Foreign Exchange Management Act guidance centre offers rapid responses and monitored escalation for exchange control compliance queries to trade.
The Reserve Bank of India has established an Information Centre to receive public queries on the Foreign Exchange Management Act and exchange control matters via fax, e mail and telephone; routine queries will receive prompt responses while complex queries will be acknowledged and forwarded to the relevant Department using monitored procedures for timely disposal by HOD/RD.

CIF valuation rule for advance licences now includes deemed export FOR value and revised value-addition norms apply.
The Handbook (Vol.1) amendment requires that CIF valuation for Advance Licence for deemed exports/intermediate supply include deemed export performance of the preceding year (FOR value) in addition to FOB of preceding-year physical exports. Appendix 28-A corrects a DEPB cap to Rs. 0.85 per piece and revises an engineering product description. Appendix 39 sets value-addition at 33% or the Handbook (Vol.2) percentage, whichever is higher, for exports to the Russian Federation funded from Special Rupee Accounts involving duty-free imports. Appendix 51B adds an Assistant Director (Marketing) post in Saharanpur.

Deletion of minimum value addition: Handbook procedural references removed under export policy powers, issued as a public notice.
Deletion of references to minimum value addition from the Handbook of Procedures, Vol. II, effected under powers conferred by the Export and Import Policy; any reference to minimum value addition wherever occurring in the Handbook, Vol. II, shall be deleted as an administrative amendment issued in the public interest.

Investor Protection Fund interest permitted for investor education, awareness and research by stock exchanges to enhance market safety.
Stock exchanges are authorized to utilize interest income earned on the Investor Protection Fund for investor education, awareness and research. The Fund, intended to compensate investors for broker defaults, has seen corpus growth and reduced disbursements due to improved risk management, and the circular permits using only the Fund's interest income to finance programs that promote investor knowledge and support market-related research.

On-line filing requirement for status holders makes electronic submission mandatory for DEPB and Advance Licence applications; manual filings excluded.
On-line filing is made compulsory for all status holders submitting DEPB and Advance Licence applications effective 16 August 2000. Status holders must obtain passwords per earlier trade notices and prepare to file electronically; manual applications from status holders will not be accepted from the effective date.

Standard Input Output Norms amendments update import-export input allowances and add chemical, engineering and textile entries.
The Public Notice amends the Standard Input Output Norms in the Handbook of Procedures Vol.2 by making corrections to existing entries and adding new SION entries in Chemicals and Allied Products, Engineering Products and Textile Products. Annexure A contains specific amendments, substitutions and deletions to current norms; Annexures B, C and D provide the detailed input-output specifications for the newly added entries, including permitted import inputs, quantities and conditional notes governing allowances.

Monthly cumulative reporting requirement mandates mutual funds to submit revised MCR format monthly to regulator.
Mandates mutual funds to submit a Monthly Cumulative Report (MCR) in a prescribed format by scheme type, reporting number of schemes, funds mobilised, repurchases/redemptions, net inflow/outflow and cumulative net assets on a financial year cumulative basis. Requires electronic submission (fax/e mail) by the monthly cutoff with hard copies by hand/courier, and directs other statistical reports to be submitted only electronically.

Adjudication powers reassigned to Additional Commissioner with approval routes for commissioner and Chief Commissioner.
Amendment prescribes that an Additional Commissioner, as approved by the Commissioner, or where none exists in the commissionerate an Additional Commissioner of the Zone as approved by the Chief Commissioner, shall exercise the powers previously exercised by the Collector under sub para (e) of para 3 of the administrative machinery provision for collection of service tax.

DEPB rate calculation for mixed specified and non-specified drug formulations clarified; methodology defines weight-based apportionment and applicability.
For formulations with both specified and non specified bulk drugs, calculate each specified constituent's DEPB contribution as 75% of its bulk DEPB rate times its weight percentage divided by 100, sum those contributions, then compute the non specified contribution by multiplying the combined weight percentage of all non specified constituents by the applicable DEPB rate for non specified drugs divided by 100; the formulation's DEPB rate is the sum of specified and non specified contributions. The method applies only to exports on or after the circular date.

DEPB admissibility: MS galvanized sheets follow entry S.N.363; stainless steel circles follow entry S.N.433 for uniformity.
DEPB benefits for exports prior to 01.04.2000: MS galvanized sheets/strips shall be allowed DEPB under entry S.N. 363 because S.N. 91 covers only inputs that are both galvanized and coated; stainless steel circles exported prior to that date may be allowed DEPB under entry S.N. 433 to maintain uniformity where Customs Houses have cleared them under that entry.

