Nomination facility for mutual fund units extended with prescribed eligibility rules, cancellation procedure, and transfer consequences.
A new nomination facility is introduced for mutual fund unit holders. The asset management company must allow individual unit holders, singly or jointly, to nominate a person in whom the units will vest on death, and joint holders may nominate a person to receive all rights in the units on the death of all joint holders. The Fourth Schedule prescribes the nomination or cancellation form and instructions, including eligibility restrictions on who may nominate and who may be a nominee, provision for nomination of a minor through a guardian, rescission on transfer of units, and cancellation only by the original nominators.

Trade notice amendments expand DEPB calculation, delete SEZ references, and remove invalidation provisions for advance licences.
Amendments delete SEZ references in one notice; permit inclusion of commission in total FOB for DEPB claims where not shown in Column 14 of the Bank Realisation Certificate; remove the prohibition on invalidating Advance Licences after exports where a Policy Circular allows invalidation post-fulfilment of export obligation by the ultimate exporter; and delete another notice while directing exporters to the Export Facilitation/Grievance Committee for grievance redressal.

SAD debiting requirement: DEPB scrip SAD exemption hinges on let export date determining applicable EXIM policy.
The applicable EXIM policy for a DEPB scrip is determined by the shipping bill "let export date": exports with let export date before the policy change are governed by the earlier EXIM policy and need not have the element of SAD debited in the DEPB scrip for SAD exemption, whereas exports with let export date on or after the policy change are governed by the revised EXIM policy and require debiting the DEPB scrip for the element of SAD to claim SAD exemption.

Repatriation from NRO accounts permitted for education, medical and long-held property sale proceeds subject to conditions.
Authorised Dealers may allow repatriation from NRO account balances held by NRIs/PIOs for specified purposes without prior Reserve Bank approval: to meet education expenses for children (annual limit), to meet medical expenses of the account-holder or family members (limit), and to remit sale proceeds of immovable property held for at least ten years subject to applicable tax payment and an annual ceiling.

Transaction value determination clarifies allowable deductions and inclusions affecting assessable value under new valuation rules.
The circular clarifies that transaction value is determined for each removal, with "greatest aggregate quantity" referring to the largest quantity of identical goods sold on a particular day. Deductions from transaction value are limited to amounts actually paid or payable by the assessee; transportation costs owned by the manufacturer may be deducted if separately shown and supported by costing, return-trip charges are not deductible unless recovered, and transit insurance may be included in transport cost. Packing, buyer-borne advertisement or dealer-incurred after-sales charges that are incurred on behalf of the manufacturer are added to assessable value. Captive consumption, job-work, related-party sales, samples and removals with CENVAT consequences are addressed by specific Rules as set out.

Subcontracting rules updated: direct export from job worker premises allowed only with excise registration and return of tooling.
The notice amends subcontracting rules allowing temporary transfer of moulds, tools and drawings to subcontractors provided they are returned to EOU/EPZ/EHTP or SEZ bonded premises after job completion; permits direct export from job worker premises only if registered with Central Excise and not via third parties; prescribes that SEZ job work for DTA units be exported from the SEZ with export documents in the DTA's name. It revises deemed export claim procedures and application documents for Advance Licence and adds/expands Agri Export Zones in Appendix 15.

SION amendments: revised input-output norms impose precise import entitlement metrics and new component accountability rules.
Amendments to SION under Paragraph 2.4 revise Handbook of Procedures, Vol.2 by correcting descriptions, substituting norms, adding alternative inputs, and inserting new entries across Chemicals, Engineering, Plastic and Textile product lists. The notice prescribes precise import entitlement metrics tied to export quantities (kg/kg, net-to-net, per unit), introduces detailed component lists and accountability/specification conditions, and adds general notes on fuel caps and textile GSM flexibility to govern permitted inputs for exports.

Duty free procurement rules updated for EOU/EPZ/STP/EHTP/SEZ schemes, revising transfers, eligibility, and penal interest consequences.
Notifications have been amended to align duty free import/procurement rules with the new EXIM Policy 2002-07: trading units under EOU/EPZ are disallowed; inter unit transfers are limited to manufactured goods and capital goods; units may procure duty free from international exhibitions; agriculture EOUs may undertake contract farming with specified duty free inputs; gem and jewellery exchanges permit equivalent metal quantity exchanges; service units qualify only if they export for freely convertible currency; Central Excise Rules updated; penal interest reduced to 15%; surplus power may be sold to DTA or other zone units under specified conditions; DTA clearance of gold scrap for SEZ units permitted on duty payment.

Foreign currency accounts abroad: Indian entities may hold accounts for overseas offices for normal business operations subject to RBI conditions.
Maintenance of foreign currency accounts abroad by Indian entities is permitted for overseas offices, branches or representatives for normal business operations, subject to conditions including prohibition on creating liabilities for the head office, repatriation of surplus funds unless RBI approval is obtained, reporting of the overseas bank account to the authorised dealer, and specified repatriation and reporting requirements for software exporter contracts.

