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Hi Folks
“Children must be taught HOW TO THINK, not WHAT TO THINK”.- Margaret Mead. Unfortunately the schooling system in our country is woefully inadequate on several fronts. Not only does it discourage thinking it also punishes children who are inquisitive and challenge the teacher. Thanks to the marks / grade based assessment, it encourages students to resort to rote learning and vomit the same without understanding the concepts. No wonder the young minds which are as sensitive as a thermometer get hardened as cold iron by the time they graduate out of colleges, with no useful impressions made.
Just reflect on the situation. Several things have gone wrong. Latest is a certain breed of schools that are mushrooming – ‘techno schools’ which claim to make IIT engineers out of the children. Can you believe they are enticing parents and children as young as 10 years with a promise of rigorous coaching for IIT and other competitive examinations ? Result – the child has a 8 to 5 schedule with no time to play and have fun. I am not even sure if the ‘victims’ even know whether they would like to be engineers or something else. Firstly is it the right age to decide on a line of education? Recently one of my friends got a call from a techno school promising a huge discount in the admission fee since her daughter had scored 76% in class 4. Upon contacting the school, she realized that the management had contacted tuition teachers, got details of the students & reached out in a typical corporate marketing style with incentives to the ‘referrers’. The infrastructure of the school was far from satisfactory and so were the staff handling this ‘recruitment drive’. One can imagine the quality of education that will be imparted by an institution adapting such an undesirable approach. The output will most likely be what our banner displays!
Well, many things are going right too with education. Only let us bear in mind that “Educating the mind without educating the heart is no education at all”. – Aristotle
Well, many things are going right too with education. Only let us bear in mind that “Educating the mind without educating the heart is no education at all”. – Aristotle
Coinciding with the festival of harvests, Sankranti, this issue has a bumper harvest of several regulatory updates. We have compiled the most relevant ones and hope you will find them useful.
Should you wish to refer to any older issues of Lexspeak, do visit our Resource Centre on  sharadasc.com.

Warm regards

RBI has permitted to issue equity shares and compulsorily & mandatorily convertible preference shares / debentures with optionality clauses to non-residents under FDI Scheme subject to certain conditions. Investor shall be eligible to exit at the prevailing market price / value determined at the time of exercise of the optionality without any assured return.
Renewal / rollover of existing or original Bank Guarantee, which is part of the total financial commitment of the Indian party, shall not be treated as fresh financial commitment, if it fulfills certain conditions prescribed in the Circular.
For the purpose of ECB (External Commercial Borrowing), Maintenance, Repairs and Overhaul (MRO) are now considered as part of the sub-sector of Airport in the Transport Sector of Infrastructure.
As per the FEMA guidelines, a person resident in India may hold, own, transfer or invest in foreign currency, security or immovable property situated outside India if they are acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India. RBI has clarified w.r.t. the nature of such transactions.
NRI (Non-Resident Indian) close relatives are permitted to operate resident savings bank accounts as joint holders on “Either or Survivor” basis subject to certain conditions. Hitherto they were not eligible to operate the account during the life time of the resident account holder.
Indian companies are allowed to issue non-convertible/redeemable preference shares or debentures to non-resident shareholders by way of distribution as bonus from their general reserves under a Scheme of Arrangement approved by a Court in India under the provisions of the Companies Act, as applicable, subject to no-objection from the Income Tax Authorities.
Existing FDI Policy w.r.t. Pharmaceuticals Sector would remain unchanged (i.e. Greenfield 100% Automatic & Brownfield 100% Government Approval) with the condition that ‘non-compete’ clause would not be allowed without approval of FIPB (Foreign Investment Promotion Board) in special circumstances.
Education cess need not be calculated on cesses levied under acts not administered by the Ministry of Finance viz. Sugar Cess, Tea Cess.

A procedure for claiming of benefits in respect of Third Party exports under EDI (Electronic Data Interchange) system and a guideline for conversion of currencies has been prescribed.
Regional Authorities (DGFT Office) can consider request for extension of time upto 18 months from the date of import of capital goods for submission of Installation Certificate under the EPCG Scheme.
A procedure for processing of claims in respect of realization of export proceeds through insurance agency (not through banks) has been introduced.
SHIS (Status Holder Incentive Scheme), SFIS (Served From India Scheme) and AIIS (Agri. Infrastructure Incentive Scrip) scrips cannot be used for payment of Custom duty for shortfall in EO in Advance Authorization or DFIA (Duty Free Import Authorization).
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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