Bank licence cancellation restricts the institution from banking activities and initiates liquidation with deposit insurance cover.
The Reserve Bank cancelled the licence of Rajiv Gandhi Sahakari Bank Ltd., Latur after successive statutory inspections revealed negative net worth, negative CRAR, sharply increased gross and net NPAs, accumulated losses and deposit erosion. Prior measures included directions prohibiting fresh deposits and lending, supersession of the board, directions under Section 35A and a Show Cause Notice; the bank's reply and lack of revival proposals were unsatisfactory. Consequent liquidation proceedings will enable insured depositor reimbursement under the DICGC scheme and the bank is prohibited from carrying on banking under Section 5(b).

Foreign Exchange Turnover reports daily merchant and inter bank spot, forward and swap transaction composition and volumes.
Release of daily foreign exchange turnover data for August 27-31, 2012 reporting merchant and inter bank spot, forward, forward cancel and swap transactions for FCY/INR and FCY/FCY, presented as purchase and sales aggregates in US dollars and designated provisional market reporting.

Reference rate determination guides currency conversion; RBI fixes US dollar and euro reference rates affecting cross currency quotes.
Reserve Bank of India fixed reference rates for the US dollar and the euro for a specified date and published previous day comparators; these reference rates underpin calculation of cross currency exchange rates (shown for the pound sterling and the yen) using middle rates of cross currency quotes, and the SDR Rupee rate is stated to be based on the announced reference rate.

Legal compliance manual establishes a centralized reference to improve corporate adherence to laws and governance practices.
Launch of a Legal Compliance Manual provides a centralized, state and business area organized reference to advance corporate adherence to Central and State laws and strengthen corporate governance. Jointly developed by a government institute and a private multinational, the manual targets key compliance impediments-noncompliance risk, lack of legal knowledge, weak monitoring systems, and compliance perceptions-and will be publicly available on the institute's website as a practical implementation tool.

FDI policy: expanded automatic route and investor facilitation to attract and streamline foreign investment inflows.
The Government reports detailed FDI inflows for April 2009-March 2012 with sector-wise and country-wise breakdowns, highlights liberalisation of the FDI policy permitting up to 100% under the automatic route in most sectors, and describes investor-promotion and single-window facilitation measures to attract foreign investment. No targets were fixed for inflows and the Department of Industrial Policy & Promotion maintains the inflow data as reported by the Reserve Bank of India.

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.

EEFC credit flexibility restored with monthly conversion requirement; exporters allowed limited forward rebooking; NOOPL computation adjusted.
The Reserve Bank allows full crediting of foreign exchange receipts to Exchange Earner Foreign Currency (EEFC) Accounts provided monthly accruals are converted into rupees by the end of the succeeding month after approved utilizations and forward commitments. Exporters may cancel and rebook a limited portion of forward hedges. For NOOPL where the rupee is a currency leg, AD Category I banks may omit overseas branch positions and option delta from the overnight position calculation, though these items remain part of total foreign currency exposure alongside cross currency and exchange traded positions.

Competition policy enforcement promotes fair markets and regulator coordination to protect consumer welfare through advocacy.
The advisory group emphasised advocacy, international cooperation and sustained coordination between CCI and sectoral regulators, distinguishing sectoral regulators' roles in licensing, tariff setting and market development from CCI's mandate to ensure fair play and consumer welfare through competition enforcement. The release also summarises CCI activity: 276 anti competitive cases with 208 disposed, contraventions found in 26 matters with penalties imposed, and 72 merger notifications of which 62 were processed within 30 days; it announces the launch of the quarterly advocacy newsletter "Fair Play".

XBRL filing mandate requires select companies to submit financial statements in standardized XBRL format with transitional fee relief.
The Ministry mandates XBRL filing of Balance Sheet and Profit & Loss Account for a specified class of companies for the financial year commencing 1 April 2011, covering listed companies (and their Indian subsidiaries), large companies by capital and turnover, and those already subject to XBRL requirements; banking, insurance, power and NBFCs are exempt until further orders. The Schedule VI taxonomy is published online, business rules and validation tools are being prepared, a transitional waiver of additional fees is provided for timely XBRL filing, and stakeholders are directed to the Ministry's XBRL portal for training.

Capital account liberalisation expands ECB use for rupee capital expenditure and widens foreign investment access to government securities.
Allowing targeted External Commercial Borrowing, Indian manufacturing and infrastructure companies with foreign exchange earnings may obtain ECBs under the approval route to refinance outstanding rupee loans for capital expenditure or to meet fresh rupee capital expenditure; an overall ceiling is prescribed. FII investment limits in government securities are increased and the eligible non resident investor classes broadened, with adjusted sub limit residual maturity; FII infrastructure debt and IDF schemes' lock in and residual maturity terms are rationalised and QFIs may invest in mutual funds with specified infrastructure asset thresholds. FEMA operational guidelines will follow.

LLP registry integration into national e governance enables decentralised state ROC approval and centralised foreign LLP processing.
Integration of the Limited Liability Partnership Registry into the national e governance platform centralizes online filing: domestic LLP forms will be processed and approved by the Registrar of Companies in the relevant states, while foreign LLP forms will be processed and approved by a designated ROC for foreign entities. The integration provides online payment options and user guidance, and a helpdesk is available for filing assistance.