Notifications & Circulars

Telecom Regulatory Authority of India

25.06.2020

Media and Communication

TRAI launched a Channel Selector App which will facilitate subscribers to view their TV subscription and modify the same

MANU/TRAI/0045/2020

TRAI, in March 2017, notified the 'New Regulatory Framework' for Broadcasting and Cable services. The new framework came into effect on 29th December 2018. TRAI's new regulations/orders for the television and broadcasting sector gave freedom to consumers to select television channels they want to watch.

Transparency and consumer protection are important mandate of TRAI. After issuing of New Tariff order for broadcasting services it was noticed that consumers were facing difficulty to opt for TV channels/bouquets of their choice on the web portal/Apps of their respective Distributed Platform Operators(DPOs). Therefore, the Authority decided to develop an App which will fetch data from DPOs through APIs developed by TRAI.

Accordingly, TRAI issued a draft amendment on 29th August 2019 for consultation with DPOs which mandates DPOs to share their APIs. After due consultation process, the Authority mandated DPOs through the regulation dated 9th October 2019 to share APIs with TRAI so that consumer can edit and modify their subscription using an App developed by TRAI.

TRAI has developed a TV Channel Selector App to provide reliable, robust and transparent systems to television subscribers. The App fetches the data of Subscriber from respective DPOs platform through APIs. The subscribers will be authenticated by OTP on their Registered Mobile Number(RMN). In case there is no registered mobile number of a subscriber with DPO, subscriber will get OTP on his/her TV screen. The App facilitates subscribers to:

1. Check their own subscription

2. View all Channels and Bouquets provided by their DTH/Cable Operator

3. Choose only the channels of interest and remove unwanted channels

4. Get optimized solution; Get best combination of user selected channels/bouquets in same price or in less price

5. Facility to add channels in the applicable NCF (Network Capacity Fee)

6. Allow users to modify existing subscription

7. Check real time status of your subscription request

Channel Selector App is made available on both Google Play Store and Apple Store. Using the App customers of DTH/Cable Operator can see their subscription, modify (add/delete channels) subscription and set new-subscription. Another prominent feature of the App is optimisation of the subscription before it is sent to DTH/Cable operator therefore subscribers can get best value for money.

In order to make App more user friendly, the users may provide feedback by clicking the "Feedback" option available on the App menu. This channel selector App is presently functional with major DTH operators and Multi System Operators (MSO/Cable Operators). However, efforts are being made to integrate other service providers also on the platform.

Tags : Launch Channel Selector App TV subscription

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Securities and Exchange Board of India

24.06.2020

Capital Market

Guidelines for Order-to-trade ratio for Algorithmic Trading

MANU/SSMD/0031/2020

1. SEBI vide circulars no. CIR/MRD/DP/09/2012 dated March 30, 2012, CIR/MRD/DP/16/2013 dated May 21, 2013 and SEBI/HO/MRD/DP/CIR/P/2018/62 dated April 09, 2018, had advised stock exchanges to put in place effective economic disincentives for high daily order-to-trade ratio (OTR) of algo orders placed by trading members.

2. On the basis of request received from the stock exchange(s) the mechanism has been reviewed and the following modification shall be carried out in the existing OTR framework:

a. Stock exchanges may be permitted to introduce additional slabs upto OTR of 2000 (from existing OTR of 500), and for OTR more than 2000. Such slabs can be introduced with deterrent incremental penalty, which stock exchanges may decide jointly.

b. On the third instance of OTR being 2000 or more, in last 30 days (rolling basis), the concerned member shall not be permitted to place any orders for the first 15 minutes on the next trading day as a cooling off action.

3. The recognised stock exchanges may make necessary amendment to their existing byelaws, rules and/or regulations, wherever required.

