Monetary tightening: repo rate increased to rein in inflationary pressures and anchor inflation expectations.
The Reserve Bank of India increased the repo rate under the Liquidity Adjustment Facility with immediate effect, causing automatic upward adjustments in the reverse repo and marginal standing facility rates; the action aims to rein in demand-side pressures, contain elevated inflation-notably in non-food manufactured products and fuel-and anchor inflationary expectations while balancing risks to growth amid adverse global developments.

XBRL filing requirement: specified companies must submit financial statements in XBRL format, with exemptions and temporary fee relief.
The Ministry mandates XBRL filing for Balance Sheet and Profit and Loss Account with Directors' and Auditors' reports for specified classes of companies from 2010-11; the Ministry has published the XBRL taxonomy, business rules and validation tools and will enable an XBRL filing module on the MCA-21 portal. Phase I requires listed companies and their Indian subsidiaries and companies above prescribed capital and turnover thresholds to file in XBRL, while banking, insurance, power companies and NBFCs are exempted until further orders; a fee concession and AGM-related filing timeline are specified and training contacts provided.

Filing compliance requirement: companies must update financial statements and annual return before any event filings.
All companies must file updated Balance Sheet and Profit & Loss Accounts and Annual Return with the Registrar of Companies before any event-based filings will be accepted; event filings (oral, written or e-forms) will be refused for defaulting companies. Directors of defaulting companies are barred from e-filing for other companies, Company Secretaries and Auditors cannot sign or certify MCA-21 filings for those companies until defaults are rectified, and professional members must not issue certificates except for specified e-forms. Limited exceptions apply for court/tribunal orders or registered management disputes.

Foreign direct investment in LLPs permitted subject to sectoral eligibility, compliance and designated partner obligations.
FDI in LLPs is permitted only where the LLP operates in sectors allowing full foreign investment on the automatic route without FDI-linked performance conditions, and admission is via the Government approval route. Excluded activities include agriculture/plantation, print media and real estate. Foreign capital must be by cash inward remittance or debit to specified non-resident accounts; FIIs and FVCIs cannot invest and LLPs with FDI cannot take ECBs or make downstream investments. Designated partners must be resident as defined under foreign exchange law, corporate designated partners must be Indian companies, and designated partners bear compliance responsibility and penalty liability. Conversion of a company with FDI to an LLP requires prior approval.

XBRL filing coverage updated for listed companies and subsidiaries, excluding banking, insurance, power and NBFCs.
Corrigendum to Circular No. 9/2011 revises the Coverage in Phase I for mandatory XBRL filings: the requirement applies to all companies listed in India and their subsidiaries that meet the prescribed paid up capital or turnover thresholds, and expressly excludes banking companies, insurance companies, power companies, Non Banking Financial Companies (NBFCs) and overseas subsidiaries of these companies.

Foreign Direct Investment in LLPs permitted in open automatic sectors with government approval, subject to funding and ownership limits.
FDI in LLPs is permitted in sectors allowing full automatic FDI without performance conditions, via Government approval, excluding agriculture, print media and real estate, and prohibiting downstream investments. Foreign capital must be remitted in cash through authorized banking channels or debited to permitted nonresident accounts; FII/FVCI investments and ECBs are disallowed. Indian companies with FDI may invest in LLPs only where both operate in fully open automatic sectors. Body corporate designated partners must be companies under the Companies Act. Conversion of a company with FDI into an LLP requires prior government approval, and designated partners are liable for compliance and penalties.

Foreign contribution regulation: rules require registration/prior permission, exclusive accounts and audited annual returns.
The rules implement the Foreign Contribution (Regulation) Act by defining political-organisation criteria and speculative activities; prescribing administrative-expense categories; mandating registration or prior permission via online Forms FC-3/FC-4 with exclusive bank accounts; requiring audited annual returns (FC-6/FC-7/FC-8) certified by a chartered accountant; imposing notification duties for high-value receipts and foreign hospitality; setting rules for suspension, custody and transfer of unutilised foreign contribution; and obliging banks and investigating agencies to report specified transactions and case progress to the Central Government.

Exemption from subsidiary balance sheet attachment where audited consolidated financial statements and mandated disclosures are provided.
The Central Government directs that Section 212 shall not apply to subsidiaries of companies that (i) have board resolution consenting to non attachment of subsidiary balance sheets; (ii) present consolidated financial statements of the holding company and all subsidiaries audited by statutory auditors and prepared in strict compliance with applicable Accounting Standards and listing requirements; (iii) disclose in aggregate for each subsidiary capital, reserves, total assets, total liabilities, investments (except in subsidiaries), turnover, profit before taxation, provision for taxation, profit after taxation and proposed dividend; and (iv) undertake to provide subsidiary annual accounts to any shareholder on demand and maintain inspection facilities, regularly file required data with authorities, and state Indian rupee equivalents of foreign currency figures using the closing exchange rate.

Statutory audit resources provide comprehensive bank audit manuals, checklists and LFAR formats to support branch audits.
A consolidated compilation provides auditors with RBI Master Circulars, a bank branch audit manual, audit program, working papers, checklists for advances, draft engagement letters, LFAR formats, management representation templates and committee recommendations to support planning, execution and documentation of statutory bank branch audits.

