Sharings

 




 




SEBI Notifications

  • 24 Nov 2017 22:00:01 +0530


  • Adjudication Order in the matter of Delta Polyster Ltd  (24 Nov, 2017 +0530)

    Adjudication Order in the matter of Delta Polyster Ltd


    Adjudication order in the matter of PCI Chemicals & Pharmaceuticals Ltd  (24 Nov, 2017 +0530)

    Adjudication order in the matter of PCI Chemicals & Pharmaceuticals Ltd


    Adjudication Order in respect of Chemo Pharma Laboratories Ltd.  (24 Nov, 2017 +0530)

    Adjudication Order in respect of Chemo Pharma Laboratories Ltd.


    Adjudication order in the matter of Boston Education & Software Technologies Limited  (24 Nov, 2017 +0530)

    Adjudication order in the matter of Boston Education & Software Technologies Limited


    Adjudication Order dated November 24, 2017, in respect of Cenetrac Technologies Limited  (24 Nov, 2017 +0530)

    Adjudication Order dated November 24, 2017, in respect of Cenetrac Technologies Limited


    Adjudication Order dated November 24, 2017, in respect of Giriraj Print Plast Limited  (24 Nov, 2017 +0530)

    Adjudication Order dated November 24, 2017, in respect of Giriraj Print Plast Limited


    Adjudication Order in respect of Ms. Ilaben Manojbhai Majevadiya in the matter of unregistered Investment Advisory Activities by the Khanda Group  (24 Nov, 2017 +0530)

    Adjudication Order in respect of Ms. Ilaben Manojbhai Majevadiya in the matter of unregistered Investment Advisory Activities by the Khanda Group


    Adjudication Order in the matter of M/s Realtime Finlease Ltd  (24 Nov, 2017 +0530)

    Adjudication Order in the matter of M/s Realtime Finlease Ltd


    Order in the matter of Orissa Sponge Iron & Steel Ltd  (23 Nov, 2017 +0530)

    Order in the matter of Orissa Sponge Iron & Steel Ltd


    Adjudication Order in respect of Shri Harbhajansingh Maliksingh Rajpal in the matter of Zenith Birla (India) Limited  (23 Nov, 2017 +0530)

    Adjudication Order in respect of Shri Harbhajansingh Maliksingh Rajpal in the matter of Zenith Birla (India) Limited


    Adjudication order in the matter of Chemox Securities Limited  (23 Nov, 2017 +0530)

    Adjudication order in the matter of Chemox Securities Limited


    Order in the matter of Real Tulip India Limited  (23 Nov, 2017 +0530)

    Order in the matter of Real Tulip India Limited


    Adjudication Order in the matter of SGI Research & Analysis Limited  (23 Nov, 2017 +0530)

    Adjudication Order in the matter of SGI Research & Analysis Limited


    Adjudication order in respect of Aditya Birla Money Limited  (23 Nov, 2017 +0530)

    Adjudication order in respect of Aditya Birla Money Limited


    Adjudication Order in respect of Shri Jangoo Dalal in the matter of M/s Smartlink Network Systems Ltd  (23 Nov, 2017 +0530)

    Adjudication Order in respect of Shri Jangoo Dalal in the matter of M/s Smartlink Network Systems Ltd


    Adjudication Order in respect of BP Fintrade Private Limited in the matter of Dr. Datsons Lab Limited  (23 Nov, 2017 +0530)

    Adjudication Order in respect of BP Fintrade Private Limited in the matter of Dr. Datsons Lab Limited


    Adjudication order In respect of Secure Earth Technologies Ltd  (23 Nov, 2017 +0530)

    Adjudication order In respect of Secure Earth Technologies Ltd


    Adjudication Order dated November 23, 2017 in the matter of Paharimata Industrial Development Ltd  (23 Nov, 2017 +0530)

    Adjudication Order dated November 23, 2017 in the matter of Paharimata Industrial Development Ltd


    Order in the matter of insider trading by suspected entities in the scrip of Bank of Rajasthan  (22 Nov, 2017 +0530)

    Order in the matter of insider trading by suspected entities in the scrip of Bank of Rajasthan


    Adjudication Order in the matter of Ishwar Medical Services Limited  (22 Nov, 2017 +0530)

