18 October 2021


Notifications & Circulars

Reserve Bank of India

12.10.2021

Banking

Action against statutory auditors of NBFC under Section 45MAA of RBI Act, 1934

MANU/RPRL/0171/2021

The Reserve Bank of India (RBI) in exercise of the powers vested under section 45MAA of the Reserve Bank of India Act, 1934, has, by an order dated September 23, 2021, debarred M/s Haribhakti & Co. LLP, Chartered Accountants (ICAI Firm Registration No. 103523W / W100048), from undertaking any type of audit assignment/s in any of the entities regulated by RBI for a period of two years with effect from April 1, 2022. This action has been taken on account of the failure on the part of the audit firm to comply with a specific direction issued by RBI with respect to its statutory audit of a Systemically Important Non-Banking Financial Company.

2. This will not impact audit assignment/s of M/s Haribhakti & Co. LLP in RBI regulated entities for the financial year 2021-22.

Tags : Statutory auditors NBFC

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Ministry of Finance 

12.10.2021

Commercial

Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2021

MANU/EAFF/0040/2021

In exercise of the powers conferred by clauses (aa) and (ab) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby makes the following rules further to amend the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, namely:-

1. (1) These rules may be called the Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2021.

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

2. In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, in Schedule I, in the Table, -

(i) against Sl. No. 14.1, -

(a) in column (2), under the heading "Sector/Activity", for the entry, the following entry shall be substituted, namely:-

"All telecom services including Telecom Infrastructure Providers Category-I, viz. Basic, Cellular, United Access Services, Unified license (Access services), Unified License, National/International Long Distance, Commercial V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS), all types of ISP licenses, Voice Mail/Audiotex/UMS, Resale of IPLC, Mobile Number Portability services, Infrastructure Provider Category-I (providing dark fibre, right of way, duct space, tower), Other Service Providers and such other services as may be permitted by the Department of Telecommunications (DoT).";

(b) in column (4), under the heading "Entry Route", for the entry, the following entry shall be substituted, namely: -

"Automatic";

(ii) against Sl. No. 14.2, in column (2), under the sub-heading "Other conditions", for the entry, the following entry shall be substituted, namely: -

"The licensing, security and any other terms and conditions as notified by Department of Telecommunications (DoT) from time to time, shall be observed by licensee/entities providing services as referred in serial number 14.1 above as well as investors."

Tags : Rules Amendment Foreign Exchange

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Ministry of Finance 

12.10.2021

Service

Pension Fund Regulatory and Development Authority (Salary and Allowances Payable to, and Other Terms and Conditions of Service of, Chairperson and Whole-time Members) (Third Amendment) Rules, 2021

MANU/FNSV/0060/2021

In exercise of the powers conferred by clause (a) of sub-section (2) of section 51, read with sub-section (3) of section 5 of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013), the Central Government hereby makes the following rules to further amend the Pension Fund Regulatory and Development Authority (Salary and Allowances Payable to, and Other Terms and Conditions of Service of, Chairperson and Whole-time Members) Rules, 2014, namely:-

1. Short title and commencement.--

(1) These rules may be called the Pension Fund Regulatory and Development Authority (Salary and Allowances Payable to, and Other Terms and Conditions of Service of, Chairperson and Whole-time Members) (Third Amendment) Rules, 2021.

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

2. In the Pension Fund Regulatory and Development Authority (Salary and Allowances Payable to, and Other Terms and Conditions of Service of, Chairperson and Whole-time Members) Rules, 2014, in rule 10,-

(i) in sub-rule (1), the following provisos shall be inserted, namely:-

"Provided that the leave account shall be credited with earned leave in advance in two instalments of fifteen days each, on 1st January and 1st July of every calendar year: Provided further that the earned leave at the credit at the close of previous half year shall be carried forward to the next half year.";

(ii) after sub - rule (3), the following sub-rules shall be inserted, namely:-

(4) They shall be entitled to eight days casual leave in a calendar year.

(5) They shall be entitled to half pay leave on medical certificate or on private affairs at the rate of twenty days in respect of each completed year of service, to be credited in advance in two instalments of ten days each, on 1st January and 1st July, of every calendar year and leave salary for half pay shall be equivalent to half of the leave salary admissible during the earned leave.

(6) Leave on half pay may be commuted to full pay leave at the discretion of the Chairperson or a Whole Time Members, if is taken on medical grounds and is supported by a Medical Certificate by competent medical authority.

