Reference : Insurance Regulatory and Development Authority in India
Update:
COVID-19 Global Pandemic Related Instructions to Life Insurers
Directions in regard to accessing various services including timely payment of premium and settlement of claims have been issued by the IRDAI, namely;
- Functioning of Offices: Wherever the offices are not functioning fully/partially, the poicyholders shall be notified by SMS, E-mail or Press Release in addition to suitable display in the branch office. They shall also be informed about other alternate channels for payment of premiums, submission of claim and other service requests.
- Grace period for payment of premiums: The grace period for premiums due in the month of March shall stand extended by one more month in areas where lockdown is declared.
- Claim payments with regard to COVID-19: Life insurers shall consider developing quicker claim settlement process to suit the emerging situation in the affected areas.
- Periodic Reports: A report every fortnight may be submitted to the Authority giving the details of offices fully/partially closed with duration and steps taken in this regard.
Implication:
The instructions of the Central and State Governments and local authorities in this regard may be followed scrupulously.
Update:
Relaxation for smooth operations of affairs of insurance industry
- Grace period for payment of renewal premiums extended by additional 30 days if desired by policyholders.
- Insurers may condone delay in renewal up to 30 days without deeming such condonation as a break in policy.
- Meetings due till 30th June, 2020 may be held through video-conferencing or other audio-visual means.
- Additional time of 15 days will be allowed in case of submission of monthly returns for month of March, 2020 and similarly, in case of quarterly returns, additional period upto one month is permitted.
Implication:
Policy holders and customers have to comply with these directions until further notice.
Reference: Securities and Exchange Board of India
Update:
SEBI’s decisions to reduce compliance burden on Market Participants
Since the outbreak of COVID-19 has affected countries/jurisdictions across the world, SEBI is actively engaged with IOSCO and FSB at the global level. With a view to reducing the compliance burden on various market participants in view of the prevailing situation, following have been decided:
- Penal provision for non-collection/short collection of margins by brokers have been extended from April 01, 2020 to April 30, 2020.
- NISM certifications have been extended till June 30, 2020.
- Trading members working from designated alternate locations are exempted from the penal provisions for not maintaining call recordings of orders/instructions received from clients till March 31, 2020.
- Delay in submission of various reports by trading members shall not attract penal provisions till April 30, 2020.
- Trading members will be placed in risk reduction mode upon utilization of 90% instead of existing level of 85%.
- Implementation of SEBI circular for risk management framework, for existing open ended debt oriented mutual fund schemes, for valuation of money market and debt securities, has been extended upto May 1, 2020.
- Further, the timeline to hold not in excess of 15% in unlisted NCDs has been extended till April 30, 2020.
Many such dates as prescribed in the press release have been extended by SEBI.
Update:
Monetary penalty on M/s Vishwaraj Sugar Industries Limited
M/s Vishwaraj Sugar Industries Limited (Noticee) has a business of manufacture of sugar and allied products. The aggregate allotments and transferred shares have not been in compliance with the provisions governing public offering of securities under the Companies Act, 1956, including those mandating the issuance and registration of a Prospectus. Therefore, it was alleged that the method adopted for allotment in this case was to give a picture that each allotment is separate and that it was a private placement and that the frequency and time span between such allotments coupled with the series of allotments made every five days pursuant to a single resolution passed in the AGM authorizing such issuances, clearly indicates that it was a single offer and thus, a public issue.
Hence, SEBI imposed a monetary penalty of Rs. 7,00,000/- on the Noticee for violating the provisions of SEBI DIP Guidelines (Clause 2.1.4, 2.1.5, 5.3.1, 2.1.1, 5.6.2, 2.2, 4.1, 4.11, 4.14, 8.8.1, 5.6A, 8.6.1, 6.0 to 6.33 and 5.12) since he did not comply with any of the public issue requirements specified in the said guidelines.
Implication:
The Noticee shall remit / pay the said amount of penalty within 45 days of receipt of this order.
Update:
Monetary penalty on Toptech Enterprises Private Limited
It was alleged that Toptech Enterprises Private Limited (Noticee) was one of the entities who had indulged in creating artificial volume of 11,04,000 units through 46 non-genuine trades in 21 stock option contracts. The said reversal trades are alleged to be non-genuinetrades as they are not executed in normal course of trading, lack basic trading rationale and allegedly lead to false or misleading appearance of trading in terms of generation of artificial volume, hence were deceptive and manipulative and hereby violated the regulations 3(a), (b), (c) and (d), 4(1), 4(2)(a) of SEBI PFUTP Regulations.
Hence, SEBI has imposed a monetary penalty of Rs. 5,00,000/- on the Noticee for violating the said regulations.
Implication:
The Noticee shall remit / pay the said amount of penalty within 45 days of receipt of this order.
Update:
Relaxation in compliance with requirements pertaining to Mutual Funds
Due to global crisiS of COVID-19, a need has been felt for temporary relaxations with respect to compliance requirements for Mutual Funds. Thus, SEBI has decided to grant relaxations specified in SEBI (Mutual Funds) Regulations, 1996. The timelines for certain disclosures are extended as prescribed in the circular.
Update:
Revision of criteria for entering the risk-reduction Mode
SEBI issued broad guidelines for operationalizing the interoperable framework among Clearing Corporations.
In order to mitigate risks arising out of latency, Stock Exchanges shall ensure that stock brokers are mandatorily subjected to risk reduction mode on utilization of 85% of the stock brokers collateral available for adjustment against margins.
Implication:
Aforementioned para 5.5(2) shall stand withdrawn from the date of issuance of this circular.
Update:
Relaxation from compliance to REITs and InvITs due to the CoVID -19 virus pandemic
Due to the developments arising due to the spread of the COVID 19 virus, a need for temporary relaxations in compliance requirements for REITs and InvIT is warranted. Accordingly, it has been decided to extend the due date for regulatory filings and compliances for REIT and InvIT for the period ending March 31, 2020 by one month over and above the timelines, prescribed under SEBI InvIT Regulations and SEBI REIT Regulations.
Implication:
This Circular shall come into force with immediate effect.
Update:
Relaxation from compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
SEBI has provided certain relaxations to listed entities which have listed their specified securities with regard to extension of timelines. SEBI provides that companies proposing to make public issue of debt securities are required to give the audited financials which are not older than 6 months from the date of prospectus. Relaxations in the cutoff date for isuance and extension of timeline for filings under SEBI (LODR) Regulations 2015 have also been done by SEBI, as prescribed in the given circular.
Implication:
This circular shall come into force with immediate effect.
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