Public Comment on Norms for Branch/Liaison Offices in India by Foreign Entities

Dear All,

Public Comment on Norms for
Branch/Liaison Offices in India by Foreign Entities

As per existing provisions of Foreign Exchange Management (Establishment in India of branch or office or other place of business) Regulations, 2000 both opening and closure of Branch/Liaison/Project Offices in India can be done only after getting prior approval from RBI (Central / Regional Office as applicable). This note covers procedural formalities involved in opening of Branch/Liaison/Project Offices in India.

Vide Press Release dated 6^th May 2008, the Reserve Bank of India has proposed to delegate certain powers to authorised dealers regarding extension of validity period of liaison offices of foreign entities and closure of their branch/liaison offices in India. It has proposed to make the delegated powers effective from July 1, 2008 in order to provide necessary time to authorised dealers to assimilate the revised dispensation. So, once it is implemented, if foreign Companies wanted close its Branch/Liaison/Project Offices in India, it can do so once obtaining approval from concern AD instead of Regional Office of RBI. I believe it will reduce considerable time involved in closure liaison/branch office from current time limit of about 2 months in general to complete all the formalities.

Relaxation in Eligibility Criteria

Further, under the present provisions of Foreign Exchange Management Act, a person resident outside India requires prior approval of the Reserve Bank of India for establishing branch/liaison offices in India. The applications are considered by the Reserve Bank on case by case basis subject to the company meeting the eligibility criteria, such as, track record, financial position, etc. with a view to achieving greater transparency, the Reserve Bank of India has also proposed to place in public domain eligibility criteria and procedural guidelines for establishment of branch and liaison offices by foreign entities in India.

For the purpose of seeking public comments, the Reserve Bank has placed on its website, both - the draft circulars regarding delegation of powers for extension of validity period or closure of liaison offices of foreign entities in India and eligibility criteria and procedural guidelines for branch/liaison offices of foreign entities in India. Comments on these can be sent to The Chief General Manager, Foreign Exchange Department, Reserve Bank of India, Central Office (FID), Central Office Building, 11th Floor, S.B.S.Marg, Fort, Mumbai-400001 or by FAX (Fax No. 022-2261 0623) or by e-mail latest by May 20, 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

Switchover to New Syllabus- CS Inter to CS Executive Program

Yes, an opportunity to become an Executive but its an irrevocable clause, once excercised...

This is for,
FOUNDATION STUDENTS (WHOSE REGISTRATION IS PRIOR TO 1ST NOVEMBER, 2007)
INTERMEDIATE STUDENTS(WHOSE REGISTRATION IS PRIOR TO 1ST FEBRUARY, 2008)

So, what to do?, fill up the Exam Application & No separate Request
Students interested to switchover to New Syllabus may exercise their option for switchover to the New Syllabus at the relevant space provided in the Examination Application Form effective from December`08 Session onwards. Even if the students have sent earlier any separate request in this regard, they still are required to exercise their option while submitting their Examination Form.
Students are not required to submit a separate request, in this regard, to the Institute.

This is an irrevocable clause, but how?
ONCE SWITCHED OVER TO THE NEW SYLLABUS, NO STUDENT WOULD BE ALLOWED TO REVERT TO THE EXISTING SYLLABUS IN ANY CASE.

Get an all-new Identity Card
Students who switchover to the New Syllabus would be allotted a new Registration Number which alongwith the Old Registration Number would simultaneously be shown in the Admit Card so issued during December, 2008 session of CS Examination (or subsequent sessions when the option will be exercised) and could be retained by the students for future reference and as a supplement to their existing Identity Card.

How about Postal/Oral Coaching?, they say just relax
As regards the Postal/Oral Coaching, the students may continue to complete the same either under the existing syllabus and/or new syllabus – as the case may be.

Any additonal fee?, they say NO but subject to conditions
Students are not required to pay any additional fee; for switchover to the New Syllabus. However, in case the students require the study material under the new syllabus, the same can be purchased against requisite payment.

What for Registration De-Novo or Extension?, the grass looks greener
Notwithstanding the above, if the students would like to switchover to the new syllabus – at the time of Registration De-Novo/Extension; they would be allowed to do so. In such case also, the students who require the study materials under the new syllabus will have to purchase the same against payment.

Details of New Syllabus in http://thisisvj.googlepages.com/CSSyllabus.pdf

Enjoy switchin...

Find relevant notification in http://www.icsi.edu/WebModules/LinksOfWeeks/SWITCHOVER.htm

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...