    Adjudication Order in the matter of Ishwar Medical Services Limited


    Adjudication Order in the matter of Sheena Textiles Limited  (22 Nov, 2017 +0530)

    Adjudication Order in the matter of Sheena Textiles Limited


    Adjudication order in the matter of Prime Petro Products Limited  (22 Nov, 2017 +0530)

    Adjudication order in the matter of Prime Petro Products Limited


    Adjudication order in the matter of Viral Syntex Limited  (22 Nov, 2017 +0530)

    Adjudication order in the matter of Viral Syntex Limited


    Adjudication Order in respect of Ms. Sohni Dipak Tanna in the matter of Looks Health Services Limited  (22 Nov, 2017 +0530)

    Adjudication Order in respect of Ms. Sohni Dipak Tanna in the matter of Looks Health Services Limited


    Adjudication Order in respect of Shri. Harish C Mirchandani in the matter of Jyoti Structures Limited  (22 Nov, 2017 +0530)

    Adjudication Order in respect of Shri. Harish C Mirchandani in the matter of Jyoti Structures Limited


    Adjudication Order in respect of M/s Multi Colour Offset Limited  (22 Nov, 2017 +0530)

    Adjudication Order in respect of M/s Multi Colour Offset Limited


    Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2017.  (21 Nov, 2017 +0530)

    Securities and Exchange Board of India (Intermediaries) (Amendment) Regulations, 2017.


    Order in the matter of M/s Nirmal Infrahome Corporation Limited  (21 Nov, 2017 +0530)

    Order in the matter of M/s Nirmal Infrahome Corporation Limited


    Order in the matter of K-Lifestyle & Industries Limited  (21 Nov, 2017 +0530)

    Order in the matter of K-Lifestyle & Industries Limited


    Order in the matter of M/s Eskay K’n’it (India) Limited  (21 Nov, 2017 +0530)

    Order in the matter of M/s Eskay K’n’it (India) Limited


     




    RBI Notifications



  • Conversion of debt into equity- Review  (Thu, 23 Nov 2017 18:00:00)

    RBI/2017-18/101
    DNBR.PD(ARC)CC. No.04/26.03.001/2017-18

    November 23, 2017

    The Chairman/ Managing Director/ Chief Executive Officer

    All registered Asset Reconstruction Companies

    Dear Sir/Madam,

    Conversion of debt into equity- Review

    Please refer to our Circular DNBS(PD)CC.No. 35/SCRC/26.03.001/2013-14 dated January 23, 2014 on the above subject.

    2. On a review of the limit imposed on shareholding of the post converted equity of the borrower company under reconstruction by Asset Reconstruction Companies (ARCs), it has been decided to exempt ARCs meeting the criteria set out in paragraph 3 below from the cap of 26% subject to compliance with the provisions of the SARFAESI Act, 2002, Guidelines/ Instructions issued by Reserve Bank of India from time to time as applicable to ARCs as well as Foreign Exchange Management Act, 1999, Reserve Bank of India Act, 1934, Companies Act, 2013, SEBI Regulations and other relevant Statutes. The extent of shareholding post conversion of debt into equity shall be in accordance with permissible Foreign Direct Investment (FDI) limit for that specific sector.

    3. ARCs that meet the conditions mentioned below are exempted from the limit of shareholding at 26% of post converted equity of the borrower company:

    1. The ARC shall be in compliance with Net Owned Fund (NOF) requirement of ₹ 100 crore on an ongoing basis;

    2. At least half of the Board of Directors of the ARC comprises of independent directors;

    3. The ARC shall frame policy on debt to equity conversion with the approval of its Board of Directors and may delegate powers to a Committee comprising majority of independent directors for taking decisions on proposals of debt to equity conversion;

    4. The equity shares acquired under the scheme shall be periodically valued and marked to market. The frequency of valuation shall be at least once in a month.

    4. The ARC shall explore the possibility of preparing a panel of sector-specific management firms/ individuals having expertise in running firms/ companies which could be considered for managing the companies.

