FII position limits restrict fresh trading on breach while permitting offsetting transactions to reduce derivative exposure.
FIIs may trade all exchange traded derivative contracts subject to position limits: at the FII level index positions capped at 15% of open interest and single stock positions at 7.5% of open interest (each with specified higher floors); at sub account level gross positions on a stock limited to the higher of 1% of free float market capitalisation or 5% of open interest. Exchanges and clearing entities will monitor positions daily using unique FII and sub account codes, with confirmed positions submitted by clearing members; breaches bar fresh positions but permit offsetting transactions. Positions are computed gross for FIIs, net for sub accounts, and valued by open interest times closing price.

Misdeclaration procedure for licence valuations applies to all VABALs issued from April 1992 onward under policy circular.
Policy Circular No.23 dated 22.10.1997 prescribes procedures for suspected misdeclaration of value in licence applications and is clarified to apply to all VABALs issued from 01.04.1992 onwards; port office queries prompted a policy review which confirmed that the Circular's procedural framework governs suspected valuation misdeclaration for VABALs issued on or after 1 April 1992.

Return of customs deposits simplified: written request plus attested appellate order and TR-6 challan suffices for refund processing.
Claimants depositing security under Section 129E may obtain return of deposits by submitting a simple written request to the concerned Assistant/Deputy Commissioner of Customs, together with an attested copy of the appellate or CEGAT order showing entitlement and the original TR-6 challan evidencing payment; pending formal refund applications will be treated and processed as such, and bank guarantees executed in lieu of cash deposits shall also be returned.

Referral authority for classification: only Commissioners or Chief Commissioners may seek Board clarification; field must decide cases promptly.
Classification and interpretation of drawback entries must be resolved by field adjudicating officers, who should pass appealable speaking orders; only Commissioners or Chief Commissioners may refer substantial matters to the Board. Junior officers must not send classification queries or sealed samples directly to the Board. Field formations must dispose of exporter queries locally, issue standing orders for staff and trade guidance, and view unauthorized deviations seriously with potential disciplinary action.

Acceptance of deposits amendment circulated; stakeholders instructed to note Notification GSR and promptly acknowledge receipt.
The Department of Company Affairs circulated the Gazette notification The Companies (Acceptance of Deposits) Amendment Rules, 2002 (GSR 77(E), 04.02.2002) to all Regional Directors, Registrars of Companies and Official Liquidators, directing them to note the amendment, take necessary administrative action for implementation, and acknowledge receipt to the Department to confirm dissemination and ensure regulatory compliance.

Drawback rate application: distinct garment tariff entries attract separate drawback rates; do not aggregate into a single set rate.
Field formations must apply the specific drawback rates and caps in the current Drawback Table for Chapter 62 ready-made garments; the prior practice treating multiple garments as a single Set stemmed from a previous, generic Table and is not applicable where the 2001-2002 Table provides individual entries. SS Nos.62.09 and 62.10 apply only to items not specifically listed in SS Nos.62.01-62.08. Issue public notice and standing orders to ensure staff and trade apply individual rates and caps rather than aggregating distinct entries.

Monitoring of NFE deferred for EOU/EPZ/EHTP/STP/SEZ units, treating 2001-2002 as a blank year under export policy.
The Director General of Foreign Trade, relying on Paragraph 4.11 of the Export and Import Policy 1997-2002, notifies that 2001-2002 shall be treated as a blank year and that monitoring of Net Foreign Exchange (NFE) for EOU, EPZ, EHTP, STP and SEZ units is deferred for the period 1 April 2001 to 31 March 2002 as a public interest administrative measure.

Amendments to DEPB rates update export benefit entitlements and revise agency addresses and certification listings.
Amendment fixes DEPB rates and value caps for specified Engineering, Chemicals, Plastics and Textiles exports in Appendix 28A, and updates administrative records: the Moradabad Joint DGFT address and jurisdiction in Appendix 27, corrected Spices Board regional office addresses in Appendix 31, the SGS India Private Limited address in Appendix 32A, and adds a Chamber of Commerce to Appendix 51B as an authorised issuer of non preferential Certificates of Origin for Tamil Nadu.

Agri Export Zone designation notifies new crop-specific zones and revises district coverage for export promotion.
Notification designates new Agri Export Zones and amends district coverage in Appendix 59 under the Export and Import Policy 1997-2002. New zones: Cut Flowers in Tamil Nadu (Dharmapuri) and Grape and Grapewine in Maharashtra (Nasik, Sangli, Pune, Sholapur, Satara, Ahmednagar). Amendments reassign Pineapple in West Bengal to Darjeeling, Uttar Dinajpur, Cooch Behar and Jalpaiguri, and Lychees in Uttranchal to Udhamsingh Nagar, Nainital and Dehradun.

Service Tax Audit expanded to selected metropolitan assessees with mandatory proforma, reconciliations and risk analysis.
The Board extends selective Service Tax Audit coverage to named metropolitan assessees listed in Annexure I, preserving prior norms for stock broking, telephones and non life insurance. Audits are limited to accounts from 1999-2000 (or from July 2001 for newly taxed services), to be completed within ten working days using the Annexure II proforma. Audit teams should follow EA 2000 methods, perform preliminary reviews, document systems and tax accounting, evaluate internal controls, conduct reconciliations and a sample Risk Loss Analysis, verify registration, returns, payments and exemptions, and submit structured reports with findings, assessee responses and follow up actions.

