Echoes in the Darkness

Just finished reading a true crime story by Joseph Wambaugh - "Echoes in the Darkness". This book is regarding the murder mystery of Susan Reinert a divorced school teacher and her two children Karen and Micheal who were never found since that fateful day in June 1979. She was having a secret with another school teacher William Bradfield who was famous for his numerous flings with women. He was having another secret affair with another teacher Sue Myers and this after having two failed marriages in the past. Whilst he was juggling with the two teachers he started and successfully carried two more affairs both with students of the Upper Merion High School in Main Line, Philadelphia where they were all enrolled. One of the student was a minor when he started his affair, but all his women swore by his affections. The principal of the school was Jay Smith an ex-army officer and quite a character in himself with revelations of sexual escapades and fantasies, shoplifting and his own daughter Stephanie and son-in-law Eddie Hunsberger were never found – it was alleged that Smith had murdered his daughter and son-in-law but they just vanished from the face of earth and were never found to this day. The prosecution had to rely on circumstantial evidence in this case. Much of the book in the first half is devoted to the peccadilloes of William Bradfield and Jay Smith in conjuring up their images as crazy, demented individuals.

Promoters' exemption from holding their shares in demat form

SEBI has vide its circular dated March 30, 2012 exempted certain categories of cases from the mandatory requirement of 100% shareholding of promoters of companies in demat form. A list of four such categories is given in the circular appended below. The companies/ promoters have to approach the stock exchanges with proper documentary evidence as to matters falling within the said four categories.

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1333096925164.pdf


CIRCULAR
SEBI/Cir/ISD/  1  /2012
March 30, 2012
To,
All the Recognized Stock Exchanges,
Dear Sir/Madam,
Sub: Exemptions from 100% promoter(s) holding in demat form
1. This is further to SEBI circulars SEBI/Cir/ISD/3/2011  dated June 17, 2011 and
SEBI/Cir/ISD/05/2011 dated September 30, 2011 regarding 100% promoter(s)
holding in demat form.
2. While reviewing compliance, it is noticed that promoters of a large number of
companies have complied with the requirements stated in the above mentioned
circulars. SEBI has also received representations from various companies
bringing out issues relating to dematerialization of holdings of promoters and
have accordingly sought exemption from compliance with the above mentioned
circulars.
3. In light of these representations and in consultation with Stock Exchanges, it has
been decided that following exemptions shall be taken into consideration while
arriving at compliance with 100% promoter(s) holding in demat form. Such
exemption shall be applicable in cases where :-
a. Promoter(s) have sold their shares in physical mode and such shares have
not been lodged for transfer with the company; or
b. Matters concerning part/entire shareholding of promoters/promoter group
are sub judice before any Court/Tribunal; or
c. Shares cannot be converted into demat form due to death of any
promoter(s); or
d. Shares allotted to promoter(s) that await final approval for listing from stock
exchange and such pendency is less than 30 days or shares that upon
receipt of final listing approval from stock exchange are pending conversion
to demat and such pendency is less than 15 days.

4. For availing such exemption under Para 3 (a) to (d) above, companies shall
approach Stock Exchange(s) along with necessary documentary evidence.
5. Provisions of SEBI circulars SEBI/Cir/ISD/3/2011 dated June 17, 2011,
SEBI/Cir/ISD/05/2011 dated September 30, 2011 and this circular shall come
into effect from April 30, 2012.
6. The Stock Exchanges are advised to:-
a) Put in place adequate systems and issue necessary guidelines to the market
for implementing the above decision; and
b) Make necessary amendments to the relevant bye-laws, rules and regulations
for implementation of the above decision; and
c) Bring the provisions of  this circular to the notice  of the market and also to
disseminate the same on its website; and
d) Communicate to SEBI the status of implementation of this circular through the
Monthly Report.
7. This circular is being issued under Section 11(1) read with Section 11(2)(a) of the
Securities and Exchange Board of India  Act, 1992 to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities market as well as to regulate the business in stock exchanges.
8. This circular is available on SEBI website at www.sebi.gov.in
Yours faithfully,
Avarjeet Singh
Deputy General Manager
Integrated Surveillance Department
022-26449262
avarjeets@sebi.gov.in

ODI - liberalisation

RBI has vide its circular no. 101 dated 2nd April 2012 liberalised the Overseas direct investments regime by allowing an Indian party to open, hold, maintain and operate Foreign Currency Account in an overseas account in a foreign country without taking prior permission from RBI provided some conditions are fulfilled.