    Yours faithfully,

    (C D Srinivasan)
    Chief General Manager



    Special Deposit Scheme (SDS)-1975 Payment of interest for calendar year 2017  (Thu, 23 Nov 2017 17:00:00)

    RBI/2017-18/100
    DGBA.GBD.No.1387/15.01.001/2017-18

    November 23, 2017

    The Chairman/Managing Director/Chief Executive Officer/
    Agency Banks Handling the Special Deposit Scheme 1975

    Dear Sir

    Special Deposit Scheme (SDS)-1975
    Payment of interest for calendar year 2017

    We want to inform that gazette notifications related to interest rates for SDS 1975 are available in Government of India website viz. egazette.nic.in which can be perused for guidance. You may please ensure that interest for the calendar year 2017 for SDS 1975 is disbursed to the account holders as per the rates mentioned in the gazette.

    2. We advise that interest for the calendar year 2017 may be disbursed to the SDS account holders through electronic mode or by way of account payee cheques on January 01, 2018 itself, subject to instructions, as applicable now, contained in our circular CO.DT.No.15.01.001/H-3527/2003-04 dated December 30, 2003.

    3. Please issue suitable instructions to all your Deposit Offices.

    Yours faithfully

    (Harsha Vardhan)
    Manager



    Auction of Government Securities: Non-Competitive Bidding Facility to retail investors  (Thu, 23 Nov 2017 17:00:00)

    RBI/2017-18/99
    IDMD.1080/08.01.001/2017-18

    November 23, 2017

    All Scheduled Commercial Banks
    All State Co-operative Banks / All Scheduled Primary
    (Urban) Co-operative Banks / All Financial Institutions /
    All Primary Dealers/All stock exchanges

    Dear Madam/ Sir,

    Auction of Government Securities: Non-Competitive Bidding Facility to retail investors

    Please refer to the circular IDMC./08.01.02/2001-02 dated December 7, 2001 as well as the press release dated July 28, 2016 whereby the facility of non-competitive bidding in Government of India dated securities and T-Bills was allowed to retail investors.

    2. As part of the overall strategy of diversifying the investor base for government securities, the Government of India and RBI have been taking various measures to encourage participation of retail investors in G-Sec market including introduction of non-competitive bidding in primary auctions. In continuation of this endeavour, the Union Budget 2016-17 had announced, inter-alia, that RBI will facilitate retail participation in the primary markets through stock exchanges. In line with this announcement and in consultation with SEBI, it has been decided that in addition to scheduled banks and primary dealers;

    1. Specified stock exchanges will be permitted to act as aggregators/facilitators.

    2. These stock exchanges will submit a single consolidated non-competitive bid in the auction process and will put in place necessary processes to transfer the securities so allotted in the primary auction to their members/clients.

    3. Stock-exchanges, desirous of acting as aggregators/facilitators, may approach CGM, IDMD, RBI, with a copy of the No Objection Certificate (NOC) from SEBI, for necessary approvals.

    3. The updated Scheme for Non-Competitive Bidding Facility in the auctions of Government Securities and Treasury Bills is given in Annex.

    Yours faithfully,

    (A. Mangalagiri)
    Chief General Manager


    Annex

    Scheme for Non-Competitive Bidding Facility in the auction of
    Government of India Dated Securities and Treasury Bills

    I. Scope: With a view to encouraging wider participation and retail holding of Government securities, retail investors are allowed participation on “non-competitive” basis in select auctions of dated Government of India (GoI) securities and Treasury Bills.

    II. Definitions: For the purpose of this scheme, the terms shall bear the meaning assigned to them as under:

    1. Retail investor is any person, including individuals, firms, companies, corporate bodies, institutions, provident funds, trusts, and any other entity as may be prescribed by RBI.

    2. ‘Aggregator/Facilitator’ means a Scheduled Bank or Primary Dealer or Specified Stock Exchange permitted to aggregate the bids received from the investors and submit a single bid in the non-competitive segment of the primary auction.

    3. ‘Specified stock exchange’ means SEBI recognised Stock Exchange, which have received No Objection Certificate (NOC) from SEBI to act as aggregator/facilitator in the primary auction segment.

    4. ‘Eligible Provident Funds’ are those non-government provident funds governed by the Provident Funds Act 1925 and Employees’ Provident Fund and Misc. Provisions Act, 1952 whose investment pattern is decided by the Government of India.

