LAW & POLICY
A.P. (DIR Series) Circular No. 87
March 05, 2013
External Commercial Borrowings (ECB) Policy – Corporates under Investigation
The Reserve Bank of India permitted all entities to avail ECBs under the automatic route despite pending investigations, adjudications or appeals by law enforcement agencies.
- ECBs may be availed under existing norms.
- Permission is without prejudice to ongoing investigations or proceedings.
- Authorised Dealers must intimate concerned agencies while approving proposals.
- The RBI will follow a similar procedure for approvals under its jurisdiction.
A.P. (DIR Series) Circular No. 88
March 12, 2013
Write-Off of Unrealized Export Bills – Simplification of Procedure
The RBI liberalized the limits for write-off of unrealized export bills.
- Self write-off by exporters (other than Status Holders): 5% of export proceeds realized in the previous calendar year.
- Self write-off by Status Holder Exporters: 10%.
- Write-off by Authorized Dealer Banks: 10%.
- Outstanding amount must remain unpaid for more than one year.
- Documentary evidence must establish efforts to realize dues.
- Authorized Dealer Banks must report write-offs to RBI in Form EBW.
A.P. (DIR Series) Circular No. 94
April 01, 2013
Foreign Investment in Government Securities and Corporate Debt
The RBI merged existing debt limits into two broad categories.
- Government Debt Limit: USD 25 Billion.
- Corporate Debt Limit: USD 51 Billion.
- FIIs, QFIs and Long-Term Investors became eligible investors.
- Investment in Treasury Bills capped at USD 5.5 Billion within Government Debt limit.
- Investment in Commercial Papers capped at USD 3.5 Billion within Corporate Debt limit.
- NRI investments continue under existing guidelines without limits.
Consolidated FDI Policy 2013
April 05, 2013
Department of Industrial Policy & Promotion
The Government issued the Consolidated FDI Policy effective April 05, 2013.
- Pakistani citizens/entities may invest under Government Route except in prohibited sectors.
- 100% FDI permitted in Single Brand Retail Trading under Government Route.
- 51% FDI permitted in Multi Brand Retail Trading under Government Route.
- Foreign airlines permitted up to 49% FDI in Indian aviation companies.
- 49% FDI permitted in Power Exchanges.
- 74% FDI permitted in Asset Reconstruction Companies subject to conditions.
A.P. (DIR Series) Circular No. 98
April 09, 2013
Trade Credits for Imports into India – Review of All-in-Cost Ceiling
The RBI extended the existing all-in-cost ceiling for trade credits until June 30, 2013.
All other provisions of the Trade Credit Policy remained unchanged.
A.P. (DIR Series) Circular No. 99
April 23, 2013
Investment by Navratna PSUs, OVL and OIL in Overseas Oil Sector Entities
The RBI extended investment facilities available to overseas incorporated Joint Ventures and Wholly Owned Subsidiaries in the oil sector.
- Applicable to Navratna PSUs, ONGC Videsh Limited and Oil India Limited.
- Investments approved by the Government of India permitted under automatic route.
- No investment limits prescribed.
- Applicable for exploration and drilling activities in oil and natural gas sectors.
A.P. (DIR Series) Circular No. 100
April 25, 2013
Overseas Direct Investments – Clarification
The RBI clarified restrictions on overseas entities offering financial products linked to the Indian Rupee.
- Overseas entities with Indian equity participation cannot offer such products without RBI approval.
- Applies to products linked to INR exchange rates, stock indices and similar instruments.
- Violation would constitute contravention of FEMA regulations.
- Action may be initiated under FEMA, 1999.
CCI Combination Regulations Amendment
April 04, 2013
Competition Commission of India (Combination) Amendment Regulations, 2013
The Competition Commission amended Combination Regulations, 2011.
- Acquisition of up to 5% additional shares in a financial year exempted from notification requirements under specified conditions.
- Stock-in-trade, raw materials and current assets acquisitions in ordinary business exempted.
- Intra-group acquisitions received additional exemptions.
- Certain merger and amalgamation transactions within the same group exempted.
- Category 8A of Schedule I omitted.
BILLS PASSED BY PARLIAMENT OF INDIA
The Criminal Law (Amendment) Act, 2013
April 02, 2013
The Criminal Law (Amendment) Bill, 2013 received Presidential assent and became law.
- Expanded and redefined sexual offences.
- Enhanced punishments for rape and gang rape.
- Introduced offences of stalking and voyeurism.
- Provided stringent penalties for acid attacks.
- Introduced provisions relating to trafficking of minors.
- Created accountability for public servants and hospitals handling victims.
Sexual Harassment of Women at Workplace Act, 2013
April 23, 2013
The President assented to the legislation protecting women from sexual harassment at workplaces.
- Defines sexual harassment and provides redressal mechanisms.
- Covers organized and unorganized sectors.
- Protects employees, clients, customers and domestic workers.
- Requires Internal Complaints Committees for establishments with 10 or more employees.
- Committees possess powers similar to civil courts.
- Inquiry must be completed within 90 days.
- Employers may face fines up to ₹50,000 for non-compliance.
