[SEBI-FVCI] how to get registered as a Foreign Venture Capital Investor

HOW TO GET REGISTERED AS A FOREIGN VENTURE CAPITAL INVESTOR (FVCI)

1. The Applicant is advised to go through the SEBI (Foreign Venture Capital Investors) Regulations, 2000 for checking the eligibility criteria (Reg 4) and such other information while submitting the application to SEBI.

The application in Form A as specified in First Schedule to SEBI (Foreign Venture Capital Investors) Regulations, 2000 and other documents should be filed along with requisite fees (Application fees of US $ 5000) as prescribed under Second Schedule to the Regulations.

2. The application in Form A along with other documents as enumerated below should be submitted in duplicate. One set of Application along with all the documents is forwarded by SEBI to Reserve Bank of India (RBI) for its approval from FEMA angle.

Click here to know the Procedural Detail

[SEBI] Internal Audit for stock brokers/clearing members by Chartered Accountant

Stock Broker / Clearing Members to carry out COMPLETE INTERNAL AUDIT on HALF YEARLY BASIS by Independant Qualified CHARTERED ACCOUNTANTS.

The first such audit period should be from October 1, 2008 to March 31, 2009.

The scope of such audit shall cover, inter alia,
1. The existence, scope and efficiency of Internal Control System;
2. Compliance with the provisions of,
a. SEBI Act, 1992; b. Securities Contracts (Regulation) Act 1956; c. SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992.
3. Compliance of circulars issued by SEBI, agreements, KYC requirements & Bye-Laws of the Exchanges;
4. Data security and insurance in respect of the operations of stock brokers/clearing members.

Click here for more details.

[FEMA] Advance Remittance USD 50lakhs Without Bank Guarantee/Standby Letter of Credit

RBI/2008-09/134 A. P. (DIR Seris) Circular No. 09 dated August 21, 2008

Advance Remittance for Import of Goods - Liberalisation

In cases where the importer (other than a Public Sector Company or a Department / Undertaking of the Government of India / State Government) is unable to obtain bank guarantee from overseas suppliers and the AD Category – I bank is satisfied about the track record and bonafides of the importer, the requirement of the bank guarantee / standby letter of credit may not be insisted upon for advance remittance up to USD 1,000,000 or its equivalent. AD Category – I banks may frame their own internal guidelines to deal with such cases as per a suitable policy framed by the bank's Board of Directors [cf A. P. (DIR Series) Circular No.15 dated September 17, 2003].

Now, it has been decided to enhance the limit of USD 1,000,000 mentioned above to USD 5,000,000 or its equivalent, with immediate effect.

Find full detail in http://rbidocs.rbi.org.in/rdocs/notification/PDFs/86458.pdf

[FEMA] USD 10lakhs per Export Shipment, Despatch Shipping Documents to Export Destination

RBI/2008-09/127 A. P. (DIR Series) Circular No. 06 dated August 13, 2008

Attention of Authorised Dealer Category – I (AD Category - I) banks is invited to the paragraph C .7 of A. P. (DIR Series) Circular No.12 dated September 9, 2000, in terms of which AD Category – I banks/exporters have been allowed, in certain cases, to dispatch shipping documents direct to the consignee. All other cases of dispatch of shipping documents by the exporter direct to the consignee are considered by the Reserve Bank on a case to case basis.

With view to further liberalise the facilities available to the exporters and to simplify the procedure, it has been decided to allow AD Category - I banks, to regularize cases of dispatch of shipping documents by the exporter direct to the consignee or his agent resident in the country of the final destination of goods, up to USD 1 million or its equivalent, per export shipment, subject to the following conditions:

a) The export proceeds have been realized in full.

b) The exporter is a regular customer of AD Category - I bank for a period of at least six months.

c) The exporter's account with the AD Category – I bank is fully compliant with Reserve Bank's extant KYC / AML guidelines.

d) The AD Category – I bank is satisfied about the bonafides of the transaction.

