Notifications & Circulars
Securities and Exchange Board of India
22.02.2017
Capital Market
Prudential Limits in Sector Exposure for Housing Finance Companies (HFCs)
MANU/SMFD/0002/2017
Presently, the guidelines for sectoral exposure in debt oriented mutual fund schemes put a limit of 25% at the sector level and an additional exposure not exceeding 10% (over and above the limit of 25%) in financial services sector only to HFCs. In light of the role of HFCs especially in affordable housing and to further the Government's goal under Pradhan Mantri Aawas Yojana (PMAY), it has now been decided to increase additional exposure limits provided for HFCs in financial services sector from 10% to 15%.
Therefore, in partial modification to SEBI Circular SEBI/HO/IMD/DF2/CIR/P/2016/68 dated August 10, 2016, the para on sector exposure shall read as under:
"Mutual Funds/AMCs shall ensure that total exposure of debt schemes of mutual funds in a particular sector (excluding investments in Bank CDs, CBLO, G-Secs, TBills, short term deposits of Scheduled Commercial Banks and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the scheme;
Provided that an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the scheme shall be allowed only by way of increase in exposure to Housing Finance Companies (HFCs);
Provided further that the additional exposure to such securities issued by HFCs are rated AA and above and these HFCs are registered with National Housing Bank (NHB) and the total investment/ exposure in HFCs shall not exceed 25% of the net assets of the scheme.
Appropriate disclosures shall be made in Scheme Information Document (SID) and Key Information Memorandum (KIM) of debt schemes."
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulation, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Tags : Limit Housing Finance Sectoral exposure
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Press Information Bureau
22.02.2017
Civil
Cabinet Approves Signing of Air Services Agreement Between India and Greece
MANU/PIBU/0165/2017
Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the signing of Air Services Agreement (ASA) between India and Greece. The Agreement has the potential to spur greater trade, investment, tourism and cultural exchange between the two countries bringing it in tune with the developments in the civil aviation sector. It will provide enabling environment for enhanced and seamless connectivity while providing commercial opportunities to the carriers of both the sides ensuring greater safety and security.
The essential features of the ASA are as follows:
i. Both countries shall be entitled to designate one or more airline.
ii. The designated airlines of either country shall have the right to establish offices in the territory of the other country for the promotion end sale of air services.
iii. The designated airlines of the two countries shall have fair and equal opportunity to operate the agreed services on specified routes.
iv. The designated Airline of each party can enter into cooperative marketing arrangements with the designated carriers of same party, other party and third country,
v. As per the Route Schedule, the Indian carriers can operate to Athens, Thessaloniki, HerakIion and any 3 points to be specified later in Greece from points in India, whereas the carriers of Hellenic Republic can establish direct operation to 6 metros viz. New Delhi, Mumbai, Bengaluru, Kolkata, Hyderabad and Chennal. Any points shall be available as intermediate and beyond point for the designated carriers of India as well as the designated carriers of Greece.
At present there is no ASA between India and Greece. The delegations of two sides met in New Delhi on 6-7th September, 2016 and finalized the text of ASA. The agreement is as per latest International Civil Aviation Organisation (ICAO) template keeping in view the latest developments in civil aviation sector and with an objective to improve the air connectivity between the two countries.
Tags : Air services Approval Agreement
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Press Information Bureau
22.02.2017
Commercial
Ms. Suman Saxena Takes Charge as the Whole Time Member of the Insolvency and Bankruptcy Board of India (IBBI)
MANU/PIBU/0166/2017
Ms. Suman Saxena took charge here today as the Whole Time Member, Insolvency and Bankruptcy Board of India (IBBI). Ms. Saxena will look after Research and Regulation Wing comprising Corporate Insolvency, Corporate Liquidation, Individual Insolvency, Individual Bankruptcy, Research and Publications, Data Management and Dissemination and Advocacy. She will also look after National Insolvency Programme, Continuing Professional Programme, and Knowledge Management and Partnership. Ms. Saxena served as a member of the Indian Audit and Accounts Service for over 35 years. Her last assignment was Deputy Comptroller and Auditor General, where she oversaw three important sectors, namely, defence, communications and railways. She has also been the Director of National Academy of Audit and Accounts.
