Present market value determination governs DEPB credit and market checks must be limited, focused, and expeditious.
Present market value is to be used for DEPB credit when declared FOB exceeds present market value; market verification is limited to suspect cases (including sub standard goods and sensitive destinations), must be conducted expeditiously to avoid trade harassment or export delays, and public notices and standing orders should be issued to guide staff and inform trade.

Short term credit for imports: authorised dealers may approve suppliers' or buyers' credit subject to maturity, cost and reporting rules.
Authorised Dealers may approve short term Suppliers' or Buyers' Credit for import financing in Form ECB provided the credit meets prescribed maturity and amount ceilings and the specified all in cost per annum; approvals must be issued in writing, ECB 5 statements continued, each loan given a unique Identification number, and monthly details submitted in Form ECB ST to the Reserve Bank's ECB Division, with proposals exceeding the prescribed amount forwarded to the Chief General Manager.

Appropriate duty requirement: exemption denied where inputs are exempt or subject to nil excise duty, altering prior clarification.
Exemption notifications conditioned on the appropriate duty of excise having been paid do not apply where inputs are exempt from excise or subject to a nil rate; the Board's prior clarification treating nil-rate or exempt inputs as "appropriate duty paid" is modified, and the same rule applies to additional customs duty.

EPCG scheme eligibility expanded to permit service providers to import consumer items where valid licences exist.
Service providers who require consumer items like carpets, crockery, marble and chandeliers shall be allowed EPCG benefit; the rider excluding such items is deemed deleted. Where DGFT has issued valid EPCG licences covering these items, Customs shall permit import under EPCG. Standing Orders and Trade/Public Notices are to be issued for field guidance and receipt of this Circular acknowledged.

Registration eligibility for related registrars: separate certificates allowed if entities maintain independent boards, controls, personnel and arm's length operations.
Registration for registrars and share transfer agents within the same group may be granted provided each entity has separate legal incorporation, independent boards (no majority common directors), absolute arm's length operations, independent key personnel and infrastructure, and independent regulatory controls and supervisory mechanisms. Suspension or cancellation of one entity's registration can lead to action against other group entities. "Same group" is defined by common control (alone or with relatives), being under the same management, or where one entity controls another, with control as defined in the Regulations.

Two-way fungibility of ADRs/GDRs suspended for Overseas Corporate Bodies pending government review and restricted to other foreign investors.
Two-way fungibility of depository receipts is temporarily restricted so that Overseas Corporate Bodies (OCBs) cannot participate pending a full review; the scheme may operate only for foreign investors other than OCBs, and stock exchanges, depositories and custodians are to notify their constituents of this interim eligibility restriction.

Classification of assemblies as parts determines concessional duty eligibility; split AC cooling and condensing units lose exemption.
An assembly or sub assembly that lacks the essential characteristics of an air conditioning machine - namely evaporator coil, condenser coil, motor, fan/blower, compressor and capillary line - shall be classified as a 'part' and remain eligible for concessional duty; an assembly or kit containing all these components (including in CKD/SKD form) shall be classified as the complete machine under the deeming rule and will not qualify for the exemption. The 1996 circular is modified accordingly.

Cenvat credit on capital goods affirmed where used for exempt intermediates but integrated into dutiable finished goods production.
Cenvat credit should not be denied on capital goods used in manufacturing of intermediate goods exempt from payment of duty where those capital goods are used captively in the manufacture of finished goods chargeable to duty; the Cenvat Credit Rules contain no provision barring such credit despite the absence of a corresponding erstwhile rule.

Corrigendum to central excise circular removes reference to EOUs and EPZ units from a subparagraph provision.
The corrigendum directs that the words and figures "(3) EOUs including EPZ units: EU" appearing in subparagraph (ii) of paragraph 5.3 of the earlier central excise circular are to be treated as omitted, effecting an editorial correction to the text of paragraph 5.3.

Postal delivery of licences requires a self addressed stamped envelope; licences retained and dispatched only after envelope submission.
Facility permits delivery of licences by post upon submission of a self addressed stamped envelope of specified dimensions for speed post. Applicants without valid identity cards, those opting for postal delivery despite having identity cards, and applicants under negative/restrictive lists must enclose the prescribed envelope with postage by distance. If applicants with valid identity cards fail to submit the envelope and do not collect licences within fifteen days of expected delivery, licences will be retained and dispatched only after the envelope is provided; delays are the applicant's responsibility.

