Crystallisation of foreign exchange liability allows banks to convert ECB guarantee obligations into rupees after application.
Authorised dealers may convert foreign exchange liabilities arising from guarantees or letters of comfort for External Commercial Borrowings into Rupees in select cases where circumstances warrant; they must apply to the Chief General Manager, Exchange Control Department, External Commercial Borrowings Division, Reserve Bank of India, providing full particulars including borrower name, amount, maturity, circumstances of invocation, date of default, impact on overseas branch liabilities and other relevant factors.

Cross border bank investment limits increased, allowing greater overseas investments and borrowings subject to ratings, board approval and ALM discipline.
Banks may invest in overseas money market and debt instruments up to twenty five per cent of unimpaired Tier I capital or the equivalent baseline amount, and may place undeployed FCNR(B) funds in long term fixed income securities provided instruments meet prescribed credit ratings, board approved type/maturity and overall caps, maturities do not exceed underlying FCNR(B) deposit maturities, and all investments comply with gap discipline and risk management/ALM guidelines; borrowings from head offices and overseas correspondents are permitted to the same revised ceiling.

Annual Statistical Report requirement: mutual funds must file revised ASR in prescribed simplified format and report unitholding pattern.
Revises the filing requirement for the Annual Statistical Report (ASR), simplifying its format and requiring mutual funds to submit an annual ASR for the entire mutual fund in the enclosed revised format. The ASR must record the unitholding pattern as on the financial year-end by investor categories (Individuals; NRIs/OCBs; FIIs; Corporates/Institutions/Others) showing number of investors and net asset value, and must not be submitted scheme-wise.

Public Financial Institution designation for NABARD prompts Companies Act reporting and employee disclosure revisions in directors' reports.
Declaration of NABARD as a Public Financial Institution under section 4A of the Companies Act, 1956 gives NABARD that regulatory classification. Separately, revision of limits under section 217(2A) read with the Companies (Particulars of Employees) Rules, 1975 changes which employees must be disclosed in the Statement attached to the Board's report; this revision applies to directors' reports annexed to balance sheets for financial years whose accounts close on or after the notification date.

Import currency release through post permitted subject to prescribed conditions and enhanced regulatory limits under FEMA guidance
Customs may release imported Indian and foreign currency received via post subject to the conditions in Board's Circular 22/99-Cus; the clearance threshold has been raised following liberalisation under the Foreign Exchange Management Act and review by monetary authorities, and implementation requires issuance of Public Notices and reporting of difficulties to the Board.

Storage services: renting tank storage isn't clearing and forwarding service, but may become taxable under storage and warehousing.
Providing storage tanks for liquid cargo and charging rent solely for storage does not constitute services of clearing and forwarding agents under Section 65: these storage providers do not handle customs formalities, do not act in a principal agent relationship, do not arrange despatch or transport, and are remunerated by rental rather than commission. However, proposed amendments in the Finance Bill, 2002 would render storage and warehousing services for goods including liquids and gases liable to service tax when brought into force.

Refund of excess fees: brokers' refund requests must be routed through exchanges with certified turnover and fee computations.
The circular requires Exchanges to process refund requests only when a member has paid excess fees and interest, and to forward member refund applications only if accompanied by an Exchange certified turnover statement in the specified Annex C format (hard and soft copy) and a completed fee liability computation; incomplete submissions will be returned for resubmission.

Mineral oil extraction in the EEZ and continental shelf is within customs jurisdiction; imports and exports reclassified.
The Customs Act, 1962 and the Customs Tariff Act, 1975 are extended to the whole EEZ and Continental Shelf for prospecting, extraction or production of mineral oils and for supply of goods in connection with those activities; mineral oils (including petroleum and natural gas) produced there and brought to the mainland are not treated as imports and hence not subject to customs duty, while goods from foreign countries to the EEZ/Continental Shelf for such activities are treated as imports and dutiable.

Duty determination on intermixed petroleum products: higher duty between unused concessional SKO and gain in MS/HSD applies.
Where SKO imported under concessional duty intermixed with MS or HSD in pipelines, the interface quantity shall be quantified and taxed at the higher of (a) duty payable on SKO not used for its intended concessional purpose and (b) duty payable on the surge/gain in MS or HSD; this modifies prior instructions permitting simple offsetting between product gains and losses.

Current account transaction reporting changes: RBI discontinues ORR forwarding and requires half yearly ORA submissions.
Authorised dealers previously obtained Form ORR for remittances from EEFC accounts and forwarded Form ORR and monthly certified Form ORA to Reserve Bank regional offices; the Reserve Bank has discontinued forwarding Form ORR and requires submission of Form ORA on a half yearly basis instead of monthly, and authorised dealers must inform their constituents.

