BFSI and Capital Market
CA Rohit Patoria, CA Manoj Alimchandani,
CA Vijay Mullaji
Sebi moves to curb inflows into small & midcap funds
According to a report, SEBI, has asked money managers to:
-
Limit investments in small- and mid-cap stock mutual funds
-
Reduce commissions
-
Consider restricting one-off investments from clients
-
Require small- and mid-cap funds to make additional risk disclosure to their investors
The move aims to reduce potential risks to the financial system and curb the surging inflows into these funds.
Read more at:
Sebi asks companies for accurate details on end use of IPO funds
SEBI did an analysis of several IPO offer documents and found that the majority had stated repayment of debt as the primary objective for raising fresh capital. This prompted the regulator to dig deeper into the reasons why fresh capital was being raised.
The companies cannot be vague about the objects of the issue and SEBI wants adequate details and some comfort level on how the fresh capital will be spent more specifically how the proceeds will be utilised.
SEBI also has the right to ask the company to change the objects of the issue, which will require fresh shareholder approval.
Read more at:
https://www.sebi.gov.in/sebi_data/commondocs/subsection1_p.pdf
MeitY amends IT rules: Surveillance data to be deleted within 6 months
The new rules apply to all cases where no significant outcome is gathered from surveillance, unless the records are needed for ongoing investigations.
The government has amended the Information Technology (Procedure and Safeguards for Interception, Monitoring and Decryption of Information) Rules to give the Union and the State home secretary the power to order deletion of the order for interception, monitoring or decryption and the actual information of a person under surveillance after six months.
Previously, the power to delete surveillance records rested solely with the security agency responsible for the surveillance, whether authorised by the home ministry or a competent court.
Read more at:
CCI proposes changes in confidentiality ring system to speed up proceedings
The Competition Commission of India (CCI) proposed changes to its confidentiality information sharing regulations.
The CCI is proposing to change its “confidentiality ring” regime, which provides access to confidential information to authorized persons.
The CCI is proposing that parties seeking confidentiality must provide cogent reasons and self-certify that making the information public could result in trade secrets being disclosed or commercial value being reduced.
The CCI is proposing changes to regulations regarding confidential information handling in its proceedings to facilitate fair access to confidential documents during investigations
The purpose behind this change is to streamline the processes and prevent any delays in disposal of cases.
The CCI’s “confidentiality ring” concept was introduced in April 2022 to allow parties involved in a case to access confidential information of other parties and defend themselves effectively.
Read more at:
RBI tweaks norms related to Regulatory Sandbox scheme
The Reserve Bank of India (RBI) recently updated its Regulatory Sandbox (RS) framework. The RS is a tool that allows for more dynamic and evidence-based regulatory environments. The goal of the RS is to promote responsible innovation in financial services, increase efficiency, and benefit consumers.
The timelines of the various stages of the Regulatory Sandbox process have been revised from 7 months to 9 months.
Also, the updated framework requires sandbox entities to ensure compliance with provisions of the Digital Personal Data Protection Act, 2023.
Read more at:
India’s AI market to reach $17bn by 2027: Nasscom-BCG
According to a report by Nasscom and the Boston Consulting Group India’s AI market is expected to reach $17 billion by 2027, growing at a CAGR of 25%.
With a high talent base and skilled AI talent, the demand or AI in India is growing, leading to the expansion of tech companies and the creation of new industry standards.
Read more at:
India set to standardise ‘know your customer’ banking checks
India’s financial stability panel plans to roll out a uniform approach to verifying customers across the financial sector and prevent illegal lending based on online applications
India’s financial stability panel aims to standardize customer verification processes across the financial sector to curb illegal lending through online applications. The plan, discussed at a meeting of the Financial Stability and Development Council, seeks to ensure uniformity in Know Your Customer (KYC) norms. This move follows regulatory action against Paytm Payments Bank for non-compliance. The panel also addressed measures to prevent the negative impacts of illegal online lending apps, which have surged during the COVID-19 pandemic.
Read more at: