NEWS WRAP - MARCH 11, 2014

• Darshan Patel, the co-promoter of the erstwhile Paras Pharma, to invest Rs. 150 crore in his new venture Vini Foods over the next two years.

• Malaysian Air Shares Decline to Record Low After Flight Vanishes.

• Central Government sees 200 low-cost Airports in two decades to expand connectivity to Tier II and III cities.

• FDI in Services Sector drops 60% to $1.59 billion during April-October  2013.

• Trent Hypermarket waits for Joint Venture Nod with TESCO: Noel Tata.

• By March 10, UIDAI had generated and dispatched unique Aadhaar numbers to 60 crore people.

Source: Economic Times

NEWS WRAP - MARCH 8, 2014

• Instagram signs deal, pegged at $100 million, with major ad agency.

• Former Apple CEO John Sculley to launch smartphone in India; to sell handsets at Rs. 12,000 and less.

• Ranbaxy Laboratories recalls over 64,000 bottles of generic Lipitor in US.

• New bank licences in a few weeks: RBI Governor Raghuram Rajan

• Samsung, Accenture team up for secure mobile platform, apps.

Source: Economic Times

NEWS WRAP - MARCH 7, 2014

• Bharti Group in talks with with Carrefour, Aeon to form Retail Joint Venture.
• CIPLA under Income Tax Authorities' scanner for alleged Tax Evasion.
• BSE SME Exchange hits half-century, taking its Market Capitalization to over Rs. 3000 crore.
• Mafatlal Industries to invest Rs. 200 crore more in Gujarat Units.
• Private Gear Maker Alstom bags Rs. 85 million euro Contract from BHEL.
• Vedanta appoints ex-Rio Tinto chief Tom Albanese as next CEO.
• Birla Group seeks partner for Health Insurance foray.
• Google and Walt Disney's Foreign Investment proposals  have received the go-ahead by FIPB.

Source: Economic Times

FII/QFI INVESTMENTS IN COMMERCIAL PAPERS

ISSUING AUTHORITY : SECURITIES AND EXCHANGE BOARD OF INDIA

DATE OF ISSUE : 14/02/2014

EFFECTIVE DATE : IMMEDIATE EFFECT

CIRCULAR NO. CIR/IMD/FIIC/4/2014

The limit for investment by SEBI registered FIIs, QFIs and long term Investors in Corporate Debt stood at USD 51 billion. Out of the above limit of USD 51 billion, a sub-limit of USD 3.5 billion was available for investment by eligible investors in Commercial Paper (CP). 

Thus, to encourage long term investors, it has been decided, to reduce, with immediate effect, the existing Commercial Paper sub-limit of USD 3.5 billion by USD 1.5 billion to USD 2 billion. The balance USD 1.5 billion shall, however, continue to be part of the total Corporate debt limit of USD 51 billion and will be available to eligible foreign investors for investment in Corporate debt.

For detailed Circular, please find the link below:

CIR/IMD/FIIC/4/2014

NEWS WRAP - MARCH 6, 2014

• Anil Ambani-led Reliance Infrastructure has filed a Rs 100-crore defamation suit against the Aam Aadmi Party in the Bombay High Court.

• Bharti Airtel, Kenya’s telco Safaricom bid for licences and 2.7 million customers of Yumobile.

• Vodafone gets nod to merge its India units; riders attached could stymie move, say observers.

Source: Economic Times

NEWS WRAP - MARCH 5, 2014

• New office bearers selected for CII Central Gujarat Zonal Council for the year 2014-15.

• Paarth Infrabuild will invest Rs. 650 crore over next four years in Green Building in Lucknow.

• Walmart to expand in e-retailing in India, planning marketplace model akin to Amazon, eBay.

• GMR Group forays into Railway Sector, bags first order worth Rs. 267 Crores.

• Novartis may be fined for submitting 'fake' document to Drug Controller General of India.

• Tata Communications may sell Neotel in South Africa to Vodacom, Stock gains 4%.

Source: Economic Times

NEWS WRAP - MARCH 4, 2014

• RBI grants additional 9 months to swap notes printed before 2005.

• Stock Broker Ketan Parekh sentenced to two years rigorous imprisonment by CBI Court.

