13 - Legal & Regulation Updates - India

RBI- Section 24 and Section 56 of the Banking Regulation Act, 1949 - Maintenance of Statutory        Liquidity Ratio (SLR)
	Reserve Bank of India (RBI) vide notification dated October 13, 2016 has decided that the Statutory Liquidity Ratio (SLR) securities acquired from RBI under Liquidity Adjustment Facility (LAF) shall be considered as eligible assets for SLR maintenance from October 3, 2016.
	Draft- Food Safety and Standards (Approval for Non-Specified Food and Food Ingredients) Regulations, 2016
	The Food Safety and Standards Authority of India through a Notice dated October, 4 2016 has invited objections or suggestions on the draft Food Safety and Standards (Approval for Non-Specified Food and Food Ingredients) Regulations, 2016.
	Draft- Food Safety and Standards (Fortification of Foods) Regulations, 2016
	The Food Safety and Standards Authority of India through a Notice dated October, 4 2016 has invited objections or suggestions on the draft Food Safety and Standards (Fortification of Foods) Regulations, 2016.  The objections or suggestions can be sent within a period of 60 days on the draft.
	Central Drugs Standard Control Organization- Implementation of Online portal SUGAM
	The Central Drugs Standard Control Organization Directorate General of Health Services, has issued a Notice dated October 5, 2016 relating to the Implementation of Online portal SUGAM. The development of software for filing online applications for Global Clinical Trials (GCT) has been completed and its robustness was tested by the industry users in several iterations. The module has already been live and applications can be filed online henceforth. However, those applicants desiring to file applications for obtaining permissions to conduct GCT are requested to register on the portal as per the prescribed procedure, if they have not already registered.
	Central Drugs Standard Control Organization- Streamlining activities under the Drugs & Cosmetics Act, 1940 and Rules 1945
	The Central Drugs Standard Control Organization Directorate General of Health Services, has issued a Notice dated October 6, 2016 for Streamlining the activities under the Drugs & Cosmetics Act, 1940 and Rules 1945.
	Central Motor Vehicles (18th Amendment) Rules, 2016
	The Ministry of Road Transport and Highways, via notification dated October 4, 2016, has issued the Central Motor Vehicles (16th Amendment) Rules, 2016 to amend the Central Motor Vehicles Rules, 1989.  After Rule 115E, the following rule shall be inserted
	Food Safety and Standards (Food Products Standards and Food Additives) Amendment Regulations, 2016
	The Food Safety and Standards Authority of India through a Notice dated October, 10 2016 has invited objections or suggestions on the draft Food Safety and Standards (Food Products Standards and Food Additives) Amendment Regulations, 2016.
	Food Safety and Standards (Food Products Standards and Food Additives) Ninth Amendment Regulations, 2016
	The Ministry of Health and Family Welfare via notification dated October 10, 2016 has issued Food Safety and Standards (Food Products Standards and Food Additives) Ninth Amendment Regulations, 2016 amending the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011.
	RBI- Master Direction - Non Banking Financial Company- Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016
	Reserve Bank of India (RBI) vide updated notification dated October 17, 2016 has issued amendments in the Master Direction - Non Banking Financial Company- Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.
	SEBI - Facilitating transaction in Mutual fund schemes through the stock exchange infrastructure
	The Securities and Exchange Board of India (“SEBI”) has issued a Circular dated October 19, 2016 in furtherance of a previous Circular dated October 04, 2013. The October 04, 2013 Circular allowed only Mutual fund distributors to avail infrastructure of the Stock Exchanges (“SE”), for the purpose of purchasing and redeeming the Mutual funds units directly from the Mutual Fund (“MF”) or Asset Management Companies (“AMC”).
	CBDT - Income Tax (28th Amendment) Rules, 2016
	The Central Board of Direct Taxes (CBDT) has issued a notification amending the Income Tax rules. Vide this amendment, Part VII-BA is inserted. Part VII- BA refers to Special Provisions Relating to Tax on Distributed income of Domestic Company for Buy-Back of Shares.  The notification shall come into force from the June 1, 2016
	National Pharmaceutical Pricing Authority (NPAA) - draft version of 2 Proposed Price Calculation Sheets
	Via Office Memorandum dated October 18, 2016 NPPA has released the draft version of proposed price calculation sheets for 2 proposed revised/notified ceiling price/retail price on the website of NPPA. Draft of 2 calculation sheets based on Pharma Trac data are uploaded on the website.
	Draft-The Environment (Protection) Amendment Rules, 2016.
	The Ministry of Environment, Forest and Climate Change has issued a draft notification dated October 10, 2016 of The Environment (Protection) Amendment Rules, 2016. The objections or suggestions can be sent within a period of 30 days on the draft to the Member Secretary, CPCB and Mr. Dinesh Runiwal, JD (CP) at adaba.cpcb@nic.in and d.runiwal@gov.in The draft rules proposes to amend the Schedule I related to Ambient Air quality standards w.r.t noise in airport noise zone.