CS Special Forums, CS Training Discussion, CS Quiz & more

Yes,

Its my long time dream to set up an exclusive forum for Company Secretary friends.

This forum is in addtition to and not in derogation of existing forums.

This concentrates more to help cumulating CS-practice related files, circulate CS Trainees Bio-datas and Companies/PCS requirements, quizzing on Corporate Laws and sort out other queries.

Do remember, FILES can be submitted, thats the main intention of creation of this forum.

Hope this platform can help CS friends.

Company Secretaries, & other professionals are welcome to share their ideas/views to make the forum more interestin...

Invite more people to get addressed most of the issues.

The forum can accessed by http://learnlabz.ning.com

Keep Informin...Vj

FDI Update- Credit Info Co, Commodity Exchange, Foreign Currency Bids of Indian Projects, SEBI SARFAESI QIB notification

Foreign investment in Credit Information Companies:

1. To comply with the Credit Information Companies (Regulations) Act 2005 and

2. subject to the following :
i) The aggregate Foreign Investment in Credit Information Companies would be 49%.

ii) Foreign Investment upto 49% would be allowed only with the prior approval of FIPB and regulatory clearance from RBI.

iii) Investment by SEBI Registered FIIs would be permitted only through purchases in the secondary market to an extent of 24%.

iv) Investment by SEBI Registered FIIs would be within the overall limit of 49% for Foreign Investment.

v) No FII can individually hold directly or indirectly more than 10% of the equity.

A copy of the Press Note 1 (2008 series) dated March 12, 2008 issued by the Government is enclosed.

Click here for Notification http://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4150&Mode=0

Foreign investment in Commodity Exchanges:

subject to the following conditions : i) There would be a composite ceiling of 49% Foreign Investment, with a FDI limit of 26% and an FII limit of 23%.
ii) FDI will be allowed with specific approval of the Government.
iii) The FII purchases in equity of Commodity Exchanges will be restricted only to the secondary markets.
iv) Foreign Investment in Commodity Exchanges would also be subject to compliance with the regulations issued, in this regard, by the Forward Market Commission.
A copy of Press Note 2 (2008 series) dated March 12, 2008 issued in this regard is enclosed.

Link to the notification http://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4151&Mode=0

It has been brought to the notice of the Government that some of the existing Commodity Exchanges had foreign investment above the permitted level as on the date of issue of the said Press Note. In order to facilitate the existing Commodity Exchanges to comply with the guidelines notified vide Press Note 2(2008), vide press note 8 of 2008 series dated 19th August 2008 it has now been decided to allow a transition / complying/correction time to the existing Commodity exchange(s). The Commodity Exchange(s) would be required to divest foreign equity equal to the amount by which the cap was being exceeded in accordance with Press Note 2(2008). Accordingly, all such Commodity Exchanges are hereby advised to adhere to the conditions of Press Note 2(2008) by 30.6.2009. All Commodity Exchanges shall furnish a compliance report informing the foreign investment in the Commodity Exchange as on 30.6.2009, along with details of equity structure, to the Department of Industrial Policy & Promotion, Department of Consumer Affairs, Foreign Investment Promotion Board, the Forward Market Commission and SEBI.

Non-compliance of the conditions of Press Note 2(2008) after 30.6.2009 would be a violation of the Foreign Exchange Management Act, 1999

Bids in foreign currency for projects to be executed in India:
1. Person resident in India has been permitted to incur liability in foreign exchange and to make or receive payments in foreign exchange in respect of global bids where the Central Government has authorized such projects to be executed in India and the approval of the concerned Administrative Ministry has been obtained. In such cases, authorized dealers are permitted to sell foreign exchange to the resident Indian company which has been awarded the contract.
2. Persons resident in India are now permitted to incur liability in foreign exchange and to make or receive payments in foreign exchange in respect of global bids for projects to be executed in India without insisting on prior approval of the concerned Administrative Ministry for the International Competitive Bidding.

Link to Notification http://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4149&Mode=0

SEBI Notification under Section 2(1) (u) of SARFAESI Act, 2002:

certain non-deposit NBFC = QIB u/SARFAESI

Non-banking financial companies (NBFC) registered under section 45-IA of the Reserve Bank of India (RBI) Act, 1934 and satisfying the following conditions shall be qualified institutional buyers (QIB) for the purposes of the SARFAESI Act,

Conditions:

1. systemically important non-deposit taking non-banking financial companies (NBFCs) with asset size of one hundred crore rupees and above (>=100 Crores); and
2. other non-deposit taking NBFCs which have asset size of fifty crore rupees and above (>=50 Crores) and “Capital to Risk – weighted Assets Ratio” (CRAR) of 10% as applicable to non-deposit taking NBFCs as per the last audited balance sheet.

