SEBI Board Meeting

SEBI Board Meeting

The SEBI Board met today in Mumbai and took the following decisions:

Platform for E-Voting by Shareholders of Listed Entities

In line with the budget proposal of Hon’ble Finance Minister, to make it mandatory for top listed companies to provide for electronic voting facilities, it has been decided to implement the said proposal by making electronic voting mandatory for all listed companies in respect of those businesses to be transacted through postal ballot. The same would be implemented in a phased manner. To begin with, it would be mandated for top 500 listed companies at BSE and NSE based on market capitalization. Listed companies may choose any one of the agency which is currently providing the e-voting platform.

Manner of dealing with Audit Reports filed by listed entities

In order to enhance the quality of financial reporting done by listed entities, it has been decided to put in place, a mechanism to process qualified annual audit reports filed by the listed entities with stock exchanges and Annual Audit Reports where accounting irregularities have been pointed out by Financial Reporting Review Board of the Institute of Chartered Accountants of India (ICAI-FRRB). It has been, inter-alia, decided that:

• Deficiencies in the present process would be examined and rectified.
• SEBI would create Qualified Audit Report review Committee (QARC) represented by ICAI, Stock Exchanges, etc. to guide SEBI in processing audit reports where auditors have given qualified audit reports.
• Listed entities would be required to file annual audit reports to the stock exchanges alongwith the applicable Forms (Form A: 'Unqualified' / 'Matter of Emphasis Report'; Form B: 'Qualified' / 'Subject To' / 'Except For Audit Report').
• After preliminary scrutiny and based on materiality, exchanges would refer these reports to SEBI/QARC.
• Cases wherein the qualifications are significant and explanation given by Company is unsatisfactory would be referred to the ICAI-FRRB. If ICAI-FRRB opines that the qualification is justified, SEBI may mandate a restatement of the accounts of the entity and require the entity to inform the same to the shareholders by making the announcement to stock exchanges.

Amendment to certain provisions in SEBI (ICDR) Regulations relating to Infrastructure Sector

In order to harmonize the SEBI (ICDR) Regulations relating to Infrastructure Sector with the amended Securities Contracts (Regulation) Rules, 1957, it has been decided to carry out consequential amendments to SEBI (ICDR) Regulations pertaining to minimum public shareholding and minimum subscription requirements. It has also been decided to modify the minimum subscription requirements for companies coming out with IPOs to state that the minimum subscription shall not be less than 90% of the offer, subject to allotment of minimum 25% or 10%, as the case may be, of the securities offered to the public.

Review of Offer for Sale (OFS) through stock exchange mechanism

1. The Board has approved the following changes in the OFS mechanism through stock exchange:

i. Within the cooling off period of +12 weeks, the promoter(s)/promoter group entities can offer their shares only through OFS or Institutional Placement Programme (IPP) while maintaining a gap of 2 weeks between two successive OFS or IPP. This would also be applicable on promoters who have already offloaded their shares through OFS or IPP. Board also approved these changes in the SEBI (ICDR) Regulations for OFS through IPP route.

ii. Modification / cancellation of bids shall not be allowed during the last 60 minutes from the close of bidding session instead of last 30 minutes.

2. The Board also took note of the following changes in the OFS mechanism:

a. Indicative price shall be displayed during the last 60 minutes of the close of bidding session irrespective of the book being built.

b. The dissemination of floor price shall not be a part of the notice. If the seller intends to disclose the floor price, the price shall be disclosed after the close of business hours on (T-1) day (T day being the day of OFS).

c. The minimum size of the offer shall be Rs.25 crore. However, the size of offer can be less than Rs.25 crore so as to achieve minimum public shareholding in a single tranche.

d. The issuer shall have the option to upsize the offer subject to appropriate disclosure in the notice and advance pay-in of shares.

e. Institutional investors shall have the option of applying with 100% upfront margin in cash or with an adhoc margin of certain lower percentage to be determined by the Exchanges. In the latter case the bids shall not be permitted to be modified.

f. Additional time shall be provided to the custodians to confirm the institutional bids during post close trading hours subject to the condition that the bids and payments have been received before closure of the bidding process.

Mumbai

June 26, 2012                              

Depreciation restricted to 15% on wind mills installed after 31-3-2012.