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12 - Legal & Regulation Updates - India

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RBI- Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad
	Reserve Bank of India (RBI) vide notification dated October 6, 2016- Direct investments by residents in Joint Venture (JV) and Wholly Owned Subsidiary (WOS) abroad are being allowed, in terms of clause (a) of sub-section (3) of section 6 of the Foreign Exchange Management Act, 1999, read with the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004. The Reserve Bank of India has issued directions to Authorized Persons under FEMA which lay down the modalities as to how the foreign exchange business has to be conducted by the Authorized Persons with their customers/ constituents with a view to implementing the regulations framed.
	RBI- Operating Guidelines for Small Finance Banks
	Reserve Bank of India (RBI) vide notification dated October 6, 2016 has set out Operating Guidelines for Small Finance Banks, supplementing the Licensing Guidelines and will take effect immediately.
	RBI- Priority Sector Lending - Revised Reporting System
	Reserve Bank of India (RBI) vide notification dated October 6, 2016 has decided to modify the quarterly and annual reporting formats for reporting priority sector lending.
	RBI- Operating Guidelines for Payments Banks
	Reserve Bank of India (RBI) vide notification dated October 6, 2016 has set out Operating Guidelines for Payment Banks (PBs), supplementing the Licensing Guidelines and will take effect immediately.
	RBI- Import Data Processing and Monitoring System (IDPMS)
	Reserve Bank of India (RBI) vide notification dated October 6, 2016 has in consultation with the Custom Authorities and other stakeholders, developed an Import Data Processing and Monitoring System (IDPMS), to enhance ease of doing business and facilitate efficient data processing for payment of import transactions and effective monitoring. The AD Category- I banks are directed to use IDPMS for reporting and monitoring of the import transactions.
	MCA - Public Comments on Draft Rules/Regulations under Insolvency and Bankruptcy Code, 2016.
	The Ministry of Corporate Affairs (“MCA”) in order to implement the Insolvency and Bankruptcy Code 2016 (“Code”) had formed a working group consisting of practitioners and experts for their recommendations to drafting the regulations for registration and regulation of insolvency professionals and insolvency professional agencies envisaged under the Code. Accordingly, the following regulations have been drafted: Insolvency and Bankruptcy (Registration of Insolvency Professionals) Regulations, 2016. Insolvency and Bankruptcy (Registration of Insolvency Professional Agencies) Regulations, 2016. Insolvency and Bankruptcy (Model Bye-laws of Insolvency Professional Agencies) Regulations, 2016.
	SEBI - Consultation Paper on Amendments/Clarifications to the SEBI (Investment Advisers) Regulations, 2013.
	The Securities Exchange Board of India (“SEBI”) has issued a Consultation Paper dated October 7, 2016 proposing amendments/clarifications to the existing SEBI (Investment Advisers) Regulations, 2013, with an objective to specify uniform standards across all the intermediaries/persons engaged in providing investment advisory services and to address the gaps or overlaps in legal or regulatory standards.
	Industrial Employment (Standing Orders) Central (Amendment) Rules, 2016
	The Ministry of Labour and Employment, through a notification dated October 7, 2016 has issued - Industrial Employment (Standing Orders) Central (Amendment) Rules, 2016 amending Industrial Employment (Standing Orders) Act, 1946 (20 of 1946).
	Public Utility Service –Transport Service
	The Ministry of Labour and Employment, Central Government, through a notification dated October 7, 2016, has declared the service in transport to be a Public Utility Service. The Services in transport (other than Railways) for the carriage of passengers or goods (by land or water) which is covered by item 1 of the First Schedule to the Industrial Disputes Act, 1947 to be a public utility service as was notified for a period of six months with effect from April 22, 2016.
	Drugs (Prices Control) Order, 2013
	The Ministry of Chemicals and fertilizers, National Pharmaceutical Pricing Authority, through a Order dated October 7, 2016, has issued the Order to fix the ceiling price exclusive of local tax applicable, if any of the scheduled formulations of drugs.
	Aircraft (Fourth Amendment) Rules, 2016
	The Ministry of Civil Aviation, through a notification dated October 5, 2016 has made amendments to Aircraft Rules, 1937. The notification has made amendments to Rule 3 by adding the definition of defence Aerodrome and Rule 78 by excluding defence aerodrome from the requirement of obtaining license and providing for the use of defence aerodrome.
	CBDT -Income Tax (24th Amendment) Rules, 2016
	The Central Board of Direct Taxes (CBDT) has issued a notification amending the Income Tax rules. Vide this amendment, new rule 6A is inserted- 6A. Expenditure for obtaining right to use spectrum for telecommunication services.
	CBDT - Income Tax (25th Amendment) Rules, 2016
	The Central Board of Direct Taxes (CBDT) has issued a notification amending the Income Tax rules.  Vide this amendment; new rule 129 is inserted- “129. Form of application under section 270AA.- An application to the Assessing Officer to grant immunity from imposition of penalty under section 270A and from initiation of proceedings under section 276C or section 276CC shall be made in Form No.68.” They shall come into force on the 1st day of April, 2017.
	CBDT - Income Tax (26th Amendment) Rules, 2016
	The Central Board of Direct Taxes (CBDT) has issued a notification amending the Income Tax rules.  Vide this amendment, In rule 114D, new sub clause (4) is inserted- “The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the procedures, data structures, and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval policies in relation to the statement referred to in sub-clause (i) of sub-rule (1).”
	SEBI - Exclusively listed companies of De-recognized/ Non-operational/ Exited Stock Exchanges placed in the Dissemination Board
	The Securities and Exchange Board of India (“SEBI”) vide its Circular dated October 10, 2016 has clarified on the previous circulars issued with respect to the raising of further capital and the process of exit of exclusively listed companies (“ELCs”) from the Dissemination Board (“DB”) of the stock exchanges. This Circular is applicable to the ELCs of all de-recognized/non-operational stock exchanges which are exited/in the process of exit in terms of exit Circular dated May 30, 2012. Hence, SEBI through the Circular dated October 10, 2016 has provided the clarifications  https://innovatorsrace50.com/team/compliance-watcher.html#.WJxAx8FH6A4.gmail

