CS Leena Ambwani

Foreign Direct Investment (FDI) in India – Review of FDI policy –Insurance sector

April 1, 2016 by CS Leena Ambwani

The extent of FDI policy for Insurance sector has since been reviewed by the Government of India and accordingly it has been decided to enhance the limit of foreign investment in insurance sector from 26 to 49 percent under the automatic route subject to certain terms and conditions which have been notified through Notification No. FEMA. 366/2016-RB dated March 30, 2016

Authorised Dealer banks may bring the contents of this circular to the notice of their constituents and customers concerned.

The directions contained in this circular have been issued under section 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Import of foreign exchange into India

February 5, 2016 by CS Leena Ambwani

Foreign Exchange Management (Export and import of currency) Regulations, 2015

RBI vide FEMA NOTIFICATION NO 6 /RB-2015, Dated: December 29, 2015 notified that,

A person may –
a) send into India without limit foreign exchange in any form other than currency notes, bank notes and travelers cheques;
b) bring into India from any place outside India without limit foreign exchange (other than unissued notes),

provided that bringing of foreign exchange into India under clause b) shall be subject to the condition that such person makes, on arrival in India, a declaration to the Custom authorities in Currency Declaration Form (CDF) annexed to these Regulations;
provided further that it shall not be necessary to make such declaration where the aggregate value of the foreign exchange in the form of currency notes, bank notes or traveler’s cheques brought in by such person at any one time does not exceed US$10,000 (US Dollars ten thousands) or its equivalent and/or the aggregate value of foreign currency notes brought in by such person at any one time does not exceed US$ 5,000 (US Dollars five thousands) or its equivalent.

Women can be ‘karta’ of a Hindu Undivided Family: A landmark Ruling, Delhi High Court

February 5, 2016 by CS Leena Ambwani

A recent landmark judgment by Delhi High Court held that the eldest woman of a Hindu Undivided Family can be its ‘Karta’, a term which denotes the managership of an HUF. The issue to be decided by the Court was whether the plaintiff, Mrs. Sujata Sharma, who was the first born amongst the co-parceners of a Hindu Undivided Family property, would by virtue of her birth, be entitled to be its Karta. The parties to the suit before the Court were co-parceners of D.R. Gupta & Sons, HUF. The Court gave due consideration to the Hindu Succession (Amendment) Act, 2005, pursuant to which all rights which were available to a Hindu male are now also available to a Hindu female. A daughter is now recognized as a co-parcener by birth in her own right and has the same rights in the co-parcenary property that are given to a son.

Allowing the petition filed by Mrs. Sharma, Justice Waziri observed, “Section 6 of the Hindu Succession Act is a socially beneficial legislation; it gives equal rights of inheritance to Hindu males and females. Its objective is to recognize the rights of female Hindus as co-parceners and to enhance their right to equality apropos succession. Therefore, Courts would be extremely vigilant and apt in any endeavor to curtail or fetter the statutory guarantee of enhancement of their rights. Now that this disqualification has been removed by the 2005 Amendment, there is no reason why Hindu women should be denied the position of a Karta.

Central Registration Centre for Approval of Name

February 5, 2016 by CS Leena Ambwani

Ministry of Corporate Affairs sets up Central Registration Centre (CRC) on Republic Day

The Ministry of Corporate Affairs has taken the initiative in Government Process Re-engineering (GPR) and launched the Central Registration Centre (CRC), on the occasion of Republic Day 2016, with the specific objective of providing speedy incorporation related services within stipulated time frames which are in line with international best practices.

The GPR involves a three pronged approach of further automating some of the approval processes by utilizing advanced software tools & engines, rationalizing and modifying some of the rules and engaging professionals to expedite the process of manual scrutiny.

In the first phase, the CRC will process applications for name availability (INC-1 e-forms) submitted on line across the country and endeavor to process these by the end of next working day. Operations of the CRC will formally commence w.e.f. 27 January 2016 and more services will be rolled out progressively.

The GPR exercise is in pursuance of the ministry’s objective of providing greater “Ease of Doing Business” to corporates and is expected to result in speedier processing of incorporation related applications, uniformity in application of rules, eradicating discretion. It will also be supplemented by intensive monitoring aimed at providing timely approvals.

Source:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=135766

Steps for Curbing Volatility in Commodities Derivatives Markets

February 5, 2016 by CS Leena Ambwani

In accordance with Central government notifications F. No. 1/9/SM/2015 S.O. 2362 (E) and F. No. 1/9/SM/2015 S.O. 2363 (E) dated August 28, 2015, SEBI had commenced regulating the commodity derivatives market under Securities Contracts Regulation Act (SCRA) 1956 with effect from 28th September, 2015.
With a view to curb the speculative participation and consequent volatility in prices of agricultural commodities, SEBI has reviewed the existing norms related to commodity derivatives markets and has decided to make following regulatory changes in the case of trading of agricultural commodities :-
1. Reducing the position limits for near month contracts for both member and client level from present 50% to 25% of the overall position limits for all contracts expiring in the month of March, 2016 and onwards.
2. Reducing the Daily Price Limits (DPL) from 6% to 4%.
SEBI has also reviewed the performance and operation of the forward contracts being traded on the Commodity Derivatives Exchanges and as a risk management measure has decided to stop entering into fresh contracts by the participants in Forwards Segment till further orders. However, the existing contracts will be allowed to be settled as per the terms of the contracts.
These steps are being taken in the interest of trade and public interest and for instilling confidence of market participants in commodity derivatives markets.

Source:
http://www.sebi.gov.in/cms/sebi_data/pdffiles/32835_t.pdf