Income-tax (Fourth Amendment Rules, 2012 – Depreciation restricted to 15% on wind mills installed after 31-3-2012

Notification No. 15/2012 [F.No.149/21/2010-SO(TPL)] S.O.694(E), dated 30-3-2012

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax ( 4th Amendment) Rules, 2012.

(2) They shall come into force on the 1st day of April, 2012.

2. In the Income-tax Rules, 1962, in the Table, in the New Appendix I, in Part-A relating to Tangible Assets, under the heading “III. Machinery and Plant”, in item (8), in sub-item (xiii), -

(a) In clause (l), after the words, “which run on wind mills”, the words, figures and letters, “installed on or before 31st day of March, 2012”, shall be inserted ; and

(b) In clause (m), after the words, “running on wind energy”, the words figures and letters, “installed on or before 31st day of March, 2012”, shall be inserted.

Sd/-

( J. Saravanan )

Under Secretary (TPL-III)

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(ii), vide Notification number S.O.969(E), dated the 26th March, 1962 and last amended by Income-tax ( 3rd Amendment) Rules, 2012, vide Notification S.O. No. 626(E) dated the 28th March, 2012.

Income Tax office to remain open on March 31, 2012

New Income Tax Forms Notified

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

[CENTRAL BOARD OF DIRECT TAXES]

NOTIFICATION

New Delhi, the 28th day of March, 2012   

Income-tax

S.O. 626 (E). - In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (3rd Amendment) Rules, 2012.

(2) They shall come into force on the 1st day of April, 2012.

2. In the Income-tax Rules, 1962,-

(A) in rule 12,–

(i) in sub-rule (1),-

(a) for the figures "2011", the figures "2012" shall be substituted;

(b) after clause (a), the following proviso shall be inserted, namely:-

" Provided that the provisions of this clause shall not apply to a person being an individual, who is a resident and has

(i) assets (including financial interest in any entity) located outside India; or

(ii) signing authority in any account located outside India.";

(c) after clause (ca), the following proviso shall be inserted, namely:-

"Provided that the provisions of this clause shall not apply to a person being an individual or Hindu undivided family, who is a resident and has

(i) assets (including financial interest in any entity) located outside India; or

(ii) signing authority in any account located outside India."

(ii) in sub-rule(3), in the proviso, clause (a) shall be renumbered clause (aaa) and before clause (a), as so renumbered the following clauses shall be inserted, namely:-

" (a) an individual or a Hindu undivided family, if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds ten lakh rupees, shall furnish the return for the assessment year 2012-13 and subsequent assessment years in the manner specified in clause(ii) or clause(iii);

(aa) an individual or a Hindu undivided family, being a resident, having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India and required to furnish the return in Form ITR-2 or ITR-3 or ITR-4, as the case may be, shall furnish the return for assessment year 2012-13 and subsequent assessment years in the manner specified in clause (ii) or clause (iii);"

(iii) in sub-rule (5), for the figures "2010", the figures "2011" shall be substituted;

(B) in Appendix-II, for "Forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4S), ITR-4 and ITR-V", the "Forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4S), ITR-4 and ITR-V" shall be substituted.

_________________________________________

[Notification No.14 /2012/ F.No.142/31/2011 -TPL]

(Ashis Chandra Mohanty)

Under Secretary to the Government of India

Note.-

The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number.S.O.969(E), dated the 26th March, 1962 and last amended by Income-tax ( 2nd Amendment) Rules, 2012 vide notification S.O. No 227(E) dated 6/2/2012.

Rahul Dravid's Retirement Speech

Liberalised Remittance Scheme for Resident Individuals

RESERVE BANK OF INDIA

Foreign Exchange Department

Central Office

Mumbai - 400 001

_____________________________________________________

RBI/2011-12/430                                                March 06, 2012

A.P. (DIR Series) Circular No. 90

To,
All Category - I Authorised Dealer Banks

Madam / Sir,

Clarification - Liberalised Remittance Scheme for Resident Individuals

1.Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to A. P. (DIR Series) Circular No. 64 dated February 4, 2004, as amended form time to time, A. P. (DIR Series) Circular No. 24 dated December 20, 2006, A.P. (DIR Series) Circular No. 9 dated September 26, 2007, A.P. (DIR Series) Circular No. 51 dated May 8, 2007 and A.P. (DIR Series) Circular No. 32 dated October 10, 2011 on the Liberalised Remittance Scheme for Resident Individuals (the Scheme).

