Notifications & Circulars
Securities and Exchange Board of India
12.07.2018
Capital Market
Discontinuation of acceptance of cash by Stock Brokers
MANU/SSMD/0023/2018
1. Please refer to SEBI circular SEBI/MRD/SE/Cir- 33/2003/27/08 dated August 27, 2003, regarding Mode of Payment and Delivery.
2. Government of India has promoted various means for transfer / receipt of funds through digital mode for encouraging a cashless economy. Financial institutions/ Banks have introduced various modes of electronic payment facility including mobile banking, Unified Payment Interface (UPI) etc.
3. In view of the various modes of payment through electronic means available today, it is directed that Stock Brokers shall not accept cash from their clients either directly or by way of cash deposit to the bank account of stock broker. Accordingly, paragraph 3 of the SEBI circular dated August 27, 2003 is modified as under:
All payments shall be received / made by the stock brokers from / to the clients strictly by account payee crossed cheques / demand drafts or by way of direct credit into the bank account through electronic fund transfer, or any other mode permitted by the Reserve Bank of India. The stock brokers shall accept cheques drawn only by the clients and also issue cheques in favour of the clients only, for their transactions. Stock Brokers shall not accept cash from their clients either directly or by way of cash deposit to the bank account of stock broker.
4. All other conditions specified in the SEBI circular dated August 27, 2003 shall continue to remain in force.
5. Stock Exchanges are directed to
a) make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above direction immediately;
b) bring the provisions of this circular to the notice of their members and also disseminate the same on their websites; and
c) communicate to SEBI, the status of implementation of the provisions of this circular in their Monthly Report.
6. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Tags : Acceptance Cash Stock Brokers Discontinuation
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Reserve Bank of India
12.07.2018
Banking
Period for Submission of Agency Commission Claims
MANU/RMIC/0060/2018
Please refer to our circular no.DGBA.GBD.N0.3262/31.02.007/2016-17 dated June 15, 2017 through which all agency banks were advised to submit their agency commission claims to the Reserve Bank of India within 90 days from the end of the quarter during which the transactions have been conducted.
2. It has been observed that agency banks are submitting their claims for the agency commission after much delay, even though all the agency banks are under core banking system. This leads to avoidable delays in timely assessment of agency commission payment by RBI. Accordingly, taking into account the steady increase in the electronic transactions, especially after the implementation of GST framework, it has now been decided to reduce the time period allowed to agency banks to furnish their claim on agency commission to Reserve Bank from 90 days to 60 calendar days from the end of the quarter in which the transactions have been conducted. If the banks fail to lodge claims within the stipulated period mentioned above, Reserve Bank will have the discretion to reject the claims. This will be applicable for the agency commission claims for the quarter ended June 30, 2018 onwards.
3. It is also observed that agency banks are not reporting all the requisite information, as per the prescribed format, while claiming agency commission from RBI resulting in gaps and inconsistency in data submission. Thus, agency banks are advised to scrupulously follow the instructions issued by RBI while submitting the claims for agency commission in the prescribed format.
4. It is further advised that the granularity, frequency and process of submission of agency transaction related data by agency banks is being examined by us and detailed instructions will be issued to the banks shortly in this regard.
Tags : Submission Agency Commission Claims
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Press Information Bureau
11.07.2018
MRTP/ Competition Laws
Competition Commission of India (CCI) issues order against South Asia LPG Company Pvt. Ltd. (SALPG) for abuse of dominant position for terminalling services at Visakhapatnam Port
MANU/PIBU/1035/2018
The case primarily concerned access to upstream LPG terminalling infrastructure at Vishakhapatnam Port, which comprises several components viz. unloading arms at the jetty, blender, heat exchanger and cavern (storage facility). This infrastructure, being operated by SALPG, is used for handling imports of propane and butane and their blending into LPG.
East India Petroleum Pvt. Ltd. (EIPL) filed an information with CCI under Section 19(1)(a) of the Competition Act, 2002 (Act) alleging that while allowing it to use the blender, SALPG has been insisting on mandatory use of cavern. This resulted inpaying significant charges to SALPG. The OMCs were thus not finding the LPG terminalling services offered by EIPL economically viable and were constrained to avail the terminalling services offered by SALPG only. To address this, EIPL first proposed to use the blender of SALPG and thereafter, take the output directly to the cross-country pipeline, bypassing the cavern. Since this was not agreeable to SALPG which allowed bypass of cavern to the extent of 25 percent only, EIPL proposed to install its own blender, and sought a tap-out and tap-in from the propane and butane lines to discharge blended LPG, bypassing the cavern. This was also not acceptable to SALPG. Another proposal seeking tap-out from the propane and butane lines at jetty to EIPL own blender and construction of its own infrastructure between the blender and storage facility, was also refused by SALPG. All this was alleged to be abuse of dominant position by SALPG.