Margining requirements: separate mark-to-market and gross client-level margins to strengthen collateralisation and position disclosure.
SEBI requires separate collection of mark-to-market margins distinct from daily/exposure margins and will separately address netting of MTM results. Exchanges must adopt gross margining by mandating client codes at broker level within a short prescribed timeframe. Non institutional clients must maintain a minimum margin deposit in approved collateral, excluding actual deliveries/payments from net positions. Exchanges must disclose daily net open positions in principal scrips and implement these measures promptly.

Incremental carry forward margin under MCFS: exchanges must apply higher slab-based margins and align implementation.
The circular requires levy of an Incremental Carry Forward Margin on scrip-wise carry forward positions when market-wide outstanding or carry-forward-as-a-percentage thresholds are exceeded, applying the higher of two slab-based rates (absolute outstanding and percentage of paid-up shares). Exchanges with ALBM or MCFS must mirror imposition across other such exchanges from the next settlement. It further directs that Mark to Market Margin be collected separately and that carry forward margins be paid fully in cash, fixed deposits or government securities or their combination.

Position limits and margining in automated lending and borrowing mechanism define risk controls and collateral requirements.
The circular permits an Automated Lending and Borrowing Mechanism (ALBM) to facilitate securities lending, borrowing and settlement netting. Exchanges may implement ALBM only after SEBI approval of scrip eligibility, selection processes and disclosure rules, and only if they demonstrate adequate margin-computation software, governance and clearing intermediation. Risk controls include aggregate and per-scrip position limits for netted trade positions, special rules for pure securities borrowers, rules on short-sale charge release, gross-basis margining with minimum margin floors and tiered incremental margins, and specified collateral forms for margin collection.

Investment decision recordkeeping required: mutual funds must document due diligence and trustees must report compliance to regulator.
SEBI requires AMCs to maintain documentary support for each investment decision demonstrating exercise of due diligence, including detailed research reports for initial investments and recorded reasons for subsequent trades; boards must verify due diligence, with heightened scrutiny for unlisted/private placements, unrated debt, NPAs and associate transactions, and trustees must review and report compliance to SEBI, using auditors where appropriate.

Natural justice requires show cause notice, written representation, personal hearing and a reasoned order to ensure fair adjudication.
Authorities must issue a show cause notice, allow a written representation and a personal hearing, and give a reasoned speaking order; adherence to the Departmental Adjudication Manual and issuance of standing orders is required, and difficulties in implementation should be reported to the Board.

Interest on delayed customs duty applies to reassessed liability from after original assessment until payment.
Where provisional assessment denied EPCG benefits and later reassessment allowed them, interest is to be calculated on the reassessed duty amount for the period commencing two days after the original assessment date and continuing until the date of payment of duty.

Material misstatement standard replaces prior review wording; stock exchanges must amend Clause 41 and confirm compliance.
The circular revises the concluding sentence of the review report under Clause 41 to replace the word "misstatement" with material misstatement, while maintaining that the unaudited financial results must disclose information required by Clause 41 and the manner of disclosure; stock exchanges are directed to amend Clause 41 accordingly and confirm compliance.

Use of UN location codes mandated for specified sea ports, airports and ICDs; apply listed codes where required.
A new note and S.No.11 in Appendix 1 of the Handbook of Procedures mandate the use of the listed UN location codes for specified sea ports, air ports and ICDs; the Director General of Foreign Trade directs that these location codes be used wherever required in export-import documentation, with the Appendix providing the prescribed codes for each named location.

Rectification of tribunal orders to align outstanding appellate decisions with controlling higher court precedent is advised.
Instruction advises filing rectification applications to recall Tribunal orders inconsistent with binding Supreme Court precedents, noting three controlling rulings on unjust enrichment for refunds, reassessment of production capacity after an assessment election, and the applicability of limitation to recovery of wrongly availed credit, and recommends using statutory recall provisions where no appeal was taken to align Tribunal outcomes with current precedent.

Review of tribunal orders required: final adverse or remand orders must be circulated, examined and reported to the Board.
The Board directs the Central Documentation Registry to circulate monthwise lists of all final CEGAT orders remanding matters or adverse to revenue to Chief Commissioners and the Board; Chief Commissioners must ensure Commissioners in their zones review these orders, establish mechanisms to examine orders-in-original and orders-in-appeal, select cases for review only after complete examination, send monthly reports listing adverse or de novo tribunal orders examined, and communicate the fact of examination to the Board within a short prescribed period.