In case of doubt, the AD Category – I bank may consider filing Special Transaction Report (STR) with FIU_IND (Financial Intelligence Unit in India).

The directions for Status Holder Exporters and Units in Special Economic Zones issued vide A. P. (DIR Series) Circular No. 35 dated April 1, 2002 and A. P. (DIR Series) Circular No. 10 dated August 14, 2002, respectively, shall remain unchanged.

SEBI (PORTFOLIO MANAGERS) (AMENDMENT) REGULATIONS, 2008

SECURITIES AND EXCHANGE BOARD OF INDIA (PORTFOLIO MANAGERS) (AMENDMENT) REGULATIONS, 2008

In the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993: -

(i) in regulation 6, in sub regulation (2), in clause (d), for the words 'experience as portfolio manager or stock broker or investment manager' the words 'experience in related activities in portfolio management or stock broking or investment management' shall be substituted;

(ii) in regulation 7, -

(a) for the words "fifty lacs rupees" occurring at the end, the words "two crore rupees" shall be substituted;

Yes, the Networth should be Two Crore Rupees & for the existing Portfolio Managers should raise the Networth to 1 Crore in 1st 6 months & should have total Networth of 2 Crores by the end of 12 months from the date of Regulations (11th August 2008). The Capital Adequacy requirement has to be complied in addition to the Networth.

(iii) in regulation 16, for sub - regulation (8), the following shall be

inserted namely:-

" (8) The portfolio manager shall not hold the listed securities, belonging to the portfolio account, in its own name on behalf of its clients either by virtue of contract with clients or otherwise:

Provided that any portfolio manager holding the listed securities belonging to the portfolio account in its own name on behalf of its clients on the date of commencement of the Securities and Exchange Board of India (Portfolio Managers) (Amendment) Regulations, 2008 shall segregate each clients' listed securities and keep them separately within six months from such commencement:

Provided further that the Board may in the interest of investors or for the development of securities market, on an application made in this behalf by a portfolio manager with respect to any specific investment existing on the date of commencement of the Securities and Exchange Board of India (Portfolio Managers) (Amendment) Regulations, 2008, relax the strict enforcement of this regulation."

Find full detail in http://www.sebi.gov.in/acts/pmamendreg.pdf

SEBI (Stock Brokers & Sub Brokers) and (Intermediaries) Amendment Regulations, 2008

Amendment to the Securities and Exchange Board of India (Intermediaries) Regulations, 2008

4. In the Securities and Exchange Board of India (Intermediaries) Regulations, 2008, in regulation 2, in sub-regulation (1), in clause (g), after the words "a derivative segment" the words "or currency derivatives segment" shall be inserted.

SECURITIES AND EXCHANGE BOARD OF INDIA (STOCK BROKERS AND SUB- BROKERS) (AMENDMENT) REGULATIONS, 2008

In the Securities and Exchange Board of India (Stock Brokers And Sub- Brokers) Regulations, 1992–

(i) in regulation 2-

a. in clause (ae), after the words "derivatives segment of an exchange" the words "or currency derivatives segment of an exchange" shall be inserted;

b. in clause (gd), after the words "derivatives segment of a stock exchange" the words "or currency derivatives segment of a stock exchange" shall be inserted.

(ii) In regulation 16 I, in sub-regulation (4), for the words "regulation 26" occurring at the end, the words "Chapter VI" shall be substituted.

(iii) After Chapter IIIA, the following Chapter and regulations shall be inserted, namely:-

CHAPTER III B

REGISTRATION OF TRADING AND CLEARING MEMBERS OF CURRENCY DERIVATIVES SEGMENT

Find full detail in http://www.sebi.gov.in/acts/stockbramend.pdf

[Investor Protection] SEBI (Depositories and Participants) (Second Amendment) Regulations, 2008

In the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996 -

(i) for regulation 32, the following shall be substituted, namely:-

Mechanism for investor protection.

32.

The depository shall satisfy the Board (means SEBI) that it has a mechanism in place to ensure that the interests of the persons buying and selling securities held in the depository are adequately protected."

Its worth to read the Old Provision (which is repealed) to track the difference:
Erstwhile Regulation 32,
32. Transfer to be affected only after payment.—The depository shall satisfy the Board that it has a mechanism in place to ensure that the interest of the persons buying and selling securities held in the depository are adequately protected and shall register the transfer of a security in the name of the transferee only after the depository is satisfied that payment for such transfer has been made.

Click to see amendment through SEBI (Depositories and Participants) (Second Amendment) Regulations, 2008 w.e.f. 8th August 2008.

[NOT Amended]MCA e-Forms NOT updated, need not delete the downloaded forms

Relax, so-many e-Forms 8 & others, that you have already filled to file, is still worth.

Wait before you DELETE your Old e-Forms 23AC-A, 66, 20B, 21A, 1, 5, 18, 10, 17 & 8 from your System as MCA has NOT updated the forms.

Scheduled version change wef 19th August, 2008 of eForms - 23AC, Additional attachment to Form23AC, Form 23ACA, Form 66, Form 20B, Form 21A, Form1, Form5, Form18, Form10, Form17 and Form 8 has been postponed.


Ministry of Corporate Affairs (MCA) has previously informed that:
New version of Form 23AC, Additional attachment to Form23AC, Form 23ACA, Form 66, Form 20B, Form 21A, Form1, Form5, Form18, Form10, Form17 and Form 8 will be available on the Portal, effective August 19, 2008, (6.00 AM). All Stakeholders are requested to use new version wef August 19, 2008 (6.00 AM) as the current version of these forms will be discontinued.

The said e-Forms are same and has not been updated. Continue uploading the downloaded forms itself.

Don't know, whether its an advantage or disadvantage of Electronic Publications as Ministries have gone Online !

Keep e-filin...

[CS Inter Book] Company Secretary Executive Program Book / Notes / Materials

Law Labz - Determination of CS Studies

Experiment:
Are your exams nearing with no progress in studying and finishing it???


Now what..!!!!


Observation:
Law Labz has resolved,
A book which is meant only for CS students exclusively written from examination point of view.
An exclusive book which makes law more than just sections and mugging up, for CS friends to enjoy the subjects rather than forceful reading.


Inference:
Law Labz, gives you the learning process with a student's perspective. After all, in Law Labz, the Professionals were once students before becoming Experts in their domain and who else , other than themselves, can empathise with the Aspirants who wish to move forward but find themselves lost, like a rudder-less boat, in the enormity of the sea of syllabus to be covered.
You will get a stylish Book, evincing interests in CS friends to Win the Exams. Something like http://yehseeyes.blogspot.com/2008/04/dividendiepf-timeline-charts-concepts.html


Yes,
We want to give entire Module in a Single Book, say Module II papers - Company Law, Economic & Labour Laws and Securities Law & Compliances in a Single Book is what we have worked on.


Many a time, it is not uncommon for students pursuing courses like ACS, to feel that they have bitten more than what they can chew. But, we make it, in all certainty, to the students in such a way that they enjoy it like having 'a cheese stuffed pizza' with a soft drink. After all, the fact that enjoying one's study is the essential recipe for success, needs no great emphasis.


We wish to share your Passion, Interests & Opinion.


Send your views to csexecutiveprogram@gmail.com


Do help us to reach you.


Do submit your Interests in http://creator.zoho.com/csexecutiveprogram/form/8/

[FEMA] Project Offices - an additional Foreign Currency Account in India

Dear All,

 

Project Offices — Foreign Currency Accounts in India

As per Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, notified vide Notification No. FEMA 22/2000-RB dated May 3, 2000, Foreign Exchange Management (Remittance of Assets) Regulations, 2000, notified vide Notification No. FEMA 13/2000-RB dated May 3, 2000, as amended from time to time and A.P. (DIR Series) Circular No. 44 dated May 17, 2005, foreign companies having Project Offices in India are permitted to open only one foreign currency account for each project, subject to the terms and conditions as mentioned in A. P. (DIR Series) Circular No. 44 dated May 17, 2005. With a view to avoid currency exposures, many foreign companies have been approaching the Reserve Bank for permission to open more than one foreign currency account, usually in their home currency and another in US Dollar.