4. 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 Section 10 of the Securities Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Tags : Guidelines Trade ratio Algorithmic Trading

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Securities and Exchange Board of India

24.06.2020

Capital Market

Further extension of time for submission of financial results for the quarter/half year/financial year ending 31st March 2020 due to the continuing impact of the CoVID-19 pandemic

MANU/SSMD/0030/2020

1. SEBI, vide circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/38 dated March 19, 2020 and circular No. SEBI/HO/DDHS/ON/P/2020/41 dated March 23, 2020, had extended the timeline for submission of financial results under regulations 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('LODR Regulations') to June 30, 2020 (extension of one month) due to the impact of the CoVID-19 pandemic.

2. SEBI has received representations from listed entities, Chartered Accountant firms, and industry bodies/associations seeking further extension of time for preparation, finalization and submission of financial results for listed entities for the quarter/half year/financial year ending 31st March 2020, due to many reasons, like the continuing lockdown, subsidiaries and associates situated in containment zones making the audit process challenging and other operational challenges due to the CoVID-19 pandemic.

3. After taking into consideration the aforementioned issues, it has been decided to further extend the timeline for submission of financial results under Regulation 33 of the LODR Regulations, by a month, to July 31, 2020, for the quarter and the year ending 31st March 2020. Similarly, the timeline under Regulation 52 of the LODR for submission of half yearly and/or annual financial results for the period ending March 31, 2020 for entities that have listed NCDs, NCRPS', CPs, MDS' is also extended to July 31, 2020.

4. This Circular shall come into force with immediate effect. Stock Exchanges are advised to bring the provisions of this circular to the notice of all listed entities and also disseminate on their websites.

5. The 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 Regulations 33, 52 and 101 of the LODR Regulations.

Tags : Extension Time Submission Financial results

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Reserve Bank of India

24.06.2020

Banking

Loans Sourced by Banks and NBFCs over Digital Lending Platforms: Adherence to Fair Practices Code and Outsourcing Guidelines

MANU/RMIC/0093/2020

1. It has been observed that many digital platforms have emerged in the financial sector claiming to offer hassle free loans to retail individuals, small traders, and other borrowers. Banks and NBFCs are also seen to be engaging digital platforms to provide loans to their customers. In addition, some NBFCs have been registered with Reserve Bank as 'digital-only' lending entities while some NBFCs are registered to work both on digital and brick-mortar channels of credit delivery. Thus banks and NBFCs are observed to lend either directly through their own digital platforms or through a digital lending platform under an outsourcing arrangement.

2. It has further been observed that the lending platforms tend to portray themselves as lenders without disclosing the name of the bank/ NBFC at the backend, as a consequence of which, customers are not able to access grievance redressal avenues available under the regulatory framework. Of late, there are several complaints against the lending platforms which primarily relate to exorbitant interest rates, non-transparent methods to calculate interest, harsh recovery measures, unauthorised use of personal data and bad behavior.

3. Although digital delivery in credit intermediation is a welcome development, concerns emanate from non-transparency of transactions and violation of extant guidelines on outsourcing of financial services and Fair Practices Code, etc. issued to banks and NBFCs, a reference to which is drawn in the Annex. It is, therefore, reiterated that banks and NBFCs, irrespective of whether they lend through their own digital lending platform or through an outsourced lending platform, must adhere to the Fair Practices Code guidelines in letter and spirit. They must also meticulously follow regulatory instructions on outsourcing of financial services and IT services.

4. It must be noted that outsourcing of any activity by banks/ NBFCs does not diminish their obligations, as the onus of compliance with regulatory instructions rests solely with them. Wherever banks and NBFCs engage digital lending platforms as their agents to source borrowers and/ or to recover dues, they must follow the following instructions:

a) Names of digital lending platforms engaged as agents shall be disclosed on the website of banks/ NBFCs.

b) Digital lending platforms engaged as agents shall be directed to disclose upfront to the customer, the name of the bank/ NBFC on whose behalf they are interacting with him.

c) Immediately after sanction but before execution of the loan agreement, the sanction letter shall be issued to the borrower on the letter head of the bank/ NBFC concerned.

d) A copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement shall be furnished to all borrowers at the time of sanction/ disbursement of loans.

e) Effective oversight and monitoring shall be ensured over the digital lending platforms engaged by the banks/ NBFCs.

f) Adequate efforts shall be made towards creation of awareness about the grievance redressal mechanism.