Notification in http://thisisvj.googlepages.com/SEBI-QIBNotification-31Mar08.pdf

"shareholder having trading rights" under SCRR (MIMPSRSE), 2006

Yes, Sebi vide http://thisisvj.googlepages.com/SebiCircular.pdf

The term “shareholder having trading rights” under Securities Contracts(Regulation) (Manner of Increasing and Maintaining Public Shareholding in RecognisedStock Exchanges) Regulations, 2006 would mean a shareholder who has a trading interest in the stock exchange, whether directly or indirectly through a person having trading rights.
Explanation:
A shareholder having a trading interest “indirectly” in relation to a person having trading rights, would be understood in the same manner as the term “associate” is in relation to a shareholder having trading rights under regulation 2(1)(b) of the Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006.

CS Final HRM Planning & Procurement - Understanding

III. HR PLANNING & PROCUREMENT

Yes, the very simple & interesting chapter, just make mind maps, this way, so that you understand better the topic for Company Secretaryship (CS) Final Group -III subject Human Resource Management & Industrial Relations (HRMIR). Just read it once, get the flow, you can win the exams very easily, I guarantee. See Yes with Vj.

Manpower Planning: "continuous process". The process of developing & determing Objectives, Policies & Programs and to develop, utilise & distribute manpower so as to achieve Goals of organisation.

The two phases include,

1. Management to project the future manpower requirements &

2. Develop manpower plans to accommodate the implication of projections.

NATURE of HR Planning:

Like, "FILL THE WATER IN THE GLASS THEOREM."

1. Ascertain Manpower NEEDS (Number & Kind).

2. Ascertain in INVENTORY (water tank) of Existing Manpower (water) – status & untapped talent.

3. Determine shortfall/surplus of manpower.

4. Initiation of Organisation programs depending on Demand & Supply of HR.

5. Encompass Acquisition, Utilisation, Improvement & Preservation of HR.

OBJECTIVES – HR Planning:

1. Ensure optimum use of HR.

2. Avoid balance in Distribution & Allocation of HR.

3. Assess/Forecast future skill requirement.

4. Control measure to ensure available resources, when required.

5. Control of cost aspect.

6. Formulate Transfer & Promotion policies.

SCOPE/Elements – HR Planning:

1. Listing of Current HR.

2. Assess the "Extent of Utilisation" of current HR.

3. Phasing out surplus HR.

4. Analysing HR requirements.

5. HR Forecast.

6. Training Programs for different categories.

BENEFITS – HR Planning:

1. Reduce Labour cost.

2. Make optimum Use of workers Skills.

3. Identify gaps of existing HR.

4. Improvement in overall business planning process.

5. Formulating managerial Succession plan.

6. Greater awareness of importance of sound HR.

7. Tool to evaluate effect of alternative HR actions & policies.

HR Planning Process:

1à2à3à4à5à6à7à8à1

1. Objectives – filling the future vacancies with right type of people. Relate Future HR –to Future Enterprise Needs –tomaximise future Return on Investment in HR.

2. Inventory of HR skills (finding gaps): ensure Reservoir of talent is available when vacancies occur. Make Index of Inventory.

3. Work Study & Demand Forecasting: Study,

A. Employment Trends

B. Replacement Needs

C. Productivity: growth potential & healthy wage increase

D. Growth & Expansion: perpetuation

E. Absenteeism: fails to come for work when is scheduled to work;

% = (Mandays lost) divided by (Mandays – both worked & lost)

F. Work study/load analysis

4. Determine Job Requirements: Quantum of work which an average person can do on a job in a day through Job Analysis

5. Recruitment Plan – Programs for R&S

6. Selection Procedure

7. Training & Development Program – T&D

8. Performance Appraisal (find deficiencies in T&D) – PA.

QUANTITATIVE ASPECT OF HR PLANNING: Demand & Supply Forecasting.

QUALITATIVE ASPECT OF HR PLANNING: Job analysis, evaluation, etc…

QUANTITATIVE ASPECT OF HR PLANNING

I. Demand Forecasting: process of estimating the requirement of different kinds of personnel in future.

METHODS –

i. Managerial Judgement

ii. Work study techniques

iii. Statistical techniques

iv. Combination of above

Managerial Judgement: Includes,

o Bottom-up basis: with Line Managers submitting Proposals

o Top-down approach: Company & Departmental forecast prepared by Top Management.