Non-transferability of advance licence: additions of co-licensees after obligation completion are not permitted under policy.
PMV must be declared itemwise in EDI shipping bills and Annexure D PMV declarations remain required. Change/addition of co licensee after export obligation completion is not permitted as it converts a non transferable Advance Licence into a transferable one and frustrates enforcement; replenished materials must be consumed only at the factory that exported. Advance Licences for deemed exports to EOUs/EPZs/EHTPs/STPs require the unit's Legal Undertaking/Letter of Permission/Letter of Intent and are limited to approved inputs. Where EP copies cannot be generated, a certified Shipment Certificate by Customs may be accepted for DEPB purposes.

Foreign currency loans against FCNR(B) deposits permitted in India with strict security, maturity and repayment safeguards.
Authorised dealers in India may grant foreign currency loans to holders of their own FCNR(B) deposits in India, provided loans are made only to the deposit holder, secured fully by the deposit, documented by the holder (not by POA), and subject to conditions: loan maturity not to exceed deposit maturity; loans not for investments in India; compliance with margin and prudential instructions; repayment by foreign remittance or adjustment of the deposit; board approval and adequate monitoring required.

Two way fungibility restricted: OCB participation suspended pending government review, scheme continues for other foreign investors.
Two way fungibility of ADRs/GDRs is temporarily restricted for Overseas Corporate Bodies (OCBs); the Reserve Bank of India and the Government have decided to keep OCB participation on hold pending a full review, while the scheme remains operable for foreign investors other than OCBs, and market intermediaries are asked to inform their members of this restriction.

Registration of affiliated underwriters permitted if independent governance and operations, but enforcement may extend to related entities.
Registration may be granted to two entities in the same group only if each is a separate legal entity with independent Boards (no majority common directors), arm's-length operations, independent key personnel and infrastructure, and independent regulatory controls; however, suspension or cancellation of one entity's registration may entail regulatory action against other registered group entities, and entities are in the same group where the same person (alone or with relatives) exercises control, they are under the same management as defined by company law, or one directly or indirectly controls the other.

Accountal of pipeline movements without duty: quarterly ARE-3 reporting, provisional re warehousing certificates and certified annual reconciliation.
A procedural regime allows refineries to generate one ARE-3 per product per destination at quarter end, permits receiving installations to issue re warehousing certificates ARE-3 wise which are provisionally acceptable to refinery authorities, dispenses with D 3 and consignment wise ARE 3/A R 3A requirements, and requires oil companies to file a certified annual pipeline account reconciling dispatched, re warehoused quantities and gains or losses for each product and destination.

Unclaimed dividends and corporate payments: transfer to Investor Education and Protection Fund after prescribed unclaimed period.
Section 205C mandates transfer of specified unclaimed corporate monies to the Investor Education and Protection Fund when they remain unclaimed for the statutory unclaimed period. This covers unpaid dividends (including interest), application moneys due for refund, matured deposits, matured debentures and interest thereon, subject to transitional rules for amounts previously transferred to government accounts and a limited grace period following the Fund's operational commencement.

Penalty under section 114A applies to both customs duty and interest where collusion or willful suppression is found.
Penalty under section 114A of the Customs Act, 1962 should be assessed to include both duty and interest; the Ministry of Law advised that the disjunctive conjunction "or" may be read as "and" to give effect to legislative intent, and field formations should apply this construction when imposing penalties for collusion, willful misstatement, or suppression of facts and issue Standing Orders accordingly.

Portfolio disclosure requirements impose additional footnote and industry classification obligations for mutual fund half yearly portfolios.
Mutual funds must include, in their statutory half yearly portfolio disclosures, a footnote stating the portfolio turnover ratio for equity oriented schemes and the average maturity period for debt oriented schemes, and must display the industry name alongside each security using the AMFI recommended industry classification; these measures supplement the format required by Regulation 59A and are issued under Regulation 77.

Electronic filing requirement extended to additional listed companies for mandated EDIFAR uploads and compliance.
SEBI requires an expanded set of 500 listed companies, selected by market capitalization and turnover, to upload the specified statements and information identified in SEBI circular SMD/Policy/Cir-13/2002 to the EDIFAR web portal from the quarter ending September 2002; all prior EDIFAR filing provisions and procedures continue to apply.

Portfolio manager registrations allowed for distinct group entities if legal, board, operational, and supervisory independence exist.
SEBI will grant separate portfolio manager registrations to distinct entities in the same group if they are separate legal entities with independent Boards (no majority common directors), maintain arms length operations, have independent key personnel and infrastructure, and possess independent regulatory controls and supervisory mechanisms; however, suspension or cancellation of one group entity's registration may invite action under Regulation 35 against other registered group entities. "Same group" encompasses common control by a person (alone or with relatives), being under the same management as per the Companies Act, 1956, or direct/indirect control of one entity over another, with "control" as defined in the SEBI takeover regulation.