Legislation UpdatesNotifications

EFIs may participate in commodity derivatives contracts traded in stock exchanges in IFSC subject to the following conditions:-
  •  The participation would be limited to the derivatives contracts in non-agricultural commodities only,
  •  Contracts would be cash settled on the settlement price determined on overseas exchanges, and
  •  All the transactions shall be denominated in foreign currency only.
The Exchanges are advised to:
i. take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same.
ii. bring the provisions of this circular to the notice of the members of the exchange and also to disseminate the same on their website.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
[Circular Dt. 18-03-2019]
Securities Exchange Board of India
Case BriefsHigh Courts

“Education is not only about learning from books in an enclosed classroom, but it is equally about imbibing sterling character traits in open playfields.”

Allahabad High Court: The Bench of Ajay Bhanot, J. hearing a civil writ petition filed by a school, opined that affiliation requirements are of an imperative character.

In the instant case, an open ground located adjacent to a local residential area was being used as a school playground. The school building and playground were not contiguous and were separated by a footpath and a wide public road. In view of the violation of CBSE’s infrastructural bye-laws, the school got disaffiliated. Aggrieved thereby, the instant petition was filed.

Petitioner submitted that the impugned order was arbitrary as CBSE bye-laws did not contemplate that playground should be located in a compact piece of land. Whereas respondent contended that there had to be contiguity in the land area where the school building stood and the playground was situated; otherwise the purpose of providing a playground would be defeated. He further submitted that the petitioner was given multiple opportunities to cure the said defect, but failed to rectify the same.

The Court noted that CBSE’s bye-law no. 3 stated that a school “must have about two acres (or as otherwise permitted measurement) of land and a building constructed on a part of land and proper playgrounds on the remaining land.” It was opined that the existence of a playground was clearly mentioned in the land requirement for the purposes of building infrastructure and playgrounds. Infrastructure requirements for affiliation were clarified by the words “essential conditions” which indicated a mandatory intent and a requirement of strict compliance of such conditions.

The judicial consensus on the non-negotiable requirements of a playground, emphasized in the case of Deepak Education Society v. State of Haryana, 2013 SCC Online P&H 18370 was noted by Court. It was held that right of an educational institution to seek affiliation from a board of education subserves and is subservient to the right of education of children. Relying on the judgment in Adarsh Shiksha Mahavidyalaya v. Subhash Rahangdale, (2012) 2 SCC 425 the Court opined that any contravention of mandatory prerequisites of affiliation bye-law, shall entail disaffiliation of the institution.

In view of the above, the petition was held to be misconceived and thus, was dismissed. [Apple Grove School v. Union of India, 2019 SCC OnLine All 112, Order dated 10-01-2019]

Case BriefsSupreme Court

Supreme Court: The Bench of Dr. AK Sikri and Ashok Bhushan, JJ has declared the New Delhi Municipal Council (Determination of Annual Rent) Bye-laws, 2009 (NDMC Bye-Laws) violative of the New Delhi Municipal Act, 1944 (NDMC Act). The NDMC Bye-Laws were challenged on the ground that by introducing the Unit Area Method (UAM), these Bye-laws sought to alter the earlier system of determining the rateable value on the basis of the annual rent at which the land or buildings may reasonably be expected to be let from year to year.

Unit Area Method:

As per this method Unique Area Value (UAV) per sq. ft/meter of a property is fixed with reference to the characteristics of the property such as location, occupancy, age, structure of the said property. This UAV is then multiplied by the area of the vacant land or covered space to arrive at its annual value. When the annual value is determined on the basis of such a formula, property tax thereupon is to be paid by the assessees.

Determination of ‘Rateable value’ as per NDMC Act:

The ‘rateable value’, as per Section 2(42) of the NDMC Act is to be fixed in accordance with the provisions of the Act and the Bye-laws made thereunder. Section 63(1) deals with determination of annual rent of a property. This annual rent has to be the one which the land or the property ‘might reasonably be expected to let from year to year’. It is, thus, based on the letting yearly value of the property. Based on various judgments of this Court, it was noticed that the only basis for fixation of rateable value is the annual rent at which the land or building might reasonably be expected to let from year to year, subject to the deductions provided under the NDMC Act.

Annual rent vis-à-vis annual value of the property:

Only the annual letting value fixed in the aforesaid manner can be the annual rent and not the value of the property in question. The expression ‘annual rent’ is to be read in contradistinction to ‘annual value’. Two concepts are altogether different. Inasmuch as the latter expression relates to annual value of the property which may be based on parameters different from fixing the annual rent of the property.


The Impugned Bye-laws that provide UAM, which is based on the annual value of the property, are foreign to the methodology provided in Section 63 of the NDMC Act. Such Bye-laws are, thus, ultra vires the provisions of NDMC Act.

Effect on assessees that have already paid tax under the bye-laws:

Taking note of the fact that the Bye-Laws were applicable from 2009 till the Delhi High Court struck them down in 2017, the Court said that it would not be appropriate to upset the applecart completely in such circumstances. Hence, it directed that those assessees who have paid the tax as per Bye-Laws, 2009, their assessments shall not be reopened.

[New Delhi Municipal Council v. Association of Concerned Citizens of New Delhi, 2019 SCC OnLine SC 60, decided on 22.01.2019]