Independent director classification now includes institutional directors for government companies under listing agreement amendments, effective immediately.
Amendment to Clause 49 requires that institutional directors be treated as independent directors without exception, removing the prior exclusion for government companies; exchanges must amend their listing agreements so institutional nominees from investing or lending institutions qualify as independent directors for corporate governance assessments.

Taxability of photography services: collection centres acting as couriers are not taxable as photography service.
Collection centres that collect exposed film from studios without processing facilities and arrange development at labs, receiving commission or handling charges, do not perform photography or processing and therefore are not taxable as photography service; they operate as couriers or commission agents.

Managerial remuneration limits: apply with detailed financial justification and full disclosure before paying above statutory caps.
Where a company proposes managerial remuneration above Schedule XIII limits linked to effective capital, it must apply to the Department of Company Affairs with a board/AGM resolution and detailed justification addressing losses, remedial steps, financial health (effective capital, net worth, turnover, profit/loss, dividend), industry nature, foreign collaboration, expansion plans and the appointee's qualifications and past remuneration; the total package including perquisites must be valued at actual cost for Companies Act purposes and income tax liability shown separately. A prescribed checklist and authenticated supporting documents (newspaper notices, five years' audited accounts, FIPB approvals where relevant) are required to avoid deficiencies.

Rolling settlement: scrips without depository connectivity to remain on trade-for-trade until connectivity enables normal rolling settlement transfer.
Scrips with depository connectivity by September 30, 2001 will trade in normal rolling settlement from December 31, 2001; those with connectivity by October 31 and November 30, 2001 will move from trade-for-trade into normal rolling settlement on January 31, 2002 and February 28, 2002 respectively. Scrips lacking connectivity by the cutoff dates remain in trade-for-trade until they complete the prescribed linkage and procedures, after which they will be migrated into normal rolling settlement.

Classification of plastic refill tubes: form and manufacturing process determine tariff treatment and duty assessment.
If an identifiable intermediate product of plastic tubes in running length is produced, those tubes are classifiable under the tariff for plastic articles and liable to duty before cutting. If the manufacture is a continuous process producing only cut to size tubes for refills, the cut to size tubes are classifiable under the tariff provision for writing instrument refills. Whether running length tubes exist is a question of fact for the assessing officer.

Security requirement for merchant exporters registered with recognised export promotion councils put in abeyance, easing export compliance.
The Board has suspended the instruction requiring merchant exporters to furnish a 25% security with export bonds for merchant exporters registered with a Recognised Export Promotion Council, directing that the 25% security not be insisted upon for such registered exporters until further order and that field formations be informed.

Deemed export benefits granted to domestic suppliers for specified nuclear power project supplies under competitive bidding with official certification.
Claims for DEPB/DFRC where the export promotion copy of the shipping bill is lost must be made within six months from issuance of the duplicate shipping bill, or where a provisionally assessed DEPB shipping bill is lost, within six months from release/final assessment. Deemed export benefits are extended to domestic supplies to specified nuclear power projects procured under Competitive Bidding, subject to certification by an officer not below Joint Secretary, Department of Atomic Energy, and entitlement to benefits listed in paragraph 10.3(a)-(c).

Indigenous raw material requirement: exemption applies when records and verification prove domestic goods made wholly from indigenous inputs.
Notification No.8/97 CE may be extended to units using both imported and indigenous inputs if authorities are satisfied that goods sold in the domestic tariff area are manufactured wholly from indigenous raw materials, evidenced by separate records (raw material registers, finished goods registers, batch production and dispatch registers) and, where needed, input output norms fixed by Cost Accounts; a requirement for separate machinery, godowns or manufacturing branches is not intended.

First-In-First-Out stock correlation allowed for homogeneous imports, with expanded delegation for procurement certificates and CT-3 issuance.
Procedural relaxations for EOUs and EPZ/STP/ETHP/SEZ units permit use of a First-In-First-Out stock correlation for homogeneous goods, expanded temporary removal of laptops subject to safeguards, delegation of issuance of procurement certificates and pre-authenticated CT-3 to Superintendents/Range Officers (except textile and chemical sectors), permission for removal of capital goods for repair by Range Officers with post facto approval, annual or one-time authorisations for fuel procurement based on prior consumption, and five-year warehousing licences subject to cancellation for misconduct.

Model rules for stock exchanges mandate implementation of core governance and bye laws, with exchanges to report compliance promptly.
SEBI's Committee submitted Model Rules divided into four Parts: Part A (rules already effected via SEBI/GOI instruments), Part B (rules to be implemented by exchanges now), Part C (rules to await demutualisation/corporatisation) and Part D (rules requiring statutory/regulatory amendment). Exchanges are advised to implement Part B, may adopt Part A where material differences exist, seek approvals from their governing bodies, notify SEBI of implementation difficulties and submit a compliance report within the prescribed period. Prevailing SEBI/GOI provisions continue to govern overlapping matters.

