#SEBI directs #Mutual Funds to Improve Monthly Disclosure Transparency

The Securities and Exchange Board of India (SEBI) has directed mutual fund houses to standardize their fact sheets or the monthly information documents sent to unit holders. The move is aimed at bringing about more transparency and uniformity and helping investors take more informed investment decisions.

Asset management companies (AMCs) will have to provide information such as dividend history and total monthly expenses in a format prescribed by the Association of Mutual Funds of India (Amfi). Also, fund houses will have to present certain data in a graphical and easy-to-read manner. The move follows Sebi citing lack of uniformity in the fact sheets presented by various fund houses.

Further, AMCs should filter information that was non-standardised and define parameters for information that differed in content, formula and presentation across different fund houses, it added.

Though publishing fact sheets isn’t mandatory under Sebi’s mutual fund regulations, AMCs have been doing so for several years.

The use of technologies and systems varies across fund houses — if a particular fund house highlights an additional parameter based on its investment philosophy, it is considered a requirement for other fund houses.

Hence, SEBI wants a better and improvised disclosure standard for the mutual funds to have an effective monitoring system.

#SEBI Seeks Greater #NBFC #Disclosure

The Securities and Exchange Board of India (Sebi) has asked non-banking financial companies (NBFCs) to issue detailed disclosures while launching a public offer of debt securities to raise funds.

The norms, which will be applicable to draft offer documents to be filed on or after November 1, have been finalised on the basis of feedback from market entities. Sebi seeks to align the norms in line with the stipulations required by the Reserve Bank of India (RBI).

The NBFCs would now need to disclose “aggregated exposure to the top 20 borrowers with respect to the concentration of advances”, against the current requirement for top 10 borrowers. They would also need to disclose the details of loans, which are overdue and classified as non-performing according to RBI guidelines.

If any of the borrowers of the NBFCs form part of the ‘group’ as defined by RBI, appropriate disclosures would need to be made in a prescribed format. They will need to mention the name of all such borrowers, the amount of advances, and the percentage of total assets under management.

Further, in order to allow investors to better assess the NBFC issue, it has been decided that some additional disclosures would need to be made in the offer documents.

These disclosures would include a portfolio summary on the sectors to which the NBFCs have lent. The quantum and percentage of secured and unsecured borrowings would also need to be mentioned.

The other details that need to be disclosed include any change in promoters’ holdings in NBFCs during the last financial year beyond a particular threshold. At present, RBI has prescribed such a threshold level at 26 per cent. The same threshold would be applicable or as may be prescribed by RBI from time to time.

Sebi said the NBFCs would also need to state a lending policy, containing overview of origination, risk management, monitoring and collections. Besides, the classification of loans or advances given to associates, entities or persons related to the board, senior management, or promoters etc, would need to be disclosed.

#CBDT forms Committee to Analyse #Industry-based #Tax #Assessment

CBDT has constituted a new committee to examine the feasibility of implementing a new tax assessment system of ‘industry-based jurisdiction’ instead of the current system of territorial revenue collection in the country.

The six-member committee, to be headed by a Principal Commissioner-rank officer of the Income Tax Department, has been created to act on the recommendations of the Tax Administration Reform Commission (TARC) which had submitted its report to the Finance Ministry early this year.

The committee, according to the terms of reference charted out by CBDT, will “carry out analysis of prevailing territorial jurisdiction in the I-T department and study of its various aspects keeping in view the various responsibilities assigned and discharged by the assessing officers” who are located across the country.

The I-T department, at present, has more than 550 regular assessment ranges varying from mofussil areas and small towns to metropolitan cities and they have jurisdiction on taxpayers based on the territorial limits set by the municipal and administrative authorities of the state or Union government.

“The TARC suggestion was to have assessment ranges in the I-T department based on industry or sectors like Information Technology, banking, SEZ, government service and others. The new committee will take an all-India view and submit its report to CBDT.

The committee has also been asked by CBDT to study the efficacy of existing dedicated ranges dealing with cases of trusts, association of persons, professionals and industry- specific jurisdiction in some corporate sector charges, with a view to examining the feasibility of implementing the same on all-India basis in a phased manner.

