The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, in a major decision, has decided to accept the order of the High Court of Bombay in the case of Vodafone India Services Private Limited (VISPL) dated 10.10.2014. This is a major correction of a tax matter which has adversely affected investor sentiment.
Based on the opinion of Chief Commissioner of Income-tax (International Taxation), Chairperson (CBDT) and the Attorney General of India, the Cabinet decided to:
i. accept the order of the High Court of Bombay in WP No. 871 of 2014, dated 10.10.2014; and not to file SLP against it before the Supreme Court of India;
ii. accept of orders of Courts/ IT AT/ DRP in cases of other taxpayers where similar transfer pricing adjustments have been made and the Courts/ IT AT/ DRP have decided/decide in favour of the taxpayer.
The Cabinet decision will bring greater clarity and predictability for taxpayers as well as tax authorities, thereby facilitating tax compliance and reducing litigation on similar issues. This will also set at rest the uncertainty prevailing in the minds of foreign investors and taxpayers in respect of possible transfer pricing adjustments in India on transactions related to issuance of shares, and thereby improve the investment climate in the country.
The Cabinet came to this view as this is a transaction on the capital account and there is no income to be chargeable to tax. So applying any pricing formula is irrelevant.
VISPL is a wholly owned subsidiary of a non-resident company, Vodafone Tele-Services (India) Holdings Limited, Mauritius. On 21.8.2008, VISPL issued shares (at a premium of Rs.8509/-) which resulted in VISPL receiving a total consideration of Rs.246.39 crore from Vodafone Mauritius, on issue of shares and this was shown as "Capital Receipts" in the books of accounts. VISPL reported this transaction as an "International Transaction" and stated that this transaction does not affect its income.
The Transfer Pricing Officer (TPO), vide order dated 28.01.2013, determined the Arm's Length Price of the shares issued by VISPL on the basis of Net Asset Value, at Rs.53,775/- per share and made an upward adjustment of Rs.1,308.91 crore. In addition, the difference Rs.1,308.91 crore between the transaction price and the Arm's Length Price was treated as 'deemed loan' given by VISPL to the holding company; and interest that would have been payable on the loan in an arm's length transaction was computed at Rs.88.35 crore. In total, transfer pricing adjustment of Rs.1,397.26 crore was proposed by the TPO for Assessment Year 2009-10. The matter was agitated by VISPL at the stage of Draft AO itself and therefore the tax payable could not be crystallized. However, the tax rate of 33 percent was applicable for Assessment Year 2009-10.
The DRP, on 11.2.2014, held that the premium determined by the TPO, to the extent not received, is an income arising from issue of shares, and that the AO and the TPO have jurisdiction.
VISPL filed a 2nd Writ Petition in the High Court of Bombay. The High Court, on 10.10.2014, has amongst other things observed:
a) "Section 92(2) of the Act deals with a situation where two or more AEs enter into an arrangement whereby they receive a benefit, service or facility then the allocation, apportionment or contribution towards the cost or expenditure is to be determined in respect of each AE having regard to ALP. It would have no application in the cases like the present one, where there is no occasion to, allocate, apportion or contribute any cost and/ or expenses between the Petitioner and the holding company."
b) The crucial words “shall be chargeable to income tax” which are found in Section 42(2) of the 1922 Act are absent in Chapter X of the Act..... Therefore it is clear that the deemed income which was charged to tax under Section 42(2) of 1922 Act was done away with under this Act."
c) The tax can be charged only on income and in the absence of any income arising, the issue of applying the measure of Arm's Length Pricing to transactional value/ consideration itself does not arise."
d) If its income which is chargeable to tax, under the normal provisions of the Act, then alone Chapter X of the Act could be invoked. Sections 4 and 5 of the Act brings /charges to tax total income of the previous year. This would take us to the meaning of the word income under the Act as defined in Section 2 (24) of the Act. The amount received on issue of shares is admittedly a capital account transaction not separately brought within the definition of Income, except in cases covered by Section 56(2)(viib) of the Act. Thus such capital account cannot be brought to tax as already discussed herein above while considering the challenge to the grounds as mentioned in impugned order."
e) The issue of shares at a premium is on Capital account and gives rise to no income. The submission on behalf of the revenue that the shortfall in the ALP as computed for the purposes of Chapter X of the Act is misplaced. The ALP is meant to determine the real value of the transaction entered into between AEs. It is a re-computation exercise to be carried out only when income arises in case of an International transaction between AEs. It does not warrant re-computation of a consideration received / given on capital account.
The Bombay High Court quashed the reference dated 11.7.2011 by the AO to the TPO, order dated 28.1.2013 of the TPO, draft AO dated 22.3.2013 of the AO and order dated 11.2.2014 of the DRP on the preliminary issue of jurisdiction to tax, setting them aside as being without jurisdiction, null and void.
Acceptance of the Order of the High Court of Bombay in the case of Vodafone India Services Private Limited
Written By Views maker on Saturday, January 31, 2015 | 2:31 AM
Amended Exchange Rates of Foreign Currency Notified
In exercise of the powers conferred by Section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs(CBEC) hereby makes the following further amendments in the Notification of the Government of India, Ministry of Finance (Department of Revenue) No. 09/2015-CUSTOMS (N.T.) dated the 15th January, 2015 published in the Gazette Of India, Part-II, Section 3, Sub-Section (ii), Extraordinary vide number S.O.167(E) dated, the 15th January, 2015, namely:-
In the SCHEDULE-I of the said Notification, for Serial Nos. 4 & 5 and the entries relating thereto, the following shall be substituted, namely:-
SCHEDULE-I
| S.No. | Foreign Currency | Rate of exchange of one unit of foreign currency equivalent to Indian rupees | ||
| (1) | (2) | (3) | ||
| (a) | (b) | |||
|
|
| (For Imported Goods) | (For Export Goods) | |
| 4. | Danish Kroner | 9.40 | 9.15 | |
| 5. | EURO | 69.95 | 68.20 | |
These rates will be effective from today i.e. 28th January, 2015.
CS Training related documents to be in Soft copy only
Written By Views maker on Sunday, January 25, 2015 | 7:21 AM
Attention students !!
ONLY SOFT COPY OF DOCUMENTS ARE TO BE ACCEPTED BY TRAINING SECTION OF ICSI
Students are required to submit various documents at Training Section of the Institute of Company Secretaries of India ( ICSI ) at various stages of their training ( viz. applications for issuing of sponsorship letter for undergoing various types of training, Quarterly Reports, Project Reports, NOC, Training Completion Certificate etc).
Further, companies and PCS are also sending their application for registration for imparting training to CS students along with all enclosures, copy of annual report etc.
In view of the above, all students are hereby informed that w.e.f. 1st January 2015, only soft copy ( i.e. scanned copy of original documents ) shall be accepted at Training section of the ICSI. It may be sent at training@icsi.edu mentioning necessary details of the case for reference in the text of the e-mail. A ll the soft copies submitted by the students or by the trainer should be duly signed, certified as true copy. The affidavits and other documents in original be supplied by the students/ trainers as deemed necessary by the Training head or the Chief Executiv e/ Secretary of the Institute. All concerned students / stakeholders are advised to take a note of it.
New Amended Stipend structure for CA Students
Final Notification – Amendment in Regulations 28E, 48 (stipend to articled assistants) and 204 of the Chartered Accountants Regulations, 1988. – (23-01-2015)
No. 1-CA(7)/167/2014.- Whereas certain draft regulations further to amend the Chartered Accountants Regulations, 1988, were published as required by sub-section (3) of section 30of the Chartered Accountants Act, 1949 (38 of 1949), in the Gazette of India, Extraordinary,Part III, Section 4, dated the 10th September, 2014, inviting objections and suggestions from persons likely to be affected thereby, before the expiry of forty-five days from the date on which the copies of the Gazette containing the said notification were made available to the public;
And whereas the copies of the said Gazette were made available to the public on the12th September, 2014;
And whereas the objections and suggestions received from the public on the said draft regulations have been considered by the Council of the Institute;
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 30of the said Act, the Council, with the approval of the Central Government, hereby makes the following regulations further to amend the Chartered Accountants Regulations, 1988,namely:-
1. (1) These regulations may be called the Chartered Accountants (First Amendment) Regulations, 2015.