11 - Legal & Regulation Updates - India

The Fertilizer (Control) Amendment Order, 2016
	The Ministry of Agriculture and Farmers Welfare, via notification dated September 23, 2016, has issued The Fertilizer (Control) Amendment Order, 2016 to amend the Fertilizer (Control) Order, 1985.
	RBI- Master Direction - Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016
	Reserve Bank of India (RBI) vide notification dated September 29, 2016 has issued Master Directions on Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016. These Directions shall apply to all deposit taking non-banking financial companies and ‘systemically important non-deposit taking non-banking financial companies'. Vide these directions- The NBFCs shall put in place a reporting system for recording frauds without any delay. The NBFCs shall strictly adhere to the timeframe fixed in this Direction for reporting frau. The NBFCs shall disclose the amount related to fraud, reported in the company for the year in their balance sheets.   These directions shall come into force with immediate effect.
	RBI- Publishing of photographs of Willful defaulters
	Reserve Bank of India (RBI) vide notification dated September 29, 2016 has decided that- Through the mechanism set out in the RBI, lending institutions can publish the photographs of only those borrowers, including proprietors/ partners /directors / guarantors of borrower firms/ companies, who have been declared as willful defaulters. This shall not apply to the non-whole time directors who are exempted from being considered as willful defaulters unless the special conditions. The lending institutions shall formulate a policy with the approval of their Board of Directors which clearly sets out the criteria based on the decision taken by them of publishing the photographs of a person so that the approach is neither discriminatory nor inconsistent. The lending institutions shall not publish photographs of any other defaulting borrowers.
	RBI- Master Direction - Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016
	Reserve Bank of India (RBI) vide notification dated September 29, 2016 has issued Master Directions on Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016. Vide these directions- The NBFCs shall put in place a reporting system for filing various returns within the prescribed timeframe. The compilation of the Return should be on the basis of the figures available in the books of account of the company. The returns shall be filed on-line by an authorized official of the NBFC, who will be specifically authorized in this regard by the Board of Directors. The NBFCs shall strictly adhere to the timeframe fixed in this direction for submitting returns to the Bank. These directions shall come into force with immediate effect.
	Guidelines regarding discontinuation of scheduled formulations under Para 21(2) of DPCO, 2013
	The National Pharmaceutical Pricing Authority, through a notice dated September 29, 2016 has issued Guidelines regarding discontinuation of scheduled formulations under Para 21(2) of DPCO, 2013.
	CBEC- Service Tax (Third Amendment) Rules, 2016
	Central Board of Excise and Customs (‘CBEC’) vide notification dated September 28, 2016 has further amended the Service Tax Rules, 1994. Vide this amendment; Form ST-3 is amended. The amendment shall come into force on the date of their publication in the Official Gazette.
	CBDT - Income-tax (23rd Amendment) Rules, 2016
	The Central Board of Direct Taxes vide notification dated September 29, 2016 has further amended the Income Tax rules 1962. Vide this amendment; clause 13 of form 3CD is amended. Clause 13 of Form 3CD is related to ‘income computation and disclosure standards’ This amendment shall come into force from April 1, 2017
	RBI- Investment by Foreign Portfolio Investors (FPI) in Government Securities
	Reserve Bank of India (RBI) vide notification dated September 30, 2016 has announced in the Medium Trade Framework (MTF), to increase the limit for investment by Foreign Portfolio Investors (FPI) in Central Government Securities for the next half year in two tranches each of Rs. 100 billion from October 3, 2016 and January 2, 2017 respectively. As in the previous half-year, the limits for State Development Loans (SDLs) are proposed to be increased in two tranches, each of Rs.35 billion, from October 3, 2016 and January 2, 2017 respectively.
	Maharashtra VAT- Extension in due date for filing of refund application for the year 2014-15 under Maharashtra Vat Act, 2002
	Maharashtra Sales Tax Department vide circular dated October 1, 2016 has extended the due date of filing of refund application for the year 2014-15 under section 51 of Maharashtra Value Added Tax Act, 2002 in Form e-501 upto October 8, 2016.
	MCA: Companies (Incorporation) Fourth Amendment Rules, 2016
	The Ministry of Corporate Affairs (“MCA”) through its Notification dated October 01, 2016 has amended the Companies (Incorporation) Rules, 2014. (‘Rules’). By virtue of this amendment the following changes have been introduced: Order of Tribunal for conversion of Public Company into Private Company. Introduction of Simplified Proforma for Incorporating Company Electronically (“SPICe”). Conversion of a Company limited by guarantee into a company limited by shares:
	IRDAI- Extension of timelines for the submission of comments on draft Insurance Regulatory and Development Authority of India (Insurance Surveyors and Loss Assessors) (First Amendment) Regulations, 2016
	The Insurance Regulatory and Development Authority of India (IRDAI) vide circular dated October 3, 2016 has extended the date of seeking comments from all the stakeholders on draft Insurance Regulatory and Development Authority of India (Insurance Surveyors and Loss Assessors) (First Amendment) Regulations, 2016 till October 9, 2016.
	SEBI - Investments by Foreign Portfolio Investors in Government securities.
	The Securities and Exchange Board of India (“SEBI”) vide its Circular dated October 03, 2016 has decided to  partially modify Para 2 of its Circular IMD/FPIC/CIR/P/2016/45 dated March 29, 2016 to enhance the limit for investment by Foreign Portfolio Investors (“FPIs”) in Government Securities, for the next six months. This circular has come into effect immediately.
	SEBI - Corporate Governance Issues in Compensation Agreements
	The Securities Exchange Board of India (“SEBI”) has issued a consultative paper, proposing the amendments to the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. The Consultative paper proposes to add new Sub-regulation 6 to Regulation 26, which provides for prior approval of Board of Directors and the shareholders by way of ordinary resolution, with regard to compensation or profit sharing agreement between the Employees, Key Managerial Personnel, Director or Promoter of a listed entity and any individual shareholder(s) or any other third party. Further, agreements entered into, prior to the date of proposed amendment i.e. October 04,2016 and which may continue beyond such date, shall be informed to the stock exchanges for public dissemination along with the approval obtained from shareholders by way of an ordinary resolution. In case where the approval from shareholders is not received, all such agreements shall be discontinued.
	MCA- Government Notifies The Insolvency and Bankruptcy Board of India
	Ministry of Corporate Affairs vide Notification dated October 1, 2016 has declared October 1, 2016 as the date of establishment of Insolvency and Bankruptcy Board of India. The head office of the Insolvency and Bankruptcy Board of India shall be at New Delhi.
	Public Utility Service – Banking Industry
	The Ministry of Labour and Employment, Central Government, through a notification dated September 28, 2016, has declared the Baking Industry to be a Public Utility Service. As per the notification dated March 29, 2016 it had declared that the service in Banking Industry under First Schedule, Item 2, Industrial Disputes Act, 1947, is industries to be considered as Public Utility Service for a period of six months with effect from April 21, 2016. The Central Government further extends the said period and declares the Banking Industry to be a Public Utility Service for a period of six months with effect from 21st October 2016.
	The Bihar Factories (Amendment) Rules, 2016
	The Governor of Bihar has issued a notification amending the Bihar Factories Rules, 1950. The Highlights of the amendment are as follows Rule 100 of the said Bihar Factories Rules, 1950 is substituted. https://innovatorsrace50.com/team/compliance-watcher.html#.WJxAx8FH6A4.gmail

