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-
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