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