    III. Eligibility:

    (A) Participation on a non-competitive basis in the auctions will be open to a retail investor who:

    1. does not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the Reserve Bank of India; and

    2. Submits the bid indirectly through an Aggregator/Facilitator permitted under the scheme.

    Exceptions:

    a. Regional Rural Banks (RRBs) and Cooperative Banks:

    1. Regional Rural Banks (RRBs) and Cooperative Banks shall be covered under this Scheme only in the auctions of dated securities in view of their statutory obligations.

    2. Since these banks maintain SGL account and current account with the Reserve Bank of India, they shall be eligible to submit their non-competitive bids directly.

    b. State Governments, eligible provident funds and Others:

    1. State Governments, eligible provident funds in India, the Nepal Rashtra Bank, Royal Monetary Authority of Bhutan and any Person or Institution, specified by the Bank, with the approval of Government, shall be covered under this scheme only in the auctions of Treasury Bills.

    2. These bids will be outside the notified amount.

    3. There will not be any restriction on the maximum amount of bid for these entities.

    IV. Quantum: Allocation of non-competitive bids from retail investors will be restricted to a maximum of five percent of the aggregate nominal amount of the issue within the notified amount as specified by the Government of India, or any other percentage determined by Reserve Bank of India.

    V. Amount of Bid:

    1. The minimum amount for bidding will be Rs.10,000 (face value) and thereafter in multiples in Rs.10,000 as hitherto.

    2. In the auctions of GoI dated securities, the retail investors can make a single bid for an amount not more than Rupees Two crore (face value) per security per auction.

    VI. Other Operational Guidelines:

    1. The retail investor desirous of participating in the auction under the Scheme would be required to maintain a depository account with any of the depositories or a gilt account under the constituent subsidiary general ledger (CSGL) account of the Aggregator/Facilitator.

    2. Under the Scheme, an investor can make only a single bid in an auction. An undertaking to the effect that the investor is making only a single bid will have to obtained and kept on record by the Aggregator/Facilitator.

    Submission of Bids:

    3. Each Aggregator/Facilitator on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Except in extraordinary circumstances such as general failure of the Reserve Bank of India Core Banking Solution (E-Kuber) system, non-competitive bid in physical form will not be accepted.

    Allotment of Bids:

    4. Allotment under the non-competitive segment to the Aggregator/Facilitator will be at the weighted average rate of yield/price that will emerge in the auction on the basis of the competitive bidding. The securities will be issued to the Aggregator/Facilitator against payment on the date of issue irrespective of whether they have received payment from their clients.

    5. In case the aggregate amount of bid is more than the reserved amount (5% of notified amount), pro rata allotment would be made. In case of partial allotments, it will be the responsibility of the Aggregator/Facilitator to appropriately allocate securities to their clients in a transparent manner.

    6. In case the aggregate amount of bids is less than the reserved amount, the shortfall will be taken to competitive portion.

    Issue of Security:

    7. Security would be issued only in SGL form by RBI. The Aggregator/Facilitator has to clearly indicate at the time of tendering the non-competitive bids the amounts (face value) to be credited to their main SGL or CSGL account.

    8. Delivery in physical form from the Main SGL account is permissible at the instance of the investor subsequently.

    9. It will be the responsibility of the Aggregator/Facilitator to pass on the securities to their clients. Except in extraordinary circumstances, the transfer of securities to the clients should be completed within five working days from the date of issue.

    Commission/Brokerage charged to Clients

    10. The Aggregator/Facilitator can recover upto six paise per Rs.100 as brokerage/commission/service charges for rendering this service to their clients. Such costs may be built into the sale price or recovered separately from the clients.

    11. In case, the securities are transferred subsequent to the issue date of the security, the consideration amount payable by the client to the Aggregator/Facilitator will include accrued interest from the date of issue.

    12. Modalities for obtaining payment from clients towards cost of the securities, accrued interest, wherever applicable, and brokerage/commission/service charges may be worked out by the Aggregator/Facilitator as per agreement with the client.

    13. It may be noted that no other costs, such as funding costs, should be built into the price or recovered from the client.

    VIII. Reporting Requirements:

    Aggregators/Facilitators will be required to furnish information relating to operations under the Scheme to the Reserve Bank of India (Bank) as may be called for from time to time within the time frame prescribed by the Bank.

