[SEBI-IDR]Lets Learn-Indian Depository Receipt-Meaning & Understanding

Credits to Mr. CS Pradeep for this wonderful presentation

LET’S LEARN

IDR - Indian Depository Receipt

IDR – the concept:

 

Concept of IDR introduced in 2004 through Companies (issue of IDR) Rules.

 

What is an IDR?

 

An IDR is an instrument in the form of a depository receipt created by a Domestic Depository in India against the underlying equity of issuing company.

 

Objective of IDRs:

 

The objective of IDR is to enable foreign issuers to raise funds from the Indian Financial Markets.

 

Legal Framework for IDRs:

 

The following is the legal framework as regards IDRs:

 

a. Companies Act –

 

l      General power to make rules (Section 642)

l      Specific power to make rules (Section 605A)

 

     b. Chapter VIA of the SEBI (DIP) Guidelines, 2000.

 

Eligibility criteria for IDR issuers:

 

As per the IDR rules an IDR issuer should satisfy the following:

 

l      Pre-issue paid-up capital and free reserves of the issuer company are at least US$ 50 millions

 

l      A minimum average market  capitalization in its domestic country of at least US$100 millions during the last 3 years

 

l      Trading record/history in India or elsewhere for at least 3 years

 

l      Track record of distributable profits for at least 3 out of immediately preceding 5 years

 

l      Equity shares offered in a financial year shall not exceed 25% of the post issue number of equity shares of the company

 

l      Fulfill eligibility criteria laid down by SEBI

 

SEBI’s powers under the IDR Rules:

 

Policy – related:

l      Specify additional eligibility criteria

l      Specify additional disclosures

 

Operational:

l      Give permission to come with IDR issue

l      Call for further information

l      Give observations on the offer document

 

Exercising the above powers, SEBI has laid down:

l      Disclosures in offer documents

l      Listing agreement

 

Other important points w.r.t. IDRs:

 

a.     Automatic fungibility of IDRs is restricted by RBI.

b.     NRIs and FIIs cannot purchase or possess IDRs unless special permission is taken from RBI.

c.      Repatriating proceeds of IDR issues out of India would entail permission of RBI.

d.     Size of IDR issue not to be less than Rs.50Cr.

e.     IDR issuers prohibited from issuing securities by home regulator not allowed.

 

New amendments made to Chapter VIA of DIP Guidelines and approved by the Board:

 

a.     All investors can now invest in an IDR issue, as opposed to only QIBs earlier.

b.     The minimum application size in an IDR issue has been reduced from Rs.2,00,000 to Rs.20,000/-.

[SEBI-ASBA] Lets Learn the Concept

Credits to Mr. CS Pradeep for this wonderful presentation

 

LET’S LEARN

 

ASBA – APPLICATIONS SUPPORTED BY BLOCK AMOUNT

 

What is ASBA?

 

SEBI has laid down detailed guidelines for a new application process for public issues. The new scheme named ASBA - Applications Supported by Blocked Amount is being introduced to cut down complaint-prone refund process in IPOs.

 

Is it compulsory?

 

The process is available as an alternate mode of application in all public issues made through the book building route. The scheme begun as a supplementary process and shall co-exist with the current process, wherein cheque is used as a mode of payment.  Click here to know the Detailed Guidelines.

 

How does it work?

 

Ø     The bank will block the money corresponding to the value of shares applied for in the bank account of the applicant itself. During the allotment period, the money does not leave the account of the investor, but since it is blocked he can’t use it for any other purpose.

 

Ø     If and when the shares get allotted, the money will be transferred to the issuer. In case the bid is rejected then, the money will be released immediately.

 

Ø     To keep it simple to begin with, SEBI has said that only those investors who are bidding at “cut off” [the final decided price] can opt for this scheme. Only one option is accepted for the number of shares bid for. It also says investors cannot revise their bid, though they can withdraw their bid in the period.

 

Ø     However, investor can’t go to any bank of his choice and ask for the service, yet. The Regulator said banks willing to offer this facility to apply for the same.

 

Ø     “A bank desirous of offering ASBA facility shall submit a certificate to SEBI, as per the specified format, for inclusion of its name in SEBI’s list of Self Certified Syndicate Banks (SCSB).

 

Ø     The IPO applications through this process can be accepted only by SCSBs, whose names appear in the list of SCSBs displayed in SEBI’s website, the SEBI order said. The investor will have the option of applying either through physical application forms or through electronic forms. 

 

Ø     SEBI has also notified other intermediaries like the merchant bankers, registrars to the issue and stock exchanges to make adequate changes in their systems to ensure that the applications that come through the new channel are treated on par with those from conventional channel.

 

What are the advantages of ASBA?

 

This will do away with immense paperwork involved and loss of money and peace of mind of investors. Consequently, there should be less investor complaints.

 

Click here to read the Detailed Guidelines.

[FEMA-ECB] Infrastructure sector upto USD 500 million & 7 years for USD > 100 million

RBI/2008-09/ 190 A. P. (DIR Series) Circular No. 16 dated September 22, 2008

Erstwhile ECB Limits

The all-in-cost ceilings for ECBs are modified as follows:

Average Maturity Period	All-in-Cost ceilings over 6 Months LIBOR*
	Existing	Revised
Three years and up to five years	200 bps	200 bps
More than five years and up to seven years	350 bps	350 bps
More than seven years [mandatory for USD in EXCESS of 100 million] Borrowers in the infrastructure sector can avail ECB UPTO 500 million per financial year under Approval Route	350 bps	450 bps
* for the respective currency of borrowing or applicable benchmark

The amendments to the ECB guidelines will come into force with immediate effect.

At present, borrowers in the infrastructure sector are allowed to avail ECB up to USD 100 million per financial year for Rupee expenditure for permissible end-uses under the Approval Route. Considering the huge funding requirements of the sector, particularly for meeting Rupee expenditure, the existing limit of USD 100 million has been raised to USD 500 million per financial year for the borrowers in the infrastructure sector for Rupee expenditure under the Approval Route. ECBs in excess of USD 100 million for Rupee expenditure should have a minimum average maturity period of 7 years.

All other aspects of the ECB policy such as USD 500 million limit per borrower per financial 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. The existing limit of USD 50 million for Rupee expenditure under the Approval Route for borrowers other than those in the infrastructure sector also remains unchanged.

CS Module II CRASH BATCH DETAILS

Company Law, Economic Law & Securities Law CRASH BATCHES for December 2008 CS Executive Program Exams

COMPANY LAW

Study with us On 25th & 26th October 2008 BETWEEN 1230 PM TO 0630 PM

CS Exam on 29th December 2008 BETWEEN 0930 AM TO 1230 PM

Fees: Rs. 900/- [NINE HUNDRED ONLY]; By Cash OR

Cheque favouring "Law Labz Consultancy Private Limited", payable at Chennai.

Classes Registration: Phone Registration: A.N.S. VIJAY@ +91 93829 35598 Registration @ Learn Labz: 128, Veeraperumal Koil Street, Landmark: Vivekananda College, Mylapore, Chennai - 600 004. E-mail Registration: csexecutiveprogram@gmail.com

Sessions to make you CONFIDENT to appear for Company Secretary Executive Program Exams

ECONOMIC & LABOUR LAWS

Study with us On 22nd & 23rd November 2008 BETWEEN 1230 PM TO 0630 PM

CS Exam on 30th December 2008 BETWEEN 0930 AM TO 1230 PM

Fees: Rs. 900/- [NINE HUNDRED ONLY]; By Cash OR

Cheque favouring "Law Labz Consultancy Private Limited", payable at Chennai.

Classes Registration: Phone Registration: A.N.S. VIJAY@ +91 93829 35598 Registration @ Learn Labz: 128, Veeraperumal Koil Street, Landmark: Vivekananda College, Mylapore, Chennai - 600 004. E-mail Registration: csexecutiveprogram@gmail.com

Sessions to make you CONFIDENT to appear for Company Secretary Executive Program Exams

SECURITIES LAW & COMPLIANCES

Study with us On 29th & 30th November 2008 BETWEEN 1230 PM TO 0630 PM

CS Exam on 31st December 2008 BETWEEN 0930 AM TO 1230 PM

Fees: Rs. 900/- [NINE HUNDRED ONLY]; By Cash OR

Cheque favouring "Law Labz Consultancy Private Limited", payable at Chennai.

Classes Registration: Phone Registration: A.N.S. VIJAY@ +91 93829 35598 Registration @ Learn Labz: 128, Veeraperumal Koil Street, Landmark: Vivekananda College, Mylapore, Chennai - 600 004. E-mail Registration: csexecutiveprogram@gmail.com

Sessions to make you CONFIDENT to appear for Company Secretary Executive Program Exams

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CS CRASH Classes MODULE I EXECUTIVE PROGRAM

General Law, Accounts & Tax Laws CRASH BATCHES for December 2008 CS Executive Program Exams

INCOME TAX, VAT & SERVICE TAX

Study with us On 18th & 19th October 2008 BETWEEN 1230 PM TO 0630 PM

CS Exam on 28th December 2008 BETWEEN 0930 AM TO 1230 PM

Fees: Rs. 900/- [NINE HUNDRED ONLY]; By Cash OR

Cheque favouring "Law Labz Consultancy Private Limited", payable at Chennai.

Classes Registration: Phone Registration: A.N.S. VIJAY@ +91 93829 35598 Registration @ Learn Labz: 128, Veeraperumal Koil Street, Landmark: Vivekananda College, Mylapore, Chennai - 600 004. E-mail Registration: csexecutiveprogram@gmail.com

Sessions to make you CONFIDENT to appear for Company Secretary Executive Program Exams

COMPANY, COST & MANAGEMENT ACCOUNTING

Study with us On 1st & 2nd November 2008 BETWEEN 1230 PM TO 0630 PM

CS Exam on 27th December 2008 BETWEEN 0930 AM TO 1230 PM

Fees: Rs. 900/- [NINE HUNDRED ONLY]; By Cash OR

Cheque favouring "Law Labz Consultancy Private Limited", payable at Chennai.

Classes Registration: Phone Registration: A.N.S. VIJAY@ +91 93829 35598 Registration @ Learn Labz: 128, Veeraperumal Koil Street, Landmark: Vivekananda College, Mylapore, Chennai - 600 004. E-mail Registration: csexecutiveprogram@gmail.com

Sessions to make you CONFIDENT to appear for Company Secretary Executive Program Exams

GENERAL & COMMERCIAL LAWS

Study with us On 15th & 16th November 2008 BETWEEN 1230 PM TO 0630 PM

CS Exam on 26th December 2008 BETWEEN 0930 AM TO 1230 PM

Fees: Rs. 900/- [NINE HUNDRED ONLY]; By Cash OR

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Classes Registration: Phone Registration: A.N.S. VIJAY@ +91 93829 35598 Registration @ Learn Labz: 128, Veeraperumal Koil Street, Landmark: Vivekananda College, Mylapore, Chennai - 600 004. E-mail Registration: csexecutiveprogram@gmail.com

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When NBFC will be deemed to be a Loan Company

RBI / 2008-09/167 DNBS.PD. CC No. 128 / 03.02.059 /2008-09 dated September 15, 2008

 

As substantial time has elapsed, since the issue of the Circular to approach Regional Office in their jurisdiction duly supported by statutory auditors' certificate indicating the asset / income pattern of the companies as on March 31, 2006, it has now been decided that erstwhile Equipment Leasing (EL) and Hire-Purchase (HP) NBFCs should, duly supported by Statutory Auditors’ Certificate as on March 31, 2008, immediately approach the Regional Office concerned for appropriate classification latest by December 31, 2008 after which NBFCs which have not opted for the classification would be deemed to be loan companies.

CS Final Financial, Treasury & Forex Management [FTFM] Notes & Study in a nutshell, to win Exams

Exciting Ways to Study FTFM is continued...

Mr. CS Sunil Kumar of CS Mysore has shared these Interesting Materials, which can help you to kick-start your basic understanding of Financial, Treasury & Forex Management subject in Company Secretary Professional Program.

Now, lets start studyin... [I mean, lets start enjoyin...]

1. Financial Management - An Introduction;

2. Derivatives - Basic & Further Discussion;

3. Capital Structure;

4. Dividend Policy;

5. Financial Services;

6. Treasury Management;

7. Forex Management;

8. CS Final - Question & Answers

Yes, This will get you an basic understanding of the Subject and then start reading Guideline Answers [Past Question Papers] of CS Final Exams and enjoy writin...CS exams.

All the Best ! Think, you have conquered FTFM as a Territory.

[FEMA] NO Bank Guarantee - Advance Remittance - Import of Services UPTO USD 5lakhs

Foreign Exchange Management Act, 1999 – Advance Remittances for Import of Services

As per extant regulations, AD Category – I banks are required to obtain a guarantee from a bank of international repute situated outside India or a guarantee from an AD Category – I bank in India, if such a guarantee is issued against the counter guarantee of a bank of international repute situated outside India for advance remittances exceeding USD 100,000 or its equivalent for import of services into India.

Vide AP (DIR) Circular No.15 dated 8th Sept 2008, with a view to liberalizing the procedure further, it has been decided to raise the limit of USD 100,000 for advance remittance for all admissible current account transactions for import of services without bank guarantee to USD 500,000 or its equivalent.  AD Category – I banks may frame their own guidelines to deal with such cases as per the policy approved by the bank's Board of Directors. 

 

Where the amount of advance exceeds USD 500,000 or its equivalent, a guarantee from a bank of international repute situated outside India, or a guarantee from an AD Category – I bank in India, if such a guarantee is issued against the counter-guarantee of a bank of international repute situated outside India, should be obtained from the overseas beneficiary.

 

AD Category – I banks should also follow-up to ensure that the beneficiary of the advance remittance fulfils his obligation under the contract or agreement with the remitter in India, failing which, the amount should be repatriated to India.

Industrial Development Bank of India Limited to be IDBI Bank Limited

RBI/2008-09/159 DBOD.No.Ret. BC.40/12.01.001/2008-09 dated September 8, 2008

Alteration in the name of Bank in the Second Schedule to the Reserve Bank of India Act, 1934 –" Industrial Development Bank of India Limited to IDBI Bank Limited".

RBI advises that the name of "Industrial Development Bank of India Limited" has been changed to "IDBI Bank Limited" in the Second Schedule to the Reserve Bank of India Act, 1934 with effect from May 7, 2008 by notification DBOD.BP.BC.No.21.01.002/2007-08 dated May 16, 2008, published in the Gazette of India (Part III-Section 4) dated June 14, 2008.

SEBI DIP Guidelines Current & Earlier Provision as on 28th Aug 2008- An Overview

Credits to Mr. CS Pradeep & Mr. R. Anand

Rights Issue

N	Particulars	Earlier Provision	Current Provision
1	Advertisement	An advertisement giving the date of completion of despatch of letters of offer, shall be released in Newspapers ATLEAST 7 days BEFORE date of opening of issue	7 days reduced to 3 days
2	Issue of Shares / Refunds	Details of Issue of Allotment letters/Refunds to be made WITHIN a period of 7 weeks and Interest in case of delay in refund at the prescribed rate under section 73(2)/(2A)	7 weeks reduced to 15 days
3	Non-receipt of Minimum subscription	If the Company does NOT receive the Minimum Subscription of 90% of the issue, the entire subscription shall be REFUNDED to the applicants WITHIN 42 days from the date of closure of the issue.	42 days reduced to 15 days
4	Issue Period	Rights issues shall be kept OPEN for ATLEAST 30 days and not more than 60 days	Rights issues shall be kept OPEN for ATLEAST 15 days and not more than 30 days
5	Book-closure period	Minimum Notice period was 15 days (demat shares with no derivative trading), 21 days (physical shares with no derivative trading) and 30 days (with derivative trading)	The minimum notice period has been made as 7 working days for ALL categories (only for Rights issue)
6	Notice to Stock Exchange	Company has to give PRIOR intimation to the Exchange about the Board Meeting at which proposal for Rights issue or issue of Convertible Debentures or of Debentures carrying a right to subscribe to Equity shares or the passing over of dividend is due to be considered at least 7 days in advance.	7 days reduced to 2 working days (only for Rights issue)

 

QIB / QIP related (Chapter XIIIA)
1. Erstwhile "Qualified Institutional Buyers" [QIB]

Hereon "Qualified Institutional Buyers" [QIB], defined in the Definition Section itself of the SEBI (DIP) Guidelines, 2000,

1.2.1 (xxiva) The same Definition has been brought in, with an amendment in sub-clause (d) as to Foreign Institutional Investors (FII):
"a foreign institutional investor and sub-account registered with SEBI, OTHER THAN a sub-account which is a foreign corporate or foreign individual".

 

2. QIP Pricing guidelines amended - pricing to be 2 weeks average high and low OR more [Floor Price], of the closing prices of the related shares quoted on the stock exchange during the TWO WEEKS preceding the 'relevant date'.

 

3. Meaning of 'Relevant Date' amended -  means Date of Board or Committee meeting (previously it was Shareholders Meeting) decided to open the proposed issue.

 

4. Companies which have been listed during the preceding one year pursuant to approved scheme(s) of merger/ demerger/ arrangement they are now allowed to raise funds by QIP route. Such companies are said to have taken into account the listing history of the listed companies with which they have entered into the approved scheme(s) of merger/ demerger/ arrangement.

 

Preferential Allotment (Chapter XIII)
1. In case of preferential allotment to QIB, pricing to be at 2 weeks average for allotment to QIBs, provided that the number of QIB allottees in such preferential allotment does NOT exceed five.

2. Warrants and Shares BOTH will be subject to lock-in period of one year or three years from the date of allotment of such shares.
(No set-off of lock-in period allowed against the period during which Warrants where already locked-in)

 

Debt Securities

The SEBI (Issue and Listing of Debt Securities) Regulations, 2008 were notified on June 6, 2008 and are applicable to public issue of debt securities and listing of debt securities issued through public issue or on private placement basis on a recognised stock exchange. As per regulation 33(1) of these regulations, the
provisions of the SEBI (DIP) Guidelines, in so far as these relate to issue and listing of debt securities, shall stand rescinded on the commencement of these regulations. Consequential amendments have accordingly been made in the SEBI (DIP) Guidelines.

 

Others

1. Filing of offer documents at SEBI Regional Offices, the LIMIT has been increased from 20 Crores to 50 Crores.

 

2. Even, "Offer for sale" and INCLUSION in the "Promoters' Contribution" of those shares which have been acquired pursuant to a restructuring exercise approved by High Court(s), in lieu of business and invested capital which had been in existence for a period of MORE than one year prior to the restructuring exercise.

 

Effect

The amendments made vide this circular shall be applicable as under:
(a) Amendments to clause 1.2.1(xxiva) shall be applicable after the date of this circular to :
(i) all notices for general meeting sent to shareholders for approval of the issue, in case of preferential allotment and QIP; and
(ii) all prospectuses (in case of a fixed price issue) and Red Herring
Prospectuses (in case of a book built issue) filed with the Registrar of Companies or letters of offer filed with Designated Stock Exchange, as the case may be.
(b) Amendments to clauses 13.1.1.1, 13.1.1.2, 13.1.1.3, 13.3.1, 13A.1.1, clause 13A.3.1, and 13A.3.2.2 shall be applicable to all notices for general meeting sent to shareholders for approval of the preferential allotment or QIP, as the case may be; after the date of this circular.
(c) Amendments to clauses 4.6.2, 16.1.1 and 4.14.2(ii) shall be applicable to all draft offer documents filed with SEBI after the date of the circular;
(d) All amendments other than those specified in sub-paras (a) to (c) above shall come into force with immediate effect.

SEBI/CFD/DIL/DIP/32/2008/28/08 dated August 28, 2008

DOWNLOAD DIP Guidelines amended upto August 28, 2008

Print your Entrepreneurs Memorandum (EM) Number, to get identified as Micro & Small Enterprise

Whether Schedule VI Update of Companies Act is followed in Spirit ?

Apprehensions have been expressed that in the absence of the identification of MSE Supplier on its supply order/ invoices and other documents may leave a scope for the buyer to omit their mention in the annual statement of accounts. The auditors while auditing the annual accounts may not be able to deduct such omissions from the available documents because of non-availability of identification. In terms of the provisions of MSMED Act, 2006, the MSE supplier is defined as under:

“As per Section 2(a)(ii)(n) of the MSMED Act, 2006 the “supplier” means a micro or small enterprise, which has filed a memorandum with the authority referred to in sub-section (1) of section 8. “

So, What Now ?

It is considered advisable that the Micro and Small Enterprises should mention/ get printed on their letter heads, supply order sheets, invoices, bills and other relevant documents, the Entrepreneurs Memorandum (EM) Number {as allotted after filing of the said Memorandum, by the District Industries Centre (DIC) or competent authority, as notified by their respective State Government/ UT administration}, so that there always remains an identification of being a MSE supplier.

 

This may please be brought to the knowledge of all micro and small enterprises, through respective Micro and Small Enterprises Associations in your State/ under your jurisdiction or all other possible means for creating awareness and sensitisation of micro and small enterprises on this issue, under intimation to this office, so that the provisions of Section 22 and Section 23 of the MSMED Act, 2006 are implemented in letter and spirit.

 

MSME No.2(18)/2007-MSME (pol) dated 26-08-2008

 

Understand Micro, Small & Medium Enterprises Act, 2006 here.

No Share Certificate to RBI - Overseas Investment - only Certificate with Form ODI

RBI/2008-09/155 A. P. (DIR Series) Circular No. 14 dated September 05,  2008

 

Old Provision

It has been decided that, henceforth, Share Certificates or any other document which is given as an EVIDENCE of Investment in the foreign entity, to the Indian Party should NOT to be submitted to the Reserve Bank, within six months, or such further period as Reserve Bank may permit, from the date of effecting remittance or the date on which the amount to be capitalised became due to the Indian Party or the date on which the amount due was allowed to be capitalised.

 

New Provision

The share certificates or any other document as evidence of investment where share certificates are not issued shall, henceforth, be submitted to and retained by the designated AD Category – I bank, who would be required to monitor the receipt of such documents and satisfy themselves about the bonafides of the documents so received.

A CERTIFICATE to this effect should be submitted by the designated AD Category – I bank to the Reserve Bank along with the APR (Part III of Form ODI) as annexed to AP (Dir Series) Circular No 68 dated June 1, 2007. 

Paper-wise ICSI Exemption for ICWAI Passed Students and vice versa

Exemptions

Paper-wise Reciprocal Exemption for students of ICSI and ICWAI (Revised Syllabus 2008 ):

Exemption to CS passed candidated in Papers of ICWAI	Exemption to CWA passed candidates in Papers of ICSI
Foundation Course            (4 Papers) - Complete exemption	Foundation Programme (4 Papers) - Complete exemption
Intermediate Course 1. Financial Accounting  (Paper 5) 2. Applied Direct Taxation (Paper 7)	Executive Programme 1. Company Accounts, Cost & Management Accounting (Module I, Paper 2) 2. Tax laws (Module I, Paper 3)
Final Course 3. Financial Management & International Finance      (Paper 12) 4. Indirect & Direct Tax Management ( Paper 14)	Professional Programme 3. Finance Treasury and Forex Management (Module II, Paper 3 ) 4. Advanced Tax Laws & Practice (Module III, Paper 6)

Enjoy Exempting...

Direct Receipt of Import Bills / Documents - limit increased to USD 3 lakhs

RBI/2008-09/149 A. P. (DIR Series) Circular No. 13 dated September 01, 2008

AD Category – I banks may make remittances for imports, where the import bills / documents have been received DIRECTLY by the importer from the overseas supplier AND the VALUE of import bill does not exceed USD 300,000 [erstwhile limit was USD 100,000], subject to the following conditions :

(i) The import would be subject to the prevailing Foreign Trade Policy (FTP).
(ii) The transactions are based on their commercial judgment and they are satisfied about the bonafides of the transactions.
(iii) The importer is a customer of AD Category – I bank and the customer's account is fully compliant with extant Know Your Client - KYC / AML guidelines issued by the Reserve Bank.
(iv) AD Category - I banks should do the due diligence exercise and should be fully satisfied about the financial standing / status and track record of the importer customer.
(v) It is customary in that trade to receive import documents directly from the overseas exporter.
(vi) In case the AD Category – I bank has suspicious about the genuineness of the transaction, it should be reported through the Suspicious Transaction Report (STR) to FIU_IND (Financial Intelligence Unit in India).

SEBI amends Listing Agreement Clauses 16,19,24&41 on 4th September 2008

SEBI today amended equity listing agreement to give effect to the reduction of time period  in case of Rights issue as decided on the previous SEBI Board meeting and also in line with the circular issued on August 28,2008 amending the SEBI (DIP) guidelines and also made certain changes to existing clause 41 (Submission of financial results) based on the decision taken by SEBI's committee on disclosures and Accounting standards and also on the representations received from the various quarters :

Following clauses are amended :Clause 16,19,24 and 41.

1. Clause 16 & 19-:

Notice period regarding Rights Issues: The notice period for intimation of the record date to Stock Exchange (SE) reduced to 7 days in case of Rights issue and the notice period for intimation to SE regarding the Board meeting in which the decision regarding the Rights issue to be taken was reduced to 2 days from 7 days. The reduction in timelines would reduce the market risk faced by an issuer and ensure faster turnaround of money for investors. There are also certain amendments to bring homogeneity in the number of days for notice period and for record date in case of rights issue.

2. Clause 24:

“Fairness Opinion” of independent merchant banker:

To protect the interest of the investor, in case of any scheme of arrangement entered into by the company and to ensure proper valuation is done in those cases , the listed company as well as the unlisted company which are getting merged shall  be required to appoint an independent merchant banker for giving a fairness opinion on the valuation done by Valuers. Further, the “Fairness opinion” of the merchant bankers shall be made available to the shareholders at the time of approving the resolution under Clause 24.

3. Clause 41:

Submission & Publication of Financial Results: In order to bring more efficiency in the disclosures of financial results, it has been decided to modify Clause 41 of the listing agreement. The major modifications are as follows:

a. Time limit for submission of financial results to stock exchanges: A listed entity in addition to submitting quarterly and year to date standalone financial results within one month of end of the quarter may also submit consolidated financial results to the stock exchange within two months from the end of the quarter.

b. Publication of financial results: A listed entity opting to submit consolidated financial results in addition to standalone results to the stock exchanges shall publish consolidated financial results only.

c. Limited review report to be placed before Board of Directors: A listed entity would be required to place the limited review report on un-audited financial results before its board of directors / committee before submission to stock exchanges only if the variation (as defined in present Clause 41) between un-audited financials and financials amended pursuant to limited review for the same period exceeds 10%.

d. Submission of limited review report in case of last quarter: Where the listed entity chooses to submit un-audited financial results for the last quarter (instead of submitting audited financial results for the entire financial year within 3 months of end of financial year), the limited review report shall be submitted for the last quarter also.

4. Applicability:

Changes in Clauses 16, 19, 24 and 41 of the Equity Listing Agreement mentioned above would be applicable with immediate effect. However, with regard to Clause 41, the provisions under sub-clause (VI) item (b) relating to submission and publication of the financial results shall be applicable from the second quarter onwards for the current financial year.

You can access the full text of circular at http://www.sebi.gov.in/circulars/2008/amendmentslisting.pdf

Section 25 Companies as Business Correspondents (BC) to Banks

It has since been decided that banks can engage companies registered under Section 25 of the Companies Act, 1956, as Business Correspondents (BCs) provided that the Section 25 companies are stand-alone entities or Section 25 companies in which NBFCs, banks, telecom companies and other corporate entities or their holding companies do not have equity holdings in excess of 10%.

