#BulletinBoard (May 18, 2018)

Draft Guidelines Issued by the Copyright Office for Examination of Copyright Applications in Different Categories of Works

A public notice with draft guidelines was issued by the Copyright Office with the intention of increasing transparency and reducing the delay in processing of copyright applications. The draft guidelines, published on its website on February 27, 2018, sought reviews and comments from the relevant stakeholders. The relevant feedback and suggestions have been incorporated, and the Practice and Procedure Manual for examination of copyright applications in different categories of works, such as literary, artistic, musical, cinematograph film, and sound recording works have been published.

Extension of Deadline for Furnishing Information for Monitoring of Foreign Investment Limits in Listed Indian Companies

According to Foreign Exchange Management Act (“FEMA”), the burden of complying with various foreign investment limits rests on an Indian company. In order to facilitate the listed Indian companies to ensure compliance with these limits, SEBI has introduced a new system for monitoring of foreign investment limits in listed Indian companies and prescribed guidelines for data to be provided by listed Indian companies and other related matters. Under the new system, depositories need to inform the exchanges about the activation of the red flag for the identified scrip issue of shares. After this, foreign investors shall take a conscious decision to trade in the shares of the scrip.

Due to requests from stakeholders, SEBI has granted an extension to the deadline for companies to provide necessary data to the depositories to May 25, 2018. The new system will be made operational on June 1, 2018. The system for monitoring the foreign investment limits in listed Indian companies shall be implemented and housed at the following depositories – National Securities Depository Limited (“NSDL”), and Central Depository Services Limited (“CDSL”).

Permissible Activities While Setting Up of IFSC Banking Units

The Reserve Bank of India (“RBI”) has issued a notification on May 17, 2018, requiring parent banks setting up IFSC Banking Units (“IBU”) operation in India to provide a minimum capital of USD 20 million or equivalent in foreign currency in order start their IBU operations. This is intended for enabling an IBU’s operations in India, and should be maintained at all times.  It is applicable to the parent bank of the IBU in the home country instead of the IBU itself. This minimum prescribed regulatory capital for the operations of the company has to be maintained on an on-going basis at the parent level as per regulations in the home country. The IBU shall submit a certificate to this effect obtained from the parent on a half-yearly basis to RBI.

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