10 - Legal & Regulation Updates - India

SEBI Board Meeting

The Securities and Exchange Board of India (“SEBI”) has taken the  following decisions in its meeting held on September 23, 2016

• Amendment to SEBI Regulations to permit Foreign Portfolio Investors (“FPIs”) to trade directly in Corporate Bonds without a broker
• Amendments proposed to the SEBI (Infrastructure Investment Trusts)(“InvIT”) Regulations, 2014 and SEBI (Real Estate Investment Trusts) (“REIT”) Regulations, 2014

MCA - Companies (Management and Administration) Amendment Rules, 2016

The Ministry of Corporate Affairs (“MCA”) through its Notification dated September 23, 2016 has amended the Companies (Management and Administration) Rules, 2014 (‘Rules’).  By virtue of this amendment the following changes have been introduced:

• Transfer of particulars of Register of Members maintained under the Companies Act, 1956 to new register of members maintained under the Companies Act, 2013.
• Omission of the words “Duplicate” for filing Form No. MGT- 4 and MGT-5
• Filing of particulars of change in shareholding pattern of promoters and top ten shareholders
• Conveying of Extra Ordinary Meeting by requisitionists on any day except national holiday

Central Motor Vehicles (14th Amendment) Rules, 2016

The Ministry of Road Transport and Highways, via notification dated September 23, 2016, has issued the Central Motor Vehicles (14th Amendment) Rules, 2016 to amend the Central Motor Vehicles Rules, 1989.

• In Rule 125C, after sub-rule (3) the following is sub-rule is inserted:

“(4) On and after expiry of six months from the date of commencement of the Central Motor Vehicles (14th Amendment) Rules, 2016, the testing and approval for body building of sleeper coaches shall be in accordance with AIS-119 (Rev.1):2016, as amended from time to time, for vehicles mentioned therein, till the corresponding Bureau of Indian Standards specifications are notified under the Bureau of Indian Standards Act, 1986 (63 of 1986)”

Employees Provident Fund- Introduction of Declaration Form (New form No. 11)

The Employees Provident Fund organization has issued order dated September 23, 2016 introducing declaration Form (New Form no. 11) to replace existing Form no. 11.

