSRY)





Master Circular- Resource Raising Norms for Financial Institutions





Master Circular - Disclosure Norms for Financial Institutions





Master Circular – Prudential norms for classification, valuation and operation of investment portfolio by FIs





Master Circular - Exposure Norms for Financial Institutions





Master Circular - Lending to Priority Sector





Master Circular on Micro Credit





Master Circular on Nomination Facility in Relief / Savings Bonds





Master Circular on Appointment & delisting of Brokers and Payment of Brokerage on Relief / Savings Bonds





Master Circular - Para-banking Activities





Master Circular on Credit Card Operations of banks





Master Circular on Area of Operation, Branch Authorisation Policy, Opening/ Up- gradation of Extension Counters, ATMs and Shifting/Splitting/Closure of Offices





Master Circular - Lending to Micro, Small and Medium Enterprises (MSME)Sector





Master Circular on Foreign Investment in India





Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances





Master Circular On Rupee / Foreign Currency Export Credit & Customer Service to Exporters





Master Circular on Housing Finance





Master Circular on Import of Goods and Services





Master Circular on Exposure Norms and Statutory/Other Restrictions - UCBs





Master Circular on Investments by Primary (Urban) Co-operative Banks





Master Circular on Direct Investment by Residents in Joint Venture (JV)/Wholly Owned Subsidiary (WOS) abroad





Master Circular Interest Rates on Rupee Deposits - UCBs





Master Circular on Maintenance of Deposit Accounts - UCBs





Master Circular on Export of Goods and Services





Master Circular - Prudential Norms on Capital Adequacy-Basel I Framework





Master Circular – Prudential norms for classification, valuation and operation of investment portfolio by banks

[FEMA] Manufacturing / Educational - Registered Trust / Society - ODI in same sector in a JV / WoS with PRBI approval

Criteria for Overseas Investment by Registered Trust / Society

Registered Trusts and Societies engaged in manufacturing / educational sector & satisfying the below mentioned Eligibility Criteria, to make investment in the SAME sector(s) in a Joint Venture or Wholly Owned Subsidiary [JV / WoS] OUTSIDE India, with the PRIOR approval of the Reserve Bank (RBI), by submitting the application/s in Form ODI-Part I, through their AD Category - I bank/s.

Eligibility Criteria - Trust / Society 

i) The Trust / Society should be REGISTERED under the Indian Trust Act, 1882 / Societies Registration Act, 1860.
ii) The TRUST DEED permits the proposed investment overseas.  In case of Society, the Memorandum of Association and rules and regulations PERMIT the Society to make the proposed investment which should also be APPROVED by the governing body / council or a managing / executive committee.
iii) The proposed investment should be APPROVED by the TRUSTEE/s.
iii) The Authorised Dealer bank is satisfied that the Trust is KYC (Know Your Customer) COMPLIANT and is engaged in a bonafide activity.
iv) The Trust / Society has been in EXISTENCE at least for a period of THREE years.
v) The Trust / Society has NOT come under the adverse notice of any Regulatory / Enforcement agency like the Directorate of Enforcement, CBI etc.

In ADDITION to the registration, the activities which require SPECIAL LICENSE / PERMISSION either from the Ministry of Home Affairs, Government of India or from the relevant local authority, as the case may be, the Authorised Dealer Category – I bank should ensure that such special license / permission has been obtained by the applicant.

Details in http://rbidocs.rbi.org.in/rdocs/notification/PDFs/85248.pdf

[Companies Act]e-Form 8 WITHIN 30 days of Creation / Modification of Charge; on Sufficient cause & Additional fee WITHIN 60 days; Beyond 60 days, apply to Company Law Board (CLB)

The procedure for seeking condonation of delay in terms of Section 141 of the Companies Act, 1956 as it stood prior to 27-10-2007 would come into force from 6th July 2008.

The government has withdrawn earlier circular allowing companies to file Form 8 within 300 days without filing petition with CLB by a General Circular dt. 1st July 2008.

Now, earlier limit of 30 days (and 60 days with late fee) will apply to all form 8 to be uploaded from 6.7.2008 onwards.

Section 134 / 135 of the Companies Act, 1956, deals with the Creation / Modification of Charge.  The provisions for Creation / Modification of Charge is SAME.  In both the cases, e-Form 8 to be filed WITHIN 30 days of such Creation / Modification.  Such period of 30 days can be EXTENDED to another 30 days, on showing SUFFICIENT CAUSE & paying ADDITIONAL FEES to RoC (Registrar of Companies).  Any further delay, i.e, delay beyond a period of 30+30 = 60 days, can be CONDONED by CLB (Company Law Board) only as per Section 141 of the Act.  Further, such Condonation of Delay SHALL NOT PREJUDICE any rights acquired in respect of the property concerned, BEFORE the Charge is ACTUALLY REGISTERED.  Hence,
1. Creation / Modification of Charge = File e-Form 8 WITHIN 30 days of Creation / Modification with Normal Filing Fees;
2. Creation / Modification of Charge = 31 to 60 days of Creation / Modification, show Sufficient Cause + File e-Form 8 WITHIN 60 days of Creation / Modification WITH Additional Filing Fees;
3. Creation / Modification of Charge [>] 60 days of Creation / Modification, apply to Company Law Board (CLB)  to CONDONE the delay.

This is the situation which WAS prevailing till 27.10.2007 & WILL prevail from 6.7.2008.  The situation during the intervening period was, Amendment - Companies Act - Extention of 300 Days for registeration of Creation / Statisfaction of Charge U/s 125/138

Forget all those, as of now, just remember 30 days + 30 days + CLB & have a look @ http://www.mca.gov.in/MinistryWebsite/dca/latestnews/General_Circular_1st_Jul_2008.pdf

CS Updatin...

See Yes -> Yes, ACS

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