After a detailed investigation by the Director General, CCI conducted further inquiry in the matter and found SALPG enjoys dominant position in the market for upstream terminalling services at Visakhapatnam Port. SALPG sought to justify its conduct on the grounds of safety as well as efficiency and business justification. However, after a detailed examination of claims made and hearing the parties, the Commission held the impugned conduct of SALPG to be in contravention of the provisions of Section 4 of the Act. Accordingly, CCI directed that:
(a) SALPG shall not insist mandatory use of its cavern and shall allow bypass of cavern for both pre-mixed and blended LPG, without any restrictions; and/or
(b) SALPG shall allow access to its competitors, potential as well as existing, to the terminalling infrastructure at Visakhapatnam Port, subject to compliance with all safety integrity and other requirements under applicable laws and regulations framed thereunder. Such an access should avoid additional cost burden on SALPG, and the entity seeking access shall bear the cost, if any, towards necessary changes to the existing infrastructure. Under this option also, SALPG shall not insist on mandatory use of cavern and it shall allow bypass of cavern, without any restriction. SALPG shall extend full cooperation for the study/audit undertaken by VPT in relation to the remedies ordered herein. Needless to say, SALPG shall not do anything raising rival's cost.
A penalty of INR 19.07 crore has also been imposed on SALPG for indulging into the anticompetitive conduct.
Tags : Order Issuance Abuse Dominant position
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Press Information Bureau
11.07.2018
MRTP/ Competition Laws
CCI passes order under Lesser Penalty Provisions against broadcasting service providers for rigging bids in tenders by Sports Broadcasters
MANU/PIBU/1036/2018
This case was taken up by Competition Commission of India ('CCI') suo motu under Section 19 of the Competition Act, 2002 ('the Act') based on the disclosure by Globecast India Private Limited and Globecast Asia Private Limited [collectively referred to as Globecast] under Section 46 of the Act read with the Competition Commission of India (Lesser Penalty) Regulations, 2009 ('Lesser Penalty Regulations'). Subsequently, Essel Shyam Communication Limited (ESCL), now Planetcast Media Services Limited, also approached CCI as lesser penalty applicant during investigation.
CCI imposed penalty on Globecast, a subsidiary of the Orange Group (earlier France Telecom Group), a global service provider of broadcasting services and ESCL, a technology service provider in India since 1998 with specialisation in media broadcasting, for indulging in bid-rigging in tenders floated by sports broadcasters for procurement of end-to-end broadcasting services i.e. ground segment services as well as satellite bandwidth services, for various sporting events during the period July 2011- May 2012 including Indian Premier League 2012 (IPL-2012).
From the evidence collected in the case, CCI found that the ESCL and Globecast operated a cartel amongst them in the various sporting events held during the years 2011-12 including IPL-2012. While submitting bids for the tender floated by various broadcasters during the period July 2011- May 2012 for provision of end-to-end broadcasting services, they exchanged information and quoted bid prices as per the arrangements arrived at amongst them. As a result, they committed an infringement of the provisions of Section 3(3)(d) read with Section 3(1) of the Act during this period.
Considering contravention of provisions of the Act by Globecast and ESCL, an amount of INR 31. 94 Crores and INR 1.33 Crores was computed as leviable penalty on ESCL and Globecast, respectively, in terms of proviso to Section 27 (b) of the Act. While computing leviable penalty, CCI took into consideration all relevant factors including duration of cartel, mitigating factors, etc. and decided to levy penalty at the rate of 1.5 times of their profit for the period July 2011 - May 2012. Additionally, considering totality of facts and circumstances of the case, penalty leviable on individual officials of Globecast and ESCL was computed at the rate of 10 percent of the average of their income for preceding three years.
Keeping in view the stage at which the lesser penalty application was filed, co-operation extended in conjunction with the value addition provided by the evidences furnished by the lesser penalty applicants in establishing the existence of cartel, CCI granted Globecast and its individuals 100 percent reduction in the penalty and 30 percent reduction in penalty to ESCL and its individuals. Pursuant to reduction, penalty imposed on ESCL was INR 22.36 Crores (Rupees Twenty Two Crores and Thirty Six Lakhs). No penalty was imposed on Globecast.
Tags : Penalty Provisions Broadcasting Service providers Rigging bids
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Press Information Bureau
10.07.2018
Commercial
Andhra Pradesh, Telangana and Haryana Top Rankers in Ease of Doing Business
MANU/PIBU/1032/2018
Secretary DIPP announcing Ease of Doing Business Ranking of States
Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, released the final rankings of States in Ease of Doing Business in New Delhi today. The top rankers are Andhra Pradesh, Telangana and Haryana. Jharkhand and Gujarat stood fourth and fifth respectively.
