India: Newsbyte

I. INDIA CONTINUES TO REMAIN A DESIRED DESTINATION FOR FDI AND FII: FINANCE MINISTER P. CHIDAMBARAM

"Increased Domestic Production of Oil, Coal & Restraining Gold Consumption can Contain CAD; India Continues to Remain a Desired Destination for FDI and FII - P. Chidambaram"

The Union Finance Minister, Mr. P. Chidambaram, while addressing the agenda of the meeting, 'The Current Account Deficit- Implications and Measures to Contain the Deficit' of the Parliamentary Consultative Committee of the Ministry of Finance said the present two major concerns are the extent of Current Account Deficit (CAD) and it's financing. Therefore the only way to contain CAD than to draw from the reserves is by increasing the country's domestic production of oil & coal and limiting the consumption of gold since we are heavily dependant on import of items like oil, coal and gold, for which we must introduce appropriate policies for long term measures.

For overcoming the situation, the Union Finance Minister stated that the government is keeping a track at the FDI caps to see whether the same is serving any purpose and will be re-examined if not. He further informed that despite the difficulties faced by the country, the Government was able to finance the CAD and also added that an amount of around US $ 3 billion has been deposited in the forex reserves in the year 2012-13. He was confident that the CAD will be again financed this year without taking anything from the reserves of the country and that efforts have been made to increase the productive activities in the country by reviving stalled projects. For this purpose the Ministry has compiled a list of about 215 stalled projects, where the banks have already funded more than Rs. 7 lakh crores.

The Minister observed that as the world economies are in recession including all European economies except Germany and where USA is showing some positive signs of revival, however, as far as India is concerned, Mr. P. Chidambaram said it continues to remain a desired destination for FDI and FII.

II. ENFORCEMENT OF MADRID PROTOCOL IN INDIA

India has adopted the Madrid Protocol which enables an applicant to file application for the registration of a trademark in more than one designated countries of his choice. With a notification issued by the Trademarks Registry of India on 8th July, 2013, the long awaited provisions related to Madrid Protocol have come into force in India. Consequently, the provisions of Trademarks (Amendment) Act, 2010 and Trade Mark (Amendment) Rules, 2013 are implemented from 8th July, 2013 which enable and facilitate the international registration of trademarks under the Madrid protocol. The major benefit of this enactment is that from now onwards, any person or legal entity who has an effective and bona fide trade establishment in India and has got a trademark registered in India or has applied for a trademark in India, can apply for an international registration of his trademark. The applicant can also mention the designated countries in the international registration Form MM2 in which he wants to protect his trademark.

III. AMENDMENT OF COMPANIES (DIRECTORS INDENTIFICATION NUMBER) RULES, 2006

Notification No. G.S.R. 173(E) dated March 15, 2013. The Central Government, in exercise of the powers conferred by clauses (a) and (b) of sub-section (1) of section 642 read with section 266A, 266B, 266D and 266E of the Companies Act, 1956 (1 of 1956) has notified the Companies Director Identification Number (Amendment) Rules, 2013, thereby amending the Companies Director Identification Number Rules, 2006.

In the Companies (Directors Identification Number) Rules, 2006, after rule 7, the following rule is inserted, namely: -

Rule 8: Cancellation or Deactivation of DIN

The Central Government or Regional Director (Northern Region), Noida or any officer authorized by the Regional Director, upon being satisfied on verification of particulars of proof attached with the application received from any person seeking cancellation or deactivation of DIN, in case -(a) the DIN is found to be duplicate (b) the DIN was obtained by wrongful manner or fraudulent means; (c) of the death of the concerned individual;(d) the concerned individual has been declared as lunatic by the competent Court; (e) if the concerned individual has been adjudicated an insolvent;

In the above situations, the allotted DIN shall be cancelled or deactivated by the Central Government or Regional Director (NR), Noida or any other officer authorised by the Regional Director (NR): Provided that before cancellation or deactivation of DIN under clause (b), an opportunity of being heard shall be given to the concerned individual.

