17 June 2024

Notifications & Circulars

Press Information Bureau



NHAI Unveils New Corporate Identity of National Highways Infra Trust


NHAI has unveiled a new corporate identity with the launch of a logo of its infrastructure Investment Trust, National Highways Infra Trust (NHIT). Depicting 'Agility' and 'Progress', launch of new corporate identity marks a significant milestone in NHIT's evolution. The new logo aims to bolster NHIT brand visibility with various stakeholders and align its image with its core values of Accountability, Agility, Continuous Learning, Excellence, Integrity and Collaboration. NHAI Chairman, Shri Santosh Kumar Yadav, unveiled the new logo of NHIT at NHAI Headquarter in New Delhi yesterday, in presence of senior officials from NHAI and NHIT.

NHIT was registered as a trust with SEBI in October 2020, to support the Government of India's National Monetization Pipeline (NMP). With the completion of three rounds of monetization, the total realized value of all three rounds performed by NHIT stands at Rs. 26,125 crore.

NHIT today has 190 investors and over 12,000 retail bond holders of its Non-Convertible Debentures. It operates a diversified portfolio of fifteen toll roads with an aggregate length of approximately 1,525 kilometres, spread across nine states of Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttar Pradesh and West Bengal.

Historically, units of NHIT were issued for Rs. 101 per unit in November 2021 and listed on both the BSE and the NSE. The Net Asset Value ("NAV") of NHIT as on March 31, 2024 is Rs.124.75 per unit. Under the NMP for FY 2024- 25, NHAI intends to monetize projects worth Rs. 15,000 - 20,000 crore through NHIT.

The new corporate identity will help NHIT to establish itself as a leading player in the InvIT space, playing a critical role in channelizing financial capital for further development of National Highway network across the country.

Tags : Corporate Identity NHAI NHIT

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Insurance Regulatory and Development Authority



Reforms in General Insurance Business


As part of reforms in the general insurance business especially post de-notification of all the tariffs and policy wordings, ushering a new era of measures for simplified and customer-centric insurance solutions towards seamless customer experience and ease of operations for the Insurers in a calibrated manner, the Insurance Regulatory and Development Authority of India (IRDAI) has issued a comprehensive Master Circular on General Insurance Business repealing thirteen circulars.

Provision of easy-to-understand insurance products tailored to meet individual needs of the customers, providing them with ample choices and enhancing their insurance experience has now been enabled. The shift from rule based to principle-based regulatory framework facilitates ease of doing business and encourages innovation, enabling reduction in the response time for emerging market needs.

Key Highlights of the Master Circular:

For ready reference, retail customers are provided with important and relevant information at one place.

Customer Centric measures:

• Availability of wider choices of products/add-ons covering his/her assets, risks, properties, liabilities against various perils, exposures and lines of business

• Possibility of customization of products and flexibility to choose products as per their needs.

• Introduction of a Customer Information Sheet (CIS) to provide clear and concise policy details including scope of coverage, exclusions, warranties, and claim settlement processes

• No claim shall be rejected for want of documents. Required documents to be called at the time of underwriting the proposal. The customer may be asked to submit only those documents necessary and related to claim settlement (if cashless is not available)

• Retail customer can cancel the policy anytime by informing the insurer. Insurer can cancel the policy only on grounds of established fraud. The insurer shall refund proportionate premium for the unexpired policy period on cancellation.

• Strict timelines for settlement of Claims including TATs for appointment of surveyors and submission of their reports. It will be the duty of insurer to obtain timely survey reports.

• No contribution clause to be applied in case of multiple policies.

• Additional options of "pay as you drive"/ "pay as you go" to be given as first choice to the customer in motor insurance

• No burden on customer for disposal of salvage. Policyholder to be paid the claim amount. Collection of salvage from the customer is insurer's responsibility.