The conditions and the circular can be accessed here

Overseas Direct Investments – Liberalisation / Rationalisation

RBI/2011-12/481 A. P. (DIR Series) Circular No.101 April 02, 2012 To All Category-I Authorised Dealer Banks Madam / Sir, Overseas Direct Investments – Liberalisation / Rationalisation Attention of the Authorised Dealer (AD - Category I) banks are invited to the Notification No. FEMA 10/2000-RB dated May 3, 2000 [Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2000] (the Notification), as amended from time to time. 2. As per the extant provisions of FEMA, an Indian party (as defined under Notification No. FEMA 120/RB-2004 dated July 07, 2004, as amended from time to time) is required to obtain prior permission of the Reserve Bank to open, hold and maintain Foreign Currency Account in a foreign country for the purpose of overseas direct investments in that country, in case the regulation of the host country requires that the investment in the country is to be made through a particular account to be opened with the commercial bank of the country. 3. To provide operational flexibility to the Indian party, it has been decided to liberalise the regulations pertaining to opening / holding / maintaining the Foreign Currency Account by Indian party outside India as under: An Indian party will now be allowed to open, hold and maintain Foreign Currency Account (FCA) abroad for the purpose of overseas direct investments subject to the following terms and conditions: The Indian party is eligible for overseas direct investments in terms of Regulation 6 (Regulation 7, if applicable) of Notification No. FEMA 120/RB-2004 dated July 7, 2004, as amended from time to time. The host country Regulations stipulate that the investments into the country is required to be routed through a designated account. FCA shall be opened, held and maintained as per the regulation of the host country. The remittances sent to the FCA by the Indian party should be utilized only for making overseas direct investment into the JV / WOS abroad. Any amount received in the account by way of dividend and / or other entitlements from the subsidiary shall be repatriated to India within 30 days from the date of credit. The Indian party should submit the details of debits and credits in the FCA on yearly basis to the designated AD bank with a certificate from the Statutory Auditors of the Indian party certifying that the FCA was maintained as per the host country laws and the extant FEMA regulations / provisions as applicable. The FCA so opened shall be closed immediately or within 30 days from the date of disinvestment from JV / WOS or cessation thereof. 4. Necessary amendments to the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2000 are being issued separately. 5. AD - Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned. 6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully, (Dr. Sujatha Elizabeth Prasad) Chief General Manager

Revision of interest rates for small savings schemes w.e.f. 1.04.2012

http://pib.nic.in/newsite/erelease.aspx?relid=81733 Revision of Interest Rates for Small Savings Schemes with Effect from 1st April 2012

Based on the decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), the interest rates for small saving schemes are to be notified every financial year, before 1st April of that year.  Accordingly, the rate of interest on various small savings schemes for the financial year 2012-13 effective from 1.4.2012, on the basis of the interest compounding/payment built-in in the schemes, shall be as under: Scheme Rate of Interest w.e.f. 1.12.2011 Rate of Interest w.e.f. 1.4.2012 Savings Deposit 4.0 4.0 1 year Time Deposit 7.7 8.2 2 year Time Deposit 7.8 8.3 3 year Time Deposit 8.0 8.4 5 year Time Deposit 8.3 8.5 5 year Recurring Deposit 8.0 8.4 5 year SCSS 9.0 9.3 5 year MIS 8.2 8.5 5 year NSC 8.4 8.6 10 year NSC 8.7 8.9 PPF 8.6 8.8 Necessary notifications, including those requiring amendments to rules of small savings schemes will be notified separately. DSM/SS/Hb (Release ID :81733)

Murder in Mesopotamia

Agatha Cristhie is on familiar ground when she covers murders in rural England which is her speciality - unfortunately "Murder in Mesopotamia" is a story based in Iraq on an archeological site - a murder takes place and Hercule Poirot is travelling some place nearby - so he comes in and solves the crime in his inimitable style - Cristhie maintains the suspense till the end in every book of hers - same is true of this one as well. 

ECBs for infrastructure facilities within NMIZ

RBI has vide its circular no. 85 dated 29th February 2012 allowed External commercial Borrowings for infrastructure facilities within the National Manufacturing Investment zones on an approval basis. Therefore the developers of these Zones would be able to avail of ECBs albeit on approval basis. Copy of the RBI circular can be found here

No NMIZ has been established as yet so this is a concept the government is working on to spur manufacturing activities in the country and thereby generate employement. The allowing of ECBs is therefore a step in that direction. 

Declaration of acquisition of immoveable property

RBI has vide circular no. 79 dated 15th February 2012 clarified that where a person resident outside India establishes in India an office, branch or a place of business and that office, branch or place of business acquires any immoveable property in India, then a declaration in form IPI has to be submitted to the RBI within 90 days of the said acquisition. However this declaration is not required to be given by a non-resident who is a Non-resident Indian or a person of Indian origin. The form clarifies this aspect as well. Which means that a NRI or a PIO need not make any reporting of their acquisition of immoveable property in India. The RBI circular can be found here