IV. RBI'S CIRCULAR CLARIFYING THE EARLIER CIRCULAR DIRECTING NBFCs NOT TO BE PARTNERS IN PARTNERSHIP FIRMS

Notification No.DNBS(PD).255/CGM (CRS) 2013 dated June 11 , 2013

The Reserve Bank of India, having considered it necessary in public interest and being satisfied that, for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is essential to amend the Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 (hereinafter referred to as the said Directions), contained in Notification No. DNBS.192/DG(VL)-2007 dated February 22, 2007, in exercise of the powers conferred by Section 45JA and Section 45L of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf, and hereby directs that the said Directions shall be amended with immediate effect.

In para 19A, of the said Directions under the title, "NBFCs not to be partners in partnership firms", after sub-para(2) the following sub-para shall be inserted, namely:-"(3) In this connection it is further clarified that;

a. Partnership firms mentioned above will also include Limited Liability Partnerships (LLPs).

b. Further, the aforesaid prohibition will also be applicable with respect to Association of persons; these being similar in nature to partnership firms."

NBFCs which had already contributed to the capital of a LLP/Association of persons or were a partner of a LLP/Association of persons are advised to seek early retirement from the LLP/Association of persons. This direction of the RBI has come in the backdrop of RBI having coming across some NBFCs which have large investments in / contributed capital in partnership firms.

V. RBI ON EXTERNAL COMMERCIAL BORROWINGS (ECB)

ECB Policy for 3G spectrum allocation

The Reserve Bank of India (RBI) vide RBI/2012-13/543 A.P. (DIR Series) Circular No. 114 dated June 25, 2013 has decided that External Commercial Borrowings (ECB) window for financing 3G spectrum Rupee loans which are still outstanding in telecom operator's books of accounts, will be open upto March 31, 2014.

Under the existing guidelines relating to ECB for spectrum allocation, the payment for spectrum allocation may initially be met out of the Rupee resources by the successful bidders, to be refinanced with a long term ECB, under the approval route, subject to the condition that ECB should be raised within 12 months from the date of payment of the final installment to the Government.

2. ECB for working capital under Civil Aviation Sector till 31st December, 2013

The Reserve Bank of India (RBI) vide RBI/2012-13/545 A.P. (DIR Series) Circular No. 116 dated June 25, 2013 has reviewed and decided that the scheme of availing of ECB for working capital for civil aviation sector will continue till December 31, 2013. It has been clarified by the RBI that availing of ECB shall be subject to the condition that all other aspects of the ECB policy shall remain unchanged.

3. Discontinuance of facility for availing ECB in Renminbi

The Reserve Bank of India (RBI) vide RBI/2012-13/546 A.P. (DIR Series) Circular No. 117 dated June 25, 2013 has reviewed the scheme of ECB in Renminbi (the official currency of the People's Republic of China) and decided that the scheme may be discontinued with effect from the date of issue of this circular.

Under the extant guidelines, Indian companies in the infrastructure sector are allowed to avail of ECB in Renminbi (RMB) under approval route subject to an annual cap of USD one billion pending further review. The RBI has mentioned that since the facility of ECB in Renminbi (RMB) had remained unused so far, it has decided to discontinue the same.

4. RBI Broadened the end uses of ECB

The Reserve Bank of India (RBI) vide RBI/2012-13/552 A.P. (DIR Series) Circular No.119 dated June 26, 2013 has decided to bring into force with immediate effect the modifications, that include the following as a part of import of capital goods by the companies for the use in the manufacturing and infrastructure sectors as permissible end uses of External Commercial Borrowings (ECB) under the automatic / approval route as the case may be applicable: (a) import of services;(b) technical know-how; and (c) payment of license fees.