The Declaration Form (New Form No 11) will also replace Form no 13 in all such cases where existing member to the Provident Fund makes a request for transfer of his fund availing the facility of UAN.

The members who have been allotted UAN and where KYC details have been digitally verified by the previous employer, are not required to fill separate Form No. 13. Rest of the employees will continue to fill Form No. 13 along with New Form No. 11.

The Employees/Employers can access fillable declaration form (New form No. 11) on the member portal which will be pre-filled with all the relevant information.

SEBI-Enhanced Supervision of Stock Brokers/Depository Participants

The Securities Exchange Board of India (“SEBI”), had constituted a committee on “Enhanced Supervision of Stock Brokers”. With a view to implement the recommendations of the committee SEBI vide Circular dated September 26, 2016 has issued the following guidelines: 

• Uniform nomenclature for Naming/Tagging of Bank and Demat Accounts by Stock Broker
• Reporting of Bank and Demat accounts maintained by Stock Broker
• Monitoring of Client’s Funds lying with the Stock Broker by the Stock Exchanges.
• Principles for monitoring of client’s funds lying with the stock brokers

Draft - The Payment of Bonus (Amendment) Rules, 2016

The Ministry of Labour and Employment , through a notification dated September 26th 2016 has invited Objections or suggestions for the draft - The Payment of Bonus (Amendment) Rules, 2016.

The objections or suggestions can be sent before 30 days from the date of notification to the Secretary, Ministry of Labour and Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi- 110 001.

The Aircraft (Third Amendment) Rules, 2016

The Ministry of Civil Aviation, via notification dated September 16, 2016, has issued the Aircraft (Third Amendment) Rules, 2016 to amend the Aircraft Rules, 1937.

Central Motor Vehicles (15th Amendment) Rules, 2016

The Ministry of Road Transport and Highways, via notification dated September 23, 2016, has issued the Central Motor Vehicles (15th Amendment) Rules, 2016 to amend the Central Motor Vehicles Rules, 1989.

IRDAI- Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) (First Amendment) Regulations, 2016

The Insurance Regulatory and Development Authority of India (IRDAI) vide circular dated September 21, 2016 has issued draft on IRDAI (Registration of Insurance Marketing Firm) (First Amendment) Regulations, 2016.

All the stakeholders are requested to review the draft and forward their views / comments in the format provided as Exhibit-II by October 3, 2016 to the following address:

General Manager (IMF),Insurance Regulatory Development Authority, 3rd Floor, Parishram Bhavan, Basheerbagh, Hyderabad – 500 004.

IRDAI- Draft Insurance Regulatory and Development Authority of India (Insurance Surveyors and Loss Assessors) (First Amendment) Regulations, 2016

The Insurance Regulatory and Development Authority of India (IRDAI) vide circular dated September 21, 2016 has issued draft on IRDAI (Insurance Surveyors and Loss Assessors) (First Amendment) Regulations, 2016.

Through this circular All stakeholders have been requested to review the draft and forward their views / comments in the format provided in Exhibit 2 to the address listed below before October 3, 2016.

General Manager (Surveyors), Insurance Regulatory and Development Authority, 03rd Floor, Parishram Bhavan, Basheerbagh, Hyderabad – 500004

National Pharmaceutical Pricing Authority (NPAA) - draft version of 6 Proposed Price Calculation Sheets

Via Office Memorandum dated September 22, 2016 NPPA has released the draft version of proposed price calculation sheets for 6 proposed revised/notified ceiling price/retail price on the website of NPPA. Draft of 6 calculation sheets based on Pharma Trac data are uploaded on the website.
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09 - Legal & Regulation Updates - India

SEBI – Master Circular for Mutual Fund

The Securities Exchange Board of India (“SEBI”), has issued a Master Circular dated September 14, 2016, for Mutual Funds. This master circular is a compilation of all circulars issued by SEBI on mutual funds which are in operation as on date i.e. September 14, 2016.

SEBI - Standardization and Simplification of Procedures for Transmission of Securities

The Securities Exchange Board of India (“SEBI”), vide a Circular dated September 15, 2016 has modified Clause 2 of Annexure A, of the circular dated October 28, 2013 pertaining to requirement of documents for securities held in physical mode and which are held in single name without a nominee.

IRDAI- On-line examination for Surveyors and Loss Assessors.

The Insurance Regulatory and Development Authority of India (IRDAI) vide circular dated September 15, 2016 has decided to conduct on-line examination for grant of license for Surveyors and Loss Assessors from the next financial year i.e. FY 2017-18.

Food Safety and Standards (Packaging and Labelling) Fourth Amendment Regulations, 2016

The Ministry of Health and Family Welfare via notification dated August, 23rd  2016 has issued Food Safety and Standards (Packaging and Labelling) Fourth Amendment Regulations, 2016  to amend the Food Safety and Standards (Packaging and Labelling) Regulations, 2011.

