Reference: Reserve Bank of India
Update:
RBI releases “Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector”
Major changes from the earlier Guidelines on Small Finance Banks are as follows:
(i) The licensing window will be open on-tap;
(ii) minimum paid-up voting equity
capital / net worth requirement shall be Rs. 200 crore;
(iii) for Primary (Urban) Co-operative Banks (UCBs), desirous of voluntarily transiting into Small Finance Banks (SFBs) initial requirement of net worth shall be at Rs. 100 crore, which will have to be increased to Rs. 200 crore within five years from the date of commencement of business. Incidentally, the networth of all SFBs currently in operation is in excess of Rs. 200 crore;
(iv) SFBs will be given scheduled bank status immediately upon commencement of operations;
(v) SFBs will have general permission to open banking outlets from the date of commencement of operations;
(vi) Payments Banks can apply for conversion into SFB after five years of operations, if they are otherwise eligible as per these guidelines. READ MORE
Implication:
Small Finance Banks to get ‘Scheduled Bank’ status soon after being operative;
Reference: Central Board of Indirect Taxes and Customs
Update:
Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019:
CBIC has extended Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 to below mentioned enactments:
(i) Cine-Workers Welfare Cess Act, 1981(30 of 1981);
(ii) Industries(Development and Regulation) Act, 1951 (65 of 1951);
(iii) Sugar Export Promotion Act, 1958 (30 of 1958);
(iv) Sugar (Regulation of Production) Act, 1961 (55 of 1961);
(v) Tea Act, 1953 (29 of 1953);
(vi) Finance Act, 2001 (14 of 2001);
(vii) Finance Act, 2005 (18 of 2005);
(viii) Finance Act, 2010 (14 of 2010)
Implication:
SVLDRS, 2019 shall be applicable to the above mentioned enactments.
Update:
CBIC had issued Circular No. 107/26/2019-GST dated 18.07.2019 wherein certain clarifications in relation to various doubts related to supply of Information Technology enabled Services (ITeS services) under GST were given.
Thereafter, numerous representations were received expressing apprehensions on the implications of the said Circular.
In view of these apprehensions and to ensure uniformity in the implementation of the provisions of the law across field formations, CBIC has withdrawn ab-initio, Circular No. 107/26/2019-GST dated 18.07.2019.
Implication:
Clarifications issued in relation to supply of Information Technology enabled Services (ITeS services) under GST shall not be effective.
Reference:Securities and Exchange board of India
Update:
Consultation Paper on Introduction of Performance Benchmarking and Standardization of Private Placement Memorandum for Alternative Investment Funds:
With an aim to create a conducive environment for a sound Alternative Investment Fund (AIF), Sebi has proposed to introduce minimum benchmarks for disclosure of performance history of such asset class and standardisation of draft document issued to investors by them.
AIFs are privately-pooled investment funds which collect funds from investors, whether Indian or foreign, for investing in accordance with a defined investment policy for the benefit of their investors.
SEBI has proposed to provide a framework to benchmarking the performanceofAIFs to be available for the investors and to minimize potential of mis-selling.
It is proposed to mandate the following:
(a)AIFs which are registered with SEBI for at least 3 years, to report their audited scheme-wise performance data to single/multipleBenchmarking Agencies (to be identified later), for benchmarking the individual fund’s performance with the comparable industry performance.
(b)In all and any documents and media for marketing/promoting the AIF, if any data on the performance of the AIF is mentioned, the Benchmark report of the AIF provided by the Benchmarking Agency to also be provided.
(c)A copy of the Benchmark report received by the AIF to be provided to all investors(d)Any investment manager of an existing unregistered Fund, including foreign funds, shall provide the data on their investments in Indian companies, to Benchmarking Agencies, when they seek registration as AIF. If any performance data based on previous experience of the Investment Manager is referred in the fund documents or marketing materialfurnished to SEBI, the same shall be accompanied by the Benchmark Report received by the Applicant.
