Friday, March 17, 2017

19 - Legal & Regulation Updates - India



SEBI: Amendment pursuant to comprehensive review of Investor Grievance Redressal Mechanism

SEBI via Circular dated February 23, 2017 has modified the existing Investor Grievance Redressal Mechanism for the stock exchanges and depositories. The key highlights introduced are as follows: The stock exchanges and depositories are now required to disseminate the profiles of the Arbitrators appointed by the parties, on their websites. 

SEBI - Consultation Paper for Review of Regulations and Relevant Circulars pertaining to Market Infrastructure Institutions (MIIs) viz., Stock Exchanges, Depositories and Clearing Corporations

The SEBI Board had earlier constituted a Committee to examine issues arising from the ownership and governance of MIIs. The Committee had recommended that the SECC Regulations, D&P Regulations and SEBI Circular dated December 13, 2012 which prescribes procedural norms on Recognition, Ownership and Governance for Stock Exchanges and Clearing Corporations, requires comprehensive review of the existing framework so as to address the concerns and to keep in sync with the changing market dynamics. The Committee had also recommended reviewing the SECC Regulations after 5 years from the date of Notification of SECC Regulations i.e. June 2012. 

SEBI Circular - Prudential limits in sector exposure for Housing Finance Companies (HFCs)

SEBI vide its circular dated February 22, 2017 has modified the limits in sector exposure for HFCs. Subsequent to this modification an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the debt schemes of mutual funds shall be allowed only by way of increase in exposure to HFCs. 

SEBI Circular on Mutual Funds- Amendments to SEBI (Mutual Funds) Regulations, 1996

SEBI via circular dated February 28, 2017 has amended the Regulations as follows-Clause 13 in the Seventh Schedule of the Regulations relating to investment in units of Real Estate Investment Trust or Infrastructure Investment Trust ("REITs/InvITs") is now applicable to all fresh investments by all schemes, including an existing scheme. 

SEBI (Foreign Portfolio Investors) (Second Amendment) Regulations, 2017

SEBI via its Circular dated February 28, 2017 has notified the amended Regulations through which Foreign Portfolio Investors (“FPIs”) are authorized to invest in the following securities: Unlisted corporate debt securities in the form of Non-Convertible Debentures/Bonds issued by Public or Private Indian Companies subject to 

MCA Circular - Clarification regarding applicability of sub-section (2) of Sec. 391 of the Companies Act, 2013

MCA via its Circular dated February 22, 2017 has issued clarifications with regards to the applicability of sub-section (2) of Sec. 391 of the Act which deals with closure of place of business of a foreign company in India. 

RBI- Master Directions on Money Transfer Service Scheme

Money Transfer Service Scheme (“MTSS”) envisages a tie-up between reputed money transfer companies abroad known as “Overseas Principals” on one hand and agents in India known as “Indian Agents” on the other hand. These Indian Agents disburse funds to beneficiaries in India at ongoing exchange rates. However, since only inward remittances are allowed under the scheme, Indian Agents are not allowed to remit any amount to the Overseas Principal. 

CBEC: Launch of a mobile application for Goods and Services Tax

CBEC launched a GST app called “CBEC GST”. The launch of the app is a yet another initiative by CBEC towards improving ease of doing business, providing services to the taxpayer and in line with the governments Digital India initiative. 

The Ease of Compliance to Maintain Registers under various Labour Laws Rules, 2017

The Ease of Compliance to Maintain Registers under various Labour Laws Rules, 2017 have come into force. The purpose of the Rules is to maintain a combined register under various Labour laws. 