    IX. The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered necessary, the Scheme will be modified.



    Auction of Government of India Dated Securities  (Mon, 20 Nov 2017 18:55:00)

    RBI/2017-18/98
    Ref.No.IDMD/1243/08.02.032/2017-18

    November 20, 2017

    All Scheduled Commercial Banks
    All State Co-operative Banks/All Scheduled Primary
    (Urban) Co-operative Banks /All Financial Institutions/
    All Primary Dealers.

    Dear Sir/Madam,

    Auction of Government of India Dated Securities

    Government of India has offered to sell (re-issue) four dated securities for notified amount of ₹ 15,000 crore as per the following details:

    Sr No Security Notified Amount
    (in ₹ crore)
    GoI Notification Auction Date Settlement date
    1 6.84% GS 2022 3,000 F.No.4(7) W&M/2017 dated
    November 20, 2017
    November 24, 2017
    (Friday)
    November 27, 2017
    (Monday)
    2 6.68% GS 2031 8,000
    3 6.57% GS 2033 2,000
    4 6.62% GS 2051 2,000
      Total 15,000      

    Subject to the limit of ₹ 15000 Cr being total notified amount, GoI will have the option to retain additional subscription up to ₹ 1000 Cr against any of the above security.

    The auction for securities will be price based using multiple price method. The Reserve Bank of India at Mumbai will conduct the auctions. The salient features of the auctions and the terms and conditions governing the issue of the Stocks are given in the notifications (copies enclosed), which should be read along with the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    2. We wish to draw your attention, in particular, to the following:

    (i) The Stocks will be issued for a minimum amount of ₹ 10,000/- (nominal) and in multiples of ₹ 10,000/- thereafter.

    (ii) In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities. Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price that will emerge in the auction on the basis of the competitive bidding.

    (iii) Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on November 24, 2017. Bids in physical form will not be accepted except in extraordinary circumstances. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    (iv) An investor can submit more than one competitive bid at different prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.

    (v) On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.

    (vi) The result of the auctions will be announced on November 24, 2017 (Friday) and payment by successful bidders will be on November 27, 2017 (Monday).

    (vii) The Government Stocks will be issued by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate. Interest on the Government Stock will be paid half-yearly.

    (viii) The Government Stocks will be repaid at par on December 19, 2022; September 17, 2031; December 5, 2033, and November 28, 2051 respectively.

    (ix) The Stocks will qualify for the ready forward facility.

    (x) The Stocks will be eligible for “When Issued” trading during the period November 21 – November 24, 2017 in accordance with guidelines on ‘When Issued’ transactions in Central Government Securities issued by Reserve Bank of India vide circular No.RBI /2006-07/178 dated November 16, 2006 as amended from time to time.

    Yours faithfully

    (Latha Vishwanath)
    General Manager



    Auction for Sale (Re-issue) of Government Stock (GS)  (Mon, 20 Nov 2017 18:50:00)

    Government of India
    Ministry of Finance
    Department of Economic Affairs
    Budget Division

    New Delhi, dated November 20, 2017

    NOTIFICATION

    Auction for Sale (Re-issue) of Government Stock (GS)

    F.No.4(7)W&M/2017:Government of India(GoI) hereby notifies sale(re-issue) of the following Government Stocks:

    Name of the Security Date of Original Issue Tenure
    (yy-mm-dd)
    Date of Maturity Base Method Notified Amount
    (in ₹ Crore)
    6.84% GS 2022 Sep 12, 2016 06-03-07 Dec 19, 2022 Price Multiple 3000
    6.68% GS 2031 Sep 04, 2017 14-00-13 Sep 17, 2031 Price Multiple 8000
    6.57% GS 2033 Dec 05, 2016 17-00-00 Dec. 05, 2033 Price Multiple 2000
    6.62% GS 2051 Nov. 28, 2016 35-00-00 Nov. 28, 2051 Price Multiple 2000

    Subject to the limit of ₹ 15000 Cr, being total notified amount, GoI will have the option to retain additional subscription up to ₹ 1000 Cr against any of the above security. The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’). The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 as per the terms and conditions specified in the General Notification F.No.4(13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    Allotment to Non-competitive Bidders
    2. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).

    Place and date of auction
    3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on November 24, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on November 24, 2017. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    When Issued Trading
    4. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

    Date of issue and payment for the stock
    5. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on November 24, 2017. The payment by successful bidders will be on November 27, 2017 i.e. the date of re-issue. The payment for the stocks will include accrued interest on the nominal value of the Stock allotted in the auction from the date of original issue / last coupon payment date to the date upto which accrued interest is due as mentioned in the table in para 6.

