lexspeak
Hi Folks
“It is a mark of an educated mind to be able to entertain a thought without accepting it.” said Aristotle. What sort of a mind is it that neither accepts nor rejects a thought? For that matter, is there a thought at all in some minds? The minds that thoughtlessly take refuge in God GOOGLE when besought with a question and reproduce are surely not educated minds. Education is not merely being able to read, access information from publicly available resource
,copy and paste without application of mind. With or without degrees this can be achieved but true education happens when the curiosity and inquisitiveness is kindled, is triggered and the quest for answers begins.
Be that as it may, remembering 5th September as Teachers Day in memory of Dr. S Radhakrishnan, our second President and all those that have taught us over the years. Not to forget 15th September as Engineers Day in memory of Sir M Vishweshwariah, the Engineering marvel of Karnataka.
Ministry of Company Affairs seems to be making up for lot of lost ground � numerous Rules and Regulations have been put in the public domain for comments. The overzealous bureaucracy has begun implementation of the Act in phases, with the notification of select 98 sections which is bound to reign in confusion and chaos. Read this issue for all of this and more.
Should you wish to refer to any older issues of Lexspeak, do visit our Resource Centre on  sharadasc.com

Warm regards

Lex Valorem Team

 Draft rules notified
The Ministry of Corporate Affairs (MCA) has issued draft rules under the Companies Act, 2013 for public opinion and feedback.
 Act partially effective
The Companies Act, 2013 has become effective partially! 98 sections of the Act have taken effect from 12th Sept, 2013.
The due date for filing e-form 23C for appointment of cost auditor is extended upto 31st Oct, 2013. The form can be filed with normal applicable fee upto the said date or within 90 days of the commencement of company�s financial year, whichever is later.
It has been clarified that a HUF (Hindu Undivided Family) or its Karta cannot become a designated partner in LLP. According to LLP Act, 2008, only an individual or Body Corporate can become a partner in an LLP. A HUF cannot be treated as body corporate for the purpose of Act.
Effective from 4th Sept, 2013 eligible borrowers are permitted to utilize their ECBs (External Commercial Borrowings) for general corporate purposes with minimum average maturity period of 7 years under approval route subject to certain conditions prescribed in the guidelines. However ECB for working capital purposes continues to be prohibited.
Foreign students in India are now allowed to open a bank account without any immediate submission of local address proof. However, the student is required to produce a valid address proof within 30days from the date of opening the account. Condition is that during this period, the account should be operated with foreign remittance not exceeding USD 1,000 and monthly withdrawal of Rs. 50,000.


Overseas Direct Investment (ODI) made on or before 14th Aug, 2013 will continue to attract investment limit at 400% of the net worth of the Indian party under automatic route. Thus investment made before the said date does not require any prior approval.
As a measure of liberalization by RBI, a non-resident (NR) is permitted to acquire shares of a listed Indian company on a stock exchange through a registered broker under FDI scheme, provided that the NR acquires the shares as per the SEBI regulations, continues to hold control in terms of the regulations and subject to a few other conditions.
In order to provide operational flexibility, RBI has permitted banks to issue bank guarantee in favour of non-resident acquiring shares or convertible debentures of an Indian company through open offers without any prior approval of the RBI, provided such guarantee is backed by a counter guarantee of an international bank.
Issue of corporate guarantee on behalf of second generation or subsequent level step down operating subsidiaries will be considered under approval route provided the Indian party indirectly holds 51% or more stake in the overseas subsidy for which such guarantee is issued. Earlier the condition was �directly or indirectly�.
RBI has warned banks launching high risk Innovative Housing Loan Products alongwith builders/ developers under the 80:25, 75:25 schemes. Banks have been advised to link the disbursal of loan to stage wise construction of housing projects and not to disburse upfront in case of incomplete/ under-construction/ green-field projects.
Bluetooth wireless headsets for mobile phones/cell phones are classified under the custom tariff heading 85.17 �other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network and not 85.18 �headphones and earphones, whether or not combined with a microphone.�
Consequently basic customs duty payable on bluetooth wireless headsets is 0% and not 10%.
Note: The contents of this
Newsletter are only a summary and has not dealt with any issue in detail. Any action
taken or proposed to be taken must be in consultation with professionals and not
merely based on the articles / news updates. Lex Valorem disclaims all liability
on action taken without professional advice.

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