SEBI introduces the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment Of Fees And Mode Of Payment) (Amendment) Regulations, 2017, with the purpose of introducing payment methods by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI and substitutions in certain schedules pertaining to the payment of fees. 
Order of National Company Law Tribunal (“NCLT”), Mumbai Bench.
Cyrus Investment Private Limited & Anr. (“Petitioners”) v. M/s. Tata Sons Ltd. & Ors (“Respondents”). NCLT orders the Company petition filed by the Petitioners as not maintainable under section 241, 242 and 244 of Companies Act, 2013 (“Act”) and lists it for hearing on the point of Waiver. 
Order of National Company Law Tribunal (“NCLT”), Kolkata Bench.
Oriental Sales Agencies (India) Private Limited (“Transferor Company”) & AMRI Hospitals Limited (“Transferee Company”). NCLT rejected the request of the petitioner for holding a separate Meeting of secured and unsecured creditors of parties to a Scheme of Arrangement in the matter of Sections 230, 231 232 of the Companies Act, 2013. 
Reserve Bank Establishes an Inter-disciplinary Standing Committee on Cyber Security
The Reserve Bank of India has set up an Inter-disciplinary Standing Committee on Cyber Security.
Reserve Bank of India (“RBI”) issues Circular on Infrastructure Financing- Definition of ''Infrastructure Lending''
The new definition is as follows : “Infrastructure Lending” means a credit facility extended by NBFC to a borrower, by way of term loan, project loan, subscription to bonds/ debentures/ preference shares/ equity shares in a project company acquired as a part of the project finance package such that subscription amount to be “in the nature of advance” or any other form of long term funded facility for exposure in the infrastructure sub-sectors as notified by the Department of Economic Affairs, Ministry of Finance, Government of India, from time to time. 
Central Motor Vehicles (Amendment) Rules, 2017
The Ministry of Road Transport and Highways has introduced Draft rules to amend The Central Motor Vehicle Rule, 1989 with the introduction of Form 5A for heavy passenger motor vehicles and heavy goods vehicles. 
Aircraft (Amendment) Rules, 2017
Draft of Aircraft (Amendment) Rules, 2017 has been introduced by Ministry of Civil Aviation. Among other changed, it has proposed definitions for the following: 
The Mineral Conservation and Development Rules, 2017
The Mineral Conservation and Development Rules, 2017 have been introduced. The notified Rules repeal the Mineral Conservation and Development Rules, 1988. 
Trade Marks Rules, 2017
The Trade Marks Rules, 2017 have been notified and have come into effect. The notified Rules repeal The Trade Marks Rules, 2002.
IRDAI has issued an exposure draft on Information and Cyber Security Framework for Insurance Sector
This exposure draft is applicable to the following: All organizations which are regulated by IRDAI. Entities and individuals dealing with the Regulated Organizations as specified in the guidelines. All information, records, data created, received or maintained by insurers, intermediates and other registered entities who have access to the policyholder’s information. Overseas offices of the organization considering the laws of the country in which they operate. 
IRDAI: Addition of new Categories of Master Policyholders in Guidelines on Claim processing for Group Insurance Policies
IRDAI had issued “Guidelines on Claim Processing for Group Life Insurance Policies under Lender Borrower Schemes” dated 29/12/2014. The Guidelines provide that insurers may settle their outstanding loan amounts by making payment to Master Policyholders prescribed under the Guidelines. Further, the guidelines prescribe the procedure to be adopted for the same. 
Revision of Minimum Rates of Wages in National Capital Territory of Delhi
The Minimum Wage Rate under Minimum Wages Act have been revised. The above rates came into force from 3rd March 2017. The wages have been revised for workmen classified as Skilled, unskilled and semi-skilled and also for Clerical and Supervisory staff under the categories of Non Matriculate, Matriculate but not Graduate, graduate and above. Also the Rate of Adjustment for Dearness Allowance Neutralization has been set.