(2) They shall come into force on the date of their final publication in the Official Gazette.
- In the Chartered Accountants Regulations, 1988 (hereinafter referred to as the said regulations),-
(i) in regulation 28E, in sub-regulation (1), in clause (b), for the words “nine months”, the words “eight months” shall be substituted.
(ii) in regulation 48, in sub-regulation (1), for the Table, the following Table shall be substituted, namely:-
Table
| Classification of the normal place of service of the articled assistant | During the first year of training | During the second year of training | During the remaining period of training |
| (1) | (2) | (3) | (4) |
| (i) Cities/towns having a population of twenty lakhs and above. | Rs. 2000/- | Rs. 2500/- | Rs. 3000/- |
| (ii) Cities/towns having a population of four lakhs and above but less than twenty lakhs. | Rs. 1500/- | Rs. 2000/- | Rs. 2500/- |
| (iii) Cities/towns having a population of less than four lakhs. | Rs. 1000/- | Rs. 1500/- | Rs. 2000/- |
(iii) in regulation 204, for the words “and International Trade Laws and World Trade Organisations” the words, “International Trade Laws and World Trade Organisation and International Taxation” shall be substituted.
[File No. 1-CA(7)/167 /2014]
Sd/-
V. Sagar
Acting Secretary
Original Link- http://220.227.161.86/36524council25906-sas.pdf
- See more at: http://taxguru.in/chartered-accountant/icai-doubles-stipend-payable-students.html#sthash.CfkPeBBg.dpufFinal Notification – Amendment in Regulations 28E, 48 (stipend to articled assistants) and 204 of the Chartered Accountants Regulations, 1988. – (23-01-2015)
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi,the 23rd January, 2015
No. 1-CA(7)/167/2014.- Whereas certain draft regulations further to amend the Chartered Accountants Regulations, 1988, were published as required by sub-section (3) of section 30of the Chartered Accountants Act, 1949 (38 of 1949), in the Gazette of India, Extraordinary,Part III, Section 4, dated the 10th September, 2014, inviting objections and suggestions from persons likely to be affected thereby, before the expiry of forty-five days from the date on which the copies of the Gazette containing the said notification were made available to the public;
And whereas the copies of the said Gazette were made available to the public on the12th September, 2014;
And whereas the objections and suggestions received from the public on the said draft regulations have been considered by the Council of the Institute;
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 30of the said Act, the Council, with the approval of the Central Government, hereby makes the following regulations further to amend the Chartered Accountants Regulations, 1988,namely:-
1. (1) These regulations may be called the Chartered Accountants (First Amendment) Regulations, 2015.
(2) They shall come into force on the date of their final publication in the Official Gazette.
- In the Chartered Accountants Regulations, 1988 (hereinafter referred to as the said regulations),-
(i) in regulation 28E, in sub-regulation (1), in clause (b), for the words “nine months”, the words “eight months” shall be substituted.
(ii) in regulation 48, in sub-regulation (1), for the Table, the following Table shall be substituted, namely:-
Table
| Classification of the normal place of service of the articled assistant | During the first year of training | During the second year of training | During the remaining period of training |
| (1) | (2) | (3) | (4) |
| (i) Cities/towns having a population of twenty lakhs and above. | Rs. 2000/- | Rs. 2500/- | Rs. 3000/- |
| (ii) Cities/towns having a population of four lakhs and above but less than twenty lakhs. | Rs. 1500/- | Rs. 2000/- | Rs. 2500/- |
| (iii) Cities/towns having a population of less than four lakhs. | Rs. 1000/- | Rs. 1500/- | Rs. 2000/- |
(iii) in regulation 204, for the words “and International Trade Laws and World Trade Organisations” the words, “International Trade Laws and World Trade Organisation and International Taxation” shall be substituted.
[File No. 1-CA(7)/167 /2014]
Sd/-
V. Sagar
Acting Secretary
- See more at: http://taxguru.in/chartered-accountant/icai-doubles-stipend-payable-students.html#sthash.CfkPeBBg.dpuf
Table
| Classification of the normal place of service of the articled assistant | During the first year of training | During the second year of training | During the remaining period of training |
| (1) | (2) | (3) | (4) |
| (i) Cities/towns having a population of twenty lakhs and above. | Rs. 2000/- | Rs. 2500/- | Rs. 3000/- |
| (ii) Cities/towns having a population of four lakhs and above but less than twenty lakhs. | Rs. 1500/- | Rs. 2000/- | Rs. 2500/- |
| (iii) Cities/towns having a population of less than four lakhs. | Rs. 1000/- | Rs. 1500/- | Rs. 2000/- |
(iii) in regulation 204, for the words “and International Trade Laws and World Trade Organisations” the words, “International Trade Laws and World Trade Organisation and International Taxation” shall be substituted.
[File No. 1-CA(7)/167 /2014]
Sd/-
V. Sagar
Acting Secretary
- See more at: http://taxguru.in/chartered-accountant/icai-doubles-stipend-payable-students.html#sthash.CfkPeBBg.dpuf
Final Notification – Amendment in Regulations 28E, 48 (stipend to articled assistants) and 204 of the Chartered Accountants Regulations, 1988. – (23-01-2015)
No. 1-CA(7)/167/2014.- Whereas certain draft regulations further to amend the Chartered Accountants Regulations, 1988, were published as required by sub-section (3) of section 30of the Chartered Accountants Act, 1949 (38 of 1949), in the Gazette of India, Extraordinary,Part III, Section 4, dated the 10th September, 2014, inviting objections and suggestions from persons likely to be affected thereby, before the expiry of forty-five days from the date on which the copies of the Gazette containing the said notification were made available to the public;
And whereas the copies of the said Gazette were made available to the public on the12th September, 2014;
And whereas the objections and suggestions received from the public on the said draft regulations have been considered by the Council of the Institute;
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 30of the said Act, the Council, with the approval of the Central Government, hereby makes the following regulations further to amend the Chartered Accountants Regulations, 1988,namely:-
1. (1) These regulations may be called the Chartered Accountants (First Amendment) Regulations, 2015.
(2) They shall come into force on the date of their final publication in the Official Gazette.
- In the Chartered Accountants Regulations, 1988 (hereinafter referred to as the said regulations),-
(i) in regulation 28E, in sub-regulation (1), in clause (b), for the words “nine months”, the words “eight months” shall be substituted.
(ii) in regulation 48, in sub-regulation (1), for the Table, the following Table shall be substituted, namely:-
Table
| Classification of the normal place of service of the articled assistant | During the first year of training | During the second year of training | During the remaining period of training |
| (1) | (2) | (3) | (4) |
| (i) Cities/towns having a population of twenty lakhs and above. | Rs. 2000/- | Rs. 2500/- | Rs. 3000/- |
| (ii) Cities/towns having a population of four lakhs and above but less than twenty lakhs. | Rs. 1500/- | Rs. 2000/- | Rs. 2500/- |
| (iii) Cities/towns having a population of less than four lakhs. | Rs. 1000/- | Rs. 1500/- | Rs. 2000/- |
(iii) in regulation 204, for the words “and International Trade Laws and World Trade Organisations” the words, “International Trade Laws and World Trade Organisation and International Taxation” shall be substituted.