Government securities issuance calendar preserves retail access through reserved non-competitive bidding and allows variable-rate issues.
An indicative calendar for April 1 to September 30, 2011 lists periodic auctions with aggregate notified amounts and targeted maturity buckets (5-9, 10-14, 15-19 and 20 year-plus) for dated Government of India securities. Each auction includes a non-competitive bidding scheme reserving five per cent for specified retail investors, and the calendar permits issuance of variable rate securities. The Central Government and the Reserve Bank retain flexibility to modify amounts, periods and maturities with due notice to address financing needs and market conditions.

Treasury bill auction schedule notified with flexibility to modify timing and amounts under existing notification terms.
The Government of India, in consultation with the Reserve Bank of India, has notified the schedule and amounts for auctions of 91 day, 182 day and 364 day Treasury Bills for the quarter ending June 2011, and retains flexibility to modify notified amounts and timing in response to government cash needs, market conditions or intervening events; all auctions are subject to the terms of the General Notification F 2(12)-W&M/97, as amended.

Financial inclusion via branchless banking expands basic services and direct subsidy crediting to rural habitations.
Financial inclusion is directed as a national priority to extend basic banking services to habitations with populations over 2000 using models including branchless banking through Business Correspondents; banks, guided by State Level Banker Committees, have identified approximately 73,000 habitations for allocation to Commercial Banks, Regional Rural Banks and Cooperative Banks under the "Swabhimaan" campaign to provide deposits, withdrawals, remittances and direct crediting of government subsidies into beneficiary accounts.

Systemic risk assessment finds no supervisory gaps requiring immediate regulatory intervention after bank bribery-related scrutiny.
Reserve Bank of India conducted a preliminary scrutiny of selected banks to determine if bribery allegations reflected systemic risk or failures in internal controls and loan sanctioning; the assessment concluded no systemic risk or serious lacunae requiring immediate supervisory or regulatory intervention were revealed.

Foreign Tourist Arrivals growth strengthens, driving higher foreign exchange earnings year on year and for the two month period.
FTAs in February 2011 reached 6.92 lakh (15.1% growth over February 2010) and January-February 2011 FTAs were 12.30 lakh (12.7% growth). FEE in February 2011 were Rs. 7653 crore (US$ 1,684 million) and January-February 2011 FEE were Rs. 13,430 crore (US$ 2,957 million), with stated year on year growth rates compared against 2010 and 2009.

Fiscal consolidation creates space for private investment and inflation control, supporting medium term sustainable inclusive growth.
India's economic policy in early 2011 balances the timing and quality of fiscal adjustment with sustaining high, inclusive growth and inflation control. The Budget advances fiscal consolidation by reducing the fiscal deficit and moderating net market borrowings to create space for private investment and faster public debt consolidation. Supply side measures in agriculture, infrastructure financing via PPPs and liberalised capital inflows, strengthened financial inclusion, and governance reforms are presented as integrated tools to manage inflation, finance development and improve service delivery.

Fiscal consolidation to expand resource space for private investment and foster innovative infrastructure financing and agricultural investment.
The address stresses sustaining higher growth through fiscal consolidation to enlarge resource space for private investment, restoring private investment and savings, and stepping up public and private investment in agriculture to improve supply response and contain inflation. It identifies infrastructure financing as a major challenge requiring innovative models and private participation, and calls for productivity gains in manufacturing via R&D and skill formation to generate employment and enhance competitiveness.

India ASEAN economic partnership advances through a business fair and conclave promoting trade, sector cooperation and investment opportunities.
The India ASEAN Business Fair & Business Conclave 2011 is a five day event jointly organised by the Ministry of Commerce & Industry and FICCI to promote India ASEAN economic engagement, convening Trade and Industry Ministers from ten ASEAN countries and over 500 businesses to facilitate knowledge sharing, sectoral exhibits across industries such as banking, infrastructure, pharmaceuticals and IT, and business sessions on partnership implementation, economic synergies, SME growth, and investment opportunities across Indian states.

Service tax scope expansion: definitions broadened to tax additional insurance, training, club, legal, health and money changing services.
Service tax definitions are broadened to capture more activities: authorized service station services for most motor vehicles including repair and related services; life insurance services extended to investment management with options to tax either disclosed non invested premium or, absent disclosure, a simplified proportion; commercial coaching widened to include unrecognised education with limited exemptions; clubs' services to non members included; business support expanded to operational and administrative assistance; legal professional services extended in relation to business entities; clinical establishments and certain diagnostic and non employee doctor services taxed subject to exclusions and a partial exemption; money changing valuation and composition rules revised.

Banking inclusion: phased extension of banking facilities to rural habitations using technology and a public awareness campaign.
Expansion of rural banking access to habitations with populations exceeding two thousand will be completed in 2011-12 after initial coverage in 2010-11; implementation will rely on appropriate technologies and the "Swabhimaan" multimedia campaign to inform, educate and motivate residents to open bank accounts.

Financial inclusion measures expand capital support and dedicated funds to strengthen rural banks, microfinance and women's SHGs.
The budget proposes reinforcing capital adequacy for Regional Rural Banks and public sector banks through continued government capital infusion to meet minimum capital ratios, while establishing an India Microfinance Equity Fund with SIDBI to provide equity to smaller MFIs to support growth and scale and considering a regulatory framework to protect small borrowers. It also proposes a Women's SHG's Development Fund to empower women and promote self help groups.