LAW & POLICY
A.P. (DIR Series) Circular No. 66
January 01, 2013
Export of Goods and Services – Simplification and Revision of Softex Procedure at SEZs
The Reserve Bank of India implemented the revised Softex procedure at all SEZs, EPZs, 100% EOUs and DTAs with immediate effect.
- Applicable to software exporters under STPIs or SEZs/EPZs/100% EOU/DTA.
- Annual turnover should be at least INR 1,000 Crore or filing of at least 600 SOFTEX forms annually.
- Eligible exporters may submit statements in revised Excel formats as prescribed.
- Other provisions of A.P. (DIR Series) Circular No. 80 dated February 15, 2012 remain unchanged.
A.P. (DIR Series) Circular No. 69
January 07, 2013
External Commercial Borrowings (ECB) Policy – NBFC Infrastructure Finance Companies (NBFC-IFCs)
The RBI enhanced ECB limits available to NBFC-IFCs under the automatic route.
- ECB limit increased from 50% to 75% of owned funds.
- Borrowings beyond 75% require RBI approval.
- Currency risk hedging requirement reduced from 100% to 75%.
- AD Category-I Banks shall continue certifying leverage ratios.
- All other ECB policy provisions remain unchanged.
A.P. (DIR Series) Circular No. 74
January 10, 2013
FDI in India – Issue of Equity Shares under Government Route
The RBI amended provisions relating to issue of equity shares through conversion of import of capital goods.
- Second-hand machinery is no longer eligible under the scheme.
- Independent valuation is required only for new capital goods, machinery and equipment.
- Valuation should preferably be carried out by an independent valuer from the country of import.
- Supporting customs documentation regarding fair valuation must be provided.
A.P. (DIR Series) Circular No. 78
January 21, 2013
ECB Policy – Repayment of Rupee Loans and Fresh Rupee Capital Expenditure (USD 10 Billion Scheme)
The RBI expanded the scope of the scheme to include hotel sector companies.
- Indian hotel companies with project costs of INR 250 Crore or more became eligible borrowers.
- Eligibility applies irrespective of geographical location.
- AD Banks may certify project costs while forwarding applications to RBI.
A.P. (DIR Series) Circular No. 79
January 22, 2013
EEFC, Diamond Dollar Account and RFC Domestic Account
The RBI withdrew earlier restrictions relating to utilization of EEFC balances.
- Account holders are no longer required to fully utilize EEFC balances before accessing the forex market.
- The relaxation also applies to RFC (Domestic) Accounts.
- The relaxation further extends to Diamond Dollar Accounts.
A.P. (DIR Series) Circular No. 81
January 24, 2013
Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts
The RBI modified instructions relating to permitted payments through Vostro Accounts.
- Payments to hospitals and medical institutions for treatment of NRIs and nationals of Gulf Countries, Hong Kong, Singapore and Malaysia are permitted.
- Payments to hotels for stays of eligible nationals and NRIs are permitted.
- All other existing instructions remain unchanged.
A.P. (DIR Series) Circular No. 82
February 11, 2013
Opening of NRO Accounts by Individuals of Bangladesh Nationality
Authorized banks may open NRO accounts for Bangladeshi nationals without prior RBI approval subject to compliance requirements.
- Valid visa and residential permit issued by FRO/FRRO must be verified.
- Banks must maintain records and submit quarterly reports.
- Head Offices must provide details to the Ministry of Home Affairs.
- Opening accounts for Bangladesh-owned entities still requires RBI approval.
Master Circular No. 15/2012-13
February 12, 2013
Foreign Investment in India
The RBI issued an updated Master Circular on Foreign Investment in India.
- The Master Circular remains valid until July 01, 2013.
- It covers various aspects of foreign investment regulations.
- Includes provisions relating to investment in partnership firms and proprietary concerns.
BILLS PASSED BY PARLIAMENT OF INDIA
The Sexual Harassment of Women at Workplace Bill, 2010
February 26, 2013
The Bill was unanimously passed by the Rajya Sabha after earlier approval by the Lok Sabha.
- Provides a secure working environment for women.
- Applies to workplaces, homes, universities, hospitals and government offices.
- Requires constitution of Internal Complaints Committees.
- Includes domestic workers and agricultural labourers.
- Complaints must be disposed within 90 days.
- Penalty of ₹50,000 for non-compliance.
- Contains safeguards against false or malicious complaints.
NOTIFICATIONS
The Prevention of Money Laundering (Amendment) Act, 2012
Effective February 15, 2013
The Act amended the Prevention of Money Laundering Act, 2002.
- Introduced the concept of “Corresponding Law”.
- Added the concept of “Reporting Entity”.
- Expanded the definition of money laundering offences.
- Included concealment, acquisition, possession and use of proceeds of crime.
ORDINANCES
The Criminal Law (Amendment) Ordinance, 2013
February 2013
The Ordinance introduced major reforms concerning crimes against women.
- Strengthened rape laws.
- Provided death penalty in the rarest of rare cases.
- Brought stalking and voyeurism within criminal offences.
- Enhanced punishments for sexual offences.
- Expanded the scope of protection against crimes against women.
SEBI Amendment Ordinance, 2013
January 21, 2013
The Ordinance addressed difficulties in filling vacancies for the Presiding Officer of the Securities Appellate Tribunal (SAT).
- Expanded eligibility criteria for appointment.
- Included retired or serving High Court Judges with at least seven years of service.
- Facilitated timely appointments to SAT.