In Regulation 2.4 of Food Safety and Standards (Packaging and Labelling) Regulations, 2011:

• Sub-regulation 2.4.4 relating to “Labelling of Irradiated Food” shall be omitted.
• The Sub-regulation 2.4.5 relating to “Specific Labelling Requirements of other Products” shall be re-numbered as 2.4.4

Food Safety and Standards (Food Products Standards and Food Additives) Seventh Amendment Regulations, 2016

The Ministry of Health and Family Welfare via notification dated September 5, 2016 has issued Food Safety and Standards (Food Products Standards and Food Additives) Seventh Amendment Regulations, 2016 amending the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011.

Central Motor Vehicles (10th Amendment) Rules, 2016

The Ministry of Road Transport and Highways, via notification dated September 14, 2016, has issued the Central Motor Vehicles (10th  Amendment) Rules, 2016 to amend the Central Motor Vehicles Rules, 1989.

• In Rule 124A, Sub-rule (2), after the first proviso, the following proviso is inserted:
• In Rule 126, in the first proviso, after the words “as amended from time to time” occurring at the end the following words, letters, figures and brackets shall be inserted: “and information on technical specifications shall be submitted by the vehicle manufacturer in accordance with AIS-007(Rev.5):2014”

Central Motor Vehicles (11th Amendment) Rules, 2016

The Ministry of Road Transport and Highways, via notification dated September 16, 2016, has issued the Central Motor Vehicles (11th  Amendment) Rules, 2016 to amend the Central Motor Vehicles Rules, 1989.

• In Rule 115, Sub-rule (2) in clause (i) and clause (ii) “in the proviso, for the entry “Bharat Stage-IV”, wherever it occurs, the entry “Bharat Stage IV or Bharat Stage VI ” shall, respectively, be substituted”.
• “Sub-rule (7) in the proviso, for the entry “Bharat Stage-IV”, the entry “Bharat Stage IV or Bharat Stage VI ” shall be substituted. “
• In Rule 115, after Sub-rule (17) the following sub-rules shall be inserted:
• “18) (i)The Emission Standards for Bharat Stage VI (BS-VI) for category M and N vehicles having Gross Vehicle Weight not exceeding 3500kg, manufactured on or after 1st April 2020 for all models.”

Drugs (Price Control) Amendment Order, 2016

The National Pharmaceutical Pricing Authority, through a Order dated September 15, 2016, has fixed the ceiling prices of 18 Scheduled formulations of Schedule-I under Drugs (Price Control) Amendment Order, 2016 and Retail price of 21 formulations under DPCO, 2013.

NSE & BSE - Clarification by SEBI regarding Revenue Recognition and Excise Duty

The National Stock Exchange (“NSE”) and Bombay Stock Exchange (“BSE”), have issued clarification letters dated September 20, 2016 with respect to circulars issued by Securities Exchange Board of India (“SEBI”) dated November 30, 2015 and July 5, 2016. The SEBI circulars were issued, pertaining to ‘Formats for publishing financial results’ and ‘Revised Formats for Financial Results and Implementation of Ind-AS by Listed Entities’ respectively.

In consonance to the above said Circular and Notification, SEBI issued another Circular dated July 5, 2016, stating that in case of any technical difficulty in interpretation of the formats or implementation of this Circular, listed entities shall be guided by the relevant provisions of the Ind-AS Rules / AS Rules and Schedule III of the Act.

SEBI - Consolidated Account Statement

The Securities Exchange Board of India (“SEBI”), vide a Circular dated September 20, 2016 has partially modified Clause A of Circular dated March 18, 2016 pertaining to half-yearly Consolidated Account Statement (“CAS”).

As per the Circular dated September 20, 2016, a mention may be made in half-yearly CAS indicating that the commission disclosed is gross commission and it does not exclude costs incurred by distributors such as service tax (wherever applicable, as per existing rates), operating expenses, etc.

Further, an indicative format providing guidance on the key components which shall be reflected in CAS is attached.

The provisions of this Circular will be effective for CAS issued from October 01, 2016.

SEBI - Staggered delivery, early delivery system, early pay-in facility, penalty on delivery default, fixation of FSP and changes in expiry dates

The Securities Exchange Board of India (“SEBI”), vide a Circular dated September 21, 2016 has consolidated and updated the norms for early delivery as well as pay-in facility and penalty on sellers in case of delivery default which were prescribed for National Commodity Derivatives Exchanges by the erstwhile Forward Markets Commission (“FMC”). It has also put in place measures such as staggered delivery system, fixation of final settlement price (“FSP”) and change in expiry date.

Central Motor Vehicles (Twelfth Amendment) Rules, 2016

The Ministry of Road Transport and Highways, via notification dated September 21, 2016, has issued the Central Motor Vehicles (Twelfth  Amendment) Rules, 2016 to amend the Central Motor Vehicles Rules, 1989.

• In Rule 125(C ), Sub-rule (1) the proviso is substituted-

“Provided that the provision of this rule shall be implemented in two phases.