Work Study Techniques: When there is a possibility to apply Work Measurement to know HOW Long operations should take & amount of Labour required. Through,

1. Work Load analysis (short term projections)

Step1: Determine Manpower required per unit of product.

Step2: Determine how many employees of various types are required to achieve Total Production Target.

2. Work Force analysis (long term projections): Keep sufficient margin for absenteeism, labour turnover & idle time.

Statistical Techniques:

1. Ratios & Trend Analysis (Refer Costing)

2. Econometric Models:

Step 1: Describe relationship between numbers of variables in Math formula.

Step 2: Apply Formula to forecast of movements in these variables.

3. Regression Analysis: When dependant & independent variables are functionally related.

II. Supply Forecasting:

- as to Current Resource & Future Resource;

- as to External Supply & Internal Supply;

METHODS:

1. Markov Analysis: By arranging probabilities of Personnel Transition in Transition Matrix.

2. Simulation: Create an Environment resembling real situation. Also called Vestibule when it comes to Tranining.

3. Renewal Analysis.

4. Goal Programming.

FACTORS affecting Internal Supply:

1. Existing HR

2. Labour Wastage measured using,

1. Labour Turnover Index

2. Labour Stability Index

3. Length of service analysis

4. Survival Rate: proportion of engaged employees REMAIN after 'x' years.

3. Internal Promotions & Transfers

4. Effect of changing conditions of work & absenteeism

5. Sources of supply from within the firm. It is influenced by,

1. Local Factors:

1. Population densities within reach;

2. Current & Future competition;

3. Local Unemployment;

4. Immigration & Emigration;

5. Local housing;

6. Attractiveness of the area to live in & the company to work with;

1. National Factors:

1. Growth of working population;

2. Output of Universities;

3. Demand for Specialised Professionals;

4. Impact of Government Training Schemes;

5. Government Employment Regulation.

QUALITATIVE ASPECT OF HR PLANNING

I. Job Analysis: Process of obtaining all pertinent job facts; studying the nature & operation of specific job. It can be further divided into Job Description & Job Specifications.

- Job Description: Factual statement of duties & responsibilities which will have,

1. Job Title 2. Location 3. Job Summary

4. Working conditions 5. Hazards.

- Job Specification: Statement of Minimum acceptable Human quality necessary to perform job properly. It will give details as to,

1. Education & Experience 2. Physical skills 3. Communication skills

4. Emotional Characteristics 5. Judgement.

Steps in Job Analysis:

1. R&S 2. Manpower Requirement 3. Compensation Package

4. Performance Appraisal 5. Training (Channelise energy)

6. Job Assignment 7. Job Re-engineering (working methods for higher productivity) 8. Job Analysis Process.

Techniques of Job Analysis:

1. Interview (Individual/Group)

2. Questionnaire – Types,

A. CODAP – Comprehensive Occupational Data Analysis Program;

B. FJA – Financial Job Analysis;

C. MPDQ – Management Position Description Questionnaire;

D. JAIF – Job Analysis Information Form.

3. Observation

4. Data from daily log books.

II. Job Evaluation: Systematic & orderly process of determining the worth of a job in relation to other job.

III. Job Design: Scientific art by which maximum output can be obtained with Minimum Input to the extent possible under given circumstances.

PROBLEMS – HR PLANNING:

1. Identity crisis 2. Support of Top Management 3. Size of Initial Effort

4. Co-ordination with Management Functions 5. Integration with Organisation Plans 6. Involvement of Operating Manager.

HRA – HUMAN RESOURCE ACCOUNTING:

Measurement & reporting of Cost & Value of people as Organisational resources.

- Benefits: assist Managers w.r.t.,

1. Recruit Vs. Promotion 2. Transfer Vs. Retention

3. Retrench Vs. Retention 4. Utility of Cost Reduction Program

5. Impact of Budgetary Control 6. New dimension to Capital Budgeting

7. Return of Investment in Human Assets.

8. Decision on relocating or streamlining, etc…

- Methods:

1. Historical or Actual Cost Method: First Investment is capitalised as Opening Value; Further Investment amortised.

2. Multiplier Method: It divides Cost & Value. Categorise into,

a. Senior Management (Highest) b. Middle Management

c. Supervisor d. Clerical & Operative (Lowest Multiplier)

Multiplier = Personal values of employees relating to Total assets value of organisation.