Tags : Pension Fund Rules Amendment

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Reserve Bank of India

11.10.2021

Banking

Reserve Bank of India retains the advisory committee of Srei Infrastructure Finance Limited and Srei Equipment Finance Limited

MANU/RPRL/0167/2021

It may be recalled that, in exercise of powers conferred under Section 45-IE (5) (a) of the Reserve Bank of India Act, 1934, the Reserve Bank had, on October 04, 2021, constituted a three-member Advisory Committee to assist Shri Rajneesh Sharma, Administrator of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL) in discharge of his duties. The members of the Committee are:

a. Shri R. Subramaniakumar, former MD & CEO, Indian Overseas Bank

b. Shri T. T. Srinivasaraghavan, former Managing Director, Sundaram Finance Limited

c. Shri Farokh N. Subedar, former Chief Operating Officer and Company Secretary, Tata Sons Limited

2. Upon admission of the petitions for insolvency resolution process by the Kolkata Bench of the Hon'ble National Company Law Tribunal in respect of SIFL and SEFL vide orders dated October 08, 2021, the Reserve Bank has decided that the above mentioned three-member Committee shall continue as the Advisory Committee constituted under Rule 5 (c) of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019. The Advisory Committee shall advise the Administrator in the operations of the SIFL and SEFL during the corporate insolvency resolution process.

Tags : Advisory committee Retaining of

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Press Information Bureau

11.10.2021

MRTP/ Competition Laws

CCI approves internal restructuring of the TVS Group, under Section 31(1) of the Competition Act, 2002

MANU/PIBU/4285/2021

The Competition Commission of India (CCI) approves internal restructuring of the TVS Group, under Section 31(1) of the Competition Act, 2002.

The proposed combination contemplates an internal restructuring within the TVS group pursuant to the execution of a Memorandum of Family Arrangement dated 10 December 2020, the Composite Scheme of Amalgamation and Arrangement dated 29 January 2021 between the Parties and board resolutions dated 30 January 2021 (Proposed Combination).

A brief description of the Parties is provided below:

(a) TVS Mobility Private Limited: It is a holding company and is currently not engaged in any business. It's shareholders through their affiliates are primarily engaged in investment advisory, manpower support services, wholesale distribution of automotive components, manufacture of repair materials for tyres and tubes, and agricultural activities.

(b) T.S. Rajam Tyres Private Limited: It is the wholly owned subsidiary of TVS Mobility Private Limited and is currently not engaged in any business.

(c) Southern Roadways (Madurai) Private Limited: It is a holding company and is currently not engaged in any business. It's shareholders through their affiliates are engaged in farm related activities.

(d) Trichur Sundaram Santhanam & Family Private Limited: It is a holding company and is currently not engaged in any business. It's shareholders through their affiliates are primarily engaged in lending services, business process outsourcing services, distribution of insurance products, investment management, manufacture of automotive components.

(e) TVS Sundram Fasteners Private Limited: It is a holding company and is currently not engaged in any business. It's shareholders through their affiliates are not engaged in any business activity.

(f) Madurai Alagar Enterprises Private Limited: It is a holding company and is currently not engaged in any business. It's shareholders through their affiliates are engaged in manufacturing phenol formaldehyde resins and cashew friction dust.

(g) SB TVS Industrial Ventures Private Limited: It is a holding company and is currently not engaged in any business. It's shareholders through their affiliates are primarily engaged in trading of aluminium, packaging and label printing services.

(h) Cheema Industrial Ventures Private Limited: It is a holding company and is currently not engaged in any business. It's shareholders through their affiliates are primarily engaged in trading of aluminium, packaging and label printing services.

(i) TVS Holdings Private Limited: It is a holding company and is currently not engaged in any business. It's shareholders through their affiliates are primarily engaged in provision of corrosion management, consultancy and management services, insurance broking services, and manufacturing of automotive components.

(j) Geeyes Family Holdings Private Limited: It is a holding company and is currently not engaged in any business. It's shareholders through their affiliates are primarily engaged in management consultancy and staffing solutions, and property development.

(k) Sundaram Climate Institute Private Limited: It is engaged in the provision of climate change research and implementation. It's shareholders through their affiliates are primarily engaged in the provision of water management solution, aggregation of transport industry, manufacture and sale of yarn and provision of support services to textile mills.

