Reserve Bank of India

03.07.2024

Banking

Release of foreign exchange for Miscellaneous Remittances

MANU/APDR/0013/2024

1. In terms of the direction issued under the A.P.(DIR Series) Circular No. 16 dated September 12, 2002, A.P.(DIR Series) Circular No. 55 dated December 23, 2003 and A. P. (DIR Series) Circular No.118 dated May 07, 2012, Authorised Dealers are permitted to release foreign exchange for any current account transaction, on the basis of a simple letter containing basic information and subject to an upper limit of USD 25,000 or its equivalent. It was also advised that Authorised Dealers need not obtain any other documents, including Form A2, and that the payment was to be made by the applicant through Demand Draft or a cheque drawn on his / her bank account.

2. With a view on streamlining the regulatory compliances and operational procedures, it is now decided that Authorised Dealers shall obtain Form A2 in physical or digital form for all cross-border remittances irrespective of the value of transaction. Consequently, the above-mentioned circulars stand withdrawn with immediate effect. Authorised Dealers shall continue to take necessary steps, in terms of Section 10(5) of Foreign Exchange Management Act, 1999, to assure themselves that such transactions do not involve any contravention of the provisions of FEMA.

3. Authorised Dealers may bring the contents of this circular to the notice of their constituents.

4. 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.

Tags : Release Foreign exchange Miscellaneous Remittances

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Securities and Exchange Board of India

03.07.2024

Capital Market

Reduction in denomination of debt securities and non-convertible redeemable preference shares

MANU/SMIS/0023/2024

1. Chapter V (Denomination of issuance and trading of Non-convertible Securities) of the Master Circular no. SEBI/HO/DDHS/PoD1/P/CIR/2024/54 dated May 22, 2024, (hereinafter referred as 'Master Circular') issued by SEBI, prescribes provisions pertaining to denomination of issuance and trading of non-convertible securities.

2. Market participants have expressed that lower ticket size of debt securities may encourage more non-institutional investors to participate in the corporate bond market which in turn may also enhance liquidity.

3. In view of the above, the following amendments are being made in Chapter V (Denomination of issuance and trading of Non-convertible Securities) of the Master Circular:

3.1. In Clause 1.1, after the words "shall be Rs. One lakh", the words "except as provided in Clause 1.3 below" shall be inserted.

3.2. Clause 1.3 shall be inserted with the following:

"1.3 The Issuer may issue debt security or non-convertible redeemable preference share on private placement basis at a face value of Rs. Ten Thousand,

(i) Subject to the following conditions:

a) The issuer shall appoint at least one Merchant Banker.

Provided that the role, responsibilities and obligations of the Merchant Banker(s) shall be same as they would be in case of public issue of debt security or non-convertible redeemable preference share.

b) Such debt security or non-convertible redeemable preference share shall be interest/ dividend bearing security paying coupon/ dividend at regular intervals with a fixed maturity without any structured obligations.

(ii) The following credit enhancements shall be permitted in the aforesaid securities:

a) Guaranteed bonds;

b) Partially guaranteed bonds;

c) Standby Letter of credit (SBLC) backed securities;

d) Debt backed by pledge of shares or other assets;

e) Guaranteed Pooled bond issuance (PBI), not through a trust;

f) Obligor/ Co-obligor structures or cross default guarantee structures; and

g) Debt backed by Payment Waterfall /Escrow, or DSRA etc., but with Full Guarantee or DSRA Replenishment Guarantee from a third party

(iii) In respect of the credit enhancements specified above, Credit Rating Agencies (CRAs) shall verify the documentation related to the specified support considerations to ensure the following:

a) The support is unconditional, irrevocable, and legally enforceable till all the obligations of the security has been paid to the investors.

b) The support provider has a lower probability of default on a continuous basis, compared with the issuer, till the time such instruments are outstanding.

(iv) With respect to a shelf placement memorandum or General Information Document (GID) which is valid as on the 'effective date of the circular', the issuer may raise funds through tranche placement memorandum or Key Information Document at a face value at Rs. Ten Thousand provided at least one Merchant Banker is appointed to carry out due diligence in respect of such issuances. Necessary addendum shall be issued by such issuer to the shelf placement memorandum or General Information Document, as applicable.

3.3. Clause 2.1 of Chapter V of the Master Circular will stand deleted. The same is re-produced below:

"The face value of a listed debt security or non-convertible redeemable preference share issued on private placement basis traded on a stock exchange or OTC basis shall be Rs. One lakh."

