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

[FII, Participatory Notes, Sub Account Registration,ODI, AMC & PIM by NRI, CIS]Amendment to SEBI (Foreign Institutional Investors) Regulations, 1995

Amendment to SEBI (Foreign Institutional Investors) Regulations, 1995

Thanks, Lucknow CA Group

SEBI, vide Notification dated May 22, 2008 has amended SEBI (Foreign Institutional Investors) Regulations, 1995.

The salient features of the amendments are as under:

v The policy measures on Offshore Derivative Instruments (Participatory Notes) and changes to the registration criteria specified in SEBI Press Release dated October 25, 2007 have been incorporated in the regulations.

v In order to streamline the process of registration, the Application Forms for grant of registration as a FII and Sub Account have been modified.

v An asset management company, investment manager or advisor or an institutional portfolio manager set up and/ or owned by non resident Indians (NRIs) shall be eligible to be registered as FII subject to the condition that they shall not invest their proprietary funds. This has been enabled by suitable modification to Explanation II under Regulation 13 of the said regulations.

v The type of securities in which FIIs are permitted to invest has been widened to include schemes floated by a Collective Investment Scheme.

Click to read The amended regulations

Further,

Foreign Institutional Investors & Custodians Division
Investment Management Department
Website: www.sebi.gov. in Fax: 022 26449026
Circular No. IMD/FII & C/ 28 /2008
27th May 2008

To
All Foreign Institutional Investors, and
Custodians of Securities

Dear Sir/Madam,
Undertakings for ODI activity

In partial amendment to SEBI circular reference no IMD/CUST/15/ 2004 dated April 02, 2004, the undertaking required to be provided by the Foreign Institutional Investors (FIIs) and their sub-accounts with respect to the offshore derivative instruments (ODIs) is being revised to state the following w.e.f the Monthly ODI Report from May 2008:

“We undertake that we/ our associates have not issued/ subscribed/ purchased any of the offshore derivative instruments directly to/ from Non Resident Indians/ Indian Residents.”

Further, the following statement may also be included in the monthly ODI report, henceforth

“As of ____________ *, our assets under custody (AUC) in the Indian securities market amount to Rs.________crore and the total value of outstanding offshore derivative instruments issued by us as a percentage of AUC is ____ percent.”

* last date of the monthly reporting period to be mentioned.

This circular is being issued under Regulation 20A of the SEBI (Foreign Institutional Investors) Regulations 1995.

A copy of this circular is available at the web page “F.I.I.” on our website www.sebi.gov. in. The custodians are requested to bring the contents of this circular to the notice of their FII clients.

Rajasthan - Bhilwara, Jaipur, Jodhpur and Udaipur Examination Centres ICSI sudents, Company Secretary Exam optional centres June 2008

 

COMPANY SECRETARIES Exams to be held

                                                   as scheduled FROM 2^ND TO 10^TH JUNE, 2008

 

 

The Company Secretaries (CS) Examination for the Foundation, Intermediate and Final Courses will be held from 2^nd to 10^th June, 2008 as scheduled, at 66 Examination Centres all over India and one Overseas Centre at Dubai.

 

In view of the prevailing situation in some parts of Rajasthan, students enrolled from Bhilwara, Jaipur, Jodhpur and Udaipur Examination Centres have been allowed additional option to appear from any nearby/other Examination Centre of the ICSI in India on production of Admission Certificate.

[USD20million to USD50/100million] External Commercial Borrowing (ECB) policy liberalisation [amendment]

RBI/2007-08/339 A.P.(DIR Series) Circular No.43

To

All Category-I Authorised Dealer Banks

Madam/Sir,

External Commercial Borrowings Policy: Liberalisation

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the A. P. (DIR Series) Circular No. 5 dated August 1, 2005, A. P. (DIR Series) Circular No. 60 dated May 21, 2007 and A. P. (DIR Series) Circular No. 4 dated August 7, 2007 relating to External Commercial Borrowings (ECB).

2. Based on a review, it has been decided to modify some aspects of the ECB policy as indicated below:

(a) At present, borrowers proposing to avail ECB up to USD 20 million for Rupee expenditure for permissible end-uses require prior approval of the Reserve Bank under the Approval Route. It has been decided that, henceforth,

(i) borrowers in infrastructure sector may avail ECB up to USD 100 million for Rupee expenditure for permissible end-uses under the Approval Route;

(ii) in the case of other borrowers, the existing limit of USD 20 million for Rupee expenditure for permissible end-uses under the Approval Route has been enhanced to USD 50 million.

(b) The all-in-cost ceilings in respect of ECB are modified as follows:

Average Maturity Period	All-in-Cost ceilings over 6 Months LIBOR*
	Existing	Revised
Three years and up to five years	150 bps	200 bps
More than five years	250 bps	350 bps

s* for the respective currency of credit or applicable benchmark

The above changes will apply to ECB both under the automatic route and the approval route.

3. This amendment to ECB guidelines will come into force with immediate effect. All other aspects of ECB policy such as USD 500 million limit per company per year under the Automatic Route, eligible borrower, recognised lender, end-use of foreign currency expenditure for import of capital goods and overseas investments, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements remain unchanged.

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

5. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

6. The directions contained in this circular have been issued under sections 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.

[FEMA]Foreign Exchange Management (Deposit) Regulations, 2000 – Amendment

Dear All,

As you may be aware of that as per existing Schedule I ( giving the permissible credits to the Non-Resident (External) Rupee (NRE) account) to the Foreign Exchange Management (Deposit) Regulations, 2000 [Notification No. FEMA 5/2000-RB dated May 3, 2000], as amended from time to time, . Further, in terms of Anti-Money Laundering guidelines [cf A. P. (DIR Series) Circular No. 14 dated October 17, 2007], FFMCs are permitted to encash foreign currency and make cash payment only up to USD 3000 or its equivalent. Amount exceeding USD 3000 or its equivalent has to be paid by way of demand draft or bankers' cheque.

RBI vide its A. P. (DIR Series) Circular No. 45 dated 30th May 2008 as a measure of liberalization and also to meet the genuine needs of the NRE account holders, it has been decided that AD Category – I banks and authorized banks may credit proceeds of demand drafts / bankers' cheques issued against encashment of foreign currency to the NRE account of the NRI account holder where the instruments issued to the NRE account holder are supported by encashment certificate issued by AD Category – I / Category – II. So, now there is no question of limit for encashment.

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