[File No. 1-CA(7)/167 /2014]
Sd/-
V. Sagar
Acting Secretary
Original Link- http://220.227.161.86/36524council25906-sas.pdf
- See more at: http://taxguru.in/chartered-accountant/icai-doubles-stipend-payable-students.html#sthash.CfkPeBBg.dpufInspirational Video On CA Course
Written By Views maker on Thursday, May 8, 2014 | 12:35 AM
Execution of irrevocable power of attorney of a property in favour of land developers deemed as ‘transfer’
Written By Views maker on Wednesday, September 11, 2013 | 9:35 AM
Execution of irrevocable power of attorney of a property in favour of land developers deemed as ‘transfer’ Where an irrevocable power of attorney was executed and registered by a housing society, leading to overall control of property in hands of developer, it constituted transfer under section 2(47) In the instant case the assessee was a member of a housing society, which transferred certain land to developers under a Joint Development Agreement (‘JDA’), whereby each member was entitled to monetary consideration and a furnished flat. An irrevocable Special Power of Attorney (‘ISPOA’) was executed in favour of the developers which was deemed as a transfer under section 2(47) by the revenue. But assessee contended that handing over of possession of property was conditional in order to enable the builder to obtain necessary permission from the Governmental agencies, and there was no transfer as per section 2(47). The Tribunal held in favour of revenue as under: 1) Clauses of the ISPOA and JDA clearly showed that the developers were authorized to enter upon the property not only for the purpose of development but for other purposes also; 2) Developers were authorized to amalgamate the project with any other project in the adjacent area or adjoining area as per the special Power of Attorney. The position contemplated by clause (v) of section 2(47) need not be exclusive possession. What is required is that the transferee by virtue of possession should be able to exercise control for intended purposes; 3) In the instant case, the assessee had not given only a license as claimed by the ld. Counsel of assessee, but also the powers of selling, amalgamating, etc, mentioned in the JDA and ISPOA. Section 2(47)(vi) clearly shows that any transaction which has the effect of transferring or enabling enjoyment of any immovable property would be covered by the definition of transfer; 4) Where developers were vigorously pursuing issue of permission/sanction for executing agreement, requirement under section 53A of Transfer of Property Act, regarding willingness of transferee to perform contract, was also fulfilled; 5) Though it is a settled principle of law that notional income can’t be taxed yet in case of capital gain, rigour of tax in case of capital gain would come into play on the transfer of capital asset and total consideration arising on such transfer has to be taxed; 6) Therefore, capital gains tax had to be paid on the total consideration arising on transfer which would include the consideration which had been received as well as the consideration which had arisen and become due and might be received later on - SMT. BINDER KHOKHER V. ACIT (2013) 36 taxmann.com 503 (Chandigarh - Trib.)
CPT exemption
Written By Views maker on Monday, August 6, 2012 | 7:50 AM
It’s official that now graduate and post graduate can directly enter the CA course. The commerce graduate should have a minimum of 50% marks for exemption and others should have 60% marks in their gradation or post graduation. Similarly CS or ICWA inter pass students are also exempted from CPT.
Other conditions:
1. Should have completed at least 9 months of practical training before appearing for Intermediate exams
2. Should have complete the Information technology or computer training before appearing for the Inter Exams
Company Law Board (Fees on Application and Pet it ions) (Amendment ) Rules, 2012
Written By Views maker on Thursday, July 12, 2012 | 9:56 PM
[PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SUB SECTION (i)]
GOVERNMENT OF INDIA
Ministry of Corporate Affairs
Notification
New Delhi, 10.07.2012
G.S.R. (E).- In exercise of the power conferred by sect ion 642 read
with Sub-sect ion (2) of sect ion 637A of the Companies Act , 1956 (1 of 1956),
the Central Government hereby makes the following rules further to amend the
Company Law Board (Fees on Application and Pet it ions) Rules, 1991, namely :-
1. (1) These rules may be called the Company Law Board (Fees on
Application and Pet it ions) (Amendment ) Rules, 2012.
(2) They shall come into force with effect from 12th August , 2012.
2. In Company Law Board (Fees on Application and Pet it ions) Rules, 1991,
in the Schedule, serial numbers 1, 2, 3, 13, 18 and the entries relating thereto
shall be omit ted.
[F No 1/ 1/ 2003-CL.V]
Renuka Kumar,
Joint Secretary to the Government of India
Note:- The principal regulations were published in the Gazette of India, Part II,
Section 3, Sub-section (i) vide number G.S.R. 290(E) dated the 31st January, 1991
and subsequently amended vide the following notifications:-
Serial
Number
Notification
Number
Notification
Date
1. GSR 787 (E) 29.9.1992
2. GSR 219 (E) 6.3.2000
3. GSR 510 (E) 22.7.2002
Indian corporate case details
Written By Views maker on Tuesday, August 23, 2011 | 6:18 AM
There is no verified information available to suggest that the cases of corporate frauds are on the increase.
Number of prosecutions filed for the violations of the provisions of the Companies Act, 1956 for the last three years are as under:-
Year No. of prosecutions Total fine imposed
2007-08 17080 Rs 111.84 lakh
2008-09 13971 Rs 110.58 lakh
2009-10 9021 Rs 92.30 lakh
Since 2006, this Ministry has implemented MCA-21, an e-Governance project, which has increased transparency as the data available in the public domain can be viewed by any person. The Ministry has also evolved a system generated ‘Early Warning System’ to help in detecting likely fraud at an early state. In the process of development of Early Warning System (EWS), the Ministry has identified certain Risk Parameters which can be run on the data available with the MCA, on financial statements furnished by the companies in e-forms developed by the Ministry.
Company Registration
The Ministry of Corporate Affairs has simplified procedures under MCA-21 to enable registration of a company within 24 to 48 hours where there is no difficulty about availability of name etc. The various elements of this process are;
(i) Director Identification Number is allotted online on the basis of verification certificate given by the practicing Chartered Accountant or Company Secretary or Cost Accountant.
(ii) New “Name Guidelines, 2011” have been issued whereby the name can be obtained online from the MCA 21 system if the application is certified by the practicing professionals that the proposed name is in conformity with the Name Guidelines.
(iii) Application and payment of fees is made online.
In order to prevent the registration of companies by fake promoters, the Companies Act, 1956 mandates obtaining of Director Identification Number (DIN) by an individual before becoming a director of the company. For obtaining DIN, one has to apply in an e-form giving his full identification such as name, father’s name, address, date of birth and permanent account number (PAN) etc with copy of documentary proof. The application has to be further certified by a professional. There are inbuilt checks in the system such as checking of given particulars with PAN database to prevent fake promoters from obtaining the DIN.
In addition to above, after allotment of DIN and name online, all such approvals are further re-checked manually by the “back office” and in case any discrepancies are found later on, the process of revocation of DIN and/or company’s name are initiated.
All incorporation e-forms are filed online but checked and approved manually by the Registrar of Companies.
Limited Liability Partnership Rules
The Limited Liability Partnership Rules, 2009 were notified on 01.04.2009. As on 08-08-2011, 5883 LLPs are registered all over India.
The Limited Liability Partnership (LLP) is an alternative corporate business vehicle that provides the benefits of limited liability but allows its members the flexibility of organizing their internal structure as a partnership based on a mutually arrived agreement.
The salient features of LLP Act, 2008, inter alia, are as follows:
1. It is a body corporate with separate legal entity from its partners. The mutual rights and duties of the partners of an LLP are governed by LLP Agreement.
2. LLP is liable to the extent of its assets. Partner’s liability is limited to the extent of agreed contribution (capital) in the LLP Agreement.
3. No partner is liable on account of the independent or unauthorized action of other partners or for their misconduct.
4. Every LLP should have at least two partners with at least two individuals as “designated partners”, of whom at least one must be resident in India. Only designated partners are responsible for compliance with the Act.
5. A firm, private company or an unlisted public company can be converted into LLP.
6. The Act empowers Central Government to apply provisions of the Companies Act, 1956 as appropriate, by notification with such changes as deemed necessary, in the LLP Act, 2008.
7. The winding up of LLP is either voluntary or by the High Court.
(d) The number of firms converted to the LLP during the last three years, state-wise is as per annexure attached.
This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today in the Lok Sabha in reply to a written question whether the Limited Liability Partnership Rules (LLPR) is functional in the country, the details of its goals and salient features; and the number of firms converted to the LLPR during the last three years, state-wise?