3.4. Clause 2.2 of Chapter V of the Master Circular will stand deleted. The same is re-produced below:

"The face value of a listed security mentioned under Chapter V of SEBI NCS Regulations, 2021 and Chapter 13 of this operational circular traded on a stock exchange or OTC basis shall be Rs. One crore."

3.5. Clause 2.3 of Chapter V of the Master Circular shall be modified as under: "Trading lot of listed debt security issued on private placement basis, non- convertible redeemable preference share issued on private placement basis, listed security mentioned under Chapter V of SEBI (Issue and Listing of Non- Convertible Securities) Regulations, 2021 and Chapter XIII of the Master circular dated May 22, 2024, traded on a Stock Exchange or OTC basis shall always be equal to face value."

4. The provisions of this circular shall be applicable to all issues of debt securities and non-convertible redeemable preference shares, on private placement basis that are proposed to be listed from the date of issuance of this circular.

5. The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.

Tags : Reduction Denomination Debt securities

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Reserve Bank of India

02.07.2024

Banking

Press Release regarding draft regulations under FEMA and directions to Authorised Dealer banks

MANU/RPRL/0443/2024

Over the years, the Reserve Bank has been progressively liberalising policies governing foreign exchange transactions, under FEMA, 1999. In continuation of these efforts, as announced in the Statement on Developmental and Regulatory Policies of June 2024, it has been decided to rationalise regulations that cover export and import transactions. The proposed regulations are intended to promote ease of doing business, especially for small exporters and importers. They are also intended to empower Authorised Dealer banks to provide quicker and more efficient service to their foreign exchange customers.

The draft regulations under FEMA and directions to Authorised Dealer banks are available for public response.

Comments/feedback on the draft proposals (regulations as well as directions) may be forwarded via email by September 01, 2024, with the subject line "Feedback on draft regulations and directions on export and import under FEMA".

Tags : FEMA Reserve Bank

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Ministry of Commerce and Industry

02.07.2024

Commercial

Draft Geographical Indications of Goods (Holding Inquiry and Appeal) Rules, 2024

MANU/INDP/0042/2024

The following draft rules to further amend The Geographical Indication of Goods (Registration and Protection) Rules, 2002 which the Central Government proposes to make in exercise of the power conferred by section 87 of The Geographical Indication of Goods (Registration and Protection) Act, 1999, are hereby published as required by sub-section (1) of the said section for the information of all persons likely to be affected thereby, and notice is hereby given that the said draft will be taken into consideration after the expiry of a period of thirty days from the date on which copies of the Gazette of India, in which this notification is published are made available to the public;

AND objections or suggestions, if any, may be addressed to the Secretary, Department for promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India, Vanijya Bhawan, New Delhi-110001 or by e-mail at ipr4-dipp@nic.in

AND objection and suggestion, which may be received from any person with respect to the said draft rules before the expiry of the period so specified, will be considered by the Central Government.

DRAFT HOLDING INQUIRY AND APPEAL RULES

1. Short titles and commencement.--

(1) These rules may be called the Draft Geographical Indications of Goods (Holding Inquiry and appeal) Rules, 2024.

(2) They shall come into force on the date of their publication in the official Gazette.

2. Definition.--

(1) In this chapter, unless the context otherwise requires,-

(a) "Act" means the Geographical Indications of Goods (Registration and Protection) Act 1999 (48 of 1999);

(b) "adjudicating officer" means an office authorised under section 37A of the Act;

(c) "appellant" means a person aggrieved with an order of adjudicating officer and prefers an appeal before the appellate authority under sub-section (1) of section 37B of the Act;

(d) "appellate authority" means an officer authorised under section 37B of the Act;

(e) "form" means a form appended to these rules;

(2) words and expressions used in these rules and not defined but defined in the Act, shall have the same meaning respectively assigned to them in the Act;

3. Complaint.--

Any person may file a complaint in Form-I through electronic means to the adjudicating officer regarding any contravention committed under section 38, 39, 40, 41, and 42 of the Act.

4. Holding of Inquiry.--

(1) For the purpose of adjudication under section 37A of the Act whether any person has committed any contravention as specified in that section, the adjudicating officer shall, issue a notice through electronic means to such person requiring him to show cause within such period as may be specified in the notice (being not less than seven days from the date of service thereof) why an inquiry should not be held against him.

