Reference: Reserve Bank Of India
Update:
Short Term Crop Loans eligible for Interest Subvention Scheme (ISS) and Prompt Repayment Incentive (PRI) through KCC
Banks are advised to ensure that all Short Term Crop Loans eligible for Interest Subvention (IS) and Prompt Repayment Incentive (PRI) benefit are extended through KCC w.e.f. April 1, 2020 and the existing Short Term Crop Loans which are not extended through KCC shall be converted to KCC loans by March 31, 2020.
Implication:
Reimbursement of interest subvention for Short Term Crop Loans through non-KCC accounts shall not be considered beyond March 31, 2020.
Update:
Investment in Certificates of Deposit (CDs) – Reporting in Form ‘A’ Return
RBI has advised banks to follow a certain practice while reporting their transactions in CD\’s in Form \’A\’ Return that when the CD\’s are issued by banks on reporting Friday, the issuer bank should report such CD\’s under item I of the Form \’A\’ Return i.e., \”Liabilities to the Banking system in India\” and the CD\’s held by non-bank entities should be reported as \”Liabilities to Others in India\”. The reporting of the CD\’s should be done as per the issue price of the CD\’s.
Update:
External Benchmark Based Lending – Medium Enterprises
To strengthen monetary policy transmission, RBI has now decided that all new floating rate loans to the Medium Enterprises extended by banks from April 1, 2020 shall be linked to the external benchmarks as indicated in prescribed circular.
Update:
Implementation of Section 51A of UAPA, 1967 – Addition of two entities to 1267 List
Ministry of External Affairs (MEA) has forwarded a notification regarding addition of two entities in UNSC’s 1267/1989 ISIL (Da\’esh) & Al-Qaida Sanctions List, namely:-
- Islamic State West Africa Province (ISWAP)
- Islamic State in the Western Sahara (ISGS)
Implication:
Regulated Entities (REs) are advised to ensure meticulous compliance with the aforementioned instruction pertaining to UAPA and ensure that they do not have any account in the name of individuals/entities appearing in the lists of individuals and entities, suspected of having terrorist links.
Update:
March 2020 Round of Inflation Expectations Survey of Households
RBI has been regularly conducting Inflation Expectations Survey of Households (IESH) which aims at capturing subjective assessments on price movements and inflation. The results of the survey provide useful information for monetary policy formation. M/s Hansa Research Group Pvt. Ltd., Mumbai has been engaged to conduct the field work of this round of the survey on behalf of the RBI. For this purpose, the households will be approached by the agency and the selected households are requested to provide their response.
Implication:
Individuals who are not approached by the agency can participate in this survey by providing their responses using the linked survey schedule.
Update:
March 2020 Round of Consumer Confidence Survey
RBI has been conducting Consumer Confidence Survey which seeks qualitative responses from households, regarding their sentiments on general economic situation, employment scenario, price level, household\’s income and spending. M/s Hansa Research Group Pvt. Ltd., Mumbai has been engaged to conduct the field work of this round of the survey on behalf of the RBI. For this purpose, the households will be approached by the agency and the selected households are requested to provide their response.
Implication:
Individuals who are not approached by the agency can participate in this survey by providing their responses using the linked survey schedule.
Reference: Securities and Exchange Board of India
Update:
Facilitating transaction in Mutual Fund schemes through the Stock Exchange Infrastructure
SEBI had permitted mutual fund distributors to use recognized stock exchanges\’ infrastructure to purchase and redeem mutual fund units directly from Mutual Fund/Asset Management Companies. To further increase the reach of this platform, SEBI has decided to allow investors to directly access infrastructure of the recognized stock exchanges to purchase and redeem mutual fund units directly from Mutual Fund/Asset Management Companies.
Update:
Monetary penalty on Muthoottu Mini Financiers Limited
Allegation against Muthoottu Mini Financiers Limited (Noticee) is regarding issuing a misleading advertisement related to public issue of NCDs of the Noticee which stated that said issue of Noticee was rated ‘stable by SEBI and RBI’and that using the names of the regulators tends to impart a sense of security to investors and misleading impression to the public at large thereby violating the provisions of regulation 8 of ILDS Regulations which state that no issuer shall issue an advertisement which is misleading in material or which contains any information in a distorted manner or which is manipulative or deceptive.
Hence, SEBI has imposed a monetary penalty of Rs. 10,00,000/- on the Noticee i.e. Muthoottu Mini Financiers Limited.
Implication:
The Noticee shall remit/pay the said amount of penalty within 45 days of receipt of this order.
Update:
Monetary penalty on Ashok Kumar Damani
Ashok Kumar Damani (Noticee) had traded in 9 unique Stock Option contracts during the Investigation Period i.e, April 01, 2014 to September 30, 2015, out of which 194 reversal trades have been found to be non-genuine trades which allegedly led to creation of artificial volume of total 82,64,000 units. The Noticee, by executing non-genuine trades during the investigation period, registered a negative close out difference of Rs. 8,59,60,700/- approx. The trades entered by the Noticee were reversed on the same day within few minutes with same counter party at a substantial price difference without any basis for significant change in the contract price which indicates that these trades were artificial and non-genuine in nature thereby violating provisions of Regulation 3 (a),(b),(c),(d),4(1) and 4(2)(a) of the SEBI (PFUTP) Regulations, 2003.
Hence, SEBI has imposed a monetary penalty of Rs. 3,00,000/- on the Noticee.
Implication:
The Noticee shall remit/pay the said total amount of penalty within 45 days of receipt of this order.
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Insights to help you sharpen your Governance, Risk and Compliance Knowledge
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