Export quota release for onions permits allocation to designated agencies for export under specified terms until deadline.
A quota of 6.00 (Six) Lakhs M.T. of onions, excluding Bangalore Rose and Krishnapuram varieties, is released for export up to 31st March, 2003 under Para 2.4 of the Export and Import Policy, 2002-2007. The quota is allocated to specified agencies and State Trading Enterprises for export either directly or through registered exporters on the same terms and conditions as Notification No.16(RE-2000)/1997-2002 dated 17.5.2000, except for the export time limit which is as indicated.

Export bond procedure: manufacturer exporters need not obtain CT-1 certificates; CT-1 required only for merchant exporters.
The Board clarifies that merchant exporters must obtain CT-1 certificates after furnishing a bond to procure excisable goods duty free for export, whereas manufacturer exporters who execute a bond with the jurisdictional authority or Maritime Commissioner, or file a Letter of Undertaking, need not obtain CT-1 for export purposes; exporter classification is to be determined by authorities on the merits.

Debenture Redemption Reserve clarified: exemptions for banking/AIFI issuers and prescribed adequacy for public and private debentures.
Section 117C requires companies to create a Debenture Redemption Reserve by crediting adequate amounts from profits annually until debentures are redeemed, to be used exclusively for redemption of the specified series. The obligation arises only from distributable profits; no DRR is required in loss years. Section 117C applies to debentures issued and pending redemption (including pre amendment issues) and to the non convertible portion of convertible debentures. Banking companies and RBI regulated All India Financial Institutions are exempt; differentiated adequacy rules are prescribed for RBI registered NBFCs and for manufacturing and infrastructure companies for public and private placements.

Classification of goods: plastic nameplates and component fittings treated by intrinsic character, affecting excise liability.
Name plates, emblems and labels of plastic are classifiable under sub heading 3926.90 and not as motor vehicle parts; bushes and thrust washers lacking anti friction rings are not plain shaft bearings under heading 84.83 and should be classified with the machines they serve; insulated cables with fitted connectors fall under heading 85.44 irrespective of who supplied inputs. Assembly, testing and affixation of brand such that an excisable product exists in unassembled form at the premises constitutes manufacture for excise. Authority to prosecute appeals requires a board resolution and locus standi can be contested post admission; letters from non adjudicating officers are not appealable orders.

Abolish no delivery period for dematerialised scrips; permit direct close out at reduced mark up using latest closing price.
Abolish the no delivery period for securities in compulsory dematerialised mode, to be implemented by exchanges without extension to coincide with rolling settlement. Permit direct close out of short deliveries where cum purchases cannot be acquired in auction, with a reduced mark up for such direct close outs. The reference price for close out shall be the latest available closing price at the exchange.

Import of crude drugs permitted without licence for manufacture of Ayurvedic, Unani and other traditional medicines after correction.
Import of crude drugs listed in licensing note no. 2 at the end of Chapter 12 of the ITC(HS) Classification is allowed without a licence for the manufacture of Ayurvedic, Unani or other systems of medicine; the previous heading stating import was "subject to Actual User Condition" was an editing error and is deleted.

Benchmark disclosure for debt and balanced funds now required; performance must be published and compliance reported.
Requirement to disclose benchmark performance for debt oriented and balanced mutual fund schemes in half yearly results, with benchmarks developed by research and rating agencies recommended by AMFI; existing procedural rules on changing benchmarks, management perception, review by AMCs and trustees, and reporting of compliance in AMC quarterly reports and trustees' half yearly reports continue to apply under the governing mutual fund regulation.

Export quota release for onions permits specified agencies to export allocated quantities under existing terms until prescribed deadline.
Director General of Foreign Trade released an export quota of 1 lakh metric tonnes of onions (excluding Bangalore Rose and Krishnapuram varieties) for export up to the prescribed deadline; exports must follow Notification No.16(RE-2000)/1997-2002 terms except for the revised time for export. The quantity is allocated among specified agencies and state trading enterprises for export, either directly or through registered exporters, with each agency assigned a defined allocation.

DEPB rate corrections: exclusions expanded and product-group chemical entries amended, including deletions and new entries.
Corrections to the Schedule of DEPB Rates amend the General Instructions to exclude DEPB applicability for goods manufactured in Customs Act Section 65 warehouses, under Advance Licence/DFRC fulfilment, by 100% EOU units, in FTZ/EPZ/SEZ/EHTP schemes, exports of foreign-origin goods unless processed in India, and exports under specified EXIM Policy paragraphs; and revise Product Group - Chemicals by correcting DEPB rates and value caps for listed products, deleting a specified chemical entry, and adding new chemical and tyre-related entries.

Export invoice value reduction permitted for jewellery and cut diamonds, enabling authorised dealers to approve modest decreases under FEMA.
Authorised dealers may approve reductions in invoice value of export bills up to 10% for exports including gold and silver jewellery and articles made of cut and polished diamonds, subject to the existing terms and conditions of paragraph C.12(b).