*****
ST/-
Annexure
The number of firms converted to LLP during the last three years, state-wise is as under:
| Sl. No. | Name of States | 1st year (2009-10) | 2nd year (2010-11) | Current year 01-04-2011 to 08-08-2011 | Total |
| 1 | Andhra Pradesh | -- | 02 | -- | 02 |
| 2 | Assam | -- | -- | -- | -- |
| 3 | Bihar | -- | -- | -- | -- |
| 4 | Chandigarh | -- | -- | -- | -- |
| 5 | Chattisgarh | -- | -- | -- | -- |
| 6 | Delhi | 06 | 07 | 02 | 15 |
| 7 | Goa | -- | 02 | -- | 02 |
| 8 | Gujarat | 01 | 03 | -- | 04 |
| 9 | Haryana | -- | 01 | -- | 01 |
| 10 | Himachal Pradesh | -- | -- | -- | -- |
| 11 | Jammu & Kashmir | -- | -- | -- | -- |
| 12 | Jharkhand | -- | -- | 01 | 01 |
| 13 | Karnataka | 02 | 04 | 01 | 07 |
| 14 | Kerala | -- | -- | -- | -- |
| 15 | Madhya Pradesh | -- | -- | -- | -- |
| 16 | Maharashtra | 01 | 11 | 04 | 16 |
| 17 | Manipur | -- | -- | -- | -- |
| 18 | Meghalaya | -- | -- | -- | -- |
| 19 | Orissa | -- | -- | -- | -- |
| 20 | Punjab | -- | -- | -- | -- |
| 21 | Pondicherry | -- | -- | -- | -- |
| 22 | Rajasthan | -- | -- | -- | -- |
| 23 | Tamil Nadu | -- | 02 | 03 | 05 |
| 24 | Tripura | -- | -- | -- | -- |
| 25 | Uttar Pradesh | -- | 01 | -- | 01 |
| 26 | Uttaranchal | -- | -- | -- | -- |
| 27 | West Bengal | -- | 01 | 02 | 03 |
|
| Grand Total | 10 | 34 | 13 | 57 |
(Release ID :74737)
SEBI (Depositories and Participants (Amendment) Regulations, 2011
Written By Views maker on Sunday, July 10, 2011 | 9:55 PM
NOTIFICATION
Mumbai, the 5th July, 2011
SECURITIES AND EXCHANGE BOARD OF INDIA
(DEPOSITORIES AND PARTICIPANTS) (AMENDMENT)
REGULATIONS, 2011
No. LAD-NRO/GN/2011-12/14/21219 -In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to amend the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996, namely:-
1. These Regulations may be called the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2011.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In regulation 16, -
(i) in the marginal note, after the words “certificate of” and before the word “registration” the word “initial” shall be inserted;
(ii) in sub-regulation (1), after the words “certificate of” and before the word “registration” the word “initial” shall be inserted.
4. In regulation 18, -
(i) in sub-regulation (1), after the words “certificate of” and before the word “registration” the word “initial” shall be inserted;
(ii) in sub-regulation (2), after the words “certificate of” and before the word “registration” the word “initial” shall be inserted;.
5. In regulation 19, -
(i) in the marginal note, after the words “certificate of” and before the word “registration” the word “initial” shall be inserted;
(ii) in the opening sentence, after the words “certificate of” and before the word “registration” the word “initial” shall be inserted;
(iii) in clause (d), after the words “certificate of” and before the word “registration” the word “initial” shall be inserted.
6. In regulation 20, -
(i) in the marginal note, after the words “certificate of” the word “initial” shall be inserted;
(ii) in sub-regulation (1), after the words “certificate of” and before the word “registration” the word “initial” shall be inserted;
(iii) in sub-regulation (2), after the words “certificate of” and before the word “registration” the word “initial” shall be inserted;
(iv) after sub-regulation (2), the following sub-regulation shall be inserted, namely: -
“(3) The certificate of initial registration granted under sub-regulation (1) shall be valid for a period of five years from the date of its issue to the applicant.”
7. Regulation 20A shall be substituted with the following regulations, namely: -
“20A. Grant of certificate of permanent registration.
(1) A participant who has been granted a certificate of initial registration may, three months before the expiry of the period of certificate of initial registration, make an application for grant of a certificate of permanent registration in Form E, through the depository in which it is a participant.
(2) The participant who has already been granted a certificate of registration or has obtained renewal of certificate of registration, prior to the commencement of the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2011, may, three months before the expiry of validity of certificate of registration or before, make an application for grant of a certificate of permanent registration in Form E, through the depository in which it is a participant.
(3) The application under sub-regulation (1) or sub-regulation (2) shall be accompanied by the application fees as specified in Part A of the Second Schedule and be paid in the manner specified in Part B thereof.
(4) The application for grant of a certificate of permanent registration shall be accompanied by details of the changes that have taken place in the information that was submitted to the Board while seeking initial registration or renewal, as the case may be, and a declaration stating that no changes other than those as mentioned in such details have taken place.
(5) The application for permanent registration made under sub-regulation (1) or (2) shall be dealt with in the same manner as if it were a fresh application for grant of a certificate of initial registration.
(6) The Board, on being satisfied that the applicant is eligible, shall grant a certificate of permanent registration in Form F and shall send an intimation to the applicant.
(7) On the grant of a certificate of permanent registration the participant shall be liable to pay registration fee as specified in the Second Schedule of these regulations, within a period of fifteen days of receipt of intimation from the Board.
(8) The participant shall pay annual fee as specified in the Second Schedule of these regulations.
20AA. Participants to abide by code of conduct.
The participant holding a certificate of initial or permanent registration shall, at all times, abide by the Code of Conduct as specified in Third Schedule.”
8. Regulation 21 shall be omitted.
9. Regulation 22 shall be omitted.
10. Regulation 23 shall be omitted.
11. In regulation 24, -
(i) in marginal note, after the words “certificate of” and before the word “registration” the words “initial or permanent” shall be inserted;
(ii) in sub-regulation (1), the words and figure “registration under regulation 16 or for its renewal under regulation 22″ shall be substituted with the words and figures “initial registration under regulation 16 or of permanent registration under regulation 20A”
12. In regulation 25, -
(i) in marginal note, the words “renew a certificate of” shall be substituted with the words “grant certificate of permanent”;
(ii) the words “registration as a participant” shall be substituted with the words “permanent registration” and the figure “24″ shall be substituted with the figure “20A”.
13. In First Schedule, -
(i) in Form E, -
(a) the word and figure “Regulation 16″ shall be substituted with the words, figures and sign “Regulation 16/Regulation 20A”.
(b) the words and sign “Application for grant of certificate of registration as participant” shall be substituted with the words and sign “Application for Grant of Certificate of Initial/Permanent Registration as Participant”
(c) in instruction clause (iv), the words “registration as participant or renewal of such” shall be substituted with the words “certificate of initial or permanent”.
(ii) in Form F, -
(a) the words and figure “regulation 20″ shall be substituted with the words, sign and figures “Regulation 20/ Regulation 20A”.
(b) the words “Certificate of Registration as participant” shall be substituted with the words and sign “Certificate of Initial/ Permanent Registration as Participant”.
(c) paragraph III shall be substituted with the following, namely:-
“III. This certificate of registration shall be valid from ….. to …. / for permanent, unless suspended or cancelled by the Board.”
14. In Second Schedule, reference to regulations shall be substituted with the words, figures and signs, “(see regulations 3, 7, 8, 16, 20, 20A)”.
15. In Third Schedule, in reference to regulation, the word and figure “20A” shall be substituted with the word and figure “20AA”.
U. K. SINHA
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA
Footnotes:
1. The principal regulations, Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996 were published in the Gazette of India, Part II on May 16, 1996 vide S.O. No. 345(E).