Proforma requirement for filing SLPs: stricter completeness and 45 day advance submission required and adherence to monetary limits enforced.
The Board prescribes a revised Proforma 'B' for SLP proposals requiring strict completion, specified documentary enclosures, a date-wise movement annexure, and confirmation that the proposal reaches the Board at least 45 days before the limitation date. Proposals without a completed Proforma 'B' or sent contrary to prescribed monetary limits will be returned to the CCIT and delays attributed to the CCIT's office; the instruction is effective immediately.

Removal of duty-free goods to another eligible manufacturer allowed, subject to recipient registration and commissioner approval for external tests.
Removal of goods received duty-free may be made to another eligible manufacturer provided the recipient obtains registration under the Rules; movements outside the factory for testing, repair, refining or reconditioning and return can be authorised by the Commissioner through supplementary powers under the Central Excise (No.2) Rules, 2001.

Classification of Shikakai powder as excisable under Chapter 33 affirmed, rendering it subject to central excise duty.
The conversion of raw Shikakai into Shikakai Powder is treated as manufacture, placing the powder within Chapter 33 of the Central Excise Tariff Act and making it chargeable to excise duty; the board has accepted the judicial rulings and directed field formations and traders to settle pending disputes and assessments accordingly.

Cenvat credit on molasses allowed when used as input in dutiable manufacture, subject to unit structure and usage.
Cenvat credit on duty paid on molasses is permitted or denied based on use and organisational structure: in a composite unit, credit is unavailable where molasses is consumed to produce exempted or non-excisable ethyl alcohol, while credit on externally procured molasses used to make dutiable ethyl alcohol is available for duty on any finished product of the same factory; where sugar and distillery are separate entities, duty paid on molasses cleared by the sugar unit yields no credit for that unit but the receiving distillery may avail the credit.

Classification of Uninterrupted Power Supply Systems: provisional clearance under heading 85.04 allowed with simple bond, no bank guarantee required.
Pending final adjudication on conflicting tribunal views, UPSS are to be provisionally assessed and cleared under heading 85.04 on the basis of a simple bond, without taking a bank guarantee for the differential duty between the previously applied heading and heading 85.04.

Tax deduction from salaries: employer must estimate taxable salary, apply prescribed rates and perquisite valuation, and remit timely.
Instructions under section 192 for financial year 2001-2002 set out prescribed rates and a surcharge for tax deduction from salaries, employer and DDO duties to estimate annual salary, apply specified deductions and rebates (including Chapter VI-A and Chapter VIII provisions), adjust for multi-employer situations via Forms 10E and 12C, value perquisites under amended Rule 3 with recordkeeping requirements, issue TDS certificates (Form 16/12BA), file annual returns (Form 24), remit tax timely using correct challans, and observe penalties, interest and criminal sanctions for non-compliance; a limited relief on TDS for non-monetary perquisites for lower-salaried employees and for free/concessional travel tickets applies for FY2001-02 only.

Export documentation registration option allows pre-filing Annexure-C/C1 at service centre and preserves amendment at goods registration.
Exporters and CHAs may pre-file Annexure-C/C1 particulars at the Service Centre with Annexure-A/B so the printed checklist will include complete Annexure-A/B and C/C1 information for verification before shipping bill submission. If not pre-filed, Annexure-C/C1 can still be filed at goods registration. Amendments to Annexure-C/C1 entered at the Service Centre remain permissible at goods registration. The ICES-Export software has been updated to enable this facility and implementation issues should be reported to the System Manager/DC (EDI).

Fixation of input-output norms: DGFT updates SION entries and adds product-specific import allowances across sectors.
The Director General of Foreign Trade amends the Handbook of Procedures, Vol. II, by substituting, correcting and adding Standard Input Output Norms (SION). The notice inserts new SION entries across Chemicals, Electronics, Engineering, Textile and Miscellaneous groups, specifies export items with corresponding permitted import inputs and quantities (including alternative inputs and net to net or value based allowances), corrects descriptions and technical specifications, relocates at least one SION between groups, and attaches Annexures A-F for incorporation into the Handbook.

Re-fixation of rupee value for special currency basket updates valuation for USSR-era deferred payment contracts.
The Reserve Bank of India has revised the Indian Rupee valuation of the Special Currency Basket for use in calculating rupee equivalents under the Indo USSR deferred payments protocols; the Directorate General of Foreign Trade notifies that this revised rupee value applies to deferred payment contracts concluded under the protocols dated 30 April 1981 and 23 December 1985.

DEPB validity extension for embroidered silk items permits revalidation and acceptance of time-barred DEPB applications under procedure rules.
DEPB licences for embroidered silk items (including those mixed with non-silk Textile Products Group entries where DEPB was allowed only on non-silk items) shall have their validity extended for six months; licence holders must apply to the Regional Licensing Authority within 60 days with a request and a treasury receipt or demand draft for the prescribed fee. Regional Licensing Authorities may also accept previously time-barred applications for DEPB credit in respect of exported embroidered silk items, except where misrepresentation, fraud, or adjudicating orders exist.