• In first phase, the provisions of AIS 052(Rev. 1) – 2008, excluding the parameters and requirements given in Table-1, shall be applicable on and after 1st day of January, 2017.
• In second phase, the provisions of AIS-052(Rev. 1) – 2008, as amended from time to time, and the parameters and requirements given in (Table-1), shall be applicable on and after 1st day of January, 2018.”

Employees State Insurance Corporation- Achievements/Initiatives during past two years

The Employees State Insurance Corporation via press release dated September, 15th 2016 has stated the achievements/Initiatives of ESIC during past two years.

ESIC has taken a number of new initiatives in order to extend the social security coverage of ESI Scheme and to improve the medical care being provided under the ESI Scheme.

National Pharmaceutical Pricing Authority (NPAA) - draft version of 19 Proposed Price Calculation Sheets

Via Office Memorandum dated September 21, 2016 NPPA has released the draft version of proposed price calculation sheets for 19 proposed revised/notified ceiling price/retail price on the website of NPPA. Draft of 19 calculation sheets based on Pharma Trac data are uploaded on the website.

All the companies aggrieved by NPPA’s proposed price fixation, can make representations against the proposed ceiling price/retail price by submitting documents /information of price to retailer (PTR) and Moving Annual Turnover (MAT) data along with supporting documents like copies of sample invoices to retailer and samples of August, 2015 duly attested with name, designation, mobile no, signature and seal of the authorized officer of the company along with the summary of all the invoices issued during the month of August 2015 (giving details like Invoice No. , Date, Name of Distributor, & Retailer, quantity, pack size, PTR (excluding VAT), Discounts/Free goods, (if any) and copies of supporting Form V/IPDMS, within 10 working days to NPPA in order to take necessary action in this regard.

Central Drugs Standard Control Organization-Online portal SUGAM

The Central Drugs Standard Control Organization Directorate General of Health Services, has issued a Notice dated September 21, 2016 relating to implementation of e-Governance on launching of the portal.

The Portal is intended for filing applications for various services rendered by CDSCO. In first phase filing of applications import and registrations of drugs, Medical devices were launched. Now the service is being extended to applications of BA/BE NOC for export.

Further it is decided to convene a meeting with all stakeholders i.e., firms involved in applications of BA/BE NOC for Export, to attend the said meeting to be held on 23rd September 2016 at 10.30 AM, FDA Bhawan, New Delhi for their inputs, in order to streamline the online system for BA/BE NOC.

Drugs and Cosmetics (Sixth Amendment) Rules, 2016

The Ministry of Health and Family welfare  via notification dated September, 21st   2016 has issued the Drugs and Cosmetics (Sixth Amendment) Rules, 2016 to amend the Drugs and Cosmetics Rules, 1945.

• In Schedule D(I), in item 2, for “sub-item 2.3” the following is substituted-

“2.3 A copy of Good Manufacturing Practice (GMP) certificate as per WHO – GMP guidelines or Certificate of Pharmaceutical Products (CPP) or written confirmation for active substances exported to European Union which is equivalent to GMP certificate issued as per WHO – GMP guidelines, by the National Regulatory Authority of the country of origin or a copy of the certificate equivalent to GMP certificate as per WHO GMP guidelines issued by National Regulator of United States of America or Japan or Australia or Canada or the European Union for the purpose of marketing of the drugs in their country, in relation to bulk drugs or formulations or special product meant for import into India.”
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08 - Legal & Regulation Updates - India

MCA notifies ‘Companies (Mediation and Conciliation) Rules, 2016

The Ministry of Corporate Affairs “(MCA)”, via Notification dated September 9, 2016 has notified the ‘Companies (Mediation and Conciliation) Rules, 2016 “(Rules)” which shall come into force with effect from the date of their publication in the Official Gazette.

Relaxation of additional fees for filing IEPF 1

The Ministry of Corporate Affairs “MCA”, through a General Circular dated September 12, 2016 has clarified that Companies that have not filed the requisite information in Form 1 INV can now file the information in new Form IEPF 1 (which replaces earlier Form 1 INV) after the notification of ‘Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016’ with effect from September 7, 2016.

MCA: Amendments in Schedule V of Companies Act 2013

The Ministry of Corporate Affairs (“MCA”), vide its notification dated September 12, 2016 has made the following amendments in Schedule V of the Companies Act 2013 which deals with “Conditions to be fulfilled for the Appointment of a Managing or Whole time Director or a Manager without the approval of the Central Government”.

Mines and Minerals (Contribution to District Mineral Foundation) (Amendment) Rules, 2016

The Ministry of Coal, through a notification dated August 31, 2016 has issued the Mines the Minerals (Contribution to District Mineral Foundation) (Amendment) Rules, 2016 to amend the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015.

Bihar Industrial Investment Promotion Act, 2016

The Government of Bihar via notification dated September 2nd 2016 has issued the Bihar Industrial Investment Promotion Act, 2016 to provide for facilitating the promotion and development of investment in Bihar.