Tags : Charge Board Whole time member
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Press Information Bureau
22.02.2017
Civil
Cabinet Approves Signing of an Agreement Between India and Poland on Cooperation in the Field of Agriculture and Allied Sectors
MANU/PIBU/0167/2017
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for signing of an Agreement between India and Poland on cooperation in the field of agriculture and allied sectors. The agreement covers various activities in the field of agriculture and allied sector including exchange of information on the current situation in agriculture, the phytosanitary conditions of crops, threats posed by harmful organisms and the threats posed by animal infectious diseases. It also covers the participation in fairs, exhibitions, seminars and conferences related to agriculture and agri-food processing; undertaking and developing joint economic initiatives including the support or agri-food trade between the states of the Contracting Parties. The Agreement provides for constitution of a Joint Working Group (JWG) comprising of representatives from both countries. The JWG will prepare plans of cooperation and to provide solutions to the problems arising during the implementation of the Agreement.
Tags : Approval Agreement Agriculture Sector
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Press Information Bureau
22.02.2017
Civil
Cabinet Approves MoU Between India and Australia for Promotion and Development of Cooperation in Civil Aviation Security
MANU/PIBU/0168/2017
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for signing of a Memorandum of Understanding (MoU) between India and Australia for promotion and development of cooperation in civil aviation security. The MoU will provide an opportunity to Indian aviation security authorities to share the expertise of their Australian counterparts and enhance the overall aviation security environment in India. The MoU will provide compliance of international obligation as well as enhance promotion in the area of security cooperation between the two countries.
Tags : MOU Approval Aviation Security
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Securities and Exchange Board of India
22.02.2017
Capital Market
Public Notice and Appeal to the Investors of Pacl Ltd.
MANU/SPRL/0014/2017
It is brought to the notice of the General Public that in compliance of the order dated February 02, 2016 passed by the Hon'ble Supreme Court of India in Civil Appeal No.13394/2015 titled as PACL Ltd. Vs Securities and Exchange Board of India and other connected matters, a Committee has been constituted by SEBI under the Chairmanship of Justice (Retd.) R. M. Lodha, Former Chief Justice of India for disposing of the properties of the Company viz. PACL Ltd., so that the sale proceeds can be paid to the investors.
In compliance of the above mentioned order, the Committee vide public notices dated 27/08/2016 & 30/09/2016 invited Expression of Interest (EOI) from the public at large on the properties of PACL Ltd. Further, vide public notice dated 27/11/2016, the investors were informed that the process of auction is underway in terms of the said notice dated 27/11/2016.
Vide the aforesaid public notice dated 27/11/2016, it was also informed that the process of refund would be initiated upon realisation of a sizeable amount by the Committee. In such case, investors would be required to file their claims only in the prescribed format upon SPECIFIC NOTIFICATION BY THE COMMITTEE. Till such notification investors are requested to retain their documents with themselves and not to part with them for any reason whatsoever. The Public at large is further made aware that in terms of the above mentioned order dated February 02, 2016 passed by the Hon'ble Supreme Court of India, only the Committee is authorised to sell the properties of PACL Ltd. or properties wherein PACL Ltd. has interest/rights therein directly or indirectly. In view of the above, the Public is hereby cautioned against buying/dealing with any properties wherein PACL Ltd. or any of its associates/subsidiaries have any interest/rights, directly or indirectly.
Tags : Notice Invester Committee Constitution
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Press Information Bureau
21.02.2017
Civil
Making Digital Payments a Mass Movement in India, Nearly 10 lakh Citizens Get Reward Money Over Rs.153.5 Crore for Embracing Digital Payments
MANU/PIBU/0164/2017
It has been 58 days since the launch of NITI Aayog's two incentive schemes - Lucky Grahak Yojana and Digi Dhan Vyapar Yojana to promote digital payments and the public response has been quite encouraging. The initiative to make Digital Payments a mass movement in India through the two schemes has made a headway across the country with more and more people adopting digital transactions. According to the latest figures released by the National Payments Corporation of India (NPCI), which has been executing the schemes, nearly 10 lakh consumers and merchants have been disbursed over Rs. 153.5 crore as reward money till 20th February, 2017.
Highlights:
Among the 9.8 lakh winners are more than 9.2 lakh consumers and 56,000 merchants.
120 consumers have won prize money worth Rs. 1 lakh each.
4,000 merchants have won Rs. 50,000 prize money each.
Maharashtra, Tamil Nadu, Uttar Pradesh, Andhra Pradesh and Delhi have emerged as the top five states/ Union Territory(s) with maximum number of winners.
Active participation was seen among females and males across regions.
Winners belong to diverse socio-economic backgrounds, from farmers, merchants, small entrepreneurs, professionals, housewives, students to retired persons.
While majority of the winners are in the age group of 21 to 30, a significant number are also above 60 years of age.
The diversity in age of winners is from 15 to 66 years, challenging the notion that the old find it difficult to embrace technology to adopt digital payments.
