The Chartered Accountant
The Chartered Accountant
The Chartered Accountant
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
CUSTOMS<br />
I. Circulars<br />
1. Circular No.16/2008-Customs dated 13.10.2008<br />
<strong>The</strong> Circular has clarified the following points relating to<br />
refund of 4% Additional Duty of Customs (4% CVD) and<br />
even in some cases relaxing the procedural requirement for<br />
expeditious sanction of refund claims:<br />
(i) Time-limit for filing of refund claim;<br />
(ii) Early processing of refund claims;<br />
(iii) Early processing of refund claims;<br />
(iv) Declaration for non-admission of Cenvat Credit;<br />
(v) Payment of ST/VAT by cash or input tax credit;<br />
(vi) Submission of original copy of ST/VAT Challan;<br />
(vii) Unjust enrichment and its Certification by <strong>Chartered</strong><br />
<strong>Accountant</strong>s;<br />
(viii) Consignment Agents;<br />
(ix) Submission of refund claim for part of goods in<br />
a consignment.<br />
For details visit: http://www.cbec.gov.in/customs/<br />
cs-circulars/cs-circulars08/circ16-2k8-cus.htm<br />
2. Circular No.17/2008-Customs dated 21.10.2008<br />
<strong>The</strong> Circular has clarified that import of readymade garments<br />
would be subjected to CVD only on the basis of<br />
transaction value and not on the basis of retail sale price.<br />
For details visit: http://www.cbec.gov.in/customs/<br />
cs-circulars/cs-circulars08/circ17-2k8-cus.htm<br />
OTHER ACTS<br />
SEBI<br />
I. Circulars<br />
1. Cir No.IMD/FII&C/34/2008 dated 20-10-2008<br />
SEBI has reviewed the data submitted by the foreign institutional<br />
investors in pursuance of our circular no.<br />
32, dated October 16, 2008. SEBI disapproves of the<br />
activity of the foreign institutional investors lending<br />
shares abroad. <strong>The</strong> facility of lending and borrowing<br />
has been made available on Indian Exchanges. SEBI is<br />
reworking the existing stock exchange offered securities<br />
lending and borrowing mechanism, to make suitable<br />
changes. <strong>The</strong> custodians are requested to communicate<br />
to their FII constituents the disapproval of SEBI.<br />
For details visit: http://www.sebi.gov.in/circulars/2008/<br />
fiicir3408.html<br />
2. MRD/DoP/SE/Cir- 31 /2008, dated 31-10- 2008<br />
<strong>The</strong> framework for Securities Lending and Borrowing<br />
(SLB) was specified vide circular no. MRD/DoP/SE/<br />
Dep/Cir- 14 /2007 dated December 20, 2007 w.e.f. April<br />
DECEMBER 2008 996 THE CHARTERED ACCOUNTANT<br />
LEGAL UPDATE<br />
21, 2008. Pursuant to feedback from market participants<br />
and proposals for revision of SLB received from NSE and<br />
BSE, the framework is being revised as under:<br />
1. Tenure for SLB may be increased to 30 days from the<br />
present 7 days.<br />
2. <strong>The</strong> SLB tenure of 30 days will result in the need for appropriate<br />
adjustments for corporate actions.<br />
3. <strong>The</strong> time for SLB session may be extended from the<br />
present one hour (10 am to 11 am) to the normal trade timings<br />
of 9:55 am to 3:30 pm.<br />
4. With regard to risk management in SLB, it is advised that<br />
common risk management practices shall be followed by<br />
stock exchanges for SLB. It is reiterated that the exchanges<br />
should ensure that the risk management framework strikes<br />
a balance between ensuring commercial viability of SLB<br />
transactions and ensuring adequate and proper risk management.<br />
Exchanges should satisfy themselves regarding<br />
the adequacy of the risk management system.<br />
5. Exchanges and Depositories are advised to: a) take necessary<br />
steps and put in place necessary systems for implementation<br />
of the above at the earliest; b) make necessary<br />
amendments to the relevant bye-laws, rules and regulations<br />
for the implementation of the above; c) issue necessary instructions<br />
to the member brokers/clearing members and<br />
depository participants and also to disseminate the same<br />
on the website.<br />
For details visit: http://www.sebi.gov.in/circulars/2008/<br />
cir312008.html<br />
RBI<br />
I. Circulars<br />
1. DNBS (PD) CC. No.131/03.05.002 /2008-2009 dated<br />
29- 10-2008<br />
Taking into consideration, the need for enhanced funds for<br />
increasing business and meeting regulatory requirements, it<br />
has been decided that Systemically Important Non-Deposit<br />
taking Non-Banking Financial Companies (NBFCs-ND-<br />
SI) may augment their capital funds by issue of Perpetual<br />
Debt Instruments (PDI) in accordance with the guidelines.<br />
Such PDI shall be eligible for inclusion as Tier I Capital to<br />
the extent of 15% of total Tier I capital as on March 31 of<br />
the previous accounting year. <strong>The</strong> minimum investment in<br />
each such issue/tranche by single investor shall not be less<br />
than Rs 5 lakh. <strong>The</strong> amount of funds raised by NBFCs-<br />
ND-SI shall not be treated as ‘public deposit’ within the<br />
meaning of clause 2(1)(xii) of the Non-Banking Financial<br />
Companies Acceptance of Public Deposits (Reserve<br />
Bank) Directions, 1998. <strong>The</strong>, amount of PDI in excess of<br />
amount admissible as Tier I shall qualify as Tier II capital<br />
within the eligible limits.<br />
For details visit: http://www.rbi.org.in/scripts/Notification<br />
User.aspx?Id=4588&Mode=0