Reference: Securities and Exchange board of India
Update:
Extension of Business responsibility reporting to top one thousand listed entities by market capitalization:
The SEBI LODR Regulations, 2015 require that the top five hundred listed entities based on market capitalization, as on March 31 of every financial year shall include Business Responsibility Reporting (BRR) as part of their annual reports.
The Board upon deliberations, approved a proposal to extend the applicability of Business Responsibility Reporting (BRR) to top one thousand listed entities.
Implication:
These provisions shall be applicable from January 01, 2020.
Update:
SEBI has approved SEBI (Portfolio Managers) Regulations, approved issuance of SEBI (Portfolio Managers) Regulations, 2019.
The salient features of proposed SEBI (Portfolio Managers) Regulations, 2019 are:
- .A Portfolio Manager to mandatorily employ minimum one person with defined eligibility criteria in addition to Principal Officer and Compliance Officer.
- .Net-worth requirement of Portfolio Managers to be enhanced from INR 2 Crores to INR 5 Crores. Existing Portfolio Managers to meet the enhanced requirement within 36 months.
- Minimum investment by clients of Portfolio Managers to be increased from INR 25 lakhs to INR 50 lakhs. Existing investments of clients may continue as such till end date of the PMS Agreement or as specified by the Board.
- Discretionary Portfolio Managers to invest only in listed securities, money market instruments, units of Mutual Funds and such other securities/instruments as specified by SEBI from time to time
- Non-discretionary / Advisory Portfolio Managers to invest not more than 25% of their AUM in unlisted securities.
- .To restrict off market transfers from/to clients’ accounts with certain exceptions to facilitate operational convenience.
Implication:
This will safeguard the interest of investors and help in development of the investment product. These provisions shall be applicable from January 01, 2020.
Update:
Review of Rights Issue process:
The SEBI has approved the proposals with respect to Rights Issue process and consequential amendments to the SEBI ICDR Regulations and SEBI LODR Regulations with an objective.
The key proposals approved by the Board are as follows:
1.Reduction in the timeline for completion of the Rights Issue from the current ~T+55 days to ~T+31 days.
2.Introduction of dematerialized REsand trading of REson stock exchange platform.
3.Shareholders holding shares in physical form will be required to provide details of demat account for credit of REs.
4.ASBA facility made mandatory for all investors applying to Rights Issue.
Implication:
This will significantly reduce the timeline for the completion of the Rights Issue, as well as has introduce the dematerialization and trading of rights entitlements (REs).These provisions shall be applicable from January 01, 2020.
Update:
Disclosure by listed entities of defaults on payment of interest / repayment of principal amount on loans from banks / financial institutions
In order to address the gaps in availability of information with respect to defaults, the Board has, inter-alia,decided that in case of any default in repayment of principal or interest on loans from banks or financial institutions which continues beyond 30 days from the pre-agreed payment date, listed entities shall, promptly, but not later than 24 hours from the 30thday, disclose the fact of such default.
Implication:
These provisions shall be applicable from January 01, 2020.
Reference: Reserve Bank of India
Update:
Monetary penalty on Indian Bank:
The Reserve Bank of India (RBI) has imposed monetary penalty of Rs. 1 crore on Indian Bank for non-compliance with directions issued by RBI on Window-dressing of Balance Sheet and classification and reporting of frauds.
This action is based on deficiencies in regulatory compliance and is not intended to
pronounce upon the validity of any transaction or agreement entered into by the bank
with its customers.
Implication:
The Bank will comply directions issued by RBI to avoid further penalty.
Update:
Monetary penalty on Bank of Baroda and Indian Bank:
The Reserve Bank of India (RBI) has, by order dated November 18, 2019, imposed monetary penalty of Rs. 2.50 Crore on Bank of Baroda for non-compliance with directions issued by RBI on collection of account payee cheques, reporting of frauds, opening of savings bank (SB) accounts, preservation of records of identification of customers and Know Your Customer (KYC)/ Anti-Money Laundering (AML) norms;
and by order dated November 18, 2019, imposed monetary penalty of Rs. 75 Lakhs on Indian Bank for non-adherence of norms for opening of SB accounts and KYC/ AML.
Implication:
Banks will comply directions issued by RBI to avoid further penalties.