2. The Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996, were subsequently amended on:
(a) February 7, 1997 by the SEBI (Depositories and Participants) (Amendment) Regulations, 1997 vide S.O. No. 91(E).
(b) September 5, 1997 by the SEBI (Depositories and Participants) (Second Amendment) Regulations, 1997 vide S.O. No. 640(E).
(c) January 5, 1998 by the SEBI (Depositories and Participants) (Amendment) Regulations, 1998 vide S.O. No. 18(E).
(d) January 21, 1998 by the SEBI (Depositories and Participants) (Second Amendment) Regulations, 1998 vide S.O. No. 76(E).
(e) May 20, 1999 by the SEBI (Depositories and Participants) (Amendment) Regulations, 1999 vide S.O. No. 357(E).
(f) July 7, 1999 by the SEBI (Depositories and Participants) (Second Amendment) Regulations, 1999 vide S.O. No. 546(E).
(g) September 21, 1999 by the SEBI (Depositories and Participants) (Third Amendment) Regulations, 1999 vide S.O. No. 775(E).
(h) December 26, 2000 by the SEBI (Depositories and Participants) (Amendment) Regulations, 2000 vide S.O. No. 1160(E).
(i) May 29, 2001 by the SEBI (Investment Advice by Intermediaries) (Amendment) Regulations, 2001 vide S.O. No. 476(E).
(j) September 27th, 2002 by the SEBI (Procedure for holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 vide S.O. No. 1045(E).
(k) June 16, 2003 by the SEBI (Depositories and Participants) (Amendment) Regulations, 2003 vide S.O. No. 696(E).
(l) September 2, 2003 by the SEBI (Depositories and Participants) (Second Amendment) Regulations, 2003 vide S.O. No. 1014(E).
(m) October 1, 2003 by the SEBI (Depositories and Participants) (Third Amendment) Regulations, 2003 vide S.O. No. 1156(E).
(n) March 10th, 2004 by the SEBI (Criteria for Fit and Proper Person) Regulations, 2004 vide S.O. No. 398(E).
(o) June 10th, 2004 by the SEBI (Depositories and Participants) (Amendment) Regulations, 2004 vide S.O. No. 696(E).
(p) October 10th, 2007 by the SEBI (Depositories and Participants) (Amendment) Regulations, 2007 vide No. 11/LC/GN/2007/4485.
(q) March 17th, 2008 by the SEBI (Depositories and Participants) (Amendment) Regulations, 2008 vide F. No. 11/LC/GN/2008/20494.
(r) May 26, 2008 by the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 vide Notification No. LAD/NRO/GN/2008/11/126538.
(s) August 8, 2008 by the SEBI (Depositories and Participants) (Second Amendment) Regulations, 2008 vide Notification No. LAD/NRO/GN/2008/18/134585.
(t) June 19, 2009 by the SEBI (Facilitation of Issuance of India Depository Receipts) (Amendment) Regulations, 2009 vide Notification No. LAD/NRO/GN/2009-2010/10/166936.
(u) April 13, 2011 by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2011 vide Notification No. LAD/ NRO/ GN/ 2011-12/03/12650.
SEBI (Merchant Bankers) (Amendment) Regulations, 2011
NOTIFICATION
Mumbai, the 5th July, 2011
SECURITIES AND EXCHANGE BOARD OF INDIA
(MERCHANT BANKERS) (AMENDMENT) REGULATIONS, 2011
No. LAD-NRO/GN/2011-12/09/21233 - In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to amend the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, namely:-
1. These Regulations may be called the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2011.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In regulation 2, in clause (ab), after the words “certificate of” and before the words “registration issued by the Board” the words “initial or permanent” shall be inserted.
4. In regulation 3,–
i. in the marginal note, after the word “certificate” the words “of initial registration” shall be inserted;
ii. in sub-regulation (1), after the word “certificate” and before the words “shall be made” the words “of initial registration” shall be inserted.
5. Regulation 8 shall be substituted with the following, namely:–
“8. Grant of certificate of initial registration.
1. The Board, on being satisfied that the applicant is eligible, shall grant a certificate of initial registration in Form B and shall send an intimation to the applicant.
2. The certificate of initial registration granted under sub-regulation (1) shall be valid for a period of five years from the date of its issue to the applicant.
3. The merchant banker who has already been granted certificate of registration by the Board, prior to the commencement of the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2011, and has not completed a period of three years, shall be deemed to have been granted a certificate of initial registration for a period of five years from the date of its certificate of registration, subject to payment of fee for the remaining period of two years, as prescribed in Schedule II of these regulations.
4. On the grant of a certificate of initial registration the merchant banker shall be liable to pay the fee in accordance with Schedule II of these regulations.”
6. After regulation 8, the following new regulation shall be inserted, namely:-
“8A. Grant of certificate of permanent registration.
1. The merchant banker who has been granted or deemed to have been granted a certificate of initial registration under regulation 8, may, three months before the expiry of the period of certificate of initial registration, make an application for grant of a certificate of permanent registration in Form A.
2. The merchant banker who has already been granted a certificate of registration by the Board and has completed a period of five years, on the date of commencement of the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2011, may, three months before the expiry of validity of certificate of registration or before, make an application for grant of a certificate of permanent registration in Form A.
3. An application under sub-regulation (1) or sub-regulation (2) shall be accompanied by a non-refundable application fee as specified in Schedule II of these regulations.
4. The application for grant of a certificate of permanent registration shall be accompanied by details of the changes that have taken place in the information that was submitted to the Board while seeking initial registration or renewal, as the case may be, and a declaration stating that no changes other than those as mentioned in such details have taken place.
5. The application for permanent registration made under sub-regulation (1) or (2) shall be dealt with in the same manner as if it were a fresh application for grant of a certificate of initial registration.
6. The Board, on being satisfied that the applicant is eligible, shall grant a certificate of permanent registration in Form B and shall send an intimation to the applicant.
7. On the grant of a certificate of permanent registration the merchant banker shall be liable to pay the fee in accordance with Schedule II of these regulations.”
7. Regulation 9 shall be omitted.
8. In regulation 9A, in sub-regulation (1),–
i. in the opening sentence the word “registration” shall be substituted with the words “initial registration” and the words and figure “renewal granted under regulation 9″ shall be substituted with the words and figure “permanent registration granted under regulation 8A”;
ii. in clause (b), the words “registration or renewal” shall be substituted with the words “initial registration or permanent registration”;
iii. in clause (d), the words “certificate or renewal thereof” shall be substituted with the words “initial registration or permanent registration”
9. Regulation 9B shall be omitted.
10. In regulation 10, -
i. in sub-regulation (1), the words and figures “under regulation 3 or of renewal under regulation 9″ shall be substituted with the words and figures “of initial registration under regulation 3 or of permanent registration under regulation 8A”.
ii. in sub-regulation (2), the word “registration” shall be substituted with the words “initial registration or permanent registration, as the case may be,”.
11. Regulation 11 shall be substituted with the following, namely: -
“11. Effect of refusal to grant certificate of permanent registration.
Any applicant, whose application for grant of a certificate of permanent registration has been refused by the Board, on and from the date of receipt of the communication, shall not carry on any activity as a merchant banker:
Provided that the Board may, in the interest of investors in the securities market, permit the merchant banker to carry on activities undertaken prior to the receipt of the intimation of refusal subject to such condition as the Board may specify.”
12. In Schedule I,–
i. in Form A,–
a. the word and figure “Regulation 3″ shall be substituted with the words, figures and sign “Regulation 3/Regulation 8A”;
b. the words and sign “Application for Grant of Certificate/ Renewal of Certificate” shall be substituted with the words and sign “Application for Grant of Certificate of Initial/ Permanent Registration”.
ii. in Form B,–
a. the word and figure “Regulation 8″ shall be substituted with the words, figure and sign “Regulation 8/Regulation 8A”.
b. the words “Certificate of Registration” shall be substituted with the words and sign “Certificate of Initial/Permanent Registration”.
c. paragraph III shall be substituted with the following, namely:–
“III. This certificate of registration shall be valid from …. to …. / for permanent, unless suspended or cancelled by the Board.”
