Notifications & Circulars

Securities and Exchange Board of India

16.05.2024

Capital Market

Master Circular for Credit Rating Agencies

MANU/SCRR/0003/2024

I. Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 ("CRA Regulations") prescribes guidelines for registration of Credit Rating Agencies (CRAs), general obligations of CRAs, manner of inspection and investigation and code of conduct applicable on CRAs. Multiple circulars have been issued, over the years, covering the operational and procedural aspects thereof.

II. In order to enable the industry and other users to have access to all the applicable circulars/ directions at one place, Master Circular for CRAs has been prepared.

III. This Master Circular is a compilation of the existing circulars as on May 16, 2024, with consequent changes. The stipulations contained in these circulars have been detailed chapter-wise in this master circular. Accordingly, the list of existing circulars for CRAs which have been superseded by this master Circular is placed at Annexure A.

IV. Notwithstanding such rescission-

a. anything done or any action taken or purported to have been done or taken under the rescinded circulars, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular;

b. any application made to the Board under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of these regulations;

V. This circular is issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 20 of Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999, to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

VI. This issues with the approval of the Competent Authority.

Tags : Circular Credit Rating Agencies

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Reserve Bank of India

16.05.2024

Banking

RBI imposes monetary penalty on The Bapunagar Mahila Co-operative Bank Ltd., Ahmedabad, Gujarat

MANU/RPRL/0328/2024

The Reserve Bank of India (RBI) has, by an order dated May 8, 2024, imposed a monetary penalty of ₹2.00 lakh (Rupees Two lakh only) on the Bapunagar Mahila Co-operative Bank Ltd., Ahmedabad, Gujarat (the bank) for non-compliance with the directions issued by RBI on 'Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)'. This penalty has been imposed in exercise of powers vested in RBI, conferred under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

The statutory inspection of the bank was conducted by RBI with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.

After considering the bank's reply to the notice and oral submissions made by it during the personal hearing, RBI found, inter alia, that the charge of breaching prudential inter-bank (counterparty) exposure limit was sustained, warranting imposition of monetary penalty.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

Tags : Penalty Imposition Non-compliance

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Securities and Exchange Board of India

15.05.2024

Capital Market

Master Circular for Infrastructure Investment Trusts (InvITs)

MANU/SIPM/0003/2024

1. For effective regulation of Infrastructure Investment Trusts, Securities and Exchange Board of India (SEBI) has been issuing various circulars from time to time. In order to enable the stakeholders to have an access to all the applicable circulars at one place, the provisions of the circulars issued till May 15, 2024 are incorporated in this Master Circular for Infrastructure Investment Trusts.

2. This Master Circular shall come into force from the date of its issuance. The circulars mentioned in Appendix to this Master Circular shall stand superseded with the issuance of the Master Circular. With respect to the directions or other guidance issued by SEBI, as specifically applicable to Infrastructure Investment Trusts, the same shall continue to remain in force in addition to the provisions of any other law for the time being in force. Terms not defined in this Master Circular shall have the same meaning as provided under the relevant Regulations.

3. Notwithstanding such supersession,

3.1. anything done or any action taken or purported to have been done or taken under the superseded circulars, including registrations or approvals granted, fees collected, registration suspended or cancelled, any inspection or investigation or enquiry or adjudication commenced or show cause notice issued prior to such supersession, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular;

3.2. any application made to SEBI under the superseded circulars, prior to such supersession, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular;

3.3. the previous operation of the superseded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the superseded circulars, any penalty, incurred in respect of any violation committed against the superseded circulars, or any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty as aforesaid, shall remain unaffected as if the superseded circulars have never been superseded;

4. Pursuant to issuance of this Master Circular, the entities which are required to ensure compliance with various provisions shall submit necessary reports as envisaged in this Master Circular on a periodic/ continuous basis. Stock exchanges are advised to disseminate the contents of this Circular on their website.

5. This Master Circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 33 of the SEBI (Infrastructure Investment Trusts) Regulations, 2014 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. This Master Circular is issued with the approval of the Competent Authority.

Tags : Master Circular InvITs Regulation

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Press Information Bureau

15.05.2024

Consumer

Department of Consumer Affairs organizes stakeholder consultation on protection of consumers from online fake reviews

MANU/PIBU/0385/2024

The Department of Consumer Affairs held a stakeholder consultation here today on protection of consumer interest from online fake reviews. Mrs. Nidhi Khare, Secretary, Department of Consumer Affairs chaired the meeting.

The number of consumer grievances relating to e-commerce registered on the NCH have increased significantly. From 95,270 in 2018 (22% of total grievances), the number of grievances have risen to 4,44,034 in 2023 (43% of total grievances).

Since e-commerce provides a virtual shopping experience where consumers cannot physically inspect the products, they depend significantly on reviews available on e-commerce platforms to gather insights and experiences from users who have already purchased the goods or services. Online reviews provide social proof to potential customers and give them confidence in purchasing a product or availing a service.

The presence of fake reviews online jeopardizes the trustworthiness and credibility of shopping platforms and can cause consumers to take wrong purchase decisions.

In November, 2022, the Department had launched the Indian Standard (IS) 19000:2022 'Online Consumer Reviews - Principles and Requirements for their Collection, Moderation and Publication. The guiding principles of the standard are integrity, accuracy, privacy, security, transparency, accessibility and responsiveness.

The standard prescribes specific responsibilities for the review author and the review administrator. As per the standard, organizations are required to identify of the review author by specific prescribed modes, and develop a written code of practice, communicated and made available to all management and staff, which outlines how this document and the guiding principles will be met and maintained.