Further, while engaging Section 25 companies as BCs, banks will have to strictly adhere to the distance criterion of 15 kms. / 5 kms, as applicable, between the place of business of the BC and the branch.

Click here for details.

[FEMA]import of Platinum, Palladium, Rhodium and Silver, Credit <= 90 days

It has been decided that Suppliers’ and Buyers’ credit, including the usance period of Letters of Credit opened for import of Platinum, Palladium, Rhodium and Silver should not exceed 90 days from the date of shipment. The revised directions will come into force with immediate effect.

AD Category – I banks should ensure that due diligence is undertaken and Know-Your-Customer (KYC) norms and Anti-Money Laundering (AML) guidelines, issued by the Reserve Bank are adhered to while undertaking import of these metals. Further, any large or abnormal increase in the volume of business should be closely examined to ensure that the transactions are bonafide and are not intended for interest / currency arbitrage. All other instructions relating to import of these metals shall continue.

RBI/2008-09/147A. P. (DIR Series) Circular No. 12 dated 28th August 2008

Crop Loan - 80% Short Term Prodution & 20% Clean Credit Limit

A new simplified cyclical credit product for financing crop production while also ensuring year round liquidity for farmers, particularly in rain-fed areas of the country.

Simplified cyclical credit product for farmers

Please refer to paragraphs 138 and 139 of the Annual Policy Statement for the year 2008-09

Accordingly, each commercial bank as also RRB may select one rain fed district for introduction, on a pilot basis, of a new product for financing crop production whereby

(a) 80 per cent of the crop loan requirement of individual borrowers may be released through a short term production loan in conformity with the present norms / practices, and

(b) the remaining 20 per cent representing the ‘core component’ (expenses for land preparation, pre-sowing operations etc. besides self labour/ consumption) may be sanctioned as a ‘clean credit limit’ to ensure year round liquidity.

Please find the Notification here.

Banks should accept Cash Over the Counter

Acceptance of cash over the counter
It has been brought to our notice that some banks have introduced certain products whereby the customers are not allowed to deposit cash over the counters. Further it is also understood that these banks have also incorporated a clause in the terms and conditions that cash deposits, if any, are required to be done through ATMs.
2. In this connection, it may be mentioned that banking by definition means acceptance of deposits of money from the public for the purpose of lending and investment. As such, banks cannot design any product which is not in tune with the basic tenets of banking. Further, incorporating such clauses in terms and conditions which restricts deposit of cash over the counters also amounts to an unfair practice.
3. Banks are therefore advised to ensure that their branches invariably accept cash over the counters from all their customers who desire to deposit cash at the counters. Further, they are also advised to refrain from incorporating clauses in the terms and conditions which restricts deposit of cash over the counters.

Find Notification here.

[SEBI-ASBA] Self Certified Syndicate Banks (SCSB) list

List of Self Certified Syndicate Banks under the ASBA process
ASBA - Applications Supported by Blocked Amount

1. As on date, there are 57 banks registered with SEBI as Bankers to an Issue
under the SEBI (Bankers to an Issue) Regulations, 1994. In terms of the SEBI Circular no. SEBI/CFD/DIL/ DIP/31/2008/ 30/7 dated July 30, 2008 on Applications Supported by Blocked Amount (ASBA), all these banks are eligible to act as Self Certified Syndicate Bank for the purpose of ASBA subject to their submitting a self certification to SEBI ,inter-alia certifying that they have undertaken the mock trial run of their systems with the Stock
Exchange(s) and Registrar(s) and have satisfied themselves that they have adequate systems/ infrastructure in place at their Controlling Branch/ Designated Branches to fulfill their responsibilities/ obligations as envisaged in the ASBA process within the timelines specified therein.

2. Once the banks submit this self certification, their names shall be included in
SEBI’s list of Self Certified Syndicate Banks (SCSBs) whereafter these SCSBs shall be eligible to accept ASBAs in public issues.

Find details here...

CS friends, now email your Queries, wonderful initiative by ICAI

SOLUTIONS
TO STUDENTS’ QUERIES THROUGH TOLL FREE MODE AND DIRECT
E-MAIL
An awesome
initiative by ICAI, by which many can be benefitted in the positive
sense. Use the facility.

The Board of Studies is happy to inform the CA students that the following facilities have been provided by the Board of Studies for facilitating quick solutions of CA students’ queries:

1. Toll Free Number : 1800-200-2501
2. Individual telephone numbers of respective faculty members
3. Individual e-mail i.d. of respective faculty members
4. Facilitating of answering through Gyandarshan Lecture Channel – Toll free number 1800-11-2345 and e-mail i.d.
gyandarshanbos@icai.org
(during studio timings only)
Students may ask queries of general as well as technical nature through toll free number (on Monday to Friday between 2.00 P.M. to 4.00 P.M.). Students are advised to use toll free facility for short answer questions. Queries requiring elaborate answers should preferably be addressed to the respective faculty members through e-mail.

