3 December 2018

Notifications & Circulars

Reserve Bank of India



Legal Entity Identifier Code for participation in non-derivative markets


The Legal Entity Identifier (LEI) code has been conceived of as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis. The LEI is a 20-character unique identity code assigned to entities who are parties to a financial transaction. Globally, use of LEI has expanded beyond derivative reporting and it is being used in areas relating to banking, securities market, credit rating, market supervision, etc. (https://www.gleif.org/en/about-lei/regulatory-use-of-the-lei). The LEI system has been implemented in a phased manner for participants (other than individuals) in the over-the-counter markets for rupee interest rate derivatives, foreign currency derivatives and credit derivatives in India in terms of RBI circular FMRD.FMID No. 14/11.01.007/2016-17 dated June 1, 2017 and for large corporate borrowers of banks in terms of RBI Circular DBR.No.BP.BC.92/21.04.048/2017-18 dated November 2, 2017.

2. In the Statement on Developmental and Regulatory Policies, First Bi-monthly Monetary Policy Statement for 2018-19 (Paragraph No. 8), dated April 05, 2018, it was proposed to implement the LEI mechanism for all financial market transactions undertaken by non-individuals in interest rate, currency or credit markets regulated by RBI. Accordingly, draft directions in this regard were issued for public comments on June 20, 2018. Based on comments received during the consultation, the directions on requirement of LEI Code for participation in non-derivative markets have been finalized as below.

3. All participants, other than individuals, undertaking transactions in the markets regulated by RBI viz., Government securities markets, money markets (markets for any instrument with a maturity of one year or less) and non-derivative forex markets (transactions that settle on or before the spot date) shall obtain Legal Entity Identifier (LEI) codes by the due date indicated in the schedule given in Annex. Only those entities that obtain an LEI code on or before the due dates applicable to them shall be able to undertake transactions in these financial markets after the due date, either as an issuer or as an investor or as a seller / buyer. Transactions undertaken on recognized stock exchanges are outside the purview of the LEI requirement.

4. In case of non-derivative forex transactions, while all inter-bank transactions shall be subject to LEI requirement, client transactions shall require LEI code for transactions involving an amount equivalent to or exceeding USD one million or equivalent thereof in other currencies.

5. Non-resident entities undertaking financial transactions in the relevant markets shall also require LEI code. Such entities that are not legal entities in their country of incorporation (e.g., funds operated by a non-resident parent/management company that are each registered as an FPI) shall use the LEI code of the parent/management company.

6. Entities responsible for executing transactions, reporting or for depository functions in these markets shall capture the LEI code of the transacting participants in their systems.

7. Entities can obtain LEI from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier Foundation (GLEIF) (https://www.gleif.org/en). In India LEI code may be obtained from Legal Entity Identifier India Ltd. (LEIL) (https://www.ccilindia-lei.co.in). The rules, procedures and documentation requirements may be ascertained from LEIL (https://www.ccilindia-lei.co.in/USR_FAQ_DOCS.aspx).

8. Entities undertaking financial transactions shall ensure that their LEI code is considered current under the rules of the Global LEI System. Lapsed LEI codes shall be deemed invalid for transactions in markets regulated by RBI.

9. The Directions are issued under section 45W, read with section 45U, of the Reserve Bank of India Act, 1934.

Tags : Identifier Code Legal Entity Participation Non-derivative markets

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Reserve Bank of India



Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit


1. Please refer to the operational instructions for the captioned scheme contained in RBI circular on Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit issued vide DBR.Dir.BC.No.62/04.02.001/2015-16 dated December 4, 2015 and DCBR.CO.SCB.Cir.No.1/13.05.000/2015-16 dated February 11, 2016.

2. In this regard, it has been decided by the Government of India to increase w.e.f. November 02, 2018 Interest Equalisation rate from 3% to 5% in respect of exports by the Micro, Small & Medium Enterprises (MSME) sector manufacturers under the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit.

3. In terms of para 2(c) of the Annex to the aforesaid RBI circulars, the Scheme is available to all exports under 416 tariff lines [at ITC (HS) code of 4 digits] and exports made by MSMEs across all ITC(HS) codes. It is therefore, advised that the benefit of the scheme be provided to all eligible MSME Exporters.

Tags : Equalisation Scheme Interest Shipment Export Credit

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Ministry of Finance 


Indirect Taxation

Extension of time limit for furnishing the return in FORM GSTR-4 for the quarter July to September, 2018


In exercise of the powers conferred by sub-section (6) of section 39 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Commissioner hereby extends the time limit for furnishing the return in FORM GSTR-4 of the Central Goods and Services Tax Rules, 2017 for the quarter July to September, 2018 under sub-section (2) of section 39 of the said Act read with rule 62 of the Central Goods and Services Tax Rules, 2017 by a registered person paying tax under the provisions of section 10 of the said Act whose principal place of business is in Srikakulam district in the State of Andhra Pradesh, till the 30th day of November, 2018.

Tags : Time limit Extension Returns

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Ministry of Corporate Affairs



Appointment of Shri Rangachari Sridharan as the Chairperson, the National Financial Reporting Authority


In exercise of the powers conferred by sub-section (3) of section 132 of the Companies Act, 2013 (18 of 2013), the Central Government vide office order No. NFRA-05/2/2018-NFRAMCA dated 01st October, 2018 appointed Shri Rangachari Sridharan as the Chairperson, the National Financial Reporting Authority (NFRA), with effect from the 1st October, 2018 (afternoon) for a period of three years or till the incumbent attains the age of sixty-five years, whichever is earlier.

2. The terms and conditions of service of the Chairperson, NFRA shall be governed by the National Financial Reporting Authority (Manner of Appointment and other Terms and Conditions of Service of Chairperson and Members) Rules, 2018.

Tags : Appointment Chairperson NFRA

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Ministry of Environment and Forests



Performing Animals (Registration) (Amendment) Rules, 2018 - draft


The following draft of certain rules, which the Central Government proposes to make in exercise of the powers conferred under section 38 of the Prevention of Cruelty to Animals Act, 1960 (59 of 1960), is hereby published, as required under subsection (1) of section 38 of the said Act, for the information of all the persons likely to be affected thereby; and notice is hereby given that the said Performing Animals (Registration) (Amendment) Rules, 2018 shall be taken into consideration after the expiry of a period of thirty days from the date on which copies of the Gazette containing this notification are made available to the public;

Objections or suggestions which may be received from any person with respect to the said draft rules before expiry of the period aforesaid will be considered by the Central Government;

Objections or suggestions to these draft rules may be addressed to the Deputy Secretary (Animal Welfare) to the Government of India in the Ministry of Environment, Forest and Climate Change, Indira Paryavaran Bhawan, New Delhi.


1. (1) These rules may be called the Performing Animals (Registration) (Amendment) Rules, 2018.

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

2. In the Performing Animals (Registration) Rules, 2001, in rule 2, the following shall be added:-

"(k) "circus" means a large public entertainment, typically presented in one or more very large tents or in an outdoor or indoor arena, featuring exhibitions of pageantry, feats of skill and daring, performing animals, etc.".

3. In the Performing Animals (Registration) Rules, 2001, under rule 13, the following shall be added:-

"13A. Prohibition on exhibiting and training of animals for specified performances- No animals shall be used for any performances or exhibition at any circus or mobile entertainment facility."

Tags : Rules Amendment Animals

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Ministry of Finance 


Direct Taxation

Approval of Centre for Brain Research, Bangalore by the Central Government in the category of 'Scientific Research Association'


It is hereby notified for general information that the organization M/s Centre for Brain Research, Bangalore (PAN:AABTC7082K) has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules 5C and 5D of the Income-tax Rules, 1962 (said Rules), from Assessment year 2018-2019 onwards in the category of 'Scientific Research Association', subject to the following conditions, namely:-

(i) The sole objective of the approved 'Scientific Research Association' shall be to undertake scientific research;

(ii) The approved organization shall carry out scientific research by itself;

(iii) The approved organization shall maintain separate books of accounts in respect of the sums received by it for scientific research, reflect therein the amounts used for carrying out research, get such books audited by an accountant as defined in the explanation to sub-section (2) of section 288 of the said Act and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (1) of section 139 of the said Act;

(iv)The approved organization shall maintain a separate statement of donations received and amounts applied for scientific research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to above.

2. The Central Government shall withdraw the approval if the approved organization:-

(a) fails to maintain separate books of accounts referred to in sub-paragraph (iii) of paragraph 1; or

(b) fails to furnish its audit report referred to in sub-paragraph (iii) of paragraph 1; or

(c) fails to furnish its statement of the donations received and sums applied for scientific research referred to in sub-paragraph (iv) of paragraph 1; or

(d) ceases to carry on its research activities or its research activities are not found to be genuine; or

(e) ceases to conform to and comply with the provisions of clause (ii) of sub-section (1) of section 35 of the said Act read with rules 5C and 5D of the said Rules.

Tags : Approval Centre Research Association

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Press Information Bureau



Government of India and Asian Development Bank (ADB) Signs $75 Million Loan to Improve Urban Services in 4 Karnataka Towns


Government of India and the Asian Development Bank signed a $75 million loan here today to provide 24 x7 water supply in Karnataka's four coastal towns of Kundapura, Mangalore Puttur and Udupi and improve sanitation infrastructure for Mangalore town.

The signatories to the tranche 2 loan agreement of Karnataka Integrated Urban Water Management Investment Program were Mr. Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, who signed for the Government of India, and Mr. Sabyasachi Mitra, Deputy Country Director of ADB's India Resident Mission, who signed for ADB.

The Program, approved by ADB Board in 2014, aims to improve urban water resource management in selected river basins in Karnataka through modernization and expansion of urban water supply and sanitation infrastructure and strengthening institutions to improve water use efficiency, water resource planning, monitoring and service delivery. The $75 million tranche 1 loan is helping strengthen urban water supply and sanitation services in three other towns of the State - Byadagi, Davangere, and Harihar.

The investment program is supporting four coastal towns in Karnataka to provide continuous piped water supply to people, and promote efficient and sustainable use of water. It will also adopt information technology based smart water management system and undertake community awareness programs on water conservation and demand management, said Mr. Khare.

Apart from providing continuous piped water supply and improved sanitation services to nearly one million people, the Program is helping the urban local bodies to become efficient and responsive urban water utility service provider, said Mr. Mitra.

The provision of performance-based construct and operate contract (PBCOC) modality, piloted by ADB in another urban project in the state, will help ensure the sustainable water service delivery through the optimal risk allocation between the public sector and private water operator.

The project finances will be used to augment water treatment production capacity by about 16 MLD, lay about 90 kilometers of new water transmission lines and feeder mains, construct 29 overhead tanks and four ground-level service reservoirs and establish town level supervisory control and data acquisition system to strengthen the centralized supervision and control of water flow and water pressure. Other outputs include 1,300 km long distribution network and provision of about 140,000 household connections with new meters. In Mangalore, about 11 km of pumping mains will be installed to rehabilitate the sewerage system.

Tags : Urban Services Improvement Loan

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