PROFESSIONAL NEWS

• President gives nod for Money Laundering Bill

  The Money Laundering Bill, 2002, which was passed by Parliament during the winter session ended December 20, 2002, has received the assent of the Presidnet, Dr. A.P.J. Abdul Kalam. With this assent, the Bill has become legislation and gazetted as Act number 15 of the year 2003. An official release said that the Money Laundering Act, 2003, sought to declare laundering of monies carried through serious crimes as criminal offence. It has also declared money laundering as an extraditable offence. The legislation also, among other things, seeks to promote international co-operation in investigation of money laundering. It has also specified the modalities of disclosure by financial institutions regarding reportable transactions.

• Serious Fraud Investigation Office to be operational by February-end.

  The proposed Serious Fraud Investigation Office (SCIO), an agency for investigation major corporate frauds including cheating of shareholders, depositors and investors, will be operational by the end of February. Further, the SFIO may also cover institutions such as statutory authorities, mutual funds and collective investment schemes if such institutions are involved in any fraud violating the Companies Act. The first stage will involve getting together a multi disciplinary team and providing adequate infrastructure and funds to carry out investigations into alleged fraud. The Director of the SFIO, who will be an officer in the rank of a Joint Secretary, will decide on which case needs to be taken up. The SFIO will investigate fraud by setting up a multi disciplinary team (14 members) comprising experts in the fields of accountancy, forensic auditing, law, information technology, taxation, capital markets and media management. Wherever necessary, it may also outsource investigations to professional agencies. It will have initially to regional offices- one each for the Northern region and Western region. The DCA will carry out prosecutions for violations under the Companies Act, while the SFIO would forward investigated reports on violations under the other Acts to the respective agencies for prosecution or other appropriate action.

• Companies (Acceptance of Deposits) (Second Amendment) Rules, 2003

  Notification No. G.S.R. 323(E), dated 9-4-2003 In exercise of the powers conferred by section 58A read with section 642 of the Companies Act, 1956 (1 of 1956), the Central Government, in consultation with the Reserve Bank of India, hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 1975, namely : 1. (1) These rules may be called the Companies (Acceptance of Deposits) (Second Amendment) Rules, 2003. (2) They shall come into force on the date of their publication in Official Gazette. 2. In the Companies (Acceptance of Deposits) Rules, 1975, in the Form, in Part-I, (i) in item 2, for sub-item (b) the following sub-item shall be substituted, namely : ”(b) (i) Free of interest 831 (ii) Below 6% 832 (iii) 6% or more but less than 9% 833 (iv) 9% or more but less than 11% 834 (v) 11% or more but less than 12.5% 835 (vi) at 12.5% 836 (vii) more than 12.5% 837 (viii) Total 830” (ii)in item 4, for sub-item (b) the following sub-item shall be substituted, namely : ”(b) (i) Free of interest 881 (ii) Below 6% 882 (iii) 6% or more but less than 9% 883 (iv) 9% or more but less than 11% 884 (v) 11% or more but less than 12.5% 885 (vi) at 12.5% 886 (vii) more than 12.5% 887 (viii) Total 880”