Reconstitution of advisory group for competition policy to provide broad market, international practice and advocacy guidance.
The Competition Commission of India has reconstituted the Eminent Persons Advisory Group (EPAG) and nominated eminent persons to advise on issues impacting markets and competition, good international practices and improved advocacy; the EPAG is drawn from the corporate sector, academics, NGOs, regulatory authorities, central banking, auditing institutions and social activists and met for the first time earlier in the year.

Multi-level marketing regulation: scrutiny and model rules to distinguish legitimate direct sales from disguised money circulation schemes.
Allegations that companies are conducting prize chit and money circulation schemes disguised as multi level marketing have led to directed scrutiny of balance sheets and statutory inspections of books of account to determine whether activities amount to prohibited money circulation. An inter ministerial group is drafting model rules for multi level marketing and issuing guidelines to distinguish genuine direct sales from disguised circulation schemes.

Government authority to order company investigations clarified; SFIO lacks extra judicial powers under companies law in official press release.
The Registrar of Companies may require information from companies and report to the Central Government, which can order formal investigations and appoint Inspectors; complex frauds are typically assigned to the multi disciplinary Serious Fraud Investigation Office, but that assignment does not grant the Office separate extra judicial powers beyond the statutory investigation framework.

Public purpose designation to address land acquisition and investment climate; government to announce policy steps on FDI and credit.
The government will announce measures to restore investor confidence and improve the industrial investment climate by addressing declining manufacturing output and weak capital formation, reviewing FDI policy, affirming a reform agenda with steps already under implementation, and planning additional decisions. Industry concerns on credit cost and land acquisition will be addressed, including consideration of manufacturing zones, the DMIC corridor and SEZs within the ambit of public purpose to facilitate land access, with coordinated inter ministerial and stakeholder engagement.

Sectoral exemption under Competition Act not available; policy proposes committee to address regulator conflicts and financial sector requests noted.
No sector is exempted from the Competition Act; the Department of Financial Services has requested exemption for loss making and failing insurance and banking entities but no statutory exemption exists, and the Department of Telecommunication has not sought exemption. The Draft National Competition Policy proposes a Cabinet Committee on Competition to address conflicts between regulators; the draft is at the consultation stage.

Multi level marketing regulation seeks model rules and guidelines to distinguish genuine direct sales from disguised money circulation schemes.
An Inter Ministerial Group including financial, corporate, securities, consumer and investigation agencies has been constituted to draft model rules for Multi Level Marketing Companies and to specify prohibited schemes under the Prize Chits and Money Circulation Schemes (Banning) Act; the Group will also frame guidelines to distinguish genuine direct sales from disguised money circulation schemes to support enforcement and consumer protection.

Investor-friendly FDI policy permits automatic route access and promotes sector-wise inflows through single-window facilitation.
FDI inflows for April-May 2012 are reported with sector-wise annexures, and the government states that FDI up to 100 percent is permitted in most sectors under the automatic route. The policy is under continuous review to enhance investor access; the government promotes investment through information dissemination, advisory engagement, coordination with industry associations and international cooperation. A not-for-profit joint venture, Invest India, is identified as a single-window facilitator to attract and assist overseas investors.

FDI in multi-brand retail allowed under conditions, requiring local sourcing, backend investment and city-specific store limits.
The framework permits FDI in Multi-Brand Retail under Government approval subject to conditions: a minimum foreign investment entry, a specified portion of FDI invested in backend infrastructure (excluding front-end, land and rentals), a mandated share of procurement from Indian small industries defined by plant-and-machinery valuation, self-certification with auditor-certified accounts and cross-checks, restrictions on store locations to large urban agglomerations and conforming zonal plans, allowance for unbranded fresh agricultural produce, and a governmental first right of procurement.

Comprehensive economic partnership: CEOs Forum to shape trade, services, sectoral cooperation and investment facilitation roadmap.
A bilateral CEOs Forum, co chaired by appointed Indian and Sri Lankan business leaders, will convene to develop a private sector roadmap to boost trade and investment and to advise government ministers on negotiating a Comprehensive Economic Partnership Agreement covering trade in goods, trade in services, sectoral economic cooperation and investment facilitation, with FICCI and the Ceylon Chamber of Commerce serving as national secretariats.

Tax information exchange enables foreseeably relevant cross-border tax data sharing with confidentiality and conditional further disclosure.
A Tax Information Exchange Agreement establishes cross-border sharing of tax information when such information is foreseeably relevant to administration and enforcement of domestic tax laws; the requesting State must provide minimum details to justify relevance. The requested Party must supply information upon request-even if not needed for its own tax purposes-and provide banking and ownership information. Exchanged information is confidential, may only be disclosed to designated tax or appeal authorities, and further disclosure to other persons or jurisdictions requires written consent of the competent authority; the agreement allows tax examinations abroad and exchange upon entry into force.