RBI Prudential Guidelines – Banks’ investment in units of REITs and InvITs Guidelines on compliance with Accounting Standard (AS) 11 [The Effects of Changes in Foreign Exchange Rates] by banks Additional Provisions For Standard Advances At Higher Than The Prescribed Rates MCA Revision of E-forms SEBI Review of the framework of position limits for Interest Rate Futures contracts TAXATION GST Bill gets President Assent now becomes The Central Goods and Service Tax Act, 2017 Central Government amends Pradhan Mantri Garib Kalyan Deposit Scheme through a Notification. Cabinet approves signing of the Protocol amending the Convention between India and Portugal for avoidance of Double Taxation OTHERS The Employee's Compensation Act, 1923 Company website- www.acquisory.com

1. April 18-19, 2017
RBI
Prudential Guidelines – Banks’ investment
in units of REITs and InvITs
Reserve Bank of India (RBI) vide Notification
No. RBI/2016-17/280
DBR.No.FSD.BC.62/24.01.040/2016-17
dated 18th April, 2017 has allowed banks to
participate in Real Estate Investment Trusts
(REITs) and Infrastructure Investment Trusts
(InvITs) within the overall ceiling of 20 per
cent of their net worth permitted for direct
investments in shares, convertible bonds/
debentures, units of equity-oriented mutual
funds and exposures to Venture Capital
Funds (VCFs) [both registered and
unregistered], subject to the following
conditions:
- Banks should put in place a Board
approved policy on exposures to REITs/
InvITs which lays down an internal limit
on such investments within the overall
exposure limits in respect of the real
estate sector and infrastructure sector.
- Banks shall not invest more than 10 per
cent of the unit capital of an REIT/ InvIT.
- Banks should ensure adherence to the
prudential guidelines issued by RBI from
time to time on Equity investments by
Banks, Classification and Valuation of
Investment Portfolio, Basel III Capital
requirements for Commercial Real
Estate Exposures and Large Exposure
Framework, as applicable.
https://www.rbi.org.in/Scripts/Notificatio
nUser.aspx?Id=10929&Mode=0
Guidelines on compliance with Accounting
Standard (AS) 11 [The Effects of Changes in
Foreign Exchange Rates] by banks -
Clarification
Reserve Bank of India (RBI) vide Notification
No. RBI/2016-17/281
DBR.BP.BC.No.61/21.04.018/2016-17 dated
18th April, 2017 has issued clarification with
regard to Guidelines on compliance with
Accounting Standard (AS) 11 – the Effects of
change in Foreign Exchange Rates by Banks.
It is clarified that the repatriation of
accumulated profits shall not be considered
as disposal or partial disposal of interest in
non-integral foreign operations as per AS 11
The Effects of Changes in Foreign Exchange
Rates. Accordingly, banks shall not recognise
in the profit and loss account the
proportionate exchange gains or losses held
in the foreign currency translation reserve
on repatriation of profits from overseas
operations.
https://www.rbi.org.in/Scripts/Notificatio
nUser.aspx?Id=10930&Mode=0
Additional Provisions For Standard
Advances At Higher Than The Prescribed
Rates
Reserve Bank of India (RBI) vide Notification
No. RBI/2016-17/282
DBR.No.BP.BC.64/21.04.048/2016-17 dated
18th April, 2017 in reference to Master
Circular - Prudential norms on Income
Recognition, Asset Classification and

