Hedging with derivatives: mutual funds must ensure hedge effectiveness and size while respecting exposure limits.
Mutual funds may use derivatives for hedging and portfolio rebalancing only if hedges are effective and sized to avoid over hedging or naked exposures; options are assessed by notional and worst case exposures (not just delta); combined cash and derivative positions must remain within maximum permissible holding limits; long index positions cannot create impermissible leverage; funds must show worst case short exposure is covered by existing positions and worst case long exposure plus existing holdings is within permissible limits.

Dematerialisation compliance required: registrars must reconcile holdings with depositories and ensure timely processing and explanations for delays.
Registrars and share transfer agents must keep full records and controls over dematerialisation and rematerialisation, permit dematerialisation only after in principle exchange approval and depository admission, prevent duplicate dematerialisation, reconcile daily holdings across NSDL, CDSL and physical form to match admitted, issued and listed capital, and process dematerialisation requests within the prescribed timeframe, providing reasons for delays; failure to comply will attract action under applicable rules and regulations.

Secretarial audit required for issuer companies to reconcile capital holdings and report discrepancies to regulators.
Issuer companies must conduct a secretarial audit by a qualified Chartered Accountant or Company Secretary to reconcile holdings across NSDL, CDSL and physical form with issued/paid-up and listed capital, confirm Register of Members is updated, report dematerialisation requests pending beyond 21 days with reasons, and certify changes in share capital and listing approvals. The audit report must be submitted quarterly to stock exchanges, placed before the Board, and any discrepancies notified to SEBI and both depositories; non-compliance may invite action under the Depositories Act, 1996.

Bank certificate requirement for export realisation mandates bank verification for status certification and extends related DEPB filing eligibility.
A mandatory Bank Certificate of Export Realisation/Deemed Exports (Appendix 17 B) is required for non-service provider status certificate applications, with prescribed bank verification and branch-level submission duties; service exports are excluded. Declarations and professional certificates are amended to base recognition on foreign exchange earnings or export performance over the preceding three licensing years or the current year, including certification of export realisation thresholds and disclosure of outstanding proceeds. Port of Registration entries are updated and the filing deadline for DEPB applications for shipments meeting the stated temporal condition is extended.

Inclusion of pre-delivery inspection and after-sales service costs in vehicle assessable value clarified; corrigendum and trade notice directed.
The instrument clarifies that Pre-Delivery Inspection (PDI) charges and costs of after-sales services pertain to the assessable value of motor vehicles, and corrects the cited circular references in the earlier Board circular. It directs that the corrigendum be communicated to field formations, a trade notice issued for the benefit of the trade, and that receipt of these instructions be acknowledged.

Centralised share registry management required to ensure coordinated physical and electronic records and protect investors from reconciliation delays.
All share registry functions must be consolidated so physical and electronic records are maintained at a single point, either in house or by a SEBI registered R & T Agent, to prevent delays in dematerialisation and reconciliation failures and to improve coordination and investor protection.

Shore tank receipt principle directs customs duty be levied on cargo measured in shore tanks, not on ship ullage reports.
Assessment of imported bulk liquid cargo for customs duty shall be based on shore tank receipt (dip measurement in shore tanks into which cargo is pumped) where such custodial shore measurement exists; provisional assessments are to be finalized accordingly. Where cargo is not discharged into shore tanks and is cleared directly under a white Bill of Entry, assessment may continue on the basis of the ship's ullage survey. Master/Agent penal liability for shortages remains determined by comparing ship discharge ullage with load-port ullage or Bill of Lading quantity.

Notification issuance under Section 11C suspends coercive recovery during survey, ensuring uniform enforcement practice for field formations.
When a survey is floated to examine or issue a Notification under Section 11C, coercive measures for recovery of past arrears or duties shall not be taken; field formations must be informed of this uniform directive and acknowledge receipt.

Cenvat credit restriction prevents diversion of input credit from exempted North East production to pay duty on other products.
CENVAT credit of duty paid on inputs used in manufacture of final products cleared after availing the North-East exemptions may be utilised only for payment of duty on products cleared under those same exemptions. Refunds under the North-East scheme are limited to the duty paid less the amount of CENVAT credit availed in respect of inputs used for goods cleared under the corresponding exemption, thereby preventing diversion of input credit to pay duty on other products and disallowing excess refunds.

Third party exports permitted under export promotion schemes when manufacturer and exporter are named on the shipping bill, enabling duty remission.
Third party exports qualify for benefits under all Export Promotion Schemes where the manufacturer and the third party are both named on the shipping bill; the third party functions as the merchant exporter enabling duty remission or exemption on inputs, and past cases may be regularised on submission of supporting documentation to the Licensing Authority.