The winners have their own stories to tell it all as to how the switch over to digital payments has been le and how it has made the life easier for them. Sabir, a 22-year-old cab driver from Delhi won Rs. 1,00,000 under Lucky Grahak Yojana for consumers. Digital payments are a blessing in disguise for him because he has to take care of his mother and differently-abled sister after the demise of his father and doesn't have time to stand in lines at the bank. Bhim Singh, a 29-year-old wheat farmer from Hissar in Haryana and winner under this initiative, now uses digital payments for buying supplies from wholesalers. Jayanthi SF, from Coimbatore in Tamil Nadu, a 29-year-old engineering student and mother to a six-year-old, is a proud winner of Rs. 1,00,000 under the scheme.
Among the merchants, Damodar Prasad Khandelwal, a 42-year-old grocery store owner from Alwar in Rajasthan, won Rs. 50,000 in the weekly prize under Digi-Dhan Vyapar Yojana for merchants. Manju R Gowda, a 32-year-old fast-food restaurant owner in Mumbai is another winner of Rs. 50,000 under this scheme.
An analysis of the reward data also reveals winners as belonging to a wide geographical cross-section, including rural and urban areas spread across every State. NITI Aayog has been organizing Digi Dhan Melas at 110 cities across India, beginning December 25th, 2016. It will go on every day until April 14, 2017. Till date, 59 Digi Dhan Melas have been organized to take the digital payments movement to the masses across the country.
Background:
NITI Aayog launched two schemes on December 25, 2016 - Lucky Grahak Yojna (LGY) for consumers and Digi-Dhan Vyapar Yojna (DVY) for merchants to incentivize them and promote digital payments. The two schemes shall remain open till April 14, 2017. There are 15,000 daily winners qualifying for total prize money of Rs. 1.5 crore. In additional to this there are over 14,000 weekly winners qualifying for total prize money of over Rs. 8.3 crore every week. Customers and merchants using RuPay Card, BHIM / UPI (Bharat Interface for Money / Unified Payments Interface), USSD based *99# service and Aadhaar Enabled Payment Service (AePS) are eligible for wining daily and weekly lucky draw prizes.
Tags : Digital payments Movement Reward
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Securities and Exchange Board of India
20.02.2017
Capital Market
Participation in Derivatives Market by Mutual Funds
MANU/SMFD/0001/2017
In terms of SEBI circular no. DNPD/Cir-29/2005 dated September 14, 2005, existing schemes of the Mutual Funds, whose Scheme Information Documents (SIDs) do not envisage investments in derivatives, are required to obtain positive consent from majority of the unit holders before commencing investment in derivatives. An exit option has to be provided to the dissenting unit holders and such option is to be kept open for a period of one month prior to the scheme commencing trading in derivatives. SEBI has received representations that for existing schemes' whose SIDs do not currently envisage investments in derivatives, obtaining positive consent from majority of unit holders as mandated above is challenging on account of vast geographical spread of unit holders and hence the request for doing away with such requirements. This matter was discussed in Mutual Fund Advisory Committee, wherein it was recommended that for participation in derivatives market by such schemes, the requirement of obtaining positive consent should be dispensed with and all investors of the scheme should be given exit option with no exit load, in line with the guidelines for changes in any other fundamental attribute of the scheme.
Based on the above considerations and in view of prudent investment norms that are in place for investment in derivatives by Mutual Funds, it has been decided that for introduction of derivative investments in an existing scheme, whose SIDs do notcurrently envisage such investments, the requirement of obtaining positive consent from majority of unit holders shall no longer be applicable. However, prior to the scheme commencing participation in derivatives, all investors of such schemes shall be given exit option with no exit load for 30 days, as against exit option to only dissenting unit holders mandated earlier.
In view of the above, in point 2 of SEBI circular no. DNPD/Cir-29/2005 dated September 14, 2005, clause I) b shall be read as follows:
"Existing schemes of Mutual Funds, whose SIDs do not envisage investments in derivatives, may participate in derivatives market subject to the following conditions:
i. The extent and the manner of the proposed participation in derivatives shall be disclosed to the unit holders.
ii. The risks associated with such participation shall be disclosed and explained by suitable numerical examples.
iii. Prior to commencing participation in derivatives, the scheme shall comply with the provisions of Regulation 18 (15A) of SEBI (Mutual Funds) Regulations, 1996 and all unit holders shall be given at least 30 days to exercise option to exit at prevailing NAV without charging of exit load."
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulation, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Tags : Mutual fund Market Participation
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