India: Newsbyte


"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.


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.


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.


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.


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.


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.


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.


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.


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

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

In association with
Up-coming Events Search
Font Size:
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
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). 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 & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd 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 or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.

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