(l) T V Sundram Iyengar & Sons Private Limited (TVSS): It is directly engaged in manufacture and distribution of automotive components, distribution of automobiles etc. TVSS, through its affiliates, is engaged in various sectors including automotive, logistics, information and technology, power generation, investments, manufacturing components for automotive and non-automotive applications, manufacturing sewing needles, and vocational training etc.

(m) Sundaram Industries Private Limited (SI): It is directly engaged in providing tyre solutions and manufacturing rubber compounds, cured rubber and plastic products. SI, though it affiliates, is primarily engaged in providing tyre solutions, manufacturing of protective gears, manufacture and sale of automotive components and manufacture and sale of yarn.

(n) Southern Roadways Private Limited (SRW): It is directly engaged in road transport, and parcel services. SRW, through its affiliates, is primarily engaged in manufacture and sale of yarn, and automotive components.

(o) TVS Investments Private Limited (TVSI): It is a non-operating financial holding company. TVSI, through its affiliates, is primarily engaged in investment consultancy, wealth management and transaction automation products.

Tags : Internal restructuring TVS Group Approval

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Ministry of Finance 

11.10.2021

Narcotics

Central Government hereby notifies the general conditions for grant of license specified below for cultivation of opium poppy on account of the Central Government

MANU/REVU/0079/2021

In pursuance of rule 8 of the Narcotic Drugs and Psychotropic Substances Rules, 1985, the Central Government hereby notifies the general conditions for grant of license specified below for cultivation of opium poppy on account of the Central Government during the Opium Crop Year Commencing on the 1st day of October, 2021 and ending with the 30th day of September, 2022.

1. Place of Cultivation.--

Opium poppy cultivation may be licensed in any tract as may be notified in this behalf by the Central Government.

2. Eligibility for Cultivation.--

Subject to clauses 3 and 7 of this notification, the following shall be eligible for a license to cultivate opium poppy:

(i) Cultivators who had cultivated opium poppy during the crop year 2020-21 and tendered an average yield of Morphine (MQY-M) not less than 4.2 kg per hectare.

Note-Average qualifying yield of Morphine in opium tendered in kilograms per hectare will be termed as Minimum Qualifying Yield (MQY-M) in the notification hereinafter.

(ii) Cultivators who ploughed back their entire poppy crop cultivated during the crop year, 2018-19, 2019-20 & 2020-21 under the supervision of the Central Bureau of Narcotics in accordance with the provisions in this regard, but had not similarly ploughed back their entire poppy crop during 2017-18.

(iii) Cultivators whose appeal against refusal of License has been allowed after the last date of settlement in the crop year 202-21.

(iv) Cultivators who were eligible for a license for the crop year 2020-21, but did not voluntarily obtain a license for any reason, or who after having obtained a license, did not actually cultivate opium poppy due to any reason.

(v) Cultivator who is nominated by deceased eligible cultivator in column No. 11 in Form No. 1 (see rule 7) for the crop year 2020-21.

(vi) One of legal heirs of deceased eligible cultivators as determined by the District Opium Officer after following the due process, in the cases where nomination in Form No. 1 is not made for any reason or nomination of person not falling under definition of family members/blood relatives in Form No. 1 is made.

(vii) who were de-licensed on the ground of charge/charges in any competent court for any offence under NDPS Act, 1985 and the Rules made there under provided that they have been acquitted by the competent court of Law in said case/cases and such order/orders of acquittal has become final as on 31st July 2021, shall also be eligible for a license to cultivate opium poppy subject to fulfillment of other conditions, production of certified copy of judgment and declaration to this effect.

(viii) The cultivators who get their opium poppy crop ploughed back in excess of 50% of total of areas cultivated during the crop years 2018-19, 2019-20 and 2020-21 shall not be eligible for a license to cultivate opium poppy for crop year 2021-22.

2A. Subject to clauses 3 and 7 of this notification, the following shall be eligible for a license to cultivate opium poppy for production of Poppy Straw from which no juice is extracted through lancing:

(i) Cultivators (including their legal heirs) who have tendered an average yield of Morphine (MQY-M) 3.7 kg per hectare and above but less than 4.2 kg per hectare in crop year 2020-21.