(2) Every notice under sub-rule (1) shall indicate the nature of contravention alleged to have been committed.

(3) After considering the cause, if any, shown by such person, the adjudicating officer is of the opinion that an inquiry should be held, he shall issue a notice requiring appearance of that person personally or through a legal practitioner duly authorized by him on such date as may be fixed in the notice.

(4) On the fixed, the adjudicating officer shall explain to the person proceeded against or his legal practitioner, the contravention committed by such person and the provision of the Act, in respect of which contravention is alleged to have been committed.

(5) The adjudicating officer shall, then give an opportunity to such person to file his counter statement and produce such documents or evidence under Form-II as he may consider relevant to the inquiry and if necessary, the hearing may be adjourned to a future date and in taking such evidence the adjudicating officer shall not be bound to observe the provisions of the Bhartiya Sakshya Adhiniyam, 2023 (47of 2023).

(6) While holding an inquiry under this rule, the adjudicating officer may require and enforce the attendance of any person acquainted with the facts and circumstance of the case to give evidence or to produce any document which in the opinion of the adjudicating officer may be useful for or relevant to the subject matter of the inquiry.

(7) If any person fails, neglects or refuses to appear as required under sub-rule (3) before the adjudicating officer, the adjudicating officer may proceed with the inquiry in the absence of such person after recording the reasons for doing so.

(8) If, upon consideration of the evidence produced before the adjudicating officer, the adjudicating officer is satisfied that the person has committed the contravention, he may by order in writing, impose such penalty under the Act as he considers reasonable.

(9) Every order made under sub-rule (8) shall specify the provision of the Act in respect of which contravention has been committed and shall contain the reasons for imposing the penalty.

(10) Every order made under sub-rule (8) shall be dated and signed by the adjudicating officer.

(11) A copy of the order made under this rule and all other copies of proceedings shall be supplied free of cost to the person against whom the order is made.

(12) The adjudicating officer shall complete the proceeding within three months form the issuance of the notice to the opposite party.

Tags : Draft Geographical Indications Rules 2024

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Securities and Exchange Board of India

01.07.2024

Capital Market

Circular regarding charges levied by Market Infrastructure Institutions

MANU/SSMD/0043/2024

1. Market Infrastructure Institutions (MIIs) being public utility institutions act as first level Regulator and are entrusted with the responsibility of providing equal, unrestricted, transparent and fair access to all market participants. The principle of equal, fair and transparent access by MIIs is highlighted in Regulation 39 (3) of Securities Contracts (Regulations) (Stock Exchange and Clearing Corporations) Regulations, 2018 and Regulation 82 of SEBI (Depositories and Participants) Regulations, 2018.

2. Upon examination of existing processes related to charges levied by MIIs on their members (i.e. stock brokers, depository participants, clearing members), it was observed that a volume based slab-wise charge structure is followed by some MIIs. These charges are levied in lieu of various services offered by MIIs and are recovered from the end clients by members. It has also been observed that members generally recover such charges from the end clients on daily basis whereas MIIs receive aggregate charges from the members on monthly basis.

3. The aforesaid process can result in a situation wherein the aggregated charges collected by the members from the end clients is higher than the end of month charges paid to the MII (due to slab benefit). This can also result in an incorrect or misleading disclosure to the end client about the charges levied by MIIs.

4. The aforesaid matter was deliberated with the Secondary Market Advisory Committee (SMAC) of SEBI, wherein it was observed that in addition to impacting transparency, the existing slab-wise charge structure of MIIs can also create a hindrance for the MIIs in ensuring equal and fair access to all market participants by impacting level playing field between members owing to their size differentials.

5. In view of the aforesaid concerns and as per deliberations with SMAC, it has been decided that the MIIs would comply with following additional principles while designing the processes for charges levied on their members which are to be recovered from the end clients:

a. The MII charges which are to be recovered from the end client should be True to Label i.e. if certain MII charge is levied on the end client by members (i.e. stock brokers, depository participants, clearing members), it should be ensured by MIIs that the same amount is received by them.

b. The charge structure of the MII should be uniform and equal for all its members instead of slab-wise viz. dependent on volume/activity of members.

c. To begin with, the new charge structure designed by MIIs should give due consideration to the existing per unit charges realized by MIIs so that the end clients are benefitted with the reduction of charges.