5. Any violation in this regard by banks and NBFCs (including NBFCs registered to operate on 'digital-only' or on digital and brick-mortar channels of delivery of credit) will be viewed seriously.

Tags : Loans Fair Practices Code Outsourcing Guidelines

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Press Information Bureau

23.06.2020

Customs

CBIC Enables End to End Paperless Exports under Turant Customs

MANU/PIBU/1769/2020

Shri Ajit Kumar, Chairman, Central Board of Indirect Taxes and Customs (CBIC) here yesterday unveiled a Secure QR coded Shipping Bill that would be electronically sent to exporters after the Customs allows export. This eliminates in one stroke the requirement of the exporters having to approach the Customs officers for proof of export. This also makes the end to end Customs export process fully electronic, from the filing of the Shipping Bill to the final order to allow export.

Today's initiative in yet another step taken by CBIC for fulfilling its commitment to a Faceless, Paperless, and Contactless Customs under the umbrella of its "Turant Customs" programme. These reforms are based on enhanced use of digital technology to reduce the time and costs for the importers, exporters and other stakeholders, thereby improving India's ranking in the World Bank's Trading Across Borders parameter of its Doing Business Report.

The launch of paperless documentation on exports is a sequel to a similar initiative that was begun for imports w.e.f. 15th April 2020. The electronic transmission of the Shipping Bill would do away with the present requirement to take paper printout of these documents thereby promoting Green Customs. Equally importantly exporters would not have to visit the Customs Houses for this purpose and can better utilize their time in promoting their business.

Shri Ajit Kumar informed that the endeavour is to leverage technology to make the Customs clearance process more transparent and faster. Turant Customs, which has as its main component Faceless Assessment, would be implemented in phases across the entire country by 1st January 2021.

Tags : Paperless Exports Turant Customs

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Press Information Bureau

23.06.2020

Civil

Government Schemes for MSMEs and NBFCs creating significant impact - Sanctions under Emergency Credit Line Guarantee Scheme (ECLGS) cross Rs. 79,000 crore

MANU/PIBU/1759/2020

The interventions by Government for MSMEs, have been gaining rapid traction. Under the Emergency Credit Line backed by a Government guarantee, Banks from Public & Private Sectors have so far already sanctioned loans worth over Rs. 79,000 crore as of June 20, 2020, of which more than Rs. 35,000 crore has already been disbursed.

The top lenders under the Scheme are SBI, HDFC Bank, Bank of Baroda, PNB & Canara Bank. This has helped 19 lakh MSMEs & other businesses restart their businesses post the lockdown. As part of the Aatmanirbhar package Government had announced its plans for Rs. 3 lakh Crore as additional credit to MSMEs and small businesses. Such enterprises were to be eligible to receive upto 20% of their existing borrowing as additional loans at interest rates which were capped.

Separately, under RBI's Special Liquidity Facility announced in March-April, 2020, SIDBI has sanctioned over Rs. 10,220 crore to NBFCs, Micro Finance Institutions & Banks for lending to MSME& small borrowers. National Housing Bank (NHB) has sanctioned its entire facility of Rs. 10,000 crore to Housing Finance Companies. This refinance by SIDBI & NHB is in addition to ongoing schemes through which over Rs. 30,000 crore has been sanctioned. NBFCs & MFIs are being further helped under the Extended Partial Guarantee Scheme where approvals have crossed Rs. 5500 crore. Transactions for another Rs. 5000 crore are under process of approval while certain other deals are currently under negotiation.

