Reference: Securities and Exchange board of India
Update:
Sebi\’s new mechanism to reward whistleblowers
SEBI has come out with new mechanism to reward whistle blowers and other informants for sharing information about insider Trading.
An informant may voluntarily submit original information pertaining to any violation of insider trading laws to the OIP, through a VID Form. The information may be submitted by the informant directly in which case his identity would be required to be revealed at the time of submission of the VID Form. In case, the information is submitted through a legal representative, the identity of the informant is not required to be revealed at the time of submission of VID Form. However, the identity of the informant would be required to be revealed prior to payment of Reward, if any.
Under the new framework, it would be mandatory to disclose the source of information, besides, confidentiality regarding the identity of the informant would be protected, the regulator said in a statement.
Reward would be given in case the information provided leads to a disgorgement of at least Rupees one crore, in accordance with the PIT Regulations.
Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations) was amended, vide notification dated September 17, 2019, by inserting a new chapter (IIIA) dealing with informant policy in relation to insider trading laws.
The amendments introduced therein will come into force with effect from December 26, 2019.
Implication:
These norms will not be applicable to debt ETFs, tracking debt indices having constituents as government securities, treasury bills and tri-party repo.
Update:
Sebi lays framework for mutual fund investment in minors\’ name
SEBI has come out with a framework for making investment in mutual funds in the name of minor through guardian and to ease the process for transmission of such schemes.
Sebi stated Payment for investment by means of Cheque, Demand Draft or any other mode shall be accepted from the bank account of the minor or from a joint account of the minor with the guardian only.
Upon the minor attaining the status of major, the minor in whose name the investment was made, shall be required to provide all the KYC details, updated bank account details including cancelled original cheque leaf of the new account. No further transactions shall be allowed till the status of the minor is changed to major.
AMCs shall build a system control at the account set up stage of Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP)on the basis of which, the standing instruction is suspended when the minor attains majority, till the status is changed to major.
Implication:
Fund houses need to have a dedicated, central help desk and a webpage carrying relevant information and instructions in order to provide assistance on the transmission process.
Reference: Reserve Bank of India
Update:
Extension of validity of directions-Shivam Sahakari Bank Ltd., Maharashtra:-
Shri Anand Co-operative Bank Ltd., Chinchawad, Pune, Maharashtra, was placed under directions from close of business on June 25, 2019 vide directive dated 21st June 2019, for a period of six months.
RBI has directed that the Directive dated June 21, 2019, issued to the above bank, which was valid upto December 24, 2019, shall continue to apply to the bank for a further period of three months from December 25, 2019 to March 24, 2020.
Implication:
The said bank will have to follow directions issued by RBI for further period of 3 months.
