Expanding coal production and infrastructure while widening opportunities in Central India (See 'Corp Brief') PBPT - Transfer of funds by beneficial owner to purchase properties in names of relatives without demonstrable loan agreements or independent source of income is classic benami transaction under the Act: SAFEMA Tribunal (See 'Legal Desk') Cochin Shipyard Ltd and Drydocks World Form JV To strengthen India's Ship Repair Industry (See 'Corp Brief') FEMA - Financial difficulties do not excuse non-compliance with mandatory FEMA requirements - Funds received via FDI cannot be utilised or diverted for purposes other than those for which they were received: SAFEMA Tribunal (See 'Legal Desk') FEMA - Penalties under FEMA are civil in nature & may be imposed for technical or procedural contraventions without requiring proof of mens rea: SAFEMA Tribunal (See 'Legal Desk') FEMA - Non-issue of shares against the full amount of FDI received constitutes contravention of applicable provisions of FEMA & regulations framed thereunder: SAFEMA Tribunal (See 'Legal Desk') Next Subscription Economy may arrive with Telecos monthly bills (See CORP EINSICHT) BRICS Bharat Innovates Exposition: 37 Indian Deep Tech Innovators participating (See 'Corp Brief') India's Coastline offers significant Potential for Marine Resources MoS (See 'Corp Brief') State Govets should assess current utilisation of cess funds: Mandaviya (See 'Corp Brief') Union Minister to participate in G20 Energy Abundance Ministerial Meeting in Houston (See 'Corp Brief') BEE showcases Electric Cooking Solutions for transition from LPG to Electricity (See 'Corp Brief') SARFAESI - Section 14(2) enables secured creditor to seek compliance with possession order - writ remedy not maintainable where this option is not exhausted first: HC (See 'Legal Desk') Dryland Congress 2026: Breeding, Climate Resilience and Nutrition take Centre Stage on Day One (See 'Corp Brief') MoS inaugurates Technology Centre at Devanahalli, Bengaluru (See 'Corp Brief') FEMA - Penalty cannot be imposed on company for delayed submission of Form FC-GPR where delay is entirely attributable to negligence & admitted administrative failure of its authorised dealer bank in transmitting timely submitted documents to RBI: SAFEMA (See 'Legal Desk') ASEAN and India advance cooperation on Climate-Resilient Agriculture & Digital Innovation (See 'Corp Brief') Bihar and West Bengal to inaugurate Labour Chowk-cum-Facilitation Centres (See 'Corp Brief') Companies Act - Issuance of order by a central authority stationed in New Delhi does not, per se, confer territorial jurisdiction or constitute a substantial part of cause of action when underlying subject matter has its closest nexus with another jurisdiction: HC (See 'Legal Desk') Digital India BHASHINI advances Multilingual AI for Inclusive Digital Governance (See 'Corp Brief') India must leverage Latest Technologies for Forest Assessment: Yadav (See 'Corp Brief') Trade Marks - Order rejecting registration of trade marks is invalid where no reasoning whatsoever is given, thereby showing complete non-application of mind: HC (See 'Legal Desk') MoS lays bricks for BEDF Basmati and Organic Training Centre in Pilibhit (See 'Corp Brief') DRI seizes 740 kg cannabis and charas in operations across country (See 'Corp Brief') Competition Act - Allegations of anti-competitive agreements and abuse of dominant position cannot be sustained on basis of information which is generic, speculative, lacking in foundational facts & not backed by cogent evidence: CCI (See 'Legal Desk')

RBI task force on offshore rupee markets submits recommendations

Published: Aug 12, 2019

By TIOLCORPLAWS News Service

NEW DELHI, AUG 12, 2019: THE Task Force on Offshore Rupee Markets, set up by the Reserve Bank of India in February 2019 and chaired by Ms Usha Thorat, former Deputy Governor, RBI, submitted its report to the Governor on July 30, 2019. The Task Force was set up to examine the issues relating to the offshore Rupee markets in depth and recommend appropriate policy measures while factoring in the requirement of ensuring stability of the external value of the Rupee including measures for incentivising non-residents to access the onshore foreign exchange market.

The Task Force interacted with representatives of various banks, financial institutions, large corporates in India and abroad, foreign portfolio investors, asset managers, industry bodies, experts and practitioners. The key recommendations of the Task Force are:

(a) To extend onshore market hours to improve access of overseas users;

(b) To permit Indian banks to freely offer prices to global clients around the clock;

(c) To enable Rupee derivatives (settled in foreign currency), to be traded in the International Financial Services Centers (IFSC) in India, to begin with on exchanges in the IFSC.

(d) To allow users to undertake forex transactions up to USD 100 million in OTC currency derivative market without the need to establish underlying exposure.

(e) To facilitate non-residents to hedge their foreign exchange exposure onshore by:

  1. Establishing a central clearing and settlement mechanism for non-resident transactions in the onshore market;

  2. Implementing margin requirement for non-centrally cleared OTC derivatives and allowing Indian banks to post margins abroad;

  3. Aligning the tax treatment of foreign exchange derivatives with that in major international centres; and

  4. Centralising the KYC requirements across financial markets with uniform documentation requirement.

TIOL CORP SEARCH

TIOL GROUP WEBSITES