Liquidity enhancement schemes: regulated design, disclosure, incentive limits and integrity safeguards to govern market makers' participation.
Revised framework permits stock exchanges to introduce liquidity enhancement schemes in equity cash and derivatives segments subject to board approval, objectivity, transparency, non discrimination and law compliance. Schemes require quarterly board monitoring, semi annual effectiveness reviews, monthly dissemination of outcomes, and fifteen days' prior disclosure of changes. Exchanges must set eligibility benchmarks, limit scheme duration per security, publish eligible lists, and comply with quantitative ceilings on incentives and share based rewards while maintaining systems to detect collusion, prevent self matched incentives, and mandate conflict disclosure by liquidity providers.

Amortization of BOT project costs permitted; construction costs may be spread evenly over concession period as business expenditure.
The Board clarifies that capitalized costs of constructing roads/highways under BOT concession agreements where ownership is not vested in the assessee may be amortized as allowable business expenditure. Amortization must exclude the construction period and be computed so the entire reduced initial cost is spread evenly over the remaining concession term; any earlier deductions claimed are to be deducted from the initial cost before equal amortization over the remaining period.

Digital signature acceptance for tax filings: electronically signed returns and applications accepted; paper copies not required when digitally authenticated.
Authorises use of digital signatures for online filing of VAT applications, returns and related documents; registered dealers may obtain digital signatures from recognised certifying authorities. Filings submitted with a valid digital signature need not be accompanied by the Return Verification Form (Form DVAT-56). Documents signed with digital signatures will be accepted and hard copies need not be filed when electronically authenticated.

Service tax registration required for postal and railway services; must register, pay electronically and file returns.
With effect from 1-4-2014, service tax registration and compliance under the Finance Act, 1994 apply to the Department of Posts and the Ministry of Railways; they and their subordinate offices must register, make electronic payment of duty, file returns electronically, seek assistance from the jurisdictional Chief Commissioner/Commissioner, and, after completing formalities and accommodating transition and internal reorganisation, be audited to verify correct discharge of service tax liability.

Non-compete restrictions in pharmaceutical foreign investment barred except in special circumstances with government approval.
Policy permits full foreign equity in pharmaceuticals for greenfield projects under the automatic route and for brownfield investments under the government approval route; non-compete clauses are disallowed except in special circumstances with prior government approval, and RBI has amended FEMA regulations to implement this clarification.

Tax credit mismatch verification enables taxpayers to submit rectification requests online to correct TDS and tax particulars.
Taxpayers must verify whether a tax demand results from a tax credit mismatch due to incorrect particulars (such as invalid TANs, wrong TDS schedules, or incorrect challan details) and submit rectification requests with correct TDS/tax particulars and documentary evidence. Rectification must be made to the jurisdictional assessing officer where applicable or submitted online via the e-filing portal for CPC-processed cases, following the Standard Operating Procedure to enable verification and correction of outstanding demands.

Pre-Budget consultation invites industry proposals on tax changes with supporting data and prescribed submission process.
Invitation solicits industry and trade association proposals for changes to direct and indirect taxes for the Union Budget 2014-15, requiring economic justification, statistical support and proposals for simplification. For Customs and Central Excise changes, a tabular template is requested with HS Code, product description, import and domestic production quantities and values, unit price, existing and proposed duty, revenue implications and implications for domestic industry. Submissions must be emailed as Word attachments to designated addresses and hard copies sent to specified Joint Secretaries; clear explanations and adequate statistics are required.

Foreign Direct Investment rules: consolidated policy sets entry routes, sectoral caps, valuation and reporting obligations.
The consolidated FDI policy establishes a transparent framework to promote Foreign Direct Investment, specifying eligible investors and instruments, two entry routes-Automatic Route and Government Route-and detailed pricing, lock in and minimum capitalisation rules. It prescribes sectoral caps and sector specific conditionalities (including security clearances and sourcing requirements), sets out computation rules for direct and indirect/downstream foreign investment, and mandates standardized reporting, remittance and approval procedures under FEMA with enforcement and penalties for contraventions.

Corporate governance reforms: mandatory e-voting and strengthened board, audit and disclosure obligations for listed companies.
Issuers must provide an e-voting facility for all shareholder resolutions and reference the e-voting platform link in notices; Clause 49 mandates principle-based corporate governance reforms including shareholder rights and disclosures, board composition and independent director criteria, standing committees (Audit, Nomination and Remuneration, Risk Management), mandatory Audit Committee review and powers, formal policies and approvals for related party transactions with material ones subject to shareholder special resolution, CEO/CFO certification of financial statements and internal controls, quarterly compliance reporting to exchanges, and auditor or company secretary certification of governance compliance.

Foreign Direct Investment in LLPs requires prior government approval plus specific valuation, payment and reporting conditions under FEMA.
Foreign direct investment in LLPs is allowed only in LLPs formed under the LLP Act and limited to sectors permitting 100% automatic FDI without performance conditions. All foreign investment requires prior Government/FIPB approval. Eligible investment is capital contribution (profit share treated as reinvestment). Pricing must meet fair price valuation certified by an approved valuer or prescribed accountant. Payments must be by inward remittance or debit to specified non resident accounts via AD Category I banks. LLPs must report transactions to the Reserve Bank through AD Category I banks with supporting FIRCs, valuation and KYC documentation to obtain a Unique Identification Number.