• Homeowners "fire" policy to have an option to choose add-on covers such as flood, cyclone, earthquake, landslide, rockslide, terrorism or to opt out from comprehensive fire and allied peril policy.

Calibration and governance measures

In an environment which enables innovation, speed of delivery and flexibility of operations, it is imperative that the policyholders' interest is safeguarded at all times. Broad principles for compliance by the insurers include:

• Board's oversight and Governance mechanism to be strengthened for various stages of insurance contract from product development, sales and servicing of the policies.

• Suitability and affordability of customers to be considered in product development avoiding unnecessary and superfluous coverages

• Pricing of products to factor risk exposure, experience and expenses such that the premium rates are not excessive or inadequate or unfairly discriminatory.

• Efforts to be made to incorporate in the product design proper management of underlying risks towards prevention and mitigation in the product design

• Steps to ensure no unprincipled rate cutting and improper underwriting practices

• Tech enabled processes providing end-to-end technology solutions to ensure seamless onboarding, policy servicing, renewal, claim settlement, and grievance redressal.

• To ensure equitable and fair opportunities to the surveyors and loss assessors, work allocation to be done on a random basis in an automated manner without human intervention through a tech based solution to be developed by General Insurance Council in association with IIISLA

Review and reforms to enhance the insurance experience for all stakeholders is a continuous process. A regulatory environment which empowers the policyholders by bringing about transparency and fair treatment; empowers the stakeholders with ease of operations and facilitate quick adaptation to changing market dynamics is a significant step towards achieving a more inclusive, transparent and efficient insurance sector in India.

Tags : Reforms Business

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Reserve Bank of India



Premature redemption under Sovereign Gold Bond (SGB)


1. In terms of GOI Notification F.No.4(25) - W&M/2017 dated October 06, 2017 (SGB 2017-18 Series XI-Issue date December 11, 2017) and in terms of GOI Notification F.No.4(7) - B(W&M)/2019 dated May 30, 2019 (SGB 2019-20 Series I-Issue date June 11, 2019) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the next due date of premature redemption of the above tranches shall be on June 11, 2024.

2. Further, the redemption price of SGB shall be based on simple average of closing gold price of 999 purity of previous three business days from the date of redemption as published by the India Bullion and Jewellers Association Ltd (IBJA). Accordingly, the redemption price for premature redemption due on June 11, 2024, shall be ₹7195/- (Rupees Seven thousand one hundred and ninety-five only) per unit of SGB based on the simple average of closing gold price for the three business days i.e., June 06, June 07, and June 10, 2024.

Tags : Price redemption SGB Scheme

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Ministry of Finance 



Effective date for deposits under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance


It is hereby notified that the deposits made under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance (Department of Economic Affairs) Notification No.F.16(1)-PD/75 dated 30th June, 1975, shall with effect from 1st April, 2024 to 30th June, 2024 bear interest at 7.1% (Seven point one percent). This rate will be in force w.e.f. 1st April, 2024.

Tags : Effective date Deposits Scheme

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Reserve Bank of India



RBI imposes monetary penalty on The Prakasam District Co-operative Central Bank Ltd, Ongole, Andhra Pradesh


The Reserve Bank of India (RBI) has, by an order dated June 05, 2024, imposed a monetary penalty of ₹50,000/- (Rupees Fifty thousand only) on The Prakasam District Co-operative Central Bank Ltd, Ongole, Andhra Pradesh (the bank) for non-compliance with the directions issued by the National Bank for Agriculture and Rural Development (NABARD) on 'Frauds - Guidelines for Classification, Reporting and Monitoring'. 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 NABARD with reference to its financial position as on March 31, 2023. Based on supervisory findings of non-compliance with NABARD 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 direction. 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 delay in reporting of fraud to NABARD 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


Capital Market

Circular regarding submission of 'choice of nomination' for demat accounts


1. SEBI, vide circular no. SEBI/HO/MIRSD/POD-1/CIR/2023/193 dated December 27, 2023 extended the last date for submission of 'choice of nomination' for demat accounts and mutual fund folios to June 30, 2024 failing which demat accounts/folios shall be frozen for debits.