SEBI: Amendments to SEBI (Alternative Investment Funds) Regulations, 2012 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, Second Schedule, Part B of the Regulations now allows payment by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI. The said schedule relates to payment of fees by Alternative Investment Funds.
SEBI: Amendments to Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, Schedule I, Form A (5) of the Regulations has been amended and accordingly the proof of electronic mode of payment for remittance of fees for application made under Form A has been added. 
SEBI: Amendments to SEBI (Real Estate Investment Trusts) Regulations, 2014 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, Schedule II (5) of the Regulations now allows payment by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. The said Schedule II relates to payment of fees by Real Estate Investment Trusts. 
SEBI: Amendments to SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, Schedule III (2) and (4) of the Regulations now allows payment by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI. The said Schedule relates to payment of fees with regard to issue and listing of Non-Convertible Redeemable Preference Shares. 
SEBI: Amendments to SEBI (Infrastructure Investment Trusts) Regulations, 2014 pursuant to SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, in Schedule II (5) of the Regulations, which relates to payment of fees by Infrastructure Investment Trusts, the payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Depositories and Participants) Regulations, 1996 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, in II Schedule Part B of the Regulations, which relates to payment of fees by Depositories and Participants, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Custodian of Securities) Regulations, 1996 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, in Schedule II Part B (I) of the Regulations, which relates to payment of fees by Custodians, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Foreign Venture Capital Investor) Regulations, 2000 pursuant to SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, in Schedule II Part B (1) of the Regulations, which relates to payment of fees by Foreign Venture Capital Investor, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Mutual Funds) Regulations, 1996 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, in Schedule II Clause B of the Regulations, which relates to payment of fees by Mutual Funds, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017 and subsequent to this Notification the following Schedules of the Regulations have been amended. 
SEBI: Amendments to SEBI (Collective Investment Scheme) Regulations, 1999 pursuant to SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, in Schedule II (3) of the Regulations, which relates to payment of fees by the applicant of the scheme, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Merchant Bankers) Regulations, 1992 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode Of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, In Schedule II(4) of the Regulations, which relates to payment of fees by Merchant Bankers, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 pursuant to SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, in Schedule II(3), which relates to Payment of fees by Share Transfer Agents, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Bankers to an Issue) Regulations, 1994 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode Of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, In Schedule II(4) of the Regulations, which relates to payment of fees by a Banker to an Issue, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Debenture Trustees) Regulations, 1993 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, In Schedule II(4) of the Regulations, which relates to payment of fees by the Debenture trustees, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Underwriters) Regulations, 1993 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, In Schedule II(4) of the Regulations, which relates to payment of fees by Underwriters, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: Amendments to SEBI (Portfolio Managers) Regulations, 1993 pursuant to SEBI (Payment of Fees and Mode of Payment)(Amendment) Regulations,2017
SEBI via Notification dated March 06, 2017 has introduced the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017. Subsequent to this Notification, in Schedule II(4) of the Regulations, which relates to payment of fees by Portfolio Managers, payment method by way of direct credit in bank account through NEFT/RTGS/IMPS or any other mode allowed by RBI has been introduced. 
SEBI: SEBI Mandates 3 years pre-existing relationship for Promoters under Reg. 10 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
In the matter of proposed acquisition of shares and voting rights in Gokul Agro Resources Limited (“Target Company”) SEBI mandates pre-existing relationship of Promoters for at least 3 years for being ‘qualifying parties’ under Regulation 10(1)(a)(ii) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“Regulations”) 
RBI: Threshold set for cash against gold loans
RBI has issued a notification stating that Non Banking Financial Companies (‘NBFC’) cannot disburse more than Rs. 20,000 cash against gold loans. This instruction is line with the rules laid down in sections 269SS and 269T of the Income Tax Act, 1961 and shall be applicable to all NBFC’s immediately. 
National Company Law Tribunal (“NCLT”) , Ahmedabad Bench
NCLT mandates convening of shareholders meeting for approving amalgamation despite receipt of consent letters. Name of the Parties: Aditya Birla Financial Services Ltd (“ABFSL”), Aditya Birla Nuvo Ltd (“ABNL”) and Grasim Industries Ltd (“Grasim”). 
Ministry Of Labour and Employment: Maternity Benefit (Amendment) Bill, 2016 passed by Lok Sabha
This Maternity Benefit (Amendment) Bill, 2016 has received legislative assent from Lok Sabha today. The Bill was introduced based on the recommendations of the 44th Indian Labour Conference and it brings significant changes such as enhancing maternity leave, providing crèche facilities in organizations with 50 or more employees and other such provisions empowering working women. 
Ministry of Labour and Employment: Contract Labour (Regulation & Abolition) Central (Amendment) Rules, 2017
The Ministry of Labour and Employment has introduced Draft Rules to amend the Contract Labour (Regulation and Abolition) Central Rules, 1971. The rules which are currently open for objections and suggestions shall be taken into consideration after an expiry of thirty days from its publication in the official gazette. 
Ministry of Labour and Employment: Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Central (Amendment) Rules, 2015
The Ministry of Labour and Employment has introduced Draft Rules to amend the Inter-state Migrant workmen (Regulation of Employment and Conditions of Services) Rules, 1980. The Draft Rules are currently open for objections and suggestions and shall be taken into consideration after an expiry of thirty days from the date of their publication in the official gazette. 
IRDAI: Guidelines on lnsurance e-commerce
IRDAI has issued guidelines on Insurance E-Commerce as part of its developmental mandate with a view to promote e-commerce in insurance space. The guidelines will:
    
. Lower the cost of transacting insurance business
   
 . Bring higher efficiencies and will have a greater reach 
Redressal mechanism by Telecom Regulatory Authority of India
The telecom regulator has recommended the setting up of an Ombudsman in order to resolve the increasing number of consumer complaints in the telecom sector. 

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