Limited scrutiny under section 143(2)(i) requires reasoned written notice and supervisory approval before challenging return claims.
Procedural guidelines require an assessing officer who believes a claim is inadmissible to record reasons in writing, serve a prescribed notice specifying the challenged claim and require supporting evidence on a specified date; supervisory approval is needed for issuing notices, time limits for service and completion must be observed, and control registers and order sheets must be maintained to track cases and ensure timely assessment.

Diamond import policy expands DIL to include semi processed and abolishes certain licences while duty on rough diamonds is removed.
The EXIM Policy 2002-07 and Handbook amendments realign notifications and broaden Diamond Imprest Licence scope to include semi processed, half cut and broken diamonds with corresponding notification changes; they permit authorised labs to export and re import cut and polished diamonds for certification without duty. Several licences for duty free import of rough diamonds have been abolished while import duty on rough diamonds is reduced to nil, prompting replacement notifications for duty free import of certain pearls and precious/semi precious stones. Personal carriage rules, wastage allowances, and value addition norms have also been revised.

Bank guarantee calculation based on effective duty rate for nominated agencies in export-against-supply scheme, reducing transaction costs.
The bank guarantee required under the Export Against Supply by Foreign Buyer scheme for gold imports shall be calculated using the duty rate applicable to nominated agencies rather than the general tariff rate, to reduce transaction costs; a Public Notice is to be issued and implementation difficulties reported to the Board.

Exemption from TDS on specified interest and mutual fund receipts allows exempt charitable entities to receive payments without withholding.
Exemption from deduction of tax at source is permitted for Ramakrishna Math and Ramakrishna Mission whose income is exempt under sub-clause (iv) of section 10(23C). Specified payments-interest on Central and State Government securities, other interest, and income in respect of units of specified mutual funds or the Unit Trust of India-may be made to those entities without withholding. The instruction applies from the current financial year, allowing payers to make the listed disbursements without deduction of tax at source.

Deemed export benefits: branch offices may apply under Advance Licence rules and retrospective relaxations permit conversions and direct negotiation.
Branch offices of registered exporters may apply for deemed export benefits under the requirements of para 4.2 and para 4.3 of the Handbook of Procedures (Vol I). Issuing offices will, on specific request, endorse status certificates (including golden status certificates) expiring on the relevant date with a two year deemed extension. Retrospective relief for licences issued before the policy date includes permitting direct negotiation with prior RBI permission and submission of a FIRC in lieu of a BRC, permitting conversion of shipping bills under para 2.56, and allowing Advance Licences for intermediate supplies against invalidation as per para 4.13.

Use of international credit cards allowed for lawful foreign-exchange purchases; prohibited for restricted items and governed by export payment rules.
Clarifies that credit cards, ATM cards and debit cards are treated as currency under foreign exchange rules; international credit cards may be used online for transactions for which foreign exchange can lawfully be purchased, but not for prohibited items or services. Debit and ATM cards may be used for permitted foreign-exchange purchases. Authorised dealers are permitted to accept export payments by debiting an importer's credit card irrespective of the importer's presence in India, where reimbursement will be received in foreign exchange.

Levy of Special Additional Duty applies where imports have not actually borne additional excise duty, despite a nil charge.
Levy of Special Additional Duty applies to imported goods that have not in fact suffered additional excise duty under the Additional Duties of Excise (Goods of Special Importance) Act, 1957; where duty is nil and no excise has been paid, the exclusion from SAD does not apply and SAD should be levied.

Accounting standards compliance relief for banks made temporary, with mandatory adherence required thereafter.
Compliance with Accounting Standards specified in SEBI's August 31, 2001 circular is temporarily optional for banks for the financial year ending March 31, 2002 with respect to AS-17 (Segment Reporting), AS-18 (Related Party Disclosure), AS-21 (Consolidated Financial Statements) and AS-22 (Taxes on Income); banks must conform to these standards for periods commencing on or after April 1, 2002.

Clients of registered sub brokers entitled to investor protection fund compensation when the member broker defaults.
Where a member broker defaults, clients who transacted through a registered sub broker are to be treated as clients of that member and are eligible to submit claims against the Investor Protection Fund/Customer Protection Fund; stock exchanges must entertain and process legitimate compensation claims from such clients and should not deny claims solely because the dealings were through a registered sub broker.

Code of Conduct for mutual fund intermediaries mandates certification, suitability-based recommendations, full disclosures and refusal to deal with noncompliant agents.
A mandatory Code of Conduct requires mutual fund agents and distributors to protect investor interests by complying with SEBI Mutual Fund Regulations, providing full and current scheme information, disclosing material facts and risks, avoiding misrepresentation and commission-driven malpractices, maintaining confidentiality, ensuring client suitability, and obtaining AMFI certification; mutual funds must monitor intermediaries, report non-compliance to AMFI and SEBI, and refuse to deal with those who do not follow the code.

Export warehousing: list of approved places expanded to include an adjacent district to facilitate export operations.
Amend paragraph 2(2) of the Board's export warehousing circular to add District of Kancheepuram to the list of places where warehouses may be established and registered under sub-rule 2 of rule 20 read with Notification No.46/2001, citing proximity to the principal port and growing export potential; field formations to be informed and receipt acknowledged.