FEMA - Corporate Law Reporter

Review of Guidelines on entry of NBFCs into Insurance Business

RBI/2010-11/540 DNBS.PD.CC.No. 221/03.02.002/2010-11 May 27, 2011 All NBFCs Dear sir, Review of Guidelines on entry of NBFCs into Insurance Business Please refer to the circular DNBS.(PD).CC.No.13/02.01/99-2000 dated June 30, 2000 issued on Amendment to NBFC Regulations which contains the Guidelines for entry of NBFCs into Insurance Business. In terms of para 2 of the above guidelines,… Read More

Reconciliation of failed transactions at ATMs

RBI/2010/11/547 dated May 27, 2011 The Chairman and Managing Director / Chief Executive Officers ;All Scheduled Commercial Banks including RRBs /Urban Co-operative Banks / State Co-operative Banks /District Central Co-operative Banks Please refer to our letter DPSS No. 711 / 02.10.02 / 2008-2009, 1424 / 02.10.02 / 2008-2009 and 101 / 02.10.02 / 2009-2010 dated… Read More

Overseas Direct Investment Liberalisation / Rationalisation

RBI/2010-11/548 Circular No. 69 dated May 27, 2011 All Category - I Authorised Dealer Banks Attention of the Authorised Dealer (AD - Category I) banks is invited to the Notification No. FEMA 120/RB-2004 dated July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004] (the Notification), as amended from time… Read More

FDI in Defence Production : No consensus on the issue

A year after the Industry Ministry put out a discussion paper on increasing foreign direct investment in defence production to 74 per cent,it has not been able make a concrete proposal for the Cabinet. "Defence is a strategic subject. There have been brainstorming sessions. There has been no formal proposal which has been moved," Commerce… Read More

Guidelines on Infra Debt Funds soon

The government today said the capital market route is one of the options for allowing foreign investors in the proposed infra debt fund. The fund is aimed at meeting financing needs of the core sector, pegged at USD 1 trillion during 12th Plan (2012-17). The guidelines on infra debt fund is expected in the coming… Read More

RBI to launch policy on new bank branches

The Reserve Bank will soon release guidelines for implementing its proposal to locate at least a quarter of the new bank branches in the unbanked areas, which generally fall in the rural areas. "RBI will issue guidelines for 25 per cent rural branches soon," said a banker present at the central bank's post-policy meeting today.… Read More

Expect Tighter norms for reporting and monitoring of interest rate and forex derivatives : RBI

In order to improve transparency and avoid build up of a financial crisis, a Reserve Bank panel today suggested tighter norms for reporting and monitoring of interest rate and forex derivatives. The report of the Working Group set up by the Reserve Bank suggested that Clearing Corporation of India (CCIL) should be made the repository… Read More

RBI places report on OTC Interest Rate and Forex Derivatives

The Reserve Bank of India today placed on its website the Report of the Working Group on Reporting of over-the-counter (OTC) Interest Rate and Forex Derivatives (Chairman: Shri P Krishnamurthy). The Working Group has observed that non-transparency of the OTC market results in build-up of risks in the system which is widely believed to be… Read More

Finance for Loans and Advances against IDRs

RBI/2010-11/ 543; Dated May 25, 2011 All Scheduled Commercial banks (Excluding RRBs) In terms of Foreign Exchange Department circular A.P (DIR Series) Circular No.5 dated July 22, 2009, eligible companies resident outside India have been permitted to issue Indian Depository Receipts (IDRs) through a domestic depository, subject to terms and conditions indicated therein. 2. The matter… Read More

Enhancement in gratuity limits – Prudential Regulatory Treatment

RBI/2010-11/544; CIR No. 49/09.14.000/2010-11; Dated May 24, 2011 The Chief Executive Officers; All Primary (Urban) Co-operative Banks Please refer to para 10 of Memorandum attached to our Circular UBD.No.I&L.38/J.1-92/93 dated February 9, 1993 advising UCBs that it is necessary to estimate the liabilities on account of Provident Fund, Pension, Gratuity etc. on actuarial basis and full… Read More

Sub-Committee of Financial Stability Development Council FSDC meets at Mumbai

The second meeting of the Sub-Committee of the Financial Stability Development Council (FSDC) was held today in the Reserve Bank of India, Mumbai. Dr. D. Subbarao, Governor, Reserve Bank of India, chaired the meeting. Shri R. Gopalan, Secretary, Department of Economic Affairs, Shri Shashi Kant Sharma, Secretary, Department of Financial Services, Dr. Kaushik Basu, Chief… Read More

FIIs and MFs to hedge risk against default in corporate bonds

The Reserve Bank today came out with a credit default swap (CDS) guidelines that would allow corporate entities including insurers, FIIs and mutual funds to hedge risk against default in corporate bonds to which they subscribe. The guidelines, which were finalised by the RBI after receiving views from stakeholders, will come into effect from October… Read More

Guidelines on Credit Default Swaps (CDS) for Corporate Bonds

RBI/2010-11/542; No. 5053 /14.03.04/2010-11; May 23, 2011 All Market Participants Guidelines on Credit Default Swaps (CDS) for Corporate Bonds As indicated in paragraph 113 of the Second Quarter Review of Monetary Policy for year 2009-10, an Internal Group was constituted by the Reserve Bank to finalise the operational framework for the introduction of plain vanilla OTC single-name CDS… Read More