Resident foreign currency accounts may be credited with repatriated foreign exchange from earnings and close-relative gifts.
Resident Foreign Currency (Domestic) Accounts may be opened and credited by resident individuals with foreign exchange earned (including export receipts, royalty, honorarium) and with gifts from close relatives, provided such foreign exchange is repatriated to India through normal banking channels; authorised dealers are instructed to implement this expansion and notify constituents, and amendments to the prior notification will be issued to reflect these additional permitted credits.

Tax Deduction at Source from Salary: employers must compute, deduct and deposit TDS, value perquisites, and file prescribed returns.
Instructions for Tax Deduction at Source from salaries for 2002-03 require employers to estimate taxable salary (including perquisites), compute tax at prescribed slab rates, allow standard and Chapter VI A deductions and Chapter VIII rebates, apply surcharge where applicable, and deduct equal monthly instalments. Employers may opt to pay tax on non monetary perquisites on behalf of employees; such payments are deemed TDS. Detailed valuation rules for varied perquisites, procedures for aggregation of multi employer salaries, mandatory PAN/TAN quoting, filing of prescribed forms and certificates, deposit and return obligations, and penalties and interest for non compliance are prescribed.

Assessment of gold and silver in SEZs at effective duty rate, with tariff-rate penalties for willful evasion.
Gem and jewellery units in SEZs shall have gold and silver assessed at the effective rate of duty as per notification No.80/97-Cus instead of the tariff rate, with bond values calculated accordingly. In cases of clandestine removal, collusive evasion, or willful misstatement or suppression of facts, fines and penalties will be imposed so as to equal duty at the tariff rate; a Public Notice is to be issued and implementation difficulties reported to the Board.

Import of pets allowed with health certificate and quarantine examination; no import licence or sanitary permit required for two pets.
Import of dogs and cats as baggage is allowed up to two per passenger without import licences or sanitary permits if passengers produce an official health certificate from the country of origin and the animals are examined by the Quarantine Officer; certificates must confirm absence of specified diseases and show rabies vaccination details.

Foreign exchange risk management relaxations expand authorised dealers' ability to offer swaps, overseas investments and forward covers subject to prudential controls.
Reserve Bank relaxes limits: authorised dealers may offer foreign currency rupee swaps to customers for hedging without the earlier specified market access caps (caps still apply where swaps create market supply); overseas investment caps are withdrawn in favour of Board approved limits; caps on forward bookings based on past trade performance are increased and annual rebooking caps for near term exposures removed, with rebooking restrictions for exposures beyond one year and cancelled long term swaps; timing restriction on hedging Tier I capital removed; forward cover to non residents for inward investments permitted subject to verification.

Electronic filing requirement mandates specified listed companies to upload prescribed disclosures to EDIFAR, centralizing online corporate reporting.
SEBI requires additional listed companies, chosen by market capitalization and turnover, to upload prescribed statements and documents to the EDIFAR portal pursuant to earlier EDIFAR instructions, with electronic filing effective from the quarter ending December 2002; stock exchanges must inform and advise the named companies about the online filing process.

FII registration fee reduction simplifies documentation and strengthens registration by requiring custodian and home regulator declarations.
Amendment revises FII registration and renewal by lowering the registration fee and simplifying required documentation: certified copy of governing clauses or agreement authorising investments; audited financial statements and annual report for at least twelve months; a declaration of registration or regulation by the applicant's home regulatory authority with registration particulars; and a declaration of a custodian agreement with a domestic custodian including its particulars.

Duty-free removal of production scrap for job-work permits conversion and return under revised EOU subcontracting rules.
EOUs are permitted to remove brass borings and production scrap into the Domestic Tariff Area for job work conversion into ingots/bars and return to the supplying EOU without payment of duty, subject to the procedural safeguards prescribed in the subsequent procedural circular and the subcontracting permissions under the prevailing export/import policy.

Duty-free import eligibility for leather purses and wallets affirmed under the 1% scheme, subject to notification conditions.
Purses and wallets made of leather are treated as included within "handbags and similar containers all made of leather" under condition 21A of Sr. No. 167A of Customs Notification No. 21/2002 Cus.; embellishments specified at Sr. No. 167A used in their manufacture are eligible for duty free import under the 1% scheme provided the notification's conditions are met, and a Public Notice and standing order are to be issued for implementation.

Transfer of unutilized duty-free goods: may be sold in DTA on duty payment or transferred as import to other units.
The Exim Policy provision permits an EOU/EPZ/STP/EHTP unit unable, for valid reasons, to utilise duty free imported or DTA procured goods to sell them in the domestic tariff area on payment of applicable duties or to transfer/sell them to another such unit; such transfers must be treated as imports by the recipient and endorsed on all transfer documents, and the disposal is to be exceptional with valid reasons recorded.