    Payment of Interest and Re-payment of Stock
    6. Interest will accrue on the nominal value of the Stock from the date of original / last coupon payment and will be paid half yearly. The Stock will be repaid at par on date of maturity.

    Name of the Security Coupon rate (%) Date of Original Issue / Last Coupon payment Date upto which accrued interest is due Date of Coupon payments
    (month / date)
    6.84% GS 2022 6.84 Jun 19, 2017 November 26, 2017 Dec 19 and Jun 19
    6.68% GS 2031 6.68 Sep 17, 2017 November 26, 2017 Mar 17 and Sep 17
    6.57% GS 2033 6.57 Jun 05, 2017 November 26, 2017 Dec 05 and Jun 05
    6.62% GS 2051 6.62 May 28, 2017 November 26, 2017 Nov 28 and May 28

    By Order of the President of India

    (Prashant Goyal)
    Joint Secretary to the Government of India



    Over-the-Counter Government Securities Transaction by Foreign Portfolio Investors (FPIs) – Settlement Period  (Thu, 16 Nov 2017 18:55:00)

    RBI/2017-18/97
    FMRD.DIRD.05/14.03.007/2017-18

    November 16, 2017

    All market participants

    Dear Sir/Madam,

    Over-the-Counter Government Securities Transaction by Foreign Portfolio Investors (FPIs) – Settlement Period

    In terms of RBI circular FMRD.DIRD.06/14.03.007/2014-15 dated March 20, 2015, Foreign Portfolio Investors (FPIs) are required to settle transactions in Government Securities in the Over-the-Counter-(OTC) market on a T+2 basis.

    2. As announced in paragraph 13 of the Statement on Developmental and Regulatory Policies, of the fourth Bi-monthly Monetary Policy Statement for 2017- 18 dated October 04, 2017, it has now been decided to permit FPIs to settle OTC secondary market transactions in Government Securities either on T+1 or on T+2 basis. It may be ensured that all trades are reported on the trade date itself.

    3. All other existing conditions for settlement of transactions in Government Securities remain unchanged.

    4. These directions are issued under Section 45(W) of the RBI Act, 1934.

    5. The above directions shall be applicable with November 20, 2017.

    Yours faithfully

    (T. Rabi Sankar)
    Chief General Manager



    Secondary market transactions in Government Securities – Notional Short Sale  (Thu, 16 Nov 2017 18:55:00)

    RBI/2017-18/96
    FMRD.DIRD.04/14.03.007/2017-18

    November 16, 2017

    All market participants

    Dear Sir/Madam,

    Secondary market transactions in Government Securities – Notional Short Sale

    In terms of RBI circulars IDMD.PCD.21/14.03.07/2011-12 dated June 21, 2012, and IDMD.PCD.14/14.03.07/2011-12 dated December 28, 2011 market participants undertaking ‘notional’ short sale are not permitted to use securities from their HTM/AFS/HFT portfolio for delivery against the short sale.

    2. As announced in paragraph 13 of the Statement on Developmental and Regulatory Policies, of the fourth Bi-monthly Monetary Policy Statement for 2017-18 dated October 04, 2017, it has now been decided that market participants undertaking ‘notional’ short sale need not compulsorily borrow securities in the repo market. While the short selling entity may ordinarily borrow securities from the repo market, in exceptional situations of market stress (e.g. short squeeze), it may deliver securities from its own HTM/AFS/HFT portfolios. If securities are delivered out of its own portfolio, it must be accounted for appropriately and reflect the transactions as internal borrowing. All ‘notional’ short sales must be closed by an outright purchase in the market. It may be ensured that the securities so borrowed are brought back to the same portfolio, without any change in book value. The short selling entity must adhere to the extant regulations and accounting norms governing sale or valuation of securities in its portfolios. The bank may frame a Board approved policy for this purpose.