2. In this regard, it is clarified that:

i. The facility is available to all resident individuals including minors. In case of remitter being a minor, the LRS declaration form should be countersigned by the minor’s natural guardian. Accordingly, the modified LRS application cum declaration form is enclosed;

ii. Remittances under the facility can be consolidated in respect of family members subject to individual family members complying with the terms and conditions of the scheme; and

iii. Remittances under the scheme can be used for purchasing objects of art subject to the provisions of other applicable laws such as the extant Foreign Trade Policy of the Government of India.

3. All other terms and conditions mentioned in the afore-mentioned Circulars shall remain unchanged.

4. AD - Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

5. The directions contained in this Circular have been issued under sections 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Meena Hemchandra)

Chief General Manager In-Charge

Annex

[Annex to A. P. (DIR Series) Circular No. 90

dated March 06, 2012]

Application cum Declaration for purchase of foreign exchange under the Liberalised Remittance Scheme of USD 200,000 for Resident individuals

(To be completed by the applicant)

I. Details of the applicant

a. Name …………………………..

b. Address…………………………

c. Account No……………………..

d. PAN No………………………….

II. Details of the foreign exchange required

1. Amount (Specify currency)………………………………

2. Purpose ……………………………………………………

III. Source of funds: ………………………………………….

IV. Nature of instrument

Draft………………………..

Direct remittance…………

V. Details of the remittance made under the Scheme in the financial year (April- March) 20__ – 20__

Date :………………

Amount :………….

VI. Details of the Beneficiary

1. Name ……………………..

2. Address ……………………

3. Country ……………………

4*. Name and address of the bank……………………….

5*. Account No……………………………………………..

(* Required only when the remittance is to be directly credited to the bank account of the beneficiary)

This is to authorize you to debit my account and effect the foreign exchange remittance/ issue a draft as detailed above (strike out whichever is not applicable).

Declaration

I, ………………. …………(Name), hereby declare that the total amount of foreign exchange purchased from or remitted through, all sources in India during the financial year as per item No. V of the Application, including utilisation of the said limit on account of loan extended or gift made in rupees credited to NRO account of non-resident close relative(s), is within the limit of USD 200,000/- (US Dollar Two hundred thousand only), which is the limit prescribed by the Reserve Bank for the purpose and certify that the source of funds for making the said remittance belongs to me and will not be used for prohibited purposes.

Signature of the applicant

(Name)

Signature of the natural guardian of the applicant @

(Name)

@ Where the applicant is minor, the application should be countersigned by minor’s natural guardian 

Certificate by the Authorised Dealer

This is to certify that the remittance is not being made by/ to ineligible entities and that the remittance is in conformity with the instructions issued by the Reserve Bank from time to time under the Scheme.

Name and designation of the authorised official:

Place:

Signature:

Date:

Stamp and Seal

Announcement - Regarding Bank Branch Audit related matters. - (05-03-2012)

For Information of Members Announcement [Regarding Bank Branch Audit related matters]

The office bearers and Council Members of the Institute have been in receipt of a representation from various members in regard to certain issues concerning the profession and in particular re: matters relating to bank branch audit, appointment procedure etc. Since numerous such communications have been received this announcement is being put up for the information of members so that individual responses to the representation may be avoided. We may inform you that the President and the Council of the Institute are fully seized of the matter and they even before receipt of these representations have taken proactive steps to engage the government and appropriate authorities in a dialogue. The same is aimed at emphasising the contribution made by this profession in the corporate and banking sector and to avoid certain incorrect perceptions in the minds of authorities entrusted with decision-making in this regard. The representations made personally by the President along with the Vice President and certain members of the council have been well received and the favourable conclusion is awaited. In the interim, it is important as mentioned by a past President that " the profession speaks with one voice" when there is a difficult situation to be faced. Members are therefore requested to note that their representations have been duly noted and are being acted upon. In view thereof, further circulation of personal views by emails / letters to Government and Regulatory authorities may be avoided, so that a situation wherein different views are being expressed on behalf of the profession to various authorities does not arise.

Secretary ICAI