The committee constituted last week has been given a month’s time to do its job and submit its report to the apex-policy making body of the tax department by October 15.

#SEBI Share Based #Employee Benefits(Amendment) #Regulations,2015

THE GAZETTE OF INDIA

EXTRAORDINARY

PART – III – SECTION 4

PUBLISHED BY AUTHORITY

NEW DELHI, SEPTEMBER 18, 2015

SECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATION

Mumbai, the 18th September, 2015

SECURITIES AND EXCHANGE BOARD OF INDIA (SHARE BASED EMPLOYEE BENEFITS) (AMENDMENT) REGULATIONS, 2015

No.SEBI/LAD-NRO/GN/2015-16/021.─In exercise of the powers conferred by sections 11, 11A and 30 of the Securities and Exchange Board of India Act, 1992 read with section 62 of Companies Act, 2013 and rule 12 of Companies (Share Capital and Debentures) Rules, 2014, the Securities and Exchange Board of India hereby makes the following regulations to further amend the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, namely:-

1. These regulations may be called the SEBI (Share Based Employee Benefits) (Amendment) Regulations, 2015.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014:-

(I) In regulation 2, in sub-regulation (1), clause (f), shall be substituted with the following, namely

f. “employee” means—

(i) a permanent employee of the company who has been working in India or outside India; or

(ii) a director of the company, whether a whole time director or not but excluding an independent director; or

(iii) an employee as defined in clause (i) or (ii) of a subsidiary, in India or outside India, or of a holding company of the company

but does not include—

(a) an employee who is a promoter or a person belonging to the promoter group; or

(b) a director who either himself or through his relative or through any body corporate, directly or indirectly, holds more than ten per cent of the outstanding equity shares of the company; “

(II) In regulation 3, in sub-regulation (13), the symbol ―.‖ at the end shall be substituted with the words and symbols ―, whether off-market or on the platform of stock exchange.‖

(III) In regulation 6, in sub-regulation (3), in its clause (c), the words ―or associate‖ shall be omitted. (IV)In regulation 31, in sub-regulation (2), in its clause (b),

a. in sub-clause (iii), the word ―five‖ shall be substituted with the word ―three‖;

b. after sub-clause (iii), following new sub-clause shall be inserted, namely-

―(iv) trustees of a trust may continue to vote in respect of shares held by such trust for a period of three years, commencing from 28th of October, 2014.‖

U.K. SINHA

CHAIRMAN 

SECURITIES AND EXCHANGE BOARD OF INDIA

Footnote: 1. The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 were published in the Gazette of India on 28th October, 2014 vide No. LAD-NRO/GN/2014-15/16/1729.

#SEBI (Issue of Capital and Disclosure Requirements) (6th Amendment) Regulations,2015

THE GAZETTE OF INDIA

EXTRAORDINARY

PART – III – SECTION 4

PUBLISHED BY AUTHORITY

NEW DELHI, SEPTEMBER 10, 2015

SECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATION

Mumbai, the 10th September, 2015

SECURITIES AND EXCHANGE BOARD OF INDIA

(ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS)

(SIXTH AMENDMENT) REGULATIONS, 2015

No. SEBI/LAD-NRO/GN/2015-16/18.─ In exercise of the powers conferred by 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 (Issue of Capital and Disclosure Requirements) Regulations, 2009, namely:-

1.    These regulations may be called the SEBI (Issue of Capital and Disclosure Requirements) (Sixth Amendment) Regulations, 2015.

2.    They shall come into force on the date of their publication in the Official Gazette.

3.    They shall be applicable to issuers filing offer documents with the Registrar of Companies on or after the date of commencement of these regulations.

4.    In the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, in Schedule XI, in Part A, in para (10), in clause (b), sub-clause (iii), shall be substituted with the following, namely:-

“(iii) in case of allocation above Rs.250 crore; a minimum of 5 such investors and a maximum of 15 such investors for allocation upto Rs.250 crore and an additional 10 such investors for every additional Rs.250 crore or part thereof, shall be permitted, subject to a minimum allotment of Rs.5 crore per such investor.”

