Weekly Secretarial Updates
March 31, 2012 to April 6, 2012
| RBI UPDATE | |||
| Sr No | Circular/ Notification number | Particulars | Applicability |
| 1 (a) | RBI/2011-12/102 A. P. (DIR Series) Circular No.102 | Use of International Debit Cards/Store Value Cards/Charge Cards/Smart Cards by Resident Indians while on a visit outside India | All the persons |
| (b) | RBI/2011-12/481 A. P. (DIR Series) Circular No.101 dated April 2, 2012 | Overseas Direct Investments – Liberalisation / Rationalisation | All the individuals |
| (c) | RBI/2011-12/484 A. P. (DIR Series) Circular No.103 dated April 3, 2012. | Data on import of Gold – Statements – Modification | Dealers of the Gold Market |
| (d) | RBI/2011-12/483 DGBA.CDD. No. H- 6506 /15.02.001/2011-12 dated April 3, 2012 | Public Provident Fund Scheme, 1968 (PPF, 1968) and Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Revision of interest rates | Persons and departments covered under the PPF and Senior Citizens Savings Scheme |
| (e) | RBI/2011-12/488 A. P. (DIR Series) Circular No. 104 dated April 4, 2012 | Authorised Dealer Category II – Permission for additional activity and opening of Nostro account | Persons in Foreign Exchange |
| IRDA UPDATES | |||
| 2 (a) | IRDA/F&A/CIR/ACTS/083/03/2012 dated March 30, 2012. | Declaration of Bonus under Section 49 of the Insurance Act, 1938 | Applicable to all the Life Insurance Companies |
| SEBI UPDATES | |||
| 3(a) | CIR/MRD/DP/ 09 /2012 dated March 30, 2012. | Broad Guidelines on Algorithmic Trading | All Stock Exchanges |
| LEGAL WORLD | |||
| 4(a) | SEBI’s (Order) | Promact Plastics Limited | |
RBI UPDATES:
1 (a) Use of International Debit Cards/Store Value Cards/Charge Cards/Smart
Cards by Resident Indians while on a visit outside India
Cards by Resident Indians while on a visit outside India
RBI Circular – April 2, 2012:
We draw your attention to the RBI circular no: RBI/2011-12/102 A. P. (DIR Series) Circular No.102 dated April 2, 2012
Applicability:
All the persons
Crux of the Circular:
As per the present practice the unutilised foreign exchange balance on the travel cards purchased by resident Indians are permitted to be refunded only after 10 days from the date of last transaction.
However this circular facilitates the redemption of the the unutilized balance outstanding in the cards immediately upon request by the resident Indians to whom the cards are issued subject to retention of:-.
a. The amounts that are authorised and remain unclaimed/ not settled by the acquirers as of the date of redemption till the completion of the respective settlement cycle;
b. A small balance not exceeding US$ 100, for meeting any pipeline transactions till the completion of the respective settlement cycle; and
c. Transaction fees/service tax payable in India in Rupees.
For the amounts that are authorised but unclaimed/ not settled by the acquirer, the issuer of such cards can hold such amounts until such transactions are processed/ settled by the acquirers within the prescribed settlement timeframe.
For further details information please follow the below link
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1(b) Overseas Direct Investments – Liberalisation / Rationalisation
RBI Circular – April 2, 2012:
We draw your attention to the RBI circular no. RBI/2011-12/481 A. P. (DIR Series) Circular No.101 dated April 2, 2012.
All the individuals
Crux of the Circular:
As per the present law when an Indian party wants to open, hold and maintain Foreign Currency Account in a foreign country for the purpose of overseas direct investments in that country, in case the regulation of the host country requires that the investment in the country is to be made through a particular account to be opened with the commercial bank of the country then Prior Permission of the RBI is required.
However inorder to provide operational flexibility to the Indian party, this current circular liberalises the regulations pertaining to opening / holding / maintaining the Foreign Currency Account by Indian party outside India.
In this regard an Indian party will now be allowed to open, hold and maintain Foreign Currency Account (FCA) abroad for the purpose of overseas direct investments subject to few terms and conditions specified in the circular.
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7105&Mode=0
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1(c) Data on import of Gold – Statements – Modification
RBI Circular – April 3, 2012:
Applicability:
Dealers of the Gold Market
Crux of the Circular:
As a process of rationalizing the entire reporting system on import of gold the following statements are to be submitted to the RBI, Foreign Exchange Department by the AD Category I banks.
Statements to be submitted are as follows:
- on half yearly basis (end March / end September) showing the quantity and value of gold imported by the nominated banks/ agencies/ EOUs/ SEZs in Gem & Jewellery sector, mode of payment-wise
- on monthly basis showing the quantity and value of gold imports by the nominated agencies (other than the nominated banks)/ EOUs/ SEZs in Gem & Jewellery sector during the month under report as well as the cumulative position as at the end of the said month beginning from the 1st month of the Financial Year
The statements shall be submitted, even if there is 'Nil' position and they should reach the aforesaid office of RBI by the 10th of the following month / half year to which it relates. This statement can be submitted even by way of email.
For further information please follow the link:
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1(d) Public Provident Fund Scheme, 1968 (PPF, 1968) and
Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Revision of interest rates
Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Revision of interest rates
RBI Circular – April 3, 2012:
We draw your attention to the RBI circular no: RBI/2011-12/483 DGBA.CDD. No. H- 6506 /15.02.001/2011-12 dated April 3, 2012
Applicability:
Persons and departments covered under the PPF and Senior Citizens Savings Scheme
Crux of the Circular:
The Government of India have revised the rate of interest of senior citizens savings schemes and public provident fund schemes for the FY 2012-13.