Independent director eligibility clarified: associate relationships, cooling-off requirement and mandatory SEBI notification on board composition.
SEBI clarifies that relatives of sponsors or sponsor directors, nominees of stakeholder companies, and other persons deemed "associates" are ineligible to serve as independent directors while the association exists. A person who ceases to be an associate must observe a three-year cooling-off period before appointment as an independent director; during that interval they may only serve as associate directors. AMCs and trustee companies must classify directors accordingly, notify SEBI if independent-director composition falls below required levels, and use the revised bio-data format when submitting new director particulars.

Rolling settlement advanced to enable uniform weekend migration of remaining scrips across stock exchanges for system readiness.
SEBI advanced commencement of rolling settlement on a T+5 basis for the remaining scrips to the start of the trading week to permit uniform migration from weekly account-period settlement, allowing exchanges the intervening weekend to complete system migration and resolve technical and operational issues.

DEPB benefit admissibility for embroidered silk garments confirmed for exports made before amendment, prompting guidance to trade staff.
DEPB benefit is allowed for embroidered silk garments, fabrics and made-ups exported under Sr. Nos.74-76 of the unamended DEPB Rate Schedule for exports made before the amendment; this circular supersedes the prior Board fax and directs issuance of instructions/Standing Order for trade and field staff with acknowledgement of receipt.

Duty free import entitlement requires dual AEPC certificates and a current shipment confirmation before customs clearance is authorized.
Customs must admit duty free import of specified embellishments only after verifying both the export performance certificate and the import entitlement certificate issued by AEPC; AEPC should also issue a Current Shipment Request tied to the import entitlement certificate, which Customs must cross check with import documents before permitting duty free clearance to ensure entitlement limits are not exceeded.

Quantitative ceiling release for coarse grain exports: allocation among designated agencies enables RCAC issuance for exporters.
Release of a quantitative ceiling of 50,000 metric tonnes of coarse grains for export in 2001-2002 covering barley, maize, bajra, ragi and jowar (excluding hybrid jowar as kharif crop), sub allocated as 10,000 MT to STC, 10,000 MT to STCL and 30,000 MT to APEDA for private exporters, with the ceiling placed at the disposal of the export promotion agency for issuance of RCACs under the Export & Import Policy.

DEPB rate amendment modifies export benefit rates and value caps for specified engineering, chemicals and electronics products.
Amendment to Appendix 28A revises DEPB rates and value caps for specified export products: it modifies engineering entries (including forged steel balls and fabricated steel hardware), adds PCB routers, corrects the chemical Reactive Black BA/TA entry, and adds a DEPB rate for quartz analogue wrist watch movements under electronics, directing these changes be incorporated under Paragraph 4.11 of the Export and Import Policy.

Holding licence requirement for foreign securities clarified: general permissions apply, but prior RBI approval needed when not covered.
Clarifies that no holding licence from the Reserve Bank is required for acquisition of foreign securities where general permission applies under FEMA Notification No. FEMA 19/RB-2000, including bonus shares, gifts/inheritance from non-residents, and cashless ESOP acquisitions. For transactions not covered by general or special permission, prior permission of the Reserve Bank is required, and prior RBI approval is specifically required for acquisition as qualification shares and rights shares.

Foreign exchange reporting: specified returns under FEMA no longer required, subject to limited exceptions for specific permissions.
Submission obligations for foreign exchange returns were narrowed under the Foreign Exchange Management Act, 1999: annual returns for foreign assets need not be filed except where specific permission conditions require detailed returns; authorised dealers need not submit form CIR; airline and shipping companies need not submit forms SPG and SPM because authorised dealers may permit remittances after verification; DBS statements need not be submitted following discontinuation of Diplomatic Bond Stores Accounts.

Employee acquisition of foreign securities permitted where shares offered at concession; concession may be borne by issuer or Indian unit.
Authorised dealers may allow remittance by resident individuals who are employees or directors of a foreign company, its Indian branch/office/subsidiary, or an Indian company with majority foreign equity for purchase of foreign securities under Regulation 19, provided the shares are offered at a concessional price. The concessional element under Employees Stock Option Scheme may be borne by the foreign issuer, its Indian branch/office/subsidiary, or the Indian company with majority foreign equity.

Return of duty-paid goods: manufacturers may accept non own goods for refining or reconditioning subject to prescribed conditions.
The Board construes the word return in the relevant rule not to require that duty paid goods be brought back only to the factory that originally manufactured them. A manufacturer's factory may receive duty paid goods for refining, re making, reconditioning or similar purposes even if the goods were not originally manufactured by that factory, provided all other prescribed conditions for such receipt are complied with.