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SECURITIES AND EXCHANGE BOARD OF INDIA
SEBI (INFRASTRUCTURE INVESTMENT TRUSTS) (AMENDMENT) REGULATIONS, 2022 (MAY 10, 2022)
In exercise of the powers conferred under section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, namely: –
In the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, ─
I. In Schedule II, paragraph 4 shall be substituted with the following:
“4. With respect to privately placed InvIT, the InvIT shall pay non-refundable filing fees of: i. 0.1% in case of initial offer; and ii. 0.05% in case of rights issue, of the total issue size including green shoe option, if any, at the time of filing of draft placement memorandum or letter of offer, as applicable, with the Board;”
Grant of recognition to NSDL Database Management Limited (NDML) as an Accreditation Agency (MAY 10, 2022)
Pursuant to SEBI Circular dated August 26, 2021 on modalities for implementation of the framework for Accredited Investors, applications have been received from entities for recognition as Accreditation Agency, which shall issue Accreditation certificate to the investors seeking accreditation. Post examination of their application, NSDL Database Management Limited (NDML), a wholly owned subsidiary of National Securities Depository Limited (NSDL) has been granted recognition as an Accreditation Agency under Regulation 2(1) (aa) of SEBI (Alternative Investment Funds) Regulations, 2012 read with SEBI circular dated August 26, 2021, for a period of three years with effect from May 10, 2022.
The renewal of the recognition would be subject to satisfactory performance by NDML.
INCOME TAX
Guidelines under clause (23FE) of section 10 of the Income-tax Act, 1961 - reg ( MAY 9, 2022)
The Finance Act, 2020, inter-alia, inserted clause (23FE) in section 10 of the Income-tax Act, 1961 to provide for exemption to wholly owned subsidiaries of Abu Dhabi Investment Authority (ADIA), sovereign wealth funds (SWF) and pension funds (PF) on their income in the nature of dividend, interest and long-term capital gains arising from investment made in infrastructure in India, during the period beginning with 01.04.2020 and ending on 31.03.2024 subject to fulfilment of certain conditions.
In order to incentivise infrastructure investments by specified persons in India the Finance Act, 2021, hereinafter referred to as “Finance Act”, inter alia, amended the certain provisions of clause (23FE) of section 10 of the Act.
Guidelines :
- Transfer of investment within 3 years by the specified person or AIF/ domestic Company/NBFC
- Eligible infrastructure entity carrying on other businesses as well
- Violation of 50 %, 75 % or 90 % condition as per item (c), (d) or (e) of sub-clause (iii) of clause (23FE) of section 10 of the Act
- Violation of one or more conditions in clause (23FE) of section 10 of the Act or rules thereunder or under the notification exempting the specified person under the said clause.
- Computation of the capital gains arising to the specified person on account of the transfer of their holding in domestic company or non-banking finance company
- Secondary investment in infrastructure companies
- Tax audit
- Quarterly statement of investments
SUPREME COURT
State laws will not apply to Non-Banking Financial Companies regulated by RBI: Supreme Court (MAY 10, 2022)
The Supreme Court on Tuesday held that Non Banking Financial Companies (NBFC) regulated by the Reserve Bank of India (RBI), will not come under the purview of State statutes [Nedumpilli FInance Company Limited v State of Kerala & Ors.].
A Bench of Justices Hemant Gupta and V Ramasubramanian held that such NBFCs, regulated in terms of the provisions of Chapter IIIB of the Reserve Bank of India Act, 1934 cannot also be regulated by State enactments such as Kerala Money Lenders Act, 1958 and Gujarat Money Lenders Act, 2011.
The Court applied the Doctrine of Eclipse and held that once the Parliament stepped in to codify the law with regard to registration and regulations of NBFCs, the state enactments cease to be valid in that regard.
For Copy of Judgement, Click Here
FINANCE
All-time high SIP accounts stands at 5.39 crore in April 2022 as FY 23 starts with net flows for MF schemes (MAY 10, 2022)
Mutual fund as a mode of investing for retial investors continues to show robust collections. Monthly SIP Contribution for the month of April 2022 was lower compared to Monthly SIP Contribution of March 2022, however, the number of SIP accounts stood all-time high in April 2022.
Mutual Fund Industry AUM at Rs 38.03 Lakh crores, AAUM at Rs 38.88 Lakh crores at an all-time high At Rs 38,03,683.26 crores (Rs 38.03 lakh crores), the Net AUMs for the Indian Mutual Fund Industry as on April 30, 2022, reported 17 per cent YoY growth, Average AUMs at Rs 38,88,960.12 crores (Rs 38.88 lakh crores) jumped 20 per cent YoY. The Mutual Fund Industry AUM and AAUM as on April 30, 2022, stand at an all-time high.
No. of Mutual Fund Folios as on April 30, 2022, have risen 33 per cent YoY to an all-time high at 13,12,94,541 (13.13 crores) compared to 9,85,68,709 (9.86 crores) as on April 30, 2021. The number of folios grew month on month by 1 per cent from 12,95,04,652 (12.95 crores) as on March 31, 2022.
During April 2022, three different NFOs were launched under open ended schemes category, mobilising at Rs 3,240 crores.
WORD OF THE DAY
Gwei refers to a very small amount of Ethereum that is used to calculate transaction fees on the Ethereum network. One Gwei is equal to 0.000000001 ETH. If you pay 0.000000020 ETH as a transaction fee, you would say that the cost was 20 Gwei.
Gwei is short for gigaWei. Wei is the smallest unit of the Ethereum coin. One Gwei equals 1 billion Wei.
MARKET TODAY (as on 10.05.2022)
BSE SENSEX 54,364.85 ▼ 105.82 (0.19%)
NIFTY 50 16,240.05 ▼ 61.80 (0.38%)
DOLLAR VS RUPEE
1 US Dollar = 77.18 Indian Rupee (May 10, 2:28 PM UTC)
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