3. Replacement of Cost Method:

4. Economic Value Method: Discounts to a present value that, portion of companies' future earnings Directly Attributable to HR.

RECRUITEMENT: process of identification of different sources of personnel. Two sources include,

1. Internal Sources: a. Transfer (one job to another) b. Promotion (filling the higher jobs).

2. External Sources:

a. Recruit at Factory Gate b. Casual Callers or Unsolicited Applications

c. Media Advertisement d. Employment Agencies e. Management Consultants f. Campus Recruitments g. Recommendations

h. Labour Contractors i. Telecasting.

SNO.	Internal Sources	External Sources
1.	From within the organisation.	From outside the organisation.
2.	Quick process	Lengthy process
3.	Cheaper as no cost of contracting	Costly as to be notified
4.	Limited choice of candidates	Infusion of new blood & new ideas
5.	Lethargic	Competitive Spirit.

R&S

RECRUITMENT: Attract applicants for vacant jobs;

SELECTION: Rejection of unsuitable candidates.

SNO.	Basis	Recruitment	Selection
1.	Meaning	Process of searching candidate for vacant jobs & making them apply for the same.	Process of selection of right type of candidates & offering them jobs.
2.	Nature	Positive Process	Negative Process
3.	Aim	Attract more & more candidates.	Reject unsuitable candidate
4.	Procedure	Firm notifies vacancies through various sources & distributes Application Forms to candidates.	Firm ask candidates to pass through a number of stages such as filling of form, Employment Test, etc…
5.	Contract of Service	Only communication of vacancies.	Leads to Contract of Service.

Employment Test includes, Intelligence Test, Aptitude Test, Proficiency Test, Interest Test, Personality Test.

Interview includes, Patterned, Unstructured, Press, Group Interview in which,

1. Find Suitability;

2. Seek more information;

3. Gives accurate picture of job;

CAREER: A sequence of positions held by person during course of his working life.

CAREER ANCHOR: Basic drives that create the urge to take up a certain type of career. It is concerned with,

1. Technical Competence; 2. Managerial Competence;

3. Security of career; 4. Autonomy;

5. Creativity.

CAREER PLANNING: To provide Continuity, Order & Meaning to person's life. The features include,

1. Process of developing HR

2. Means of managing people to obtain optimum results

3. Continuous process

4. Integration of Individual & Organisational needs.

HR PLANNING facilitates Career Planning.

SUCCESSION PLANNING: Career Planning for higher level executives.

The PROCESS of Career Planning:

Step1: Preparation of HR Inventory;

Step2: Identify Individual Career Needs (to help individual to do their own planning). Also, identify the employees, who are,

· Fit & Willing to Take Up;

· Potential & Willingness to Take Up;

· Capacity to Take Up higher responsibilities.

Step3: Analysing Career Opportunities;

Step4: Matching the Employees Needs with Career Opportunities;

Step5: Formulation & Implementation of Training & Development (T&D) program;

Step6: Review of Career Plan.

Your earnest comments are very valuable to make every subject even many more interesting. Yes frens, CS exams are nearin... Come on... Do it...You can...Enjoy passin...Keep Communicatin...Vj

Dividend/IEPF timeline, charts & concepts - Article in CS Mysore E-Newsletter

Yes,

CS Mysore 51st E-Newsletter has honoured me by publishing my article under the head "Spectrum Space" which talks about the Secretarial Practice to Winning Study by giving pictures, charts & ideas to make "Dividend very easy".

See Yes, click to see the 1st page http://thisisvj.googlepages.com/DividendArticle1.gif & click here to see the 2nd page http://thisisvj.googlepages.com/DividendArticle2.gif; Yes click the bottom right corner to the picture, to enlarge it.

But, read the wonderful E-Newsletter by clicking http://www.esnips.com/nsdoc/e401864a-d804-414b-83c2-c526ca172627 and join the group by clicking http://groups.google.co.in/group/csmysore?hl=en to stay inspired.

Waiting for your critical & valuable comments. You can only improve me, please....

Keep Communciatin...Vj

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

SEBI amends Clause 49

SEBI amends Clause 49

Loophole left in the Clause 49 was plugged...

1) Companies are complying with Clause 49 of the listing Agreement only in letter and not in spirit. Now, if you have a person related to promoter as non-executive chairman, then half of the board should be independent.

2) The age limit of the Independent director fixed to a minimum of 21 years.