• Hindustan Unilever becomes the most preferred employer for B-school graduates once again.

• Lenovo to launch Ashton Kutcher-designed smartphones this year.

• Sweet! Bio-batteries that run on sugar to power smartphones for 10 days.

• Indian Banks are increasingly seeking Insurance Cover against fraudulent online transactions.

Source: Economic Times

THE CORPORATE SOCIAL RESPONSIBILITY (POLICY) RULES, 2014

Ministry of Corporate Affairs, Government of India on 27th February, 2014 announced the Corporate Social Responsibility (Policy) Rules 2014 under Section 135 of the new Companies Act 2013. Section 135 pertains to spending for the purpose of Corporate Social Responsibility by companies.

A FORMAL FRAMEWORK FOR SOCIAL SPENDING BY CORPORATES

Effective from - April 1, 2014

How Much?

2% of Average Profit of previous three years.

(Profits from overseas branches and dividends from other Companies not included in Net Profit for calculation).

Who?

• Companies with Net Worth of Rs. 500 crore or Turnover of over Rs. 1,000 crore or Net Profit of over Rs. 5 crore.
• Foreign Companies registered in India.

What all? 

There are many new additions when compared to the CSR Activities that enlists in the Schedule VI of the Act, which are as follows:

• Livelihood

• Enhancement and rural development projects

• Measures for benefit of armed forces, veterans, war-widows and their dependents.

• Working towards protection of National Heritage, Art & Culture.

• Reducing inequalities faced by socially & economically backwards.

• Protection of Flora & Fauna, animal welfare, agro-forestry, etc.

Where?

CSR Activities will have to be within India.

How?

Company's Board will decide in accordance with its CSR Policy and the decision of its CSR Committee.

Do's & Don'ts

• Surplus from CSR cannot be included in Profit.

• CSR work can be done through a registered Trust or Society or a separate Company.

• Companies can collaborate with other Companies but will have to report separately.

One major addition in Section 135 is provision of upto 5% of the CSR budget for training and capacity building of employees and implementing partners for CSR.

Composition of CSR Committee

Every Company including its Holding or Subsidiary, and a Foreign Company having its branch office or project office in India which fulfills the quoted applicability criteria.

Who shall not be required to constitute the CSR Committee?

Every Company which ceases to be a Company quoted under the applicability criteria for three consecutive financial years.

CSR Committees

(i) An unlisted Public Company or a Private Company covered which is not required to appoint an Independent Director - Shall have its CSR Committee without such Director.

(ii) A Private Company - Having only two directors on its Board  shall constitute its CSR Committee with two such Directors.

(iii) With respect to Foreign Company - Shall comprise of at least two Persons* of which one person shall be nominated by the Foreign Company.

*Person under section 380(1)(d) of the Companies Act, 2013 means - The name and address or the names and addresses of one or more persons resident in India authorised to accept on behalf of the company service of process and any notices or other documents required to be served on the company.

CSR Reporting

An emphasis is given to disclose the CSR expenditure. The Board will have to include an Annual Report on CSR from 2014-2015 on wards.

In case of Foreign Company - Balance Sheet shall contain an Annexure regarding report on CSR.

Display of CSR activities on its website

Following the Board's Approval, the CSR Policy will have to be disclosed on the Company's website.

NEWS WRAP - MARCH 3, 2014

• Telecom Commission to soon clear Rs 7,103-crore project for mobile connectivity in border areas.

• Mark Zuckerberg's fortune grows by a massive $15 billion in less than 2 years as Facebook shares soar.

• Being Human: Salman Khan’s apparel brand raked up sales of Rs 179 crore in its first year.

• Department of Industrial Policy & Promotion (DIPP) has proposed 100% FDI through Automatic Route in the cash-starved Railway Sector.

Source: Economic Times

NEWS WRAP - MARCH 1, 2014

• US advocacy group slams move to blacklist India as a "priority foreign country" in trade feud.

• Facebook, Skype challenge telcos' free cash flows: Fitch

• Government to take over KG-D6 block if Reliance Industries shuts down production.

• Vodafone conciliation decision after transfer pricing row ends.

Source: Economic Times