DIPP, Ministry of Commerce and Industry in collaboration with the World Bank conducted an annual reform exercise for all States and UTs under the Business Reform Action Plan (BRAP). The aim of this exercise is to improve delivery of various Central Government regulatory functions and services in an efficient, effective and transparent manner.
The reform plan has expanded from 285 to 372 action points till 2017. States and UTs have conducted reforms to ease their regulations and systems in areas such as labour, environmental clearances, single window system, construction permits, contract enforcement, registering property and inspections. States and UTs have also enacted Public Service Delivery Guarantee Act to enforce the timelines on registrations and approvals.
The current assessment under the BRAP 2017 is based on a combined score consisting of Reform evidence score that is based on evidences uploaded by the States and UTs and Feedback score that is based on the feedback garnered from the actual users of the services provided to the businesses.
It is for the first time that DIPP has introduced taking feedback to ensure that the reforms have actually reached ground level. The feedback was collected through face-to-face interviews of actual users selected from more than 50,000 users of the services provided by the State and UT governments. 78 reforms out of 372 were identified for the survey. More than 5,000 private sector users in 23 States and UTs, including 4,300 businesses and 800 architects, lawyers and electrical contractors from across the country shared their experience.
DIPP organised numerous outreach programmes including 30 workshops and periodic video conferences with States and UTs. Another practice introduced in the current reform exercise was handholding support provided by the higher scoring States. DIPP identified partner States to mentor another State and UT to facilitate implementation of reforms in States and UTs needing support. Telangana and West Bengal held extensive workshops to support Tripura and Nagaland respectively. Additionally, States have also provided their systems developed to other states so that everyone can benefit from this reform exercise.
The State reform exercise under Ease of Doing Business in India is creating a lot of interest in other countries like Brazil, South Africa and Indonesia which proves that such reforms are imperative for improving the business and regulatory environment.
DIPP has already shared proposed reforms for the next year with the State and UT Governments. As systems developed in last three years have matured during the existing assessment cycles and the importance of the feedback from the users and success of obtaining user feedback in BRAP, 2017 has been proved, the next year's assessment will be entirely based on user feedback.
Secretary, DIPP, Ramesh Abhishek, Ms. Caroline Freund, Director, Macroeconomics, Trade and Investment, World Bank Group, Junaid Kamal Ahmad, Country Director, World Bank, India, and senior officers of DIPP, World Bank, CII and FICCI were present on this occasion.
Tags : Business Ease Top rankers
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Press Information Bureau
10.07.2018
Civil
Shri M. Venkaiah Naidu becomes first Chairman of Rajya Sabha to sign an MOU
MANU/PIBU/1033/2018
Rajya Sabha and Senate of Rwanda agree to promote dialogue, capacity building and cooperation Rwandan Parliamentary Delegation calls on the Vice President. Rajya Sabha has, for the first time in 76 years since it came into being, entered into a Memorandum of Understanding (MOU) with a foreign counterpart for promoting inter-parliamentary dialogue.
2. Shri Venkaiah Naidu, has, in the process, become the first Chairman of Rajya Sabha to sign such an agreement when he inked an MOU with the visiting President of the Senate of the Republic of Rwanda, Mr. Bernard Makuza, here today.
3. The MOU with 6 articles of cooperation seeks to promote Inter-Parliamentary dialogue, Capacity building of parliamentary staff, Organisation of conferences, forums, seminars, staff attachment programmes, workshops and exchanges, Collaboration in mutual interest in regional and international multilateral parliamentary bodies in furtherance of bilateral relations and friendship between the two countries.
4. Shri Naidu and Mr. Makuza discussed issues of bilateral interest and the opportunities for cooperation for mutual benefit. He complimented the people and the Parliament of Rwanda for having 60% of women legislatures.
5. Shri Naidu complimented Rwanda for being elected as the Chair of the African Union in January this year and for successfully hosting in capital Kigali of the Assembly of the African Union in March that resulted in the signing of the African Continent Free Trade Agreement.
6. Mr. Makuza explained the special role of the Senate of Rwanda in monitoring and punishing those responsible for the genocide policy in the country that resulted in the killing of about one million people and also overseeing implementation of the social justice programmes.
7. The three Senator delegation from Rwanda led by Shri Makuza is the first such a delegation exclusively from the Upper House of any country to visit India. The members of the delegation include Senators Ms. Gertrude Kazarwa, Deputy Chairperson of the Senate Committee on Political Affairs and Good Governance and Ms. Therese Kagoyire Vishagara, Member of the Committee on Foreign Affairs, Cooperation and Security. The delegation is visiting India during 09 to 11, July 2018.