 

It has, therefore, been decided to liberalise the procedure and allow AD Category – I banks to open an additional foreign currency account for each Project Office (established under the general/specific approval of Reserve Bank) subject to the same terms and conditions as applicable to the existing foreign currency account provided that both the foreign currency accounts are maintained with the same AD Category – I bank. The other conditions mentioned in the abovementioned circular shall continue.

The above instructions shall come into force with immediate effect.

Source: A. P. (DIR Series) Circular No. 02 dated 31st July 2008

 

Thanks & Regards
Alagar
Investment Banking
Karvy Investor Services Limited
Chennai
Moble: 919884731993/ 919790906827

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

Credit to Mr. Kotharis

Lodge Your Grievance now to Government of India

Its India, where unimaginable is also possible !



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

Can you imagine this is happening in INDIA?

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

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

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

ESOS for Nominee Directors & amendment in Amortisation of Accounting Value for ESOS

Yes,

 

Now, Nominee Directors (Directors appointed by Financial Institutions, etc... as their Representatives in the Company) are now eligible for ESOS (Employees Stock Option Scheme).

 

Employees Stock Option Plan / Scheme [ESOP / ESOS] – an option to Whole-time Directors / Nominee Directors / Officers / Employees to purchase / subscribe securities @ a future date @ a pre-determined price.

 

Such Nominee Directors has to comply with following conditions:

1. The Contract / Agreement entered into between the Nominating Institution and the Director so appointed, specifically provides for acceptance of ESOS of the company by SUCH Director.

2. That options (ESOS), if granted to the Director, shall NOT be renounced in favour of the Nominating Institution.

3. A copy of SUCH Contract / Agreement thereof, is filed with the company for the purpose of Company filing to Stock Exchange.

4. Such Director has to furnish a copy of SUCH Contract / Agreement at a Board Meeting, held NEXT to such Appointment. 

 

The Amortisation Clause in the Accounting Policies of ESOS has been amended to SYNC in line with ICAI Guidance Note on "Employee Shared Based Payments".

'Guidance Note on Accounting for Employee Share-based payments' is revised to provide Companies/entities the option of related compensation cost to be recognised and accounted on a straightline basis over the total requisite service period for the entire award, provided that the amount of Compensation cost recognised at any date at least equaled the fair value of the vested portion of the award at that date.

Where the accounting value is accounted for as employee compensation in accordance with Clause (b), the amount shall be AMORTISED as under :

Clause (b) - The accounting value of options shall be equal to the aggregate, over all employee stock options granted during the accounting period, of the intrinsic value of the option or, if the company so chooses, the fair value of the option.

(i) Where the scheme does not provide for graded vesting, the amount shall be amortised on a straight-line basis over the vesting period.

(ii) Where the scheme provides for graded vesting -

(1) the vesting period shall be determined separately for each separate vesting portion of the option, as if the option was, in substance, multiple option and the amount of employee compensation cost shall be accounted for and amortised accordingly on a straight-line basis over the vesting period;

OR

(2) the amount of employee compensation cost shall be accounted for and amortised on a straight-line basis over the aggregate vesting period of the entire option (that is, over the vesting period of the last separately vesting portion of the option): Provided that the amount of employee compensation cost recognized at any date at least equals the fair value or the intrinsic value, as the case may be, of the vested portion of the option at that date."

Find the Amendments vide SEBI/CFD/DIL/ESOP/4/2008/04/08 dated August 4, 2008, which shall come into force WITH immediate effect.

Find amended SEBI (ESOS & ESPS) Guidelines, 1999