Tags : Government Schemes MSMEs NBFCs Significant impact

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Press Information Bureau

23.06.2020

Civil

One-time relaxation to allottees of GPRA (General Pool Residential Accommodation) in view of Novel Coronavirus(Covid-19)

MANU/PIBU/1767/2020

Ministry of Housing and Urban Affairs has provided extension of retention of Government Accommodation to allottees of GPRA for additional 15 days, that is, upto 15th July 2020. The Ministry had earlier extended the retention period till 30th June 2020 vide OM of even number dated 5th May 2020. The Ministry has taken the decision in view of various representations received regarding hardships faced by allottees in hiring alternate accommodation, arranging labour for shifting due to increase in Covid-19 cases. The Ministry, vide OM No. 12035/2/2020-Pol.II dated 22nd June 2020, has advised concerned allottees to vacate the accommodation on or before 15th July 2020,else damage charges/market rent will be levied.

Tags : Relaxation Allottees GPRA

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Securities and Exchange Board of India

23.06.2020

Capital Market

Relaxations for Listed Companies having stressed assets

MANU/SPRL/0036/2020

SEBI has decided to relax the pricing methodology for preferential issues by listed companies having stressed assets and exempt allottees of preferential issues from open offer obligations in such cases, with immediate effect.

1. Relaxations

i. Eligible listed companies having stressed assets will be able to determine pricing of their preferential allotments at not less than the average of the weekly high and low of the volume weighted average prices of the related equity shares during the two weeks preceding the relevant date.

ii. Allottees of preferential issue in such eligible companies will be exempted from making an open offer if the acquisition is beyond the prescribed threshold or if the open offer is warranted due to change in control, in terms of Takeover Regulations.

2. Eligibility

A listed entity satisfying any two out of the following three conditions shall be considered as stressed and therefore be eligible for aforesaid relaxations:

(i) Any listed company that has made disclosure of defaults on payment of interest/repayment of principal amount on loans from banks/financial institutions/Systemically Important Non-Deposit taking Non-banking financial companies/Deposit taking Non-banking financial companies and/or listed or unlisted debt securities in terms of SEBI Circular dated November 21, 2019, and such default is continuing for a period of at least 90 calendar days after occurrence of such default.

(ii) Existence of Inter-creditor agreement in terms of Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions 2019 dated June 07, 2019.

(iii) Downgrading of credit rating of the financial instruments (listed or unlisted), credit instruments/borrowings (listed or unlisted) of the listed company to "D".

3. Other Conditions

Eligible listed companies shall also be required to comply with the following conditions to avail the relaxations:

(i) The preferential issue will be made to persons/entities that are not part of the promoter or promoter group. Further, certain other persons including an Undischarged insolvent, Wilful defaulter, Fugitive economic offender, those Disqualified to act as director, prohibited by SEBI from trading in securities and accessing the securities market will also be ineligible.

(ii) The resolution for the preferential issue at the aforesaid pricing and exemption from open offer shall be passed by majority of minority.

(iii) Proposed end-use of proceeds of such preferential issue will be disclosed. The proceeds should not be used for any repayment of loans taken from promoters/promoter group/group companies.

(iv) Monitoring agency will be appointed for monitoring end-use of the proceeds of such a preferential issue. The monitoring agency shall not be an associate to the company. The Audit Committee shall also monitor the proceeds of such a preferential issue.

(v) The shares issued to the investors in such an issue shall be locked in for a period of three years from the latest date of trading approval granted by all the stock exchanges where the specified securities are listed.

(vi) The statutory auditor and the Audit Committee shall certify that eligibility norms as mentioned at point 2 above and conditions at point 3 (i) to (iii) have been met at the time of dispatch of notice for general meeting proposed for passing the special resolution and also at the time of allotment.

The above framework is aimed at helping stressed companies raise capital through timely financial intervention, at the same time protecting the interest of shareholders.

To give effect to these relaxations, SEBI ICDR Regulations and SEBI Takeover Regulations have been amended. The relaxations introduced vide notifications dated June 22, 2020, are expected to make fund raising through preferential allotments relatively easier for stressed companies.

Tags : Relaxations Listed Companies Stressed assets

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