U.K. SINHA
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA

Companies (Accounts) Second Amendment Rules, 2015

The Ministry of Corporate Affairs has issued rules dated 4th September, 2015 of the Companies (Accounts) Second Amendment Rules, 2015 to bring out necessary amendments in the interest of the stakeholders.

Please click on the below link to access the amendment rules.

Companies (Accounts) Second Amendment Rules, 2015

#CBDT releases second set of FAQs on Compliance Window under Black Money Act

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (hereinafter referred to as ‘the Act’) has introduced a tax compliance provision under Chapter VI of the Act. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015 (hereinafter referred to as ‘the Rules’) have been notified.

To access the complete FAQ’s please click on the link as below:

FAQs on compliance window under ‘Black Money Act’

Changes in #RTGS time window

RBI/2015-16/168

DPSS (CO) RTGS No.492/04.04.002/2015-16

September 1, 2015

The Chairman / Managing Director / Chief Executive

Officer of participants of RTGS

Madam / Sir,

Changes in RTGS time window

A reference is invited to the Reserve Bank of India press release number 2015-2016/528 dated August 28, 2015 on “Bank Holiday on Second & Fourth Saturdays from September 1; RBI to offer its Support Services to Banks on Working Saturdays”.

2. Accordingly, RTGS will not be operated on second and fourth Saturdays but would operate for full day on working Saturdays. Processing of future value dated transactions with value date falling on second and fourth Saturdays will not be undertaken under RTGS.

3. The RTGS time window with effect from September 1, 2015 will be as under:

Sr. No.	Time Event	Regular days including Saturdays, except Second and Fourth Saturdays of the Month
1.	Open for Business	08:00 hours
2.	Initial Cut-off (Customer transactions)	16:30 hours
3.	Final Cut-off (Inter-bank transactions)	19:45 hours
4.	IDL Reversal	19:45 hours – 20:00 hours
5.	End of Day	20:00 hours

4. This circular is issued under Section 10 (2) of Payment & Settlement Systems Act, 2007.

5. Please acknowledge receipt.

Yours faithfully,

Nilima Ramteke
General Manager

#Guidelines on #Investment in #Exchange Traded Funds with G Sec

Ref: IRDA/F&I/CIR/INV/156/08/2015                                                                         Date:28-08-2015

CIRCULAR

The CEOs of all lnsurers,

Sub: Guidelines on Investment in Exchange Traded Funds with G Sec Underlying (GILT-ETF)

Insurers are permitted to invest in the exhaustive asset classes under the provisions of Insurance Act, 1938, IRDA (Investment) Regulations, 2000, and guidelines issued there under.

GILT-ETF launched in India, has been after due consideration, permitted for Insurers to invest as a part of “Approved Investments”.

In line with investments in Mutual Funds under Gilt/G Sec./Liquid categories, subject to conditions prescribed by Cir: INV/GLN/003/2008-09, GILT-ETFs shall fulfil the following additional conditions:

The GILT-ETFs shall be issued and managed by the Mutual Funds registered under SEBI (Mutual Funds) Regulations, 1996, as amended from time to time. 

The object of the GILT-ETFs shall be to invest in a basket of Govt. Securities Actively Traded in the market or constituents’ of a publicly available index. 

The minimum investment by the Insurer shall not be less than Creation Unit size and shall not be reduced at any time below Creation Unit Size and value of Creation Unit Size, at the time of investment, shall not be more than Rs.50 lakhs. 

The Overall Expense Ratio shall be less than 0.50% of the daily net assets of the scheme. 

The Insurers to comply with the provisions of Sec 27E of the Insurance Act, 1938 shall ensure that the GILT-ETFs invest only in Domestic Govt. Securities.

The GILT-ETFs shall be treated at par with GILT/G SEC Mutual funds and shall adhere to exposure norms applicable to “Investment in Mutual Funds (MFs) by Insurance Companies“, as per Circular no. INV/CIR/08/2008-09 dated 22nd August, 2008, Circular No.INV/CIR/020/2008-09 dt.11th November, 2008 and Circular No. IRDA/F&I/INV/CIR/213/10/2013 dt. 30th October, 2013.

The Investments in GILT-ETFs shall be listed under Category Code “EGMF” for preparation of IRDAI Periodical Investment Returns. 

S N Jayasimhan

Joint Director (Investments)