The above shall however, be subject to the following conditions:

(i) There should be a duly signed agreement between the service provider and the borrower company;

(ii) The original invoice raised by the service provider as per the payment schedule in the agreement should be duly certified by the borrower company;

(iii) Declaration by the importer that the entire expenditure on import of services will be capitalised;

(iv) Declaration by the importer that entire expenditure on import of services forms part of project cost; and

(v) AD category - I bank has to ensure the bonafides of the transaction

Further, all other aspects of the ECB policy, such as eligible borrower, recognized lender, end-use, all-incost ceiling, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements etc. shall remain unchanged.

VI. TAS INSETTLE PATENT LITIGATION MATTER WITH HOFFMANN-LA ROCHE

Intas Pharmaceutical limited, drug manufacturer based in Ahmadabad, India and it's wholly owned subsidiary United States based Accord Healthcare Inc. has entered into settlement with pharmaceutical giant Hoffmann- La Roche to resolve pending patent litigation regarding XELODA tablets, generically known as Capecitabine tablets which are used in cure of metastatic breast and colorectal cancers. Hoffmann-La Roche had filed patent infringement suit against Accord Healthcare and Intas Pharmaceutical, upon its submission to the U.S. Food and Drug Administration (USFDA) of an Abbreviated New Drug Application (ANDA) for a generic version of Xeloda tablets.

As per the settlement and license agreement between the Hoffmann-La Roche and Intas, Roche will grant a license to Accord to enter into US market a generic version of Xeloda tablets ahead of its patent exclusivity period and the patent infringement suit instituted by the Roche will be dismissed. Further terms and conditions of the agreement are kept confidential.

VII. BUYBACK OR PREPAYMENT OF FCCBS TO BE CONTINUED TILL 31ST DECEMBER, 2013

The Reserve Bank of India (RBI) vide RBI/2012-13/544 A.P. (DIR Series) Circular No. 115 dated June 25, 2013 has reviewed and decided that the existing scheme of Buyback / Prepayment of Foreign Currency Convertible Bonds (FCCBs) under the approval route which had expired on March 31, 2013, may be continued till December 31, 2013. Thereafter, the same shall stand discontinued, considering the developments in the global financial markets as stated in the circular.

VIII. RBI ENHANCES TIME LIMIT FOR REPORTING UNDER EXPORT OF GOODS AND SERVICES - PROJECT EXPORTS

Reserve Bank of India (RBI) vide RBI//2012-13/548 A.P. (DIR Series) Circular No.118 dated June 26, 2013 has increased the time limit in terms of which an exporter undertaking Project Exports and Service contracts abroad will submit form DPX1, PEX-1 and TCS-1 to the Approving Authority (AA). The existing guidelines required exporters to submit the forms within 15 days of entering into contract for grant of post-award approval. With the issue of this present circular the time limit has been extended and the exporters will be now be required to submit the forms within 30 days of entering into contract for grant of post-award approval.

IX. SUPREME COURT GRANTS RELIEF IN POWER THEFT CASE

The Hon'ble Supreme Court pronounced a recent judgment on 25 June 2013 wherein it has provided relief to those who are facing Power theft cases. The Supreme Court declared that in any pending case related to the power theft, such consumer's electricity supply cannot be disconnected. Justice AK Patnaik while heading the Vacation bench ordered the BSES to restore Power supply within 48 hours at the premises of the concerned consumer /aggrieved who is a resident at Vasant kunj, New Delhi. The court said that it was the duty of the Power company to supply electricity to all owners in all premises.

On the issue, of the power company's refusal to grant a meter connection in the name of the consumer, as the consumer was not the owner of the premises, but was facing such a situation from 2010 and whose power was disconnected, the court clarified that power should be restored in the new consumer's name, event if the original consumer did not want the connection subject to formalities and payment by the New consumer.

The Supreme Court further stated that "If a landlord does not pay up, the tenant has to be given power connection. We don't want any dispute to come in the way of supply of electricity". The court observed that-section 43 of the electricity Act obliges a power company to supply electricity to an owner or an occupier on request.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions