SEBI
Streamlining the Process of Public Issues and redressal of Investor grievances ( APR 20, 2022 )
SEBI vide Circular No. SEBI/HO/CFD/DIL2/CIR/P/2021/2480/1/M dated March 16, 2021, had put in place measures to have a uniform policy to further streamline the processing of the ASBA applications through UPI process among intermediaries/SCSBs. Further amendments include :
Redressal of Investor grievances
Paragraphs 13 and 14 of the March’21 Circular stand modified :
The performance of SCSBs on timely unblocking of application amounts has been reviewed and based on the feedback received from market intermediaries, a new reporting format for Annexure IV of the March’21 Circular has been devised to capture the data of all ASBA applications unblocked by SCSBs and their corresponding date of actual unblock. SCSBs shall submit the Annexure IV of the March’21 Circular in the format prescribed in Annexure IV of this circular.
Payment of Processing Fee to SCSBs
To claim the processing fee, SCSBs shall make an application to the Merchant Bankers in the format prescribed in Annexure I of this circular (complete with requisite information mentioned therein) with a copy to the Registrar to the Issue, subject to the following conditions.
- The application shall be made no later than 30 days from the finalization of basis of allotment by Registrar to the Issue.
- The SCSBs shall make the application only after (i) unblocking of application amounts for each application received by such SCSB has been fully completed; (ii) applicable compensation relating to investor complaints has been paid by the SCSB.
Accordingly, it has been decided that the SCSBs/UPI Apps eligible for Public Issues shall send SMS Alerts to Investors for all ASBA applications and may also provide the Invoice in the Inbox as an additional feature to verify the UPI mandate details. The SMS/Invoice in the Inbox shall include the details as prescribed in Annexure II.
This circular is being issued in exercise of the powers under section 11 read with section 11A of the Securities and Exchange Board of India Act, 1992.This circular shall come into force with immediate effect.
For Official Circular, Click Here
RBI
Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct) Directions, 2022 - MASTER DIRECTION ( APR 21, 2022 )
In exercise of the powers conferred by Sections 35A and Section 56 of the Banking Regulation Act, 1949 and Chapter IIIB of the Reserve Bank of India Act, 1934, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.
The provisions of these Directions relating to credit cards shall apply to every Scheduled Bank (excluding Payments Banks, State Co-operative Banks and District Central Co-operative Banks) and all Non-Banking Financial Companies (NBFCs) operating in India. The provisions of these Directions relating to debit cards shall apply to every bank operating in India. These directions cover the general and conduct regulations relating to credit, debit and co-branded cards which shall be read along with prudential, payment and technology & cyber security related directions applicable to credit, debit and co-branded cards, as issued by the Reserve Bank.
These Directions shall be effective from July 01, 2022.
For Official Notification, Click Here
Legal Entity Identifier (LEI) for Borrowers ( APR 21, 2022 )
On a review, it has been decided that the guidelines on LEI stand extended to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs). It is further advised that non-individual borrowers enjoying aggregate exposure of ₹5 crore and above from banks1 and financial institutions (FIs)2 shall be required to obtain LEI codes as per the timeline given in the Annex.
Borrowers who fail to obtain LEI codes from an authorized Local Operating Unit (LOU) shall not be sanctioned any new exposure nor shall they be granted renewal/enhancement of any existing exposure. However, Departments/Agencies3 of Central and State Governments shall be exempted from this provision.
These directions are issued under sections 21, 35A and 56 of the Banking Regulation Act, 1949, sections 45JA and 45L of the Reserve Bank of India Act, 1934, section 30A of the National Housing Bank Act, 1987 and section 6 of the Factoring Regulation Act, 2011.
SUPREME COURT
Supreme Court stays Bombay HC order directing all cab aggregators to apply for licenses (APR 21, 2022)
In a relief for Uber, Ola, and all similar aggregators, the Supreme Court on Thursday ordered status quo on the Bombay High Court order directing cab aggregators to apply for licenses under the Centre's Motor Vehicle Aggregator Guidelines.
A bench of Justices L Nageswara Rao and B R Gavai issued notice to the Centre, Ministry of Road Transport, and others on an appeal filed by Uber India Services Private Ltd against the High Court's order.
The top court was hearing an appeal filed by Taxi aggregator Uber India against the March 7, 2022 order of the high court directing cab aggregators to comply with MVA Guidelines 2020. In March, the Bombay High Court had directed app-based taxi firms such as Ola and Uber operating in Maharashtra to apply for valid licenses by March 16 if they wish to continue operations. The HC, though, refrained from prohibiting such cabs from plying in the meanwhile saying it was aware such a move would adversely affect commuters.
Though the Central government had issued the Motor Vehicle Aggregator Guidelines, meant to regulate such cabs, those in the state were operating on the basis of permits issued to them under Maharashtra City Taxi Rules 2017.
DELHI HIGH COURT
Delhi High Court seeks Centre's stand on challenge to Criminal Procedure (Identification) Act ( APR 21, 2022 )
The Delhi High Court on Thursday sought the Centre's response on a public interest litigation claiming that the provisions of the Criminal Procedure (Identification) Act, which enables the police to "forcibly take measurements" of convicts, those arrested and others, are unconstitutional and illegal.
A bench headed by Acting Chief Justice Vipin Sanghi stated that the plea “requires consideration” and issued notice on the petition by lawyer Harshit Goel who asserted that the law aids profiling and creation of a surveillance state. Central government counsel Amit Mahajan said the petition was not maintainable and argued that the validity of a law cannot be challenged in vacuum in a PIL.
The petitioner, while seeking judicial review of sections 2(1)(a) (iii), 2(1) (b), 3, 4, 5, 6 and 8 of the Act, has claimed that the provisions grant “unguided discretionary powers” to authorities and are arbitrary, excessive, unreasonable, disproportionate, devoid of substantive due process and in violation of fundamental rights of the citizens of India as well as of the basic structure of the Constitution.
Such an exercise of power, the petitioner has stated, transgresses the right against self-incrimination under Article 20(3) of the Constitution and right to life and personal liberty, right to privacy as well as bodily integrity and dignity under Article 21.
The matter would be heard next on November 15.
ASIA PACIFIC
Nepal's economy is slow but in danger: Experts IANS (APR 21, 2022)
Amid sluggish major macroeconomic indicators, Nepal has been facing economic challenges and hassles as per the latest central bank data. According to data released by the Nepal Rastra Bank earlier this month, the country's inflation averaged 7.14 per cent, which is the highest in the last 67 months and also in the first eight months of the current fiscal year 2021-22. Consumers are feeling the heat of price rise due to the increase in the rates of petroleum products.
As per the central bank data, the Balance of Payment (BoP) deficit has ballooned to $2 billion since the early months of the current fiscal year (starting from mid of July). On the other hand, remittance inflows decreased by 1.7 per cent to a review period of eight months. Remittances are Nepal's largest source of foreign exchange. With imports surging and remittances falling, foreign exchange reserves have continued to decline. As of the first eight months of the current fiscal, the country's foreign exchange reserves dropped 16.3 per cent. The available reserves are sufficient to sustain imports of goods and services for just 6.7 months against the central bank's policy of maintaining the reserves to sustain imports for at least seven months.
Despite major economic indicators remaining grim, officials and experts say the Nepali economy is unlikely to see the situation like that in Sri Lanka. They said that although the economy appears to be heading in the direction of Sri Lanka, there are certain differences between the conditions of the two countries and this will stop the country from becoming another Sri Lanka.
WORD OF THE DAY
ASBA stands for Application Supported by Blocked Amount. It was introduced by the Securities and Exchange Board of India (SEBI) in 2008. It is a process which helps to apply for any ongoing Initial Public Offer (IPO), Rights issue, Follow-on Public Offer (FPO) etc. with ease. In this process, you instruct your bank i.e. SCSB (Self Certified Syndicate Banks) to block the application amount in your bank account itself. If you get an allotment, the amount is debited from your bank account or else, its unblocked.
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