Risk containment for index options: portfolio based margining, scenario based worst case loss and cash settled premiums with limits.
A portfolio based margining regime requires Initial Margin calibrated to a one day Value at Risk and computed at the individual client level, with grossing at trading/clearing member level. Worst Scenario Loss is calculated by valuing portfolios under prescribed price and volatility scenarios using standard option pricing models and forms the primary margin requirement, supplemented by Calendar Spread Margin and a Short Option Minimum Margin on notional short exposures. Premiums are cash settled on T+1, unpaid premiums reduce liquid net worth in real time, futures mark to market remains cash settled, and position limits apply on a notional basis.

UN location code substitution allowed for unspecified ports; licensing authority must record the actual port when issuing licences.
Where UN location codes for certain sea ports, air ports or ICDs are not available, exporters may file electronic applications under the duty exemption scheme using the code "99 - Miscellaneous;" the licensing authority must indicate the actual port when issuing the licence. The substitution to the Handbook of Procedures is effected under paragraph 4.11 of the Export and Import Policy to remedy filing difficulties caused by unavailable UN codes.

Exemption for kerosene distributed through PDS affirmed where technical specifications are met under the ordinary-use interpretation.
The excise exemption for kerosene distributed through the Public Distribution System applies where the kerosene satisfies the prescribed technical specification and is ordinarily used as an illuminant; the Board accepts the Tariff Conference interpretation that "ordinarily used" permits other uses, so the exemption applies to PDS-supplied kerosene meeting the specification even if consumers subsequently use it for other purposes, and pending disputes should be settled accordingly.

Classification of rubber adhesives reallocated to prepared adhesives heading, altering tariff treatment and directing reassessment.
The Board modifies earlier circulars to direct that products marketed as vulcanizing solution, rubber solution, universal spray cement, rubber cement and black vulcanizing cement, which essentially comprise rubber compound with vulcanizing agents, adhesives and solvents and are used for adhesive properties in tyre retreading, are classifiable under Heading 35.06 (prepared adhesives) instead of Heading 40.05; field formations are to be informed, trade advised, and pending assessments/disputes finalised accordingly.

Money circulation schemes: remittances to operators barred; authorised dealers may permit bona fide website purchases after verification.
Remittances in foreign currency to operators of schemes that pay for recruiting new members are prohibited as money circulation; authorised dealers must refuse such remittances but may allow payment for an unconditional website purchase if satisfied the buyer will develop it for business and not to add members, after verifying the bonafides of the overseas seller and the scheme through proper documents.

Abolition of no delivery period for dematerialised scrips and reduced minimum interval between book closures to enhance trading.
Abolition of the No Delivery Period for scrips traded in compulsory dematerialised mode removes delivery prohibitions during book closures for dividends and bonus issues while preserving the existing treatment for rights issues. The required minimum interval between successive book closures and record dates under the listing agreement is reduced, and exchanges must amend the listing agreement accordingly. Exchanges are also directed to implement mandatory client-level broker codes in trading software, with non-compliance resulting in prohibition from conducting Modified Carry Forward System and Automated Lending and Borrowing Mechanism sessions.

Compulsory dematerialised trading imposed where depository connectivity exists, with non connected scrips confined to trade for trade settlement.
Compulsory dematerialised trading is mandated for specified scrips that have established connectivity with both depositories; those meeting the connectivity requirement will be placed on normal trading and, following a three month interval from the connectivity date, will be compulsorily traded in dematerialised form for all investors. Scrips failing to establish connectivity by the scheduled dates will be confined to the exchanges' trade for trade settlement window until compliance, and the circular provides annexed lists identifying scrips subject to each treatment.

Uncommitted trade finance facility enables sight letters of credit refinanced by Exim Bank, with UCP 500 governance and documentation requirements.
An uncommitted trade finance facility permits Korea Development Bank to open sight letters of credit for Indian exporters, with Exim Bank authorised to accept time drafts and refinance drawings for six- or twelve-month tenors. Contracts are in US dollars, with no minimum shipment size and no utilisation deadline; either party may terminate without notice. The facility follows UCP 500 for unspecified terms. Exports must be declared on GR/SDF/SOFTEX forms bearing a prescribed superscription and certified to Reserve Bank regional offices. Agency commission is generally disallowed but may be permitted in limited cases and deducted from invoice value.

Import controls on seconds and defective steel require designated seaports and mandatory preshipment certification for inspection and classification.
Imports of specified seconds and defective steel items are restricted to designated customs seaports and must be accompanied by a preshipment certificate from an approved inspection agency certifying material description, quality, chemical analysis, visual inspection, thickness and width, and the applicable ITC (HS) Code.

Rupee liability rules for imports financed by external assistance require deposits and prescribed interest rates for delayed payments.
Imports financed by External Assistance under the Direct Payment/Letter of Commitment procedure create a Rupee liability on importers equal to the Rupee equivalent of donor payments as intimated by the Aid Accounts and Audit Division, determined using the RBI selling rate for government transactions or the donor loan currency where no RBI rate exists. Interest on the Rupee liability is prescribed by importer category and timing of deposit, with exemptions for Central and State Government ministries/departments, and the rounded amount plus interest must be deposited to the designated government account with a receipted challan forwarded to the Aid Accounts and Audit Division.