(ii) Cultivators (including their legal heirs) who were de-licensed in the crop year 2019-20 and 2020-21 provided they have tendered opium having total average equal/equivalent to or more than 100 percent of an average yield of Morphine (MQY-M) 4.2 Kg per hectare for last five tendered years including the year of de licensing. In case of transfer of license to legal heir, average tendering by deceased cultivators would be taken into account for computation of total of averages of opium tendered.

3. Conditions of License.--

No cultivator shall be granted license unless he/she satisfies that:

i. He/She did not, in the course of actual cultivation, exceed the area licensed for poppy cultivation during the crop year 2020-21 beyond the 5% 'Condonable Limit' allowed in the licensing policy.

ii. He/she did not at any time resort to illicit cultivation of opium poppy and was not charged in any competent court for any offence under the Narcotic Drugs and Psychotropic Substances Act, 1985, and the Rules made there under.

iii. He/she did not during the crop year 2002-21 violate any departmental instructions issued by the Central Bureau of Narcotics/Narcotics Commissioner to the cultivators.

Tags : Conditions Grant License

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Press Information Bureau

11.10.2021

Power and Energy

Power Ministry mandates energy accounting of DISCOMs with a view to reduce electricity losses

MANU/PIBU/4289/2021

As an important step under the ongoing power sector reforms, Ministry of Power today mandated electricity distribution companies to undertake energy accounting on periodic basis. The regulation in this regard was issued by Bureau of Energy Efficiency (BEE) with the approval of Ministry of Power, under the provisions of Energy Conservation (EC) Act, 2001. The notification stipulates quarterly energy accounting by DISCOMs, through a certified Energy Manager, within 60 days. There will also be Annual energy audit by an independent Accredited Energy Auditor. Both these reports will be published in the public domain. Energy accounting reports will provide detailed information about electricity consumption by different categories of consumers & the transmission and distribution losses in various areas. It will identify areas of high loses and theft and enable corrective action. This measure will also enable fixation of responsibility on officers for losses and theft. The data will enable the DISCOMS to take appropriate measure for reducing their electricity losses. The DISCOMs will be able to plan for suitable infrastructure up-gradation as well as demand side management (DSM) efforts in an effective manner. This initiative will further contribute towards India's climate actions in meeting our Paris Agreement Goals.

These regulations have been issued under the ambit of Energy Conservation Act, 2001, with an overall objective to reduce distribution sector in-efficiency and losses thereby moving towards economic viability of DISCOMs. BEE has certified a pool of National Accredited Energy Auditors and Energy Managers who possess expertise in preparing energy accounting and audit reports, duly providing recommendations for loss reduction and other technical measures. The aforesaid regulations were pre-published in April 2021 for seeking public comments and thereafter Ministry of Power held detailed discussions with various stakeholders before finally issuing these regulations.

In September 2020, through a separate notification, all the Electricity Distribution Companies were notified as Designated Consumers (DCs) under the EC Act. Owing to the potential benefits of energy auditing on the entire distribution system and retail supply business, it was imperative to develop a set of comprehensive guidelines and framework such that all Distribution utilities across India can adhere to and formulate actions.

Energy Accounting prescribes accounting of all energy inflows at various voltage levels in the distribution periphery of the network, including renewable energy generation and open access consumers, as well as energy consumption by the end consumers. Energy accounting on periodic basic and subsequent annual energy audit, would help to identify areas of high loss and pilferage, and thereafter focussed efforts to take corrective action. The Regulations issued today provides much awaited broad framework for Electricity Distribution Companies to carry out Annual Energy Audit and Quarterly Periodic Energy Accounting with necessary Pre-requisites and reporting requirements to be fulfilled.

Objectives to be achieved through periodic energy accounting are:

Development of a comprehensive energy accounting system to quantify and determine actual losses in the power distribution system, segregated across technical and commercial losses.

Identify areas of leakage, theft, wastage or inefficient use, thereby paving the way for tackling the present challenges of high Transmission and Distribution (T&D) losses.

Enable and ensure an independent 3rd party energy audit of the distribution system to arrive at a true and fair picture of T&D losses.

To enable the Distribution utilities to undertake targeted efficiency improvement activities to reduce T&D losses in priority areas / customer segments.

Providing a basis for prioritizing energy capital investments and help budget more accurately to achieve maximum results.

Identification of overloaded segments of the network for necessary capacity additions.

Tags : Energy accounting DISCOMs Electricity losses

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