Securities Exchange Board of India (SEBI) vide notification no. IMD/FPI&C/CIR/P/2020/07 dated January 16, 2020 introduces Exemption from clubbing of investment limit for foreign Government agencies and its related entities.
- In line with rule 1(a)(iv) of Schedule II of Foreign Exchange Management (Nondebt Instruments) Rules, 2019 regarding "Investments by Foreign Portfolio Investors", certain foreign Government agencies and its related entities are exempt from clubbing of investment limit requirements and other investment conditions either by way of an agreement or treaty with other sovereign governments or by an order of the Central Government.
- In view of the above, clause 1(x) of Part C of Operational guidelines for FPIs & DDPs and EFIs regarding "Monitoring of investment limit at investor group level" has been amended accordingly.
Reserve Bank of India (RBI) notifies operational guidelines for Reporting of Large Exposures to Central Repository of Information on Large Credits (CRILC) – UCBs
RBI vide notification no. RBI/2019-20/144 dated January 16, 2020, issues operational guidelines for reporting the CRILC– UCBs return, which are summarized as follows:
- The reporting frequency of the CRILC– UCBs return is prescribed to be quarterly. The banks need to submit the data on large exposures within 30 days from the end of the quarter through XBRL reporting platform of RBI.
- CRILC – UCBs return will comprise of three sections viz. Section 1: Exposure to Large Borrowers, Section 2: Reporting of Technically / Prudentially Writtenoff Accounts and Section 3: Reporting of Balance in Current Account. The detailed instructions for each Section is provided in the CRILC-UCBs return installer (macro enabled excel template).
- Banks are advised to take utmost care about data accuracy and integrity while submitting the data on large credits to the Reserve Bank of India, failing which penal action would be undertaken.
- Primary (Urban) Co-operative Banks are advised to submit the data in CRILCUCBs return with effect from the quarter ended December 31, 2019.
Securities Exchange Board of India (SEBI) notifies Options in Goods- Product Design and Risk Management Framework
In pursuance to the vide Notification No. S.O. 3743(E) dated October 18, 2019, issued by the Central Government, SEBI notifies Options in Goods- Product Design and Risk Management Framework.
- Stock Exchanges are now permitted to launch 'Option in Goods' in their commodity derivatives segment, for which they shall have to take prior approval of SEBI for launching such contracts.
- Stock Exchanges shall make necessary disclosures such as open interest of top 10 largest participants/group of participants in "option in goods" (both long and short) and the details of their combined open interest in underlying constituents etc.
- The product design and risk management framework would be in conformity with the guidelines prescribed in the Annexure, (vide Circular SEBI/HO/CDMRD/DMP/CIR/P/2020/05 dated January 16, 2020).
- The Exchanges are advised to take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same, and communicate to SEBI, the status of the implementation of the provisions of this circular.
Reserve Bank of India (RBI) notifies Amendment in Hedging of Commodity Price Risk and Freight Risk in Overseas Markets (Reserve Bank) Directions, 2018
With reference to Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000, as amended from time to time, and Hedging of Commodity Price Risk and Freight Risk in Overseas Markets (Reserve Bank) Directions, 2018, RBI amends Para 10 of the Directions vide notification no. RBI/2019-20/143 dated January 15, 2020.
- The amended Para 10 of the abovementioned regulations is stated as below: "10. Report to Reserve Bank - Banks shall submit a quarterly report to the Chief General Manager, Financial Markets Regulation Department, Reserve Bank of India through Extensible Business Reporting Language (XBRL) accessible at https://xbrl.rbi.org.in/orfsxbrl/ in the format provided in Annexure I. In case of no transactions, a "Nil" report shall be submitted by the bank."
The Insolvency and Bankruptcy Board of India amends the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017
The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Amendment) Regulations, 2020 on 15th January. 2020.
- The amendment provides that a Liquidator shall deposit the amount of unclaimed dividends, if any, and undistributed proceeds, if any, in a liquidation process along with any income earned thereon into the Corporate Voluntary Liquidation Account before he submits an application for dissolution of the corporate person. It also provides a process for a stakeholder to seek withdrawal from the Corporate Voluntary Liquidation Account.
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