6. Accordingly, MIIs are directed to:

a. Redesign the existing charge structure and associated processes to comply with the aforesaid principles;

b. Take necessary steps to put in place requisite infrastructure and systems for implementation of the circular, including necessary amendments to the relevant bye-laws, rules and regulations;

c. Bring the provisions of this circular to the notice of their members and also disseminate the same on their website; and

d. Communicate to SEBI, the status of implementation of the provisions of this circular.

7. The circular would be effective from October 01, 2024. The circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 51 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 and Regulation 97 of Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Tags : Charges levy Market Infrastructure Institutions

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Press Information Bureau

01.07.2024

Civil

Guidelines for Utilization of Steel Slag in Road Construction released

MANU/PIBU/0483/2024

Member (Science) Niti Aayog, Dr. V.K. Saraswat in the First International Conference on Steel Slag Road jointly organized by CSIR-CRRI and PHDCCI at New-Delhi, released the Guidelines for Utilization and Processing of Steel Slag as Processed Steel Slag Aggregates in Road Construction. During this occasion, Dr. Saraswat emphasize the importance of sustainable development and the efficient utilization of industrial waste of steel industries i.e. Steel Slag, in infrastructure projects in the country. Dr. Saraswat informed that the adoption of these guidelines for construction and maintenance of road network using steel slag, is expected to bring numerous benefits, including cost saving, reduced environmental impact and improved road performance. He further said that CSIR-CRRI Steel Slag Road Technology is making significant contribution to realize the vision of Hon. Prime Minister of India Shri Narendra Modi ji for "Waste to Wealth". He further congratulated Dr. Manoranjan Parida Director CRRI and Shri Satish Pandey, Principal Scientist and inventor of steel slag road technology for their exemplary contributions for the development and implementation of this technology on pan India basis.

Shri Nagendra Nath Sinha, IAS, Secretary to Govt. of India, Ministry of Steel said that steel industries thrive on utilization of its best material. He said that we don't want to discard anything, whether its scrap, slag or heat. With this spirit the Ministry of Steel sponsored a major R&D project to CSIR-Central Road Research Institute to facilitate large scale utilization of steel slag as substitute of natural aggregates in road construction. The guidelines developed by CRRI for steel slag utilization provide a comprehensive framework for the effective and safe use of different types of steel slag in various types of road construction works including detailed framework for proper handling and storage of steel slag to prevent environmental contamination. He further pointed out that around 1.8 billion tonne, natural aggregates are required every year in the country for construction and maintenance works, which we are keep on extracting year on year. Utilization of processed steel slag aggregates in construction and maintenance work as substitute of natural aggregates will preserve our eco-system from unsustainable quarrying and mining.

Dr. N. Kalaiselvi, Secretary, DSIR and DG, CSIR, while referring the steel slag road between Mumbai to Goa, NH 66 said that Steel Slag Road has become a common point for both the cities. The Waste to Wealth mission has significantly enhanced the CSIR visibility, outreach and popularity. She praised Niti Aayog and Mr. Saraswat for their continuous support to CSIR. She further added the Steel Slag Road Technology besides helping Ministry of Steel also contributing to Ministry of Road Transport and Highways, thus become a common interact area of three important ministries of Govt. of India. She also mentioned that the Steel Slag Road Technology has created a global niche and CSIR recently received a letter from the United States of America requesting the technological support and extension of this technology to US steel industries, which showcase the confidence of the global players have in this technology.

Speaking on this occasion Director, CSIR-CRRI, Dr. Manoranjan Parida highlighted the 75 year long contributions of CRRI in development of highway network in the country with various technological initiatives

Mr. Ranjan Dhar, Director and Vice President Sales and Marketing at Arcelor Mittal Nippon Steel India and Mr. V.R. Sharma, Vice Chairman, JSP Group Advisory Services and Former Managing Director Jindal Steel and Power Limited also spoke on the transformative potential of steel slag in road construction and its role in sustainable infrastructure development in the country.

Mr. Ranjan Dhar highlighted the India's First Steel Slag Road built at Hazira Surat by AMNS India and CSIR-CRRI in April 2022 using 100 thousand tonne, processed EAF steel slag aggregates developed at AMNS India Hazira plant. This sustainable road project for it novel technological initiative received national and international recognitions and inducted in INDIA BOOK OF RECORDS and ASIA BOOK OF RCEORD's. He further said that this is a prime example of waste to wealth and clean India Mission as it reduces greenhouse gas emissions and carbon emissions in the atmosphere.

Tags : Guidelines Utilization Steel Slag

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