The details of the revision are as follows:
| Scheme | Rate of interest w.e.f. 01.12.2011 | Rate of interest w.e.f. 01.04.2012 |
| 5 year SCSS, 2004 | 9.0% p.a | 9.3% p.a |
| PPF, 1968 | 8.6% p.a | 8.8% p.a |
For further information please follow the below link:
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1 (e) Authorised Dealer Category II – Permission for
additional activity and opening of Nostro account
additional activity and opening of Nostro account
RBI Circular – April 4, 2012:
We draw your attention to the RBI circular no: RBI/2011-12/488 A. P. (DIR Series) Circular No. 104 dated April 4, 2012
Applicability:
Persons in Foreign Exchange
Crux of the Circular:
The crux of the circular are as follows:
- In addition to the Authorised Dealer Category – I (AD Category-I) banks the Authorised Dealer Category – II banks as also authorized to issue forex pre-paid cards to residents travelling on private/business visits abroad, subject to adherence to KYC / AML / CFT requirements. However, the settlement in respect of forex pre-paid cards may be effected through AD Category-I banks.
- In order to ensure greater flexibility in sending remittances, the Authorised Dealers Category-II are authorized to open Nostro accounts subject to few terms and conditions as follows:
i) Only one Nostro account for each currency may be opened;
ii) Balances in the account should be utilized only for the settlement of remittances sent for permissible purposes and not for the settlement in respect of forex prepaid cards;
iii) No idle balance shall be maintained in the said account; and
iv) They will be subject to reporting requirements as prescribed from time to time.
- A nostro is our account of our money, held by you
- A vostro is your account of your money, held by us
For further information please follow the below link:
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
IRDA UPDATES:
2. (a) Declaration of Bonus under Section 49 of the Insurance Act, 1938
IRDA Circular – March 30, 2012:
We draw your attention to the IRDA circular no: IRDA/F&A/CIR/ACTS/083/03/2012 dated March 30, 2012.
Applicability:
Applicable to all the Life Insurance Companies
Crux of the Circular:
At present with a view to facilitating declaration of bonus by an insurance company, where the Life Fund is in deficit, the Authority has laid down the manner of funding of the bonus subject to specified conditions to be strictly complied with. This special dispensation was available to the insurers for the first ten financial years, beginning from the year in which the life insurance company commences operations.
Now as per this current circular the Authority has decided to allow the life insurers in the private sector to declare bonus to policyholders where the Life Fund is in deficit for a further period of 2 years i.e., upto the twelfth year of operations commencing from the year in which the life insurance business operations are started.
The insurers should comply strictly with all the conditions as stipulated in the Circulars under reference in case they would like to avail of this dispensation.
For further details information please follow the below link
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SEBI UPDATES:
3 (a) Broad Guidelines on Algorithmic Trading
SEBI Circular – March 30, 2012:
We draw your attention to the SEBI circular no: CIR/MRD/DP/ 09 /2012 dated March 30, 2012.
Applicability:
All Stock Exchanges
Crux of the Circular:
It has been observed that adoption of technology for the purpose of trading in financial instruments has been on a rise over the past few years. Stock brokers as well as their clients are now making increased usage of trading algorithm (hereinafter referred to as “algo”).
Based on recommendations of Technical Advisory Committee (TAC) and Secondary Market Advisory Committee (SMAC), it has been decided to put in place the broad guidelines for algorithmic trading in the securities market.
In this regard Guidelines to the stock exchanges and the stock brokers have been prepared and published.
Algorithmic Trading – Any order that is generated using automated execution logic shall be known as algorithmic trading.
For further details information please follow the below link
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
4 (a) Legal World:
Promact Plastics Limited
BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA
ORDER
Section and Law relating to the case:
Under Sections 11, 11(4) and 11B of the SEBI Act, 1992 read with Regulation 11 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 2003
Crux of the Case:
As investigation was held by the department for the period from February 11, 2005 to July 27, 2005. During the investigation it was noticed that Promact Plastic Limited (notice) has reported higher profits in the unaudited financial results disclosed to the Bombay Stock Exchange.
SEBI noticed that entities related to the noticee dealt in the scrip of the company, during the same period, when the trading window should have been closed.
As per Law:
The Model Code of Conduct under Clause 3 of Schedule I of the PIT Regulations for Prevention of Insider Trading mandates that trading window should be specified by the listed company and kept closed for 24 hours after the corporate announcements. It
Application of Law in the above case:
Although as per the above mentioned regulation the trading window should be specified by the listed company and kept closed for 24 hours after the corporate announcements is pertinent to note that the directors of noticee had traded when the trading window had to be closed in terms of the said Code of Conduct. Further, the noticee did not provide the details of closure and opening of trading window, copy of the Code of Internal Procedures and Conduct and the Code of Corporate Disclosure Practices framed by the company.
Hence, there is no evidence on record to show that noticee had laid down policies, procedures, implementation of trading window, monitoring of trades and the implementation of the Code of Conduct as provided under Regulations 12(1) and 12(3) read with Clause 3 of the Model Code of Conduct in Schedule I of the PIT Regulations.
Decision of SEBI:
M/s. Promact Plastic Ltd. is prohibited from buying, selling or dealing in securities in any manner, or accessing the securities market directly or indirectly in any manner whatsoever for a period of one year from the date of the order.
For further details please follow the below link:
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
No comments:
Post a Comment