    3. All other existing terms and conditions pertaining to the captioned subject remain unchanged.

    4. These directions are issued under Section 45(W) of the RBI Act, 1934.

    Yours faithfully

    (T. Rabi Sankar)
    Chief General Manager



    Agency Commission for GST receipt transactions  (Thu, 16 Nov 2017 17:00:00)

    RBI/2017-18/95
    DGBA.GBD.No.1324/31.02.007/2017-18

    November 16, 2017

    All Agency Banks

    Dear Sir / Madam

    Agency Commission for GST receipt transactions

    Please refer to Para 15 of our Master Circular on Conduct of Government Business by Agency Banks - Payment of Agency Commission dated July 01, 2017 related to claiming of agency commission.

    2. After implementation of GST framework, it was decided to modify paragraph 15 of the captioned Master Circular. The modified paragraph 15 will read as follows:

    “Agency banks are required to submit their claims for agency commission in the prescribed format to CAS Nagpur in respect of Central government transactions and the respective Regional Office of Reserve Bank of India for State government transactions. However, agency commission claims with respect to GST receipt transactions will be settled at Mumbai Regional Office of Reserve Bank of India only and accordingly all agency banks, authorized to collect GST, are advised to submit their agency commission claims pertaining to GST receipt transactions at Mumbai Regional Office only. The revised formats for claiming agency commission for all agency banks and separate and distinctive set of certificates to be signed by the branch officials and Chartered Accountants are given in Annex-2. These certificates would be in addition to the usual Certificate from ED / CGM (in charge of government business) to the effect that there are no pension arrears to be credited / delays in crediting regular pension / arrears thereof.”

    3. All other instructions of the said Master Circular remain unchanged.

    Yours faithfully

    (Partha Choudhuri)
    General Manager



    Implementation of UNSCR 2356 (2017), UNSCR 2371(2017) and UNSCR 2375 (2017) pertaining to Democratic People's Republic of Korea (DPRK)  (Thu, 16 Nov 2017 17:00:00)

    RBI/2017-18/94
    DBR.AML.No.4802/14.06.056/2017-18

    November 16, 2017

    All Regulated Entities

    Dear Sir/Madam,

    Implementation of UNSCR 2356 (2017), UNSCR 2371(2017) and UNSCR 2375 (2017) pertaining to Democratic People's Republic of Korea (DPRK)

    Please find enclosed a copy of the ‘Order’ issued by Ministry of External Affairs dated October 31, 2017, published in the Gazette of India on implementation of United Nations Security Council Resolutions 2356 (2017), 2371(2017) and 2375 (2017) on Democratic People’s Republic of Korea.

    2. Regulated Entities (REs) may take note of the gazette notification and ensure compliance with the same.

    Yours faithfully,

    (Dr. S. K. Kar)
    Chief General Manager



    Exim Bank's Government of India supported Line of Credit of USD 81 million to the Government of the Republic of Rwanda  (Thu, 16 Nov 2017 17:00:00)

    RBI/2017-18/93
    A.P. (DIR Series) Circular No. 13

    November 16, 2017

    To
    All Category - I Authorised Dealer Banks

    Madam / Sir,

    Exim Bank's Government of India supported Line of Credit of USD 81 million to the Government of the Republic of Rwanda

    Export-Import Bank of India (Exim Bank) has entered into an Agreement on May 24, 2017 with the Government of the Republic of Rwanda for making available to the latter, a Government of India supported Line of Credit (LoC) of USD 81 million (USD Eighty one million only) for the purpose of financing establishment of ten Vocational Training Centers and four Business Incubation Centers in the Republic of Rwanda. Under the arrangement financing export of eligible goods and services from India would be allowed which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement. The goods include plant, machinery and equipment and services include consultancy services. Out of the total credit by Exim Bank under this agreement, goods and services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 per cent of goods and services may be procured by the seller for the purpose of the eligible contract from outside India.

    2. The Agreement under the LoC is effective from November 01, 2017. Under the LoC, the terminal utilization period is 60 months after the scheduled completion date of the project.

    3. Shipments under the LoC will have to be declared on Export Declaration Form as per instructions issued by the Reserve Bank from time to time.

    4. No agency commission is payable for export under the above LoC. However, if required, the exporter may use its own resources or utilize balances in its Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- I (AD Category- I) banks may allow such remittance after realization of full eligible value of export subject to compliance with the extant instructions for payment of agency commission.

    5. AD Category- I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the LoC from the Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or from their website www.eximbankindia.in

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

    Yours faithfully,

    (J K Pandey)
    Chief General Manager