2. Further, as provided in Master Circular for RTAs dated May 07, 2024, the security holders holding securities in physical form whose folio(s) do not have PAN, Choice of Nomination, Contact Details, Bank Account Details and Specimen Signature updated, shall be eligible:

2.1. to lodge grievance or avail any service request from the RTA only after furnishing PAN, KYC details and Nomination.

2.2. for any payment including dividend, interest or redemption payment in respect of such folios, only through electronic mode with effect from April 01, 2024. An intimation shall be sent by the Listed Company to the security holder that such payment is due and shall be made electronically only upon complying with the above requirements.

3. Based on representations received from the market participants, for ease of compliance and investor convenience, the following has been decided for existing investors/ unit holders:

3.1. Non-submission of 'choice of nomination' shall not result in freezing of Demat Accounts as well as Mutual Fund Folios.

3.2. Securityholders holding securities in physical form shall be eligible for receipt of any payment including dividend, interest or redemption payment as well as to lodge grievance or avail any service request from the RTA even if 'choice of nomination' is not submitted by these security holders.

3.3. Payments including dividend, interest or redemption payment withheld presently by the Listed Companies/RTAs, only for want of 'choice of nomination' shall be processed accordingly.

4. Notwithstanding the above, all new investors/unitholders shall continue to be required to mandatorily provide the 'Choice of Nomination' for demat accounts/MF Folios (except for jointly held Demat Accounts and Mutual Fund Folios).

5. All existing investors/unitholders are encouraged, in their own interest, to provide 'choice of nomination' for ensuring smooth transmission of securities held by them as well as to prevent accumulation of unclaimed assets in securities market. The formats for providing Nomination and Opting-out of Nomination both in case of Demat Account and MF Folios are provided at Annexure-A and Annexure-B respectively of this circular.

6. In case of demat accounts, Depository Participants and in case of mutual fund folios, AMCs and RTAs shall encourage the demat account holders/mutual fund unit holders to update 'choice of nomination' by sending a communication on fortnightly basis by way of emails and SMS to all such demat account holders/mutual fund unit holders who have not provided the 'choice of nomination'. The communication shall provide guidance for demat account holders/mutual fund unit holders to provide 'choice of nomination'.

7. Further, to encourage the existing investors to provide 'choice of nomination', a pop- up shall be provided on web/mobile application/platform to the investors by Depositories and Depository Participants while logging into the Demat Account and by AMCs (including MF RTAs, other platforms providing online execution services) while logging into their MF account. This pop-up may be shown only to those clients whose MF Folios/demat account(s) do not have 'choice of nomination'.

8. The provisions of this circular, except clause 7 above, shall come into effect immediately in supersession of existing provisions. Further, Clause 7 of this circular shall be applicable from October 01, 2024.

9. Stock Exchanges, Depositories, AMCs, RTAs and Listed Companies are further advised to:

a) take necessary steps to implement the provisions of this circular, including making necessary amendment to the relevant bye-laws/business rules/regulations/operational instructions, as the case may be;

b) bring the provisions of this circular to the notice of their respective constituents and also disseminate this circular on their websites;

c) communicate to SEBI, the status of the implementation of the provisions of this circular; and

d) monitor the compliance of this circular.

10. All other provisions related to requirement of Nomination as provided in SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 for Mutual Funds, SEBI Master Circular No. SEBI/HO/MRD/MRD-PoD- 2/P/CIR/2023/166 dated October 06, 2023 for Depositories and SEBI Master Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 dated May 07, 2024 for RTAs shall remain unchanged.

11. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Section 19 of the Depositories Act, 1996 and Regulation 77 of SEBI (Mutual Funds) Regulations, 1996 and SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Tags : Nomination Choice Demat accounts

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