13. In schedule II,–
i. paragraphs 1 and 2 shall be substituted with the following paragraphs, namely:–
“1. Every merchant banker shall pay a sum of thirteen lakhs thirty three thousand and three hundred rupees as registration fee at the time of grant of certificate of initial registration.
1A. A merchant banker referred to under sub-regulation (3) of regulation 8 shall pay fee for the remaining period of two years on pro rata basis to the fee prescribed under paragraph 2.
2. A merchant banker who has been granted a certificate of permanent registration, to keep its registration in force, shall pay a fee of five lakh rupees every three years from the sixth year from the date of grant of certificate of initial registration, or from completion of the period of renewed certificate of registration, as the case may be.”
ii. in paragraph 3,–
a. after clause (a), a new clause shall be inserted, namely: -
“(aa) The fee referred to in paragraph 1A shall be paid by the merchant banker three months before completion of the period of three years from the date of grant of certificate of initial registration, or within a period of three months from the date of notification of these regulations, as the case may be.”;
b. clause (b) shall be substituted with the following, namely: -
“(b) The fee referred to in paragraph 2 shall be paid by the merchant banker, at the time of grant of permanent registration, within fifteen days from the date of receipt of intimation from the Board under sub-regulation (6) of regulation 8A and thereafter the fee shall be paid three months before expiry of the block for which fee has been paid.”.
iii. in paragraph 3A, the words “renewal of registration under sub-regulation (1A) of regulation 9″ shall be substituted with the words “permanent registration under sub-regulation (1) or sub-regulation (2) of regulation 8A”.
iv. in paragraph 4, the word and figures “1, 2 and 3A” shall be substituted with the word and figures “1, 1A, 2 and 3A”.
U. K. SINHA
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA
Footnotes:
1. The principal regulations Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 were published in Official Gazette of India on 22nd December, 1992 vide No.LE/11112/92.
2. The Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 were subsequently amended on:
(a) September 7, 1995 by the Securities and Exchange Board of India (Merchant Bankers) Amendment Regulations, 1995 vide No. SEBI/LE/1/9/95;
(b) November 28, 1995 by the Securities and Exchange Board of India (Payment of Fees) Amendment Regulations, 1995 vide No. S.O. 939 (E);
(c) June 6, 1996 by the Securities and Exchange Board of India (Merchant Bankers) Amendment Regulations, 1996 vide SEBI/LE/III/5/96;
(d) December 9, 1997 by the Securities and Exchange Board of India (Merchant Bankers) Amendment Regulations, 1997 vide No. S.O. 837 (E);
(e) December 15, 1997 by the Securities and Exchange Board of India (Merchant Bankers) Amendment Regulations, 1997 vide No. S. O. 869(E);
(f) January 21, 1998 by the Securities and Exchange Board of India (Merchant Bankers) Amendment Regulations, 1998 vide No. S.O. 74 (E).
(g) September 30, 1999 by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 1999 vide No. S.O. 799 (E).
(h) November 17, 1999 by the Securities and Exchange Board of India (Merchant Bankers) (Second Amendment) Regulations, 1999 vide No. S.O. 1119 (E).
(i) March 28, 2000 by the Securities and Exchange Board of India (Appeal to the Securities Appellate Tribunal) (Amendment) Regulations, 2000 vide No. S.O. 278 (E).
(j) May 29, 2001 by the Securities and Exchange Board of India (Investment Advice by Intermediaries) (Amendment) Regulations, 2001 vide No. S.O. 476 (E).
(k) September 27, 2002 by the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 vide No. S.O. 1045 (E).
(l) October 1, 2003 by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2003 vide No. S.O. 1154 (E).
(m) March 10, 2004 by the Securities and Exchange Board of India (Criteria for Fit and Proper Person) Regulations, 2004 vide S.O. No. 398(E).
(n) April 18, 2006 by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2006 vide No. S.O. 560 (E).
(o) May 3, 2006 by the Securities and Exchange Board of India (Merchant Bankers) (Second Amendment) Regulations, 2006 vide No. S.O. 640 (E).
(p) September 7, 2006 by the Securities and Exchange Board of India (Merchant Bankers) (Third Amendment) Regulations, 2006 vide No. S.O. 1448 (E).
(q) May 28, 2007 by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2007 vide Notification No.11/LC/GN/2007/2517.
(r) March 31, 2008 by the Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 2008 vide F. No. 11/LC/GN/2008/21669.
(s) May 26, 2008 by the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 vide Notification No. LAD-NRO/GN/2008/11/126538.
(t) August 26, 2009 by the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 vide Notification No. LAD/ NRO/GN/2009-10/15/174471.
(u) April 13, 2010 by the Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2010 vide Notification No. LAD-NRO/GN/2010-11/04/1109.
(v) April 13, 2011 by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2011 vide Notification No. LAD/ NRO/ GN/ 2011-12/03/12650.
SEBI (Registrars to an Issue and Share Transfer Agents) (Amendment) Regulations, 2011
NOTIFICATION
Mumbai, the 5th July, 2011
SECURITIES AND EXCHANGE BOARD OF INDIA
(REGISTRARS TO AN ISSUE AND SHARE TRANSFER AGENTS)
(AMENDMENT) REGULATIONS, 2011
No. LAD-NRO/GN/2011-12/11/21228 - In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to amend the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993, namely:-
1. These Regulations may be called the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) (Amendment) Regulations, 2011.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In regulation 2, in clause (ba), the words “registration granted or renewed” shall be substituted with the words “initial or permanent registration granted”.
4. In regulation 3, -
(i) in the marginal note, after the word “certificate” the words “of initial registration” shall be inserted;
(ii) in sub-regulation (1), after the word “certificate” and before the words “shall be made” the words “of initial registration” shall be inserted.
5. Regulation 8 shall be substituted with the following, namely: -
“8. Grant of certificate of initial registration.
(1) The Board, on being satisfied that the applicant is eligible, shall send an intimation to the applicant mentioning the category for which the applicant has been found eligible for the grant of certificate of initial registration and grant a certificate in Form B.
(2) The certificate of initial registration granted under sub-regulation (1) shall be valid for a period of five years from the date of its issue to the applicant.
(3) The registrar to an issue or share transfer agent, who has already been granted a certificate of registration by the Board, prior to the commencement of the Securities and Exchange Board of India (Registrars to an Issue and Share transfer Agents) (Amendment) Regulations, 2011, and has not completed a period of three years, shall be deemed to have been granted a certificate of initial registration for a period of five years from the date of its certificate of registration, subject to payment of fee for the remaining period of two years, as prescribed under Schedule II of these regulations.
(4) The grant of certificate of initial registration shall be subject to payment of fee specified in regulation 12.”
6. After regulation 8, a new regulation shall be inserted, namely:-
“8A. Grant of certificate of permanent registration.
(1) The registrar to an issue or share transfer agent who has been granted or deemed to have been granted a certificate of initial registration under regulation 8, may, three months before the expiry of the period of certificate of initial registration, make an application for grant of certificate of permanent registration in Form A.
(2) The registrar to an issue or share transfer agent who has already been granted a certificate of registration by the Board and has completed a period of five years, on the date of commencement of the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) (Amendment) Regulations, 2011, may, three months before the expiry of validity of certificate of registration, or before, make an application for grant of a certificate of permanent registration in Form A.
(3) An application under sub-regulation (1) or sub-regulation (2) shall be accompanied by a non-refundable application fee as specified in Schedule II of these regulations.
(4) The application for grant of a certificate of permanent registration shall be accompanied by details of the changes that have taken place in the information that was submitted to the Board while seeking initial registration or renewal, as the case may be, and a declaration stating that no changes other than those as mentioned in such details have taken place.
(5) The application for permanent registration made under sub-regulation (1) or (2) shall be dealt with in the same manner as if it were a fresh application for grant of a certificate of initial registration.