3) The time limit for appointment of another independent director after resignation of an independent director fixed as max. 180 days...but if the one-third/half composition is complied with, even after resignation, then this provision is not applicable.

SEBI had received requests/suggestions to bring about clarifications on certain provisions of the clause. After examining the same, it has been decided to modify the existing Clause 49. Hence SEBI vide circular SEBI/CFD/DIL/CG/1/2008/08/04 dated April 08, 2008 issued to stock exchanges has amended Clause 49 of the Listing Agreement to include the following provisions:

Mandatory provisions:

1. If the non-executive Chairman is a promoter or is related to promoters or persons occupying management positions at the board level or at one level below the board, at least one-half of the board of the company should consist of independent directors.

2. Disclosures of relationships between directors inter-se shall be made in specified documents/filings.

3. The gap between resignation/removal of an independent director and appointment of another independent director in his place shall not exceed 180 days. However, this provision would not apply in case a company fulfils the minimum requirement of independent directors in its Board, i.e., one-third or one-half as the case may be, even without filling the vacancy created by such resignation/removal.

4. The minimum age for independent directors shall be 21 years.

Non-mandatory provisions:

The company shall ensure that the person who is being appointed as an independent director has the requisite qualifications and experience which would be of use to the company and which, in the opinion of the company, would enable him to contribute effectively to the company in his capacity as an independent director.

Full text of SEBI circular at http://www.sebi.gov.in/Index.jsp?contentDisp=WhatsNewScroll&FilePath=/circulars/2008/cfdcir08.html

Understand the SEBI Updates here....

Company Secretary (CS) Study Videos on Directors appointed by Board u/s. 260, 262 & 313 of Companies Act, 1956

Yet another effort, a try to make CS (Company Secretary) study very interestin...Now its video venture....Yes...its "See Yes E-C(ast)"....

Here, three videos on Appointment of Directors by Board covering Sections 260, 262 & 313 of the Companies Act, 1956.

This is purely an adventurous venture to make CS study very excitin...Comment your needs & satisfaction, as by it, only I can improve, or inspire more....please keep inspirin...

Welcome, advice or suggestions from earnest friends & professionals to enhance my work.

Review it as critically as possible, now hav a look at it....

Part-I


Part-II


Part-III


Keep Viewin...Keep Communicatin...Vj

SEBI Revision in Fees&changes in Depositories&Participants Regulations&Cos(AS) amendment rules,2008

Securities And Exchange Board of India (Payment of Fees) (Amendment) Regulations, 2008 dated 31/03/2008 which is applicable with effect from 1st April 2008.

Yes....SEBI has revised its fee structure under various regulations, its very clearly explained in the SEBI circular itself http://thisisvj.googlepages.com/SebiCircular.pdf

Now, through SEBI (Depositories and Participants) (Amendment) Regulations, 2008 dated 17/03/2008, the following amendments were made in Regulation 7 (i.e) Grant of Certificate of Registration:
1. In Regulation 7(d), the balance of the equity capital of the depository shall be held by its participants is DELETED, so only condition being "the sponsor shall, at all times, hold at least fifty-one per cent. of the equity share capital of the depository;”
2. The meaning of foreign entity and their Minimum Holding in equity of Depository as given in Regulation 7(e) is DELETED and in lieu of which, the following is inserted under R-7
"(ea) no person other than a sponsor, whether resident in India or not, shall at any time, either individually or together with persons acting in concert, hold more than five per cent of the equity share capital in the depository;
Explanation: For the purposes of this clause, -
(i) the expression “person resident in India” shall have the meaning assigned to it in clause (v) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999);
(ii) the expression “persons acting in concert” shall have the meaning derived from clause (e) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997;
(eb) the combined holding of all persons resident outside India in the equity share capital of the depository shall not exceed, at any time, forty-nine per cent of its total equity share capital, subject further to the following:-
(i) the combined holdings of such persons acquired through the foreign direct investment route is not more than twenty six per cent of the total equity share capital, at any time;
(ii) the combined holdings of foreign institutional investors is not more than twenty three per cent of the total equity share capital, at any time;
(iii) no foreign institutional investor acquires shares of the depository otherwise than through the secondary market;
(ec) no foreign institutional investor shall have any representation in the Board of Directors of the depository;”

Also have a look @ Companies (Accounting Standards) Amendment Rules, 2008 in http://www.mca.gov.in/MinistryWebsite/dca/notification/pdf/Companies_Acct_Std_Amendment_Rules_2008.pdf

Keep Updatin...Vj