8. Shri Desh Deepak Verma, Secretary General and other senior officials of Rajya Sabha were present during the discussion and signing of MOU.
Tags : Chairman Rajya Sabha MOU Signing of
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Press Information Bureau
10.07.2018
Commercial
India-Korea Technology Exchange Centre Inaugurated
MANU/PIBU/1034/2018
The India-Korea Technology Exchange Centre was Inaugurated by the Minister of State (I/C) MSME Giriraj Singh and Minister of SMEs and Start-ups of Republic of Korea, Hong Jong-hak today in New Delhi.
Speaking on this occasion, Giriraj Singh said that the purpose of the Technology Exchange Centre is to create a platform for micro, small and medium enterprises of India and Korea where they can be assisted to identify and exchange latest technologies, share management expertise, product development and technology applications for product development. The MSME Minister further said that the Technology Centre will also work towards building reliable alliances in Space, Solar Energy, Nano technologies and some other upcoming technologies. He said that a number of Korean organizations have showed keen interest to initiate technology transfers in MSME sectors between the two countries and this Centre will provide them reliable partners for effecting business alliances.
The Minister of SMEs and Start-ups of Republic of Korea, Hong Jong-hak said his country has strong industrial base with well-developed small and medium enterprises (SME) sector, especially in advanced manufacturing technologies such as machinery & equipment, electronics, electrical machinery & equipment and robotics. He said that SMEs of both the countries can learn from each other to enhance their comparative advantages and be competitive in the world.
Secretary, MSME Dr. Arun Kumar Pandas aid that in today's competitive environment, there is need to share the comparative advantage of MSMEs of different countries. He said Indian MSMEs are very competitive in sectors like auto components, drugs and pharmaceuticals, IT bio-technology, agro and food processing.
The India-Korea Technology Exchange Centre will work towards identifying Indian technologies which can be exported to Korea and find suitable Korean partners for the same, initiating various cooperative MSME projects complimenting each other's strengths in MSME sector, creating Technology Data Bank from each side to encourage technology transfers, production of high quality products in India and encouraging Joint Ventures and business matching between Indian and Korean SMEs, besides others.
On this occasion, an MoU was signed between the Small Business Corporation (SBC) of Korea and the NSIC for cooperation in the field of MSME Sector. The SBC will mobilise the South Korean MSMEs for technical and business alliances with their counterparts in India and organise partner matching events in Korea for Indian delegations.
The India-Korea Technology Exchange Centre has been established at the National Small Industries Corporation premises in New Delhi.
Tags : Technology Exchange Centre Inauguration
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Securities and Exchange Board of India
10.07.2018
Capital Market
Invitation for Counter Proposals/Revised Proposals in Furtherance of the Revised Proposal Submitted by PACL Ltd. Dated July 03, 2018
MANU/SPRL/0024/2018
The Hon'ble Supreme Court vide its order dated February 23, 2018 in Civil Appeal No. (s) 13301/2015 inter alia decided that the sale of the properties of PACL Ltd. ("PACL") can be conducted in terms of the report of and under the supervision of the Justice (Retd.) R. M. Lodha Committee (in the matter of PACL Ltd.) (the "Committee"). The Order further stated that all the required procedures for the transparent sale will be assured by the Committee.
Pursuant thereof, vide letter dated March 16, 2018 the Committee communicated its willingness to consider a proposal of PACL for effecting sale of its properties in their entirety in accordance with the terms and conditions prescribed therein. Subsequent to the same, the Committee has inter alia received proposal dated April 14, 2018. The Committee thereafter invited counter proposals from desirous persons/ entities in respect of the proposal dated April 14, 2018 received from PACL. In furtherance of the same, the Committee has received nine (9) counter proposals, out of which two have made offers higher than the value of offer made by PACL by way of its April 14, 2018 proposal.
Subsequent to the same, the Committee has received a revised proposal vide letter dated July 03, 2018 from PACL revising the total offer value for the sale of the properties from Rs. 20,000 crore to Rs. 23,000 crore.
In this regard, the Committee provides a final opportunity to any desirous person/entity including PACL to submit their counter proposal/revised proposal in accordance with the terms and conditions as specified as per the Public Notice dated July 10, 2018 and available at https://www.sebi.gov.in/PACL.html by July 17, 2018, 17:00 hrs. Any clarification in this regard may be sought by e-mail to committeepacl@sebi.gov.in
Tags : Invitation Counter Proposals PACL Ltd. Submission
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