(6) The Board, on being satisfied that the applicant is eligible, shall grant a certificate of permanent registration in Form B and shall send an intimation to the applicant.
(7) The grant of certificate of permanent registration shall be subject to payment of fee specified in Schedule II of these regulations.”
7. Regulation 9 shall be omitted.
8. In regulation 9A, in sub-regulation (1), -
(i) in the opening sentence the word “registration” shall be substituted with the words “initial registration” and the words and figure “renewal granted under regulation 9″ shall be substituted with the words and figure “permanent registration granted under regulation 8A”;
(ii) in clause (c), the words “registration or renewal” shall be substituted with the words “initial registration or permanent registration”;
(iii) in clause (d), the words “certificate or renewal thereof” shall be substituted with the words “initial registration or permanent registration.”
9. Regulation 9B shall be omitted.
10. In regulation 10, -
(i) in sub-regulation (1), the words and figures “under regulation 3 or of renewal under regulation 9″ shall be substituted with the words and figures “of initial registration under regulation 3 or of permanent registration under regulation 8A”;
(ii) in sub-regulation (2), the words “or renew the certificate” shall be substituted with the words “initial registration or permanent registration, as the case may be,”.
11. Regulation 11 shall be substituted as follows, namely: -
“11. Effect of refusal to grant certificate of permanent registration.
The registrar to an issue or share transfer agent, whose application for grant of a certificate of permanent registration has been refused by the Board, on and from the date of the receipt of the communication, shall not carry on any activity as a registrar to an issue or share transfer agent:
Provided that the Board may, in the interest of investors in the securities market, permit the registrar to an issue or share transfer agent to carry on activities undertaken prior to the receipt of the intimation of refusal subject to such condition as the Board may specify.”
12. In regulation 12, in sub-regulation (1), the words “or renewal of a certificate” shall be substituted with the words “of initial or permanent registration, as the case may be,”.
13. In Schedule I, -
(i) in Form A, -
(a) the word and figure “Regulation 3″ shall be substituted with the words, figures and sign “Regulation 3/Regulation 8A”;
(b) the words and sign “Application for Registration as Registrars to Issue or Share Transfer Agents or Both” shall be substituted with the words and sign “Application for Initial/ Permanent Registration as Registrars to Issue or Share Transfer Agents or Both”.
(ii) in Form B, -
(a) the word and figure “Regulation 8″ shall be substituted with the words, figures and sign “Regulation 8/Regulation 8A”;
(b) the words “Certificate of Registration” shall be substituted with the words and sign “Certificate of Initial/Permanent Registration”;
(c) paragraph III shall be substituted with the following, namely:-
“III. This certificate of registration shall be valid from ….. to …. / for permanent, unless suspended or cancelled by the Board.”
14. In Schedule II, -
(i) paragraph 1 shall be substituted with the following paragraphs, namely:-
“1. Every registrar to an issue and share transfer agent, at the time of grant of certificate of initial registration, shall pay registration fee as specified below:
(a) A registrar to an issue and share transfer agent falling under category I, as specified in sub-regulation (2) of regulation 3, shall pay fee of four lakh rupees;
(b) A registrar to an issue and share transfer agent falling under category II, as specified in sub-regulation (2) of regulation 3, shall pay fee of one lakh thirty three thousand and three hundred rupees.
1A. A registrar to an issue and share transfer agent referred to under sub-regulation (3) of regulation 8 shall pay fee for the remaining period of two years on pro rata basis of the fee prescribed under paragraph 1AA, as applicable to their respective class.
1AA. A registrar to an issue and share transfer agent who has been granted a certificate of permanent registration, to keep its registration in force, shall pay registration fee, every three years from the sixth year from the date of grant of certificate of initial registration, or from completion of the period of renewed certificate of registration, as the case may be, as specified below:
(a) A registrar to an issue and share transfer agent falling under category I, as specified in sub-regulation (2) of regulation 3, shall pay a fee of one lakh and fifty thousand rupees;
(b) A registrar to an issue and share transfer agent falling under category II, as specified in sub-regulation (2) of regulation 3, shall pay a fee of fifty thousand rupees.”
(ii) in paragraph 2, -
(a) after clause (a), a new clause shall be inserted, namely: -
“(aa) The fee referred to in paragraph 1A shall be paid by the registrar to an issue and share transfer agent within a period of three months before completion of the period of three years from the date of grant of certificate of initial registration, or within a period of three months from the date of notification of these regulations, as the case may be.”
(b) clause (b) shall be substituted with the following, namely: -
“(b) The fee referred to in paragraph 1AA shall be paid, at the time of grant of permanent registration, within fifteen days from the date of receipt of intimation from the Board and thereafter the fee shall be paid three months before expiry of the block for which fee has been paid.”.
(iii) in paragraph 2A, the words “renewal of registration under sub-regulation (1A) of regulation 9″ shall be substituted with the words “permanent registration under sub-regulation (1) or sub-regulation (2) of regulation 8A”.
(iv) in paragraph 3, the word and figures “1 and 2A” shall be substituted with the word and figures “1, 1A, 1AA and 2A”.
U. K. SINHA
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA
Footnotes:
1. The principal regulations Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 were published in Official Gazette of India on May 31, 1993 vide F.No.SEBI/LE/5/93.
2. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 were subsequently amended on:
(a) November 28, 1995 by the Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 1995 vide No. S.O. 939 (E);
(b) September 17, 1997 by Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) (Amendment) Regulations, 1997 vide No. S.O. 660 (E).
(c) January 5, 1998 by the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) (Amendment) Regulations, 1998 vide No. S.O. 14 (E).
(d) September 30, 1999 by the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) (Amendment) Regulations, 1999 vide No. S.O. 796 (E).
(e) November 17, 1999 by Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) (Second Amendment) Regulations, 1999 vide No. S.O. 1120 (E).
(f) March 28, 2000 by the Securities and Exchange Board of India (Appeal to Securities Appellate Tribunal) (Amendment) Regulations, 2000 vide No. S.O. 278 (E).
(g) May 29, 2001 by the Securities and Exchange Board of India (Investment Advice by Intermediaries) (Amendment) Regulations, 2001 vide No. S.O. 476 (E).
(h) September 27, 2002 by the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 vide No. S.O. 1045 (E).
(i) October 1, 2003 by the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) (Amendment) Regulations, 2003 vide No. S.O. 1157 (E).
(j) March 10, 2004 by the Securities and Exchange Board of India (Criteria for Fit and Proper Person) Regulations, 2004 vide S.O. No. 398(E).
(k) September 7, 2006 by the Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) (Amendment) Regulations, 2006 vide S.O. No. 1452 (E).
(l) May 26, 2008 by the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 vide Notification No. LAD/NRO/GN/2008/11/126538.
(m) August 26, 2009 by the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 vide Notification No. LAD/NRO/GN/2009-10/15/174471.
(n) April 13, 2011 by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2011 vide Notification No. LAD/ NRO/ GN/ 2011-12/03/12650.
SEBI (Debenture Trustees) (Amendment) Regulations, 2011
NOTIFICATION
Mumbai, the 5th July, 2011
SECURITIES AND EXCHANGE BOARD OF INDIA
(DEBENTURE TRUSTEES) (AMENDMENT) REGULATIONS, 2011
No. LAD-NRO/GN/2011-12/13/21222 – In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to amend the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993, namely:–
1. These Regulations may be called the Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 2011.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In regulation 2, in clause (ac), the words “registration granted or renewed” shall be substituted with the words “initial or permanent registration granted”.
4. In regulation 3,–
i. in the marginal note, after the word “certificate” the words “of initial registration” shall be inserted;
ii. in sub-regulation (1), after the word “certificate” and before the words “shall be made” the words “of initial registration” shall be inserted.
5. Regulation 8 shall be substituted with the following, namely:–
“8. Grant of certificate of initial registration.