The essential requirements provided under the draft Quality Control Order (QCO) include that the processes for collecting, moderating and publishing online consumer reviews shall be done in a manner ensuring that the reviews that are genuine get published.

The prohibitions under the proposed QCO include -

a. The organisation shall not publish consumer reviews online collected with a bias objective and prejudice.

b. The organisation shall not edit reviews to alter their message.

c. The organisation shall not prevent or discourage people from submitting negative reviews.

Organizations are required to implement an appropriate mechanism for collection, moderation and publication of online consumer reviews in compliance with the principles and requirements speciﬁed in Indian Standard IS 19000:2022.

The discussion on moving towards a Quality Control Order for IS 19000:2022 was welcomed by stakeholders and there was a general consensus among all stakeholders that the issue of fake reviews is important to protect consumer interest while shopping online, and requires to be closely monitored. The Draft Quality Control Order will be placed for public consultation for submitting comments within a prescribed time frame.

Representatives from major online platforms (such as Google, Meta, Amazon, Flipkart etc.), industry bodies, voluntary consumer associations including MGP and noted consumer activist Pushpa Girimji and law chairs and law firms were present during the meeting. A presentation by the Department of Consumer Affairs, emphasizing on growth in online shopping over the recent times and the rising number of consumer grievances registered in the e-commerce sector on the National Consumer Helpline (NCH) was also made during the meeting.

Tags : Consultation Protection Online fake reviews

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Securities and Exchange Board of India

13.05.2024

Capital Market

Certification requirement for key investment team of manager of Alternative Investment Funds

MANU/SMIS/0012/2024

1. In terms of Regulation 4(g)(i) of SEBI (Alternative Investment Funds) Regulations, 2012 ("AIF Regulations"), the key investment team of the Manager of an Alternative Investment Fund (AIF) shall have at least one key personnel with relevant certification as may be specified by SEBI from time to time, as an eligibility criterion for obtaining certification of registration as an AIF. The said Regulation has come into force with effect from May 10, 2024.

2. Further, SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 have also been amended and notified on May 10, 2024 stipulating the following-

'At least one key personnel, amongst the associated persons functioning in the key investment team of the Manager of an Alternative Investment Fund, shall obtain certification from the National Institute of Securities Market by passing the NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination as mentioned in the communique No. NISM/Certification/Series-XIX-C: Alternative Investment Fund Managers/2024/01 dated January 10, 2024 issued by the National Institute of Securities Market.'

3. In this regard, the following is specified:

3.1. The requirement for at least one key personnel of the key investment team of manager of AIF to obtain the aforesaid certification, shall be applicable as an eligibility criterion to all the applications for registration of AIFs and launch of schemes by AIFs filed after May 10, 2024.

3.2. Further, the aforesaid requirement of obtaining the certification shall be complied with on or before May 09, 2025, for the following-

(i) Existing schemes of AIFs; and,

(ii) Schemes of AIFs whose application for launch of scheme pending with SEBI as on May 10, 2024.

4. The trustee/sponsor of AIF, as the case may be, shall ensure that the 'Compliance Test Report' prepared by the manager in terms of para 15.2 of SEBI Master Circular No. SEBI/HO/AFD-1/AFD-1-PoD/P/CIR/2024/39 dated May 07, 2024, includes compliance with the provisions of this circular.

5. The provisions of this circular shall come into force with immediate effect.

6. This circular is issued with the approval of the competent authority.

7. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Tags : Certification Requirement Alternative Investment Funds

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Press Information Bureau

13.05.2024

Civil

EPFO expands 'Ease of Living by reducing service delivery time for claim settlement

MANU/PIBU/0381/2024

For enhancing ease of living for its crores of members, EPFO has now introduced auto-mode settlement of advance claims for the purpose of education & marriage and housing. EPFO has introduced an Auto Claim Solution where in claim is processed automatically by IT system without any human intervention.

Auto mode of claim settlement was introduced in April, 2020 for the purpose of advance for illness. Now this limit has been enhanced to Rs.1,00,000. During the current year, around 2.25 crore members are expected to reap the benefits of this facility.

During the financial year 2023-24, EPFO settled around 4.45 crore claims, out of which more than 60% (2.84 crore) claims were advance claims. Out of total advance claims settled during the year, around 89.52 lakh claims were settled using auto-mode.

To facilitate "Ease of living", the auto claim solution has now been extended for all claims under para 68K (education & marriage purpose) and 68B (housing purpose) of EPF Scheme, 1952. In addition, the limit has been doubled from earlier Rs. 50,000/- to Rs.1,00,000/-. This move is expected to benefit lakhs of EPFO members.

The entire process in auto-settlement is IT system driven, eliminating human intervention. Any claim with KYC, eligibility and bank validation is processed for payment by IT tools automatically. As a result of this, the periodicity of claim settlement is reduced significantly from 10 days to within 3-4 days for such advances. The claim that are not validated by system are not returned or rejected. They are further, undertaken for second level of scrutiny and approvals.

The expansion of the scope of the auto claims to the housing, marriage and education purposes as well as enhancement will directly help many members to avail their funds within the shortest possible duration, which will substantially aid them in promptly meeting their education, marriage, or housing requirements.Introduced on 6th May 2024 pan India and since then EPFO has approved 13,011 cases for Rs. 45.95 crores vide this initiative providing speedy service.

Tags : EPFO Expansion Claim settlement

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