India - Capital Markets Snapshots.

Legal News & Analysis – Asia Pacific - India - Capital Markets

20 January, 2020

 

  • Amendment to SEBI Credit Rating Agencies Regulations

    On September 23, 2019, the Securities and Exchange Board of India (‘SEBI’) notified amendments to the SEBI (Credit Rating Agencies) Regulations, 1999 (‘CRA Regulations’). Previously, clients were required to “agree to” (i) periodic review of the rating by the credit rating agency (‘CRA’) during the tenure of the rated...

 

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  • Process of Public Issue of Equity Shares and Convertibles - Extension of Time for Phase II of UPI with ASBA

    SEBI had, through circular dated November 1, 2018, introduced the use of Unified Payments Interface (‘UPI’) as a payment mechanism with Application Supported by Blocked Amount (‘ASBA’) for applications in public issues by retail individual investors (‘RII’) through intermediaries with effect from January 1, 2019 (which is being implemented in a phased manner)...

 

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  • Disclosures of Divergences in Asset Classification by Listed Banks

    Previously, listed banks were required to make disclosures of divergences in asset classification and provisioning beyond specified thresholds, as part of the annual financial statements. By way of circular dated October 31, 2019, SEBI has now mandated that such disclosures be made not later than 24 hours of receipt of the RBI final risk assessment report...

 

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  • SEBI Issues New FAQs on Insider Trading Regulations

    On November 4, 2019, SEBI issued ‘Frequently Asked Questions’ on the SEBI (Prohibition of Insider Trading) Regulations, 2015 (‘PIT Regulations’), which clarify the following:
     
    i. Trading window and pre-clearance requirements do not apply to exercise of employee stock options issued under SEBI...

 

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  • Decisions Approved by SEBI in its Board Meeting

    SEBI, in its board meeting held on November 20, 2019, inter alia approved that the SEBI (Portfolio Managers) Regulations, 2019 replace the SEBI (Portfolio Managers) Regulations, 1993 pursuant to comments received through a consultative paper, from the public and the working group constituted to review the extant regulations...

 

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  • Disclosures by Listed Entities of Default on Loans and Unlisted Debt Securities

    SEBI, by way of circular dated November 21, 2019, has prescribed additional disclosure requirements for listed entities that have listed equity or convertible securities, non-convertible debentures or non-convertible redeemable preference shares...

 

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  • SEBI (Issue of Capital and Disclosure Requirements) (Sixth Amendment) Regulations, 2019

    The key amendments notified by SEBI on December 26, 2019 to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 are as follows:
     
    i. Disclosure: The process of credit of rights entitlements in the demat account and renunciation are required to be disclosed in the letter of offer and abridged letter of offer...

 

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  • Measures to strengthen the conduct of Investment Advisers

    With a view to strengthen the conduct of investment advisers (‘IAs’) governed by the SEBI (Investment Advisers) Regulations, 2013 (‘IA Regulations’), SEBI has, by way of a circular dated December 27, 2019, issued the following measures to be complied with by IAs with effect from January 1, 2020...

 

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  • Management and advisory services by AMCs to Foreign Portfolio Investors

    The SEBI (Mutual Fund) Regulations, 1996 inter alia permit AMCs to provide management and advisory services to certain categories of foreign portfolio investors (‘FPI’). By way of circular dated December 16, 2019, SEBI has now, with immediate effect, specified the following categories of FPIs for the purposes of this regulation...

 

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  • Introduction of a Stewardship Code for Institutional Investors

    SEBI has, by way of circular dated December 24, 2019, introduced a Stewardship Code (‘Code’) to be followed by all mutual funds and all categories of alternative investment funds, in relation to their investment in listed equities, with effect from April 1, 2020. The Code lays out the following key principles that are required to be followed by the institutional investors...

 

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  • Guidelines for Preferential Issue / Institutional Placement of Listed Units of REITs /InvITs

    The key conditions prescribed by SEBI, by way of circular dated November 27, 2019, under the guidelines for preferential issue and institutional placement of units of Real Estate Investment Trusts (‘REITs’) and Infrastructure Investment Trusts...

 

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For further information, please contact:

 

Zia Mody, Partner, AZB & Partners

zia.mody@azbpartners.com