1. The Board on being satisfied that the applicant is eligible, shall send an intimation to the applicant, within one month of such satisfaction, that it has been found eligible for grant of certificate of initial registration and grant a certificate in Form B.
2. The certificate of initial registration granted under sub-regulation (1) shall be valid for a period of five years from the date of its issue to the applicant.
3. The debenture trustee who has already been granted a certificate of registration by the Board, prior to the commencement of the Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 2011, and has not completed a period of three years, shall be deemed to have been granted a certificate of initial registration for a period of five years from the date of its certificate of registration, subject to payment of fee for the remaining period of two years, as specified in Schedule II of these regulations.
4. The grant of a certificate of initial registration shall be subject to payment of the registration fee as specified in Schedule II of these regulations.”
6. After regulation 8, the following new regulation shall be inserted, namely:-
“8A. Grant of certificate of permanent registration.
1. The debenture trustee who has been granted or deemed to have been granted a certificate of initial registration under regulation 8, may, three months before the expiry of the period of initial registration, make an application for grant of a certificate of permanent registration in Form A.
2. The debenture trustee who has already been granted certificate of registration by the Board and has completed a period of five years, on the date of commencement of the Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 2011, may, three months before the expiry of validity of certificate of registration or before, make an application for grant of a certificate of permanent registration in Form A.
3. An application under sub-regulation (1) or sub-regulation (2) shall be accompanied by non-refundable application fee as specified in Schedule II of these regulations.
4. The application for grant of a certificate of permanent registration shall be accompanied by details of the changes that have taken place in the information that was submitted to the Board while seeking initial registration or renewal, as the case may be, and a declaration stating that no changes other than those as mentioned in such details have taken place.
5. The application for permanent registration made under sub- regulation (1) or (2) shall be dealt with in the same manner as if it were a fresh application for grant of a certificate of initial registration and the Board shall take a decision within three months from the date of receipt of all information.
6. The Board, on being satisfied that the applicant is eligible, shall grant a certificate of permanent registration in Form B and shall send an intimation to the applicant.
7. The grant of a certificate of permanent registration shall be subject to payment of fees specified in Schedule II of these regulations.”
7. Regulation 9 shall be omitted.
8. In regulation 9A, in sub-regulation (1),–
i. in the opening sentence the word “registration” shall be substituted with the words “initial registration” and the words and figure “renewal granted under regulation 9″ shall be substituted with the words and figure “permanent registration granted under regulation 8A”;
ii. in clause (b), the words “registration or renewal” shall be substituted with the words “initial registration or permanent registration”;
iii. in clause (d), the words “certificate or renewal thereof” shall be substituted with the words “initial registration or permanent registration”
9. Regulation 9B shall be omitted.
10. In regulation 10,–
i. in sub-regulation (1), the words and figures “under regulation 3 or of renewal under regulation 9″ shall be substituted with the words and figures “of initial registration under regulation 3 or of permanent registration under regulation 8A”;
ii. in sub-regulation (2), the words “refusal to grant or renew the certificate” shall be substituted with the words “refusal to grant initial or permanent registration, as the case may be,”.
11. Regulation 11 shall be substituted with the following, namely: -
“11. Effect of refusal to grant certificate of permanent registration.
The debenture trustee whose application for grant of certificate of permanent registration has been refused by the Board, on and from the date of the receipt of the communication, shall cease to carry on any activity as debenture trustee:
Provided that the Board may, in the interest of the investors of the securities market, permit to carry on activities undertaken prior to the receipt of the intimation of refusal, subject to such condition as the Board may specify.”
12. In regulation 12, in sub-regulation (1), the words “or renewal of a certificate” shall be substituted with the words “of initial or permanent registration, as the case may be,”.
13. In Schedule I,–
i. in Form A,–
a. the word and figure “Regulation 3″ shall be substituted with the words, figures and sign “Regulation 3/ Regulation 8A”;
b. the words “Application for Registration as Debenture Trustee” shall be substituted with the words and sign “Application for Grant of Certificate of Initial/Permanent Registration as Debenture Trustee”;
c. under the head, Additional information sheet, the words “renewal of” shall be substituted with the word “permanent”
ii. in Form B, -
a. the words and figure “Regulation 8″ shall be substituted with the words, figures and sign “Regulation 8/ Regulation 8A”.
b. the words “Certificate of Registration” shall be substituted with the words and sign “Certificate of Initial/Permanent Registration”
c. paragraph III shall be substituted with the following, namely:–
“III. This certificate of registration shall be valid from …. to …. / for permanent, unless suspended or cancelled by the Board.”
14. In Schedule II, –
i. paragraphs 1 and 2 shall be substituted with the following paragraphs, namely:–
”1. Every debenture trustee shall pay fees of thirteen lakh thirty three thousand and three hundred rupees at the time of grant of certificate of initial registration.
1A. A debenture trustee referred to under sub-regulation (3) of regulation 8, shall pay fees for the remaining period of two years on pro rata basis to the fee prescribed under paragraph 2.
2. A debenture trustee who has been granted a certificate of permanent registration, to keep its registration in force, shall pay fees of five lakh rupees every three years from the sixth year from the date of grant of certificate of initial registration, or from completion of the period of renewed certificate of registration, as the case may be.”
ii. in paragraph 3,–
a. after clause (a), a new clause shall be inserted, namely: -
“(aa) The fees referred to in paragraph 1A shall be paid by the debenture trustee within a period of three months before completion of the period of three years from the date of grant of certificate of initial registration, or within a period of three months from the date of notification of these regulations, as the case may be.”
b. clause (b) shall be substituted with the following, namely: -
“(b) The fee referred to in paragraph 2 shall be paid by the debenture trustee, at the time of grant of permanent registration, within fifteen days from the date of receipt of intimation from the Board under sub-regulation (6) of regulation 8A and thereafter the fee shall be paid three months before expiry of the block for which fee has been paid.”
iii. in paragraph 3A, the words “renewal of registration under sub-regulation (1A) of regulation 9″ shall be substituted with the words “permanent registration under sub-regulation (1) or sub-regulation (2) of regulation 8A”.
iv. in paragraph 4, the word and figures “1, 2 and 3A” shall be substituted with the word and figures “1, 1A, 2 and 3A”.
U. K. SINHA
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA
Footnotes :
1. The Securities and Exchange Board of India (Debenture Trustee) Regulations, 1993, were published in the Gazette of India on December 29, 1993, vide No.SEBI/LE/12/93.
2. The Securities and Exchange Board of India (Debenture Trustee) Regulations, 1993, were subsequently amended on:
(a) November 28, 1995 by the Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 1995 vide S.O. No.939 (E).
(b) January 5, 1998 by the Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 1998 vide S.O. No.16(E).
(c) September 30, 1999 by the Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 1999 vide S.O. No.795(E).
(d) February 17, 2000 by the Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 2000 vide S.O. No.135(E).
(e) August 8, 2000 by the Securities and Exchange Board of India (Debenture Trustees) (Second Amendment) Regulations, 2000 vide S.O. No.743(E).
(f) March 28, 2000 by the Securities and Exchange Board of India (Appeal to Securities Appellate Tribunal) (Amendment) Regulations, 2000 vide S.O. No.278(E).
(g) May 29, 2001 by the Securities and Exchange Board of India (Investment Advice by Intermediaries) (Amendment) Regulations, 2001 vide S.O. No. 476(E).
(h) September 27, 2002 by the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 vide S.O. No.1045(E).
(i) July 4, 2003 by the Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 2003 vide S.O.No. 763(E).
(j) March 10, 2004 by the Securities and Exchange Board of India (Criteria for Fit and Proper Person) Regulations, 2004 vide S.O. No. 398(E).
(k) September 7, 2006 by the Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 2006 vide S.O No.1451 (E).
(l) May 26, 2008 by the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 vide Notification No. LAD/NRO/GN/2008/11/126538.
(m) April 13, 2011 by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment) Regulations, 2011 vide Notification No. LAD/ NRO/ GN/ 2011-12/03/12650.