2. April 18-19, 2017
Provisioning pertaining to Advances It is
advised that the provisioning rates
prescribed in the abovementioned circular
are the regulatory minimum and banks are
encouraged to make provisions at higher
rates in respect of advances to stressed
sectors of the economy. With a view to
ensure that banks have adequate provisions
for loans and advances at all times, it is
advised that Banks shall put in place a
Board–approved policy for making
provisions for standard assets at rates higher
than the regulatory minimum, based on
evaluation of risk and stress in various
sectors.
https://www.rbi.org.in/Scripts/Notificatio
nUser.aspx?Id=10931&Mode=0
MCA
Revision of E-forms
MCA has revised the versions of eForm –
Form INC-22 (Notice of situation or change
of situation of registered office), Form AOC-
4 Addendum (Form for filing financial
statement and other documents with the
Registrar) and Form SCP (Serious Complaint
Form) were recently revised on MCA21
Company Forms Download page. All the
stakeholders are advised to check the latest
version of the form before filing
SEBI
Review of the framework of position limits
for Interest Rate Futures contracts
Securities Exchange Board of India (SEBI)
vide Circular No.
SEBI/HO/MRD/DRMNP/CIR/P/2017/32
dated 18th April, 2017 in order to ease
trading requirements in the Interest Rate
Future Contracts, it is clarified that the
position limit linked to open interest shall
be applicable at the time of opening a
position. Such positions shall not be required
to be unwound immediately by the market
participants in the event of a drop of total
open interest in Interest Rate Futures
contracts within the respective maturity
bucket
http://www.sebi.gov.in/legal/circulars/ap
r-2017/review-of-the-framework-of-
position-limits-for-interest-rate-futures-
contracts_34681.html
TAXATION
GST Bill gets President Assent now becomes
The Central Goods and Service Tax Act, 2017
The Hon’ble President, Mr. Pranab
Mukherjee, has given his assent to the four
key Goods and Services Tax (“GST”) Bills,
after they were passed by the Parliament.
The four GST Bills viz The Central Goods and
Services Tax Act, 2017, The Integrated Goods
and Services Tax Act, 2017, The Goods and
Services Tax(Compensation to States) Act,
2017, The Union Territory Goods and
Services Tax Act, 2017 which are now

3. April 18-19, 2017
notified and enacted. Earlier, these Bills
were passed in Rajya Sabha on April 6, 2017
and by Lok Sabha on March 29, 2017.
Recently, with Presidential nod, the much-
awaited indirect tax reform i.e. GST further
moves closer for the roll out of one-nation-
one-tax regime from July 1, 2017. Further,
the State Governments need to pass the
State GST Bill in their respective assemblies
to switch on to the GST regime, which would
be more or less the replica of the CGST and
UTGST Bills.
http://www.egazette.nic.in/WriteReadDat
a/2017/175314.pdf
Central Government amends Pradhan
Mantri Garib Kalyan Deposit Scheme
through a Notification.
Ministry of Finance vide Press Release dated
19th April, 2017 has announced the
amendment to Pradhan Mantri Garib Kalyan
Deposit Scheme through a Notification the
conditions specified in clause 5 of the
Pradhan Mantri Garib Kalyan Deposit
Scheme.
Following is the amended Clause 5:
Now the effective date of opening of the
Bonds Ledger Account shall be the date of
receipt of deposits by the Reserve Bank of
India (RBI) from the authorized banks;
wherein the due tax, surcharge and penalty
has been received till 31st March, 2017;
Provided further that the date of deposit
shall in no case be extended beyond 30th
April, 2017.
Cabinet approves signing of the Protocol
amending the Convention between India
and Portugal for avoidance of Double
Taxation
Ministry of Finance vide Press Release dated
19th April, 2017 has given its approval for
signing of a Protocol amending the
Convention between India and Portugal for
avoidance of double taxation. The Protocol
will also ensure prevention of fiscal evasion
with respect to taxes on income.
Once the Protocol enters into force, both
India and Portugal would be able to
exchange tax related information, which will
help tax authorities of both countries to curb
tax evasion.
OTHERS
The Employee's Compensation Act, 1923
The Central Government has notified the
Employee's Compensation (Amendment)
Act, 2017 which shall come into force on
such date as the Central Government may,
by notification in the Official Gazette,
appoint. AS per new inserted Rule 17A -
Every employer shall immediately at the
time of employment of an employee, inform
the employee of his rights to compensation
under this Act, in writing as well as through
electronic means, in English or Hindi or in the
official language of the area of employment,
as may be understood by the employee.
Further, penalties for offences under the Act
have been revised from maximum five
thousand rupees to not less than fifty

4. April 18-19, 2017
thousand rupees but which may extend to
one lakh rupees.
http://www.egazette.nic.in/WriteReadDat
a/2017/175309.pdf
For any query:
Contact – Sunaina Jhingan
Email – Sunaina.jhingan@acquisory.com