Dematerialisation compliance enables shift from trade-for-trade to rolling settlement when depository connectivity and other conditions met.
Stock exchanges may shift securities from TFTS to normal Rolling Settlement where companies have dual depository connectivity and meet two conditions: at least 50% of other than promoter holdings are dematerialized certified by the Registrar and Transfer Agent (or, if no separate RTA exists, by a practicing Company Secretary or Chartered Accountant), and there are no other grounds for continuation of TFTS; exchanges must report actions in Monthly/Quarterly Development Reports.

Self-certification compliance for bar-coding on secondary and tertiary packaging delayed for exports; prior clearances remain valid.
The public notice amends the effective date for Self-certification of compliance with bar-coding requirements on secondary and tertiary packaging for export consignments of pharmaceuticals and drugs, delaying commencement while affirming that consignments cleared under the prior notice remain valid; the amendment is made under Paragraph 2.4 of the Foreign Trade Policy, 2009-14.

Sea-to-sea cargo transshipment in ICES now issues TP permits with Destination Port/CFS declaration and bond validation.
A new ICES module governs sea-to-sea transshipment of FCL cargo by requiring Destination Port/CFS declaration in the IGM, filing a Service Centre TP Request with specified information and valid TP bond and PLA balances, automated validation by ICES Primary, and Customs approval to generate a uniquely numbered Transshipment Permit. The TP permits movement to the Destination Port and, for uni-modal road/rail movement with a specified CFS, directly to that CFS; multimodal movements to a Destination CFS remain non-EDI beyond the Destination Port. System debits bond/PLA on approval and updates IGM/container accessibility for BE processing.

Electronic issuance of tax orders required via systems module to ensure unique reference and operational validity.
All orders and notices concerning objection disposal and assessments by designated VAT authorities must be issued through the Department's Systems module so that a unique Reference No. and Bar Code is generated; issuance outside the Systems module will lack these identifiers, be treated as invalid for operational purposes, and be viewed adversely against the officer responsible, with registered post permitted additionally if deemed necessary.

Objection rights on corporate amalgamation clarified: Income Tax Department must be consulted before reconstruction schemes proceed.
Tax administration identified retrospective-dated amalgamation schemes designed to offset group losses against profits to the detriment of public revenue and experienced rejection of its court intervention for lack of locus standi. Consequently, the Ministry of Corporate Affairs directed Regional Directors to obtain and incorporate comments from the Income Tax Department on reconstruction or amalgamation proposals, inviting those comments within fifteen days, and required Commissioners of Income Tax to promptly transmit objections to the Regional Director for inclusion in responses to courts.

All-in-cost ceiling for trade credits extended, remaining subject to review and existing policy unchanged under FEMA authority.
The circular extends the all-in-cost ceiling applicable to trade credits for imports into India until June 30, 2014, subject to review thereafter; it leaves all other aspects of Trade Credit policy unchanged and instructs Authorised Dealer Category I banks to inform their constituents, issued under the Foreign Exchange Management Act, 1999.

All-in-cost ceiling for External Commercial Borrowings extended, maintaining existing ECB conditions and requiring banks to notify customers.
The Reserve Bank directs continuation of the existing all-in-cost ceiling for External Commercial Borrowings until June 30, 2014, subject to review, leaves all other ECB policy provisions unchanged, and requires Authorised Dealer Category I banks to notify constituents; the directions are issued under the Foreign Exchange Management Act and are without prejudice to other legal permissions.

Foreign inward remittances direct-to-account facility permitted subject to KYC, originator information and AML reporting obligations.
Foreign inward remittances under the Rupee Drawing Arrangement may be credited directly to beneficiary accounts at other banks via electronic transfer, provided the Recipient Bank credits only KYC compliant accounts or completes KYC/CDD before credit/withdrawal of non compliant accounts; the Partner Bank must mark transfers as foreign inward remittances and include accurate originator and beneficiary information in the electronic message. Recipient Banks must maintain identification records under PML Rules and report suspicious transactions to FIU IND, and both banks must comply with RBI KYC/AML/CFT guidelines.

Stamp duty on delivery orders reduced, with exemption for imports already exempt from customs duty
Stamp duty on delivery orders for imported goods under the Karnataka Stamp Schedule has been reduced to a lower ad valorem rate effective as communicated by the State government; the levy is exempt in respect of goods that are exempt from customs duty by the Government of India. The public notice updates prior guidance to trade associations and carriers concerning levy and collection practices for delivery orders.

Mandatory contact and PAN updates: failure to update may result in missing official communications; final compliance required.
Importer-Exporter Code holders must update telephone, mobile, e-mail and complete Permanent Account Number details in the IEC database by 30 June 2014 as a final opportunity with no further extension. Future communications and deficiency letters will be sent by e-mail, and failure to update contact and PAN details may result in not receiving important official communications.