CS friends can trouble, [these are very few], Trouble more following
http://www.icai.org/post.html?post_id=3218&c_id=219

On Tuesdays
giridharan@icai.org.in for Corporate & Allied Laws;

On Thursdays
nnsengupta@icia.org.in & nnsengupta@icia.org.in for Cost Accounting & Management Accounting respectively;
ashish.gupta@icai.org.in & zaidi@icai.org.in for Financial Management Queries;

On Fridays
priya@icai.org.in & ruchika@icai.org.in for Direct Taxes;
smita@icai.org.in & ashish.bhansali@icai.org for Indirect Taxes.

CS Chennai Inter Classes from September 5, 2008 [Company Secretary Executive]

Yes,

Considering the students requests and Introductory Session held on 27th August 2008 @ 0630 AM at Learn Labz, its decided to kick off CS Executive Program Sessions from 5th September 2008 till 15th November 2008 as per the SCHEDULE

Congrats for budding CS on this results. This is just the ICSI's evaluation of you and you can be much more than this !

Learning CS, as exciting ever.Keep Experimenting to Excel !

Submit your Registration Forms Now

NOTICE

Notice is hereby given that the First "CS Executive Students Sessions" of Learn Labz will be held from Wednesday, the 5th day of September 2008 up to 15th day of November 2008 at the Registered Office of Learn Labz - 128 Veeraperumal Koil Street, (Land Mark: Vivekananda College), Mylapore, Chennai-04 from 06:15 AM to transact the following businesses:
1. To Learn, Experiment and Excel with us the SCHEDULE

2. For such interesting learning sessions, our Labz SHALL accommodate 20 Students ONLY.

3. Learning Fee Rs.1,500/- Per Paper and Rs.4,000/- Per Module.

Contact Course Director: A.N.S. VIJAY @ +91 93829 35598 for any detail.

Experience the Theoretical Learning - the Experimental Way....

EPF online employees provident fund claim status

The Employees' Provident Fund Organisation (EPFO) has launched a facility for online verification of status of the claim under the EPF.

The facility can be availed at http://epfindia. nic.in/indiaepf/ loginnew. aspx the user needs to select,

the State, the EPF office, Establishment Code, Extension code, if any and then enter the employee number to ascertain the claim status.

Last date for filing of applications and applicability of late cut, for Schemes under Chapter 3 of FTP, clarification thereof

As per http://164.100.9.245/exim/2000/cir/cir08/cir2708.htm
1. For exports made from 1-4-2006 till 31-3-2008 that have already been realized up to 31-3-2008, the last date for filing the application for obtaining benefits under Chapter 3 of the Foreign Trade Policy will be 30.11.2008, and if the realization is after 31.3.2008, then the last date for filing the application will be as per the provisions of Para 3.23.10 of HBP Vol. 1 (RE-2008) as amended vide Public Notice No. 64 (RE-2008) / 2004-2009 dated 14.8.2008.

2. Further, it is clarified that late cut, in terms of Para 3.23.2 HBP Vol. 1 (RE-2008) read with Para 9.3 of HBP Vol. 1 (RE-2008), shall be applicable for applications filed after the prescribed last date as above, even for exports made from 1.4.2006 till 31.3.2008.

This issues with the approval of the DGFT.

Eligibility of supplies to EOUs for deemed export benefits

Yes,

The supplies of goods from DTA to EOU / EHTP / STP / BTP are regarded as deemed exports and DTA supplier is eligible for deemed export benefits.

Based upon disclaimer from DTA supplier, EOU / EHTP / STP / BTP units can also claim these benefits.

This is as per DGFT Policy Circular No. 23 (RE-2008)/2004-2009 dated 28th July 2008

IEC modification, when 100% EoU becomes DTA

Yes,

You will get a Fresh Import Export Code (IEC) from RA, once your 100% Export Oriented Unit (EoU) gets converted into a Domestic Tariff Area (DTA) unit.

Same is NOT the case when an existing DTA gets converted into 100% EoU. Meaning, it will continue with the same IEC.

This is as per the Clarification issued by Commerce Ministry which can be accessed in http://164.100.9.245/exim/2000/cir/cir08/cir2608.htm

CS exam Results 2008 Out - Pass or Will Pass?

Yes,

Company Secretary Foundation, Inter & Final Results are out by 12 noon today @ www.icsi.edu

Hope you enjoyed with your Pass or Will Pass status ....

Do Scrap your Results here to enthuse others.

Click here to enjoy CS Exams December 2008.

Join the CS Fraternity to celebrate & learn more.

[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