Inclusion of furnace oil in input norms limited to standard norms and may be allowed by advance licensing committee.
Amendment clarifies that where Furnace Oil is permitted in standard input-output norms it includes both LSHS and HFO, and that such allowance is confined to items specifically permitted in the standard norms and is not available against ad hoc norms, DFRC, or paragraph 7.5 of Handbook Vol. I. Furnace Oil may be allowed by the Advance Licensing Committee for actual user licences where fuel cost constitutes a substantial portion of the total manufacturing cost; cost of manufacture must reflect ex-factory value of the product and the international fuel price.

Standard Input-Output Norms amendment revises permitted import inputs and ratios for chemical, engineering, food and plastic exports.
The Director General of Foreign Trade, under Paragraph 4.11 of the Export and Import Policy 1997-2002, issues amendments, substitutions, deletions and additions to the Standard Input Output Norms in the Handbook of Procedures, Vol.2. The Public Notice prescribes detailed corrections and new SION entries across Chemicals and Allied Products, Engineering Products, Food Products and Plastic Products, specifying permitted import inputs, precise input to export ratios, CIF/FOB value caps for certain inputs, conditional substitution rules and pro rata calculation notes for variable component weights.

All Industry Rate drawback eligibility affirmed for DFRC exports, subject to Central Excise portion and no cenvat.
Exports under the DFRC Scheme during 1.4.2000-31.5.2000 are eligible for AIR of Drawback equivalent to the Central Excise duty portion on inputs where CVD was paid, provided no cenvat was availed, at the rates specified in the table to Notification No. 31/99-Customs (NT).

On-line offer of securities: enables E-IPO issuance via exchange system with broker collection centres and escrow safeguards.
Permits companies to conduct initial public offers via an on-line stock exchange system for fixed-price issues, subject to an agreement with exchange(s), appointment of SEBI-registered brokers as collection centres, a Registrar with electronic connectivity, disclosure of intermediaries, escrow account procedures for brokers, broker financial responsibility for client defaults, daily forwarding of valid order data, fair basis of allocation, mechanisms for refund and allotment including dematerialisation, record retention, and SEBI/exchange inspection and supervision.

Proper authorisation of departmental representatives prevents appeals being dismissed on technical grounds and preserves adjudicative review.
Board directs Commissioners to personally examine and ensure proper authorisation for departmental appeals to prevent their dismissal by the tribunal on technical grounds, and advises that Commissioners should, where possible, sign the EA-3 or CA-3 and verification reports to obviate separate authorisations.

Transit risk insurance: payments for breakages are compensation, not transport cost, and cannot be treated as insurance.
The assessee included a transit insurance charge in the price of goods and sought deduction as part of freight; the department found the charge was reimbursement for breakages and disallowed it; the Tribunal allowed the deduction but the Supreme Court held that payments to make good transit breakages are not insurance nor part of transportation cost and are compensatory credit note adjustments to customers.

Drawback fraud detection: alerting stronger verification of export descriptions, valuations and inspection reports to prevent undue claims.
Alert regarding detection of drawback fraud where exporters misdeclared old and used garments and carpet leftovers, declared artificially low FOB values, and filed examination reports within minutes indicating no proper inspection. The circular directs field formations to strengthen verification of export descriptions, valuations and physical examinations to prevent recurrence and to ensure integrity of examination reports and customs inspection procedures.

DEPB scrip verification time limit requires completion within three working days and limits repeat document demands.
Verification of DEPB scrips must be completed and returned to exporters within three working days of submission; Commissioners should nominate a Senior Officer to ensure daily compliance. Routine export documents need not be re-produced during verification unless specific recorded reasons justify detailed scrutiny, and such scrutiny must be authorised by an officer not below the rank of AC/DC of Customs.

Detection of export frauds prompts urgent activation of anti-smuggling units and advisories to customs stations nationwide.
The Chairman directed customs stations to issue a general alert and to activate anti smuggling units, SIB, and CIUs so that field formations adopt comparable vigilance in detecting and preventing export frauds, and requested immediate implementation of these directions.

Drawback entitlement for man-made fabrics clarified: all-industry rates apply where processing duty is bonded or rebated without Modvat.
All-industry drawback rates for man-made fabrics exclude processing-stage Central Excise duty; the All-Industry Rate is admissible when processing duty is bonded under rule 13(1)(b) or rebated under rule 12(1)(b), provided Modvat credit has not been availed and proof of non-availment is produced or a Special Brand Rate is sought. The rate also applies where Modvat is taken on fibre/POY but duty is paid on yarn for exported grey fabric. These instructions extend to exports under the DFRC scheme, which are subject to Central Excise allocation of drawback rates.