Directions under Section 16(5) of Food Safety and Standards Act, 2006

The Food Safety and Standards Authority of India has issued a notice dated September, 9 2016 for direction under Section 16(5) of Food Safety and Standards Act, 2006 regarding Regulations 2.2.2(3) and 2.6.1(3) of the Food Safety and Standards (Packaging and labeling) Regulations, 2011.
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07 - Legal & Regulation Updates - India

IRDAI- Clarifications on Transitory Provisions under section 64 UM(3) read with regulation 27 of The IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015

The Insurance Regulatory and Development Authority of India (IRDAI) vide circular dated September 7, 2016 has issued clarification on transitory Provisions under section 64UM(3) read with regulation 27 of The IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015.

SEBI: FAQs on Know Your Client (“KYC”) norms for Offshore Derivative Instruments (“ODI”) subscribers, transferability of ODIs, reporting of suspicious transactions, periodic review of systems and modified ODI reporting format

The Securities and Exchange Board of India (“SEBI”), has issued FAQs on September 01, 2016 and provided clarifications with respect to the circular dated June 10, 2016 issued by it on the above cited subject. The brief points covered by these FAQs are as follows:

MCA notifies certain provisions of Companies Act 2013 relating to Unpaid Dividend Account and IEPF

The Ministry of Corporate Affairs “MCA” , through a Notification dated September 5, 2016 notified the following provisions pertaining to Unpaid Dividend Account and Investor Education and Protection Fund of the Companies Act 2013.

SEBI Restrictions on Promoters and Whole-Time Directors of Compulsorily Delisted Companies Pending Fulfilment of Exit Offers to the Shareholders

The Securities Exchange Board of India “SEBI”, has vide a circular dated September 7, 2016 amplified certain restrictive provisions on Companies, Promoters and Whole Time Directors in addition to those restrictions specified under Regulation 23(3) and 24 of the SEBI (Delisting of Equity Shares) Regulations 2009.

Food Safety and Standards (Packaging and Labelling) Fourth Amendment Regulations, 2016

The Ministry of Health and Family Welfare via notification dated August, 23rd 2016 has issued Food Safety and Standards (Packaging and Labelling) Fourth Amendment Regulations, 2016 to amend the Food Safety and Standards (Packaging and Labelling) Regulations, 2011.

Internet broadcasting/streaming companies fall under the ambit of the Copyright Act, 1957

Department of Industrial Policy and Promotion (‘DIPP’) has clarified that internet broadcasting companies fall within the purview of section 31 D of the Copyright Act 1957. Section 31 D of the 1957 Act requires organizations to have a statutory license for the purpose of broadcasting of literary and musical works.

IRDAI- Amendment in IRDAI’s (Registration and Operations of Branch offices of Foreign Reinsurers other than Lloyd’s) Regulations, 2015

The Insurance Regulatory and Development Authority of India (IRDAI) vide circular dated September 2, 2016 has issued draft on amendment to Regulation 16(c), 28(2), 28(5) and 28(7) of IRDAI’s (Registration and Operations of Branch offices of Foreign Reinsurers other than Lloyd’s) Regulations, 2015 dealing with Investment requirements.

RBI - Merchant Discount Rates (MDR) structure – unbundling of charges

The Reserve Bank of India (‘RBI’) through a notification dated September 1, 2016 has advised all banks to keep greater transparency in merchant discount rates (MDR) applicable at merchant level.

Operationalization of Food Safety and Standards (Food Import) Regulations, 2016

The Food Safety and Standards Authority of India has issued a notice dated September, 2 2016 for Operationalization of Food Safety and Standards (Food Import) Regulations, 2016.

RBI - Master Direction - Non-Banking Financial Company - Account Aggregator (Reserve Bank) Directions, 2016

The Reserve Bank of India (‘RBI’) has issued Master Directions on Non-Banking Financial Company - Account Aggregator. These directions provide a framework for the registration and operation of Account Aggregator in India.

Section 66 of The Motor vehicles Act

The Ministry of road Transport and Highways has issued a order dated August 30, 2016 that Section 66 of the Motor Vehicles act shall not apply to transport vehicle.

Examination for Safety and Efficacy of Fixed Dose Combinations (FDCs)

The Directorate General of Health Services Office of Drugs Controller General has issued a notice dated September 1, 2016 for Examination for Safety and Efficacy of Fixed Dose Combinations (FDCs) licensed for manufacture for sale in the country without due approval from office of DCG (I).

RBI - Master Direction - Non-Banking Financial Company –Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016

The Reserve Bank of India (‘RBI’) has issued Master Directions on Non-Systemically Important Non-Deposit taking Company (NBFC-ND) applicable to every Non Banking Financial Company’s (NBFC’s).

RBI - Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016

The Reserve Bank of India (‘RBI’) has issued Master Directions on Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFCND-SI) and Deposit taking Non-Banking Financial Company (NBFC-D) applicable to the following.

Gujarat VAT- Single common log in id for tax payers under various Acts in state of Gujarat

Finance department, Gujarat vide this notification has availed the facility of single common log in id under Gujarat Value Added Tax Act, 2003, The Central Sales Tax Act, 1969, the Tax on Entry of Specified Goods into Local Area Act, 2001, Profession Tax Act, 1976, Entertainment Tax Act, 1977 & the Luxury Tax Act, 1977 from September 1, 2016 in the state.
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