Non-Issuance of Passbooks to Savings Bank Accountholders (Individuals)

RBI/2011-12/249

DBOD No. Leg. BC 48 /09.07.005/2011-12

November 4, 2011

All Scheduled Commercial Banks
(excluding RRBs)

Dear Sir,

Customer Service - Non-Issuance of Passbooks to Savings Bank Accountholders (Individuals)

1.Please refer to our circular DBOD. No. Leg.BC.32/09.07.005/2006-07 dated October 4, 2006 on the captioned subject wherein banks were advised to invariably offer pass book facility to all its savings banks account holders (individuals) and in case banks offer the facility of sending statement of account and the customer chooses to get statement of account, banks must issue monthly statement of account. The cost of providing such pass book or statements should not be charged to the customer.

2. It has come to our notice that some banks are not issuing pass books to their savings banks account holders (individuals) and only issue a computer generated account statement even when the customer desires pass book facility. Banks are, therefore, advised to strictly adhere to the instructions contained in the above circular.

Yours faithfully,

(Deepak Singhal)

Chief General Manager-In-Charge

Foreign Direct Investment – Transfer of Shares - Liberalisation and Rationalisation

RBI/2011-12/247

A.P. (DIR Series) Circular No. 43

November 04, 2011

To,
All Category – I Authorized Dealer banks

Madam / Sir,

Foreign Direct Investment – Transfer of Shares

1.Attention of Authorized Dealers Category-I (AD Category-I) banks is invited to Regulations 9 and 10 of the Foreign Exchange Management (Transfer of Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No.FEMA 20/2000-RB dated May 3, 2000, as amended from time to time.

Accordingly, the transfer of shares from a Resident to a Non Resident where i) the transfer does not conform to the pricing guidelines as stipulated by the Reserve Bank from time to time; or ii) the transfer of shares requires the prior approval of the FIPB as per the extant Foreign Direct Investment (FDI) policy; or iii). the Indian company whose shares are being transferred is engaged in rendering any financial service; or iv) the transfer falls under the purview of the provisions of SEBI (SAST) Regulations, require the prior approval of the Reserve Bank of India.

Further, transfer of shares from a Non Resident to a Resident which does not conform to the pricing guidelines as stipulated by the Reserve Bank of India from time to time also requires the prior approval of the Reserve Bank of India.

2. As a measure to further liberalize and rationalize the procedures and policies governing FDI in India, it has now been decided to allow the following without the prior approval of the Reserve Bank of India :

A. Transfer of shares from a Non Resident to Resident under the FDI scheme where the pricing guidelines under FEMA, 1999 are not met provided that :-

i.The original and resultant investment are in line with the extant FDI policy and FEMA regulations in terms of sectoral caps, conditionalities (such as minimum capitalization, etc.), reporting requirements, documentation, etc.;

ii.The pricing for the transaction is compliant with the specific/explicit, extant and relevant SEBI regulations / guidelines (such as IPO, Book building, block deals, delisting, exit, open offer/ substantial acquisition / SEBI SAST, buy back); and

iii.Chartered Accountants Certificate to the effect that compliance with the relevant SEBI regulations / guidelines as indicated above is attached to the form FC-TRS to be filed with the AD bank.

B. Transfer of shares from Resident to Non Resident :

i) where the transfer of shares requires the prior approval of the FIPB as per the extant FDI policy provided that :

a) the requisite approval of the FIPB has been obtained; and

b) the transfer of share adheres with the pricing guidelines and documentation requirements as specified by the Reserve Bank of India from time to time.

ii) where SEBI (SAST) guidelines are attracted subject to the adherence with the pricing guidelines and documentation requirements as specified by Reserve Bank of India from time to time.

iii) where the pricing guidelines under the Foreign Exchange Management Act (FEMA), 1999 are not met provided that:-

a) The resultant FDI is in compliance with the extant FDI policy and FEMA regulations in terms of sectoral caps, conditionalities (such as minimum capitalization, etc.), reporting requirements, documentation etc.;

b) The pricing for the transaction is compliant with the specific/explicit, extant and relevant SEBI regulations / guidelines (such as IPO, Book building, block deals, delisting, exit, open offer/ substantial acquisition / SEBI SAST); and

c) Chartered Accountants Certificate to the effect that compliance with the relevant SEBI regulations / guidelines as indicated above is attached to the form FC-TRS to be filed with the AD bank.

iv) where the investee company is in the financial sector provided that :

a) NOCs are obtained from the respective financial sector regulators/ regulators of the investee company as well as transferor and transferee entities and such NOCs are filed along with the form FC-TRS with the AD bank; and

b). The FDI policy and FEMA regulations in terms of sectoral caps, conditionalities (such as minimum capitalization, etc.), reporting requirements, documentation etc., are complied with.

3. Necessary amendments to the Foreign Exchange Management (Transfer of Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000 are being notified separately.

4. AD Category – I banks may bring the contents of the circular to the notice of their constituents.

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 are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Meena Hemachandra)

Chief General Manager in Charge

Export of Goods and Software – Realisation and Repatriation of export proceeds – Liberalisation

RBI/2011-12/241
A.P. (DIR Series) Circular No.40

November 01, 2011

To,
All Category - I Authorised Dealer Banks

Madam / Sir,

Export of Goods and Software – Realisation and Repatriation of export proceeds – Liberalisation

1. Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 47 dated March 31, 2011 enhancing the period of realization and repatriation to India of the amount representing the full export value of goods or software exported, from six months to twelve months from the date of export. This relaxation was available up to September 30, 2011.

2. The issue has since been reviewed and it has been decided, in consultation with the Government of India, to extend the above relaxation w.e.f. October 01, 2011 till September 30, 2012.

3. The provisions in regard to period of realization and repatriation to India of the full export value of goods or software exported by a unit situated in a Special Economic Zone (SEZ) as well as exports made to warehouses established outside India 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 (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Rashmi Fauzdar)

Chief General Manager

Related Press Release

Nov 01, 2011 Export of Goods and Software – Realisation and Repatriation of export proceeds – Liberalisation

Notification for PAN application- New form 49A and 49AA

The Income Tax Department has released a Notification for PAN application.

• Notification
• Form 49A
• Form 49AA
• Form 49A instruction
• Form 49AA instruction

Press Release on Consolidated FDI policy

Corrigendum to Circular 2 Of 2011 - Consolidated FDI Policy

Circular 2 of 2011 was issued on 30th September, 2011. Para NO.3.3.2.1 of the above Circular hereby stands deleted. Erstwhile paragraph 3.3.2.1 of ‘Circular 2 of 2011’ went like this:

“ 3.3.2.1: Only equity shares, fully, compulsorily and mandatorily convertible debentures and fully, compulsorily and mandatorily convertible preference shares, with no in-built options of any type, would qualify as eligible instruments for FDI. Equity instruments issued/transferred to non-residents having in-built options or supported by options sold by third parties would lose their equity character and such instruments would have to comply with the extant ECB guidelines.”

This paragraph now stands deleted from ‘Circular 2 of 2011’.

The Circular duly corrected is available at http://www.dipp.nic.in/.

Announcement for Empanelment as a Technical Reviewer with the Quality Review Board

Announcement for Empanelment as a Technical Reviewer with the Quality Review Board

The Government of India has, in exercise of the powers conferred by Sec. 28A of the Chartered Accountants Act, 1949, constituted a Quality Review Board to perform the following functions:-

(a) to make recommendations to the Council with regard to the quality of services provided by the members of Institute;

(b) to review the quality of services provided by the members of the Institute including audit services; and

(c) to guide the members of the Institute to improve the quality of services and adherence to the various statutory and other regulatory requirements.

2. In exercise of the powers conferred by clauses (f) and (g) of Sub-section (2) of Section 29A read with Section 28C of the Chartered Accountants Act, 1949, Government of India has also issued ‘Chartered Accountants Procedures of Meetings of Quality Review Board, and Terms and Conditions of Service and Allowances of the Chairperson and Members of the Board Rules, 2006’. In terms of its Rule 6, in the discharge of its functions, the Board may evaluate and review the quality of work and services provided by the members of the Institute in such manner as it may decide and also lay down the procedure of evaluation criteria to evaluate various services being provided by the members of the Institute and to select, in such manner and form as it may decide, the individuals and firms rendering such services for review.

3. In terms of the aforesaid Rule 6, the Quality Review Board had issued the Procedure for Quality Review of Audit Services of Audit Firms available at its website http://www.qrbca.in/ . Quality Review under the Chartered Accountants Act, 1949 shall be directed towards inspection/evaluation of audit quality and adherence to various statutory and other regulatory requirements. It would involve inspection and assessment of the work of auditors while carrying out their audit function so that the Board is able to assess, (a) the quality of audit and reporting by the auditors; and (b) the quality control framework adopted by the auditors/ audit firms in conducting audit.

4. Now, with a view to initiating the work of review of quality of audit services of auditors/audit firms in India, the Quality Review Board has decided to seek the services of members of the Institute, meeting the criteria laid down by the Board in this regard, to function as Technical Reviewers for the Board in terms of the aforesaid Procedure for Quality Review of Audit Services of Audit Firms issued by it. A suitable amount, as may be fixed by the Board, would also be paid as honorarium. Those interested may kindly apply in the enclosed ‘Application Form for Empanelment as a Technical Reviewer’ so as to reach us latest by November 15, 2011. For any further details, please visit our website http://www.qrbca.in/

5. The Quality Review Board hopes that this exercise would go a long way in promoting confidence of investors and other stakeholders in corporate reporting and governance which, in turn, would help in retaining and further enhancing the credibility of the profession in the society.

Sd/-

Secretary, Quality Review Board

Encl: Application Form for Empanelment as a Technical Reviewer

Announcement for the Corporate Affairs Standards (CAS): The need of the hour - (18-10-2011)

The globalisation and the emerging scenario of the corporate world require specialized professionals who can provide service with excellence, professionalism & objectivity to deal with various aspects of the corporate affairs. Technicalities of Corporate laws, accounting and auditing have undergone and are undergoing important changes. Members and other stakeholders need guidance on various areas of corporate laws and practice.

While appreciating the need of the profession and the global corporate sector the Council of the Institute of Chartered Accountants of India issued the Corporate Affairs Standards (CAS) to guide the members and other stakeholders. The three Corporate Affairs Standard on Business Valuation; Auditors’ appointment, retirement & removal and Certification under MCA-21 have been drafted with the view to empower the members on various areas of corporate field and to disseminate the same amongst other stakeholders and also in interpreting various Laws, Rules, Regulations, principles, practices and procedures. The main purpose of formulating Corporate Affairs Standards is not to interpret the Law but to sets out the concepts, principles, practices and procedures that underlie the corporate law compliances, corporate governance and management of corporates.

We are hopeful that the Corporate Affairs Standards prove to be an empowerment exercise for the profession and enable to equip the members to continue professional work as skilled and acclaimed professional and also have a positive impact on the economic and corporate environment, society and will contribute to good governance and management.