Transaction & Regulatory Advisory Services - June 2024

July 25, 2024

Transaction & Regulatory Advisory Services – June 2024

In this edition we have tried to bring to your notice, the latest amendments that followed in the month of June, 2024 issued by MCA, RBI and SEBI.

MCA UPDATE

MCA to roll out 9 more forms for statutory filing of forms on the V3 portal

The MCA is launching the third set of the company forms (MSME, BEN-2, MGT-6, IEPF-1, IEPF-1A, IEPF-2, IEPF-4, IEPF-5 and IEPF-5 e-verification report) from V2 portal to V3 Portal.

To read more:

Home (mca.gov.in)

RBI UPDATES

Foreign Exchange Management (Overseas Investment) Directions, 2022 – Investments in Overseas Funds

The Reserve Bank of India (RBI), vide the circular dated June 04, has made some amendments in the Foreign Exchange Management (Overseas Investment) Directions, 2022 – Investments in Overseas Funds. As per the circular, ‘investment fund overseas, duly regulated’ for para 1(ix) (e) of FEM (OI) Directions, 2022 shall also include funds whose activities are regulated by financial sector regulator of host country or jurisdiction through a fund manager.

INSOLVENCY & BANKRUPTCY

Compliance relief proposed for insolvency professionals

In a bid to expedite the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC), the government is mulling to reduce compliance burden on insolvency professionals (IPs). In a discussion paper floated on Monday (10.06.2024), the Insolvency and Bankruptcy Board of India (IBBI) has proposed to streamline and reduce the number of CIRP forms filed by IPs by merging, dropping, and revamping certain forms. Currently, the timelines for filing various CIRP forms – nine in total – are linked to different events such as the insolvency commencement date, public announcement, appointment of RP, etc.

SEBI UPDATES

SEBI Board Meeting (June 27, 2024)

The SEBI Board met on June 27, 2024 where it, inter-alia, approved the following:

Proposal on association of persons regulated by the SEBI and the agents of such persons with other specified persons.
Introduction of Fixed Price process as an alternative to Reverse Book Building process (RBB) for delisting of companies whose shares are frequently traded.
Introduction of an alternate delisting framework for listed Investment Holding Companies (IHC) through scheme of arrangement by way of selective capital reduction.
Proposal to facilitate ease of doing business with respect to the additional disclosure framework for FPIs.
Proposal to streamline the public issue process for debt securities and Non-Convertible Redeemable Preference Shares to provide:
faster access to funds to issuers,
flexibility to issuer by providing discretion with regard to advertisement of public issue through electronic modes subject to a window advertisement (containing a QR Code and Link to full advertisement) in newspapers
harmonisation of the procedure by mandating UPI for individual investors where the investment is up to Rs Five lakhs.
Amendments to SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 pertaining to rationalization of disclosure requirements in the offer document for nonconvertible securities and modification in timeline of intimation to Stock Exchanges for listed Commercial Paper towards measures for ease of doing Business.
Measures to facilitate Ease ofDoing Business for Infrastructure Investment Trusts and Real Estate Investment Trusts.
Guidelines for borrowing by Category I and II AIFs (facilitating ease of doing business) and specifying of maximum permissible limit for extension of tenure by Large Value Funds.
Proposal to facilitate an optional mechanism for fee collection by SEBI registered Investment Advisers (IAs) and Research Analysts (RAs)
Parameters for independent external evaluation of performance of Market Infrastructure Institutions.
Cybersecurity and Cyber Resilience Framework (CSCRF) for SEBI Regulated Entities (REs).
Proposal to remove Financial Disincentive applicable on Managing Director and Chief Technology Officer of Market Infrastructure Institutions on account of Technical Glitch.
Review of eligibility criteria for entry/exit of stocks in derivatives segment.
Annual Report of SEBI.

To read more: https://www.sebi.gov.in/media-and-notifications/press-releases/jun-2024/sebi-boardmeeting_84448.html

Miscellaneous Laws

Master Circular on General Insurance Business (June 11, 2024)

Insurance Regulatory and Development Authority of India (IRDAI) on June 11, 2024 has issued master circular on IRDAI (Insurance Products) Regulation 2024- general Insurance. This master circular shall apply to every existing general insurance product and every add-on cover. It will also apply to the general insurance coverage section within a Package Product. The master circular shall not apply to health insurance products included within a package product.

Ministry of Commerce and Industry

Special Economic Zones (Fourth Amendment) Rules, 2024(June 20, 2024)

Central Government vide its Notification dated June 20, 2024 amended the Rule 18(4)(d) of the Special Economic Zones Rules, 2006. According to the amendment the reconditioning, repair and re-engineering may be permitted subject to the conditions that export shall have one to one correlation with imports and all the reconditioned or repaired or reengineered products shall be exported. Provided also that only nonhazardous metal and metal-alloy wastes in metallic, non-dispersible form having no contaminants enlisted against Basel No. B1010 in Part D of Schedule III of the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 generated from the reconditioning, repair or reengineering, may be allowed to be sold in the Domestic Tariff Area on payment of applicable customs duty and this shall be treated as import and will be permitted only to the actual user or to the trader for use of the actual users authorized by the State Pollution Control Board on one-time basis and subject to verification of documents specified in Schedule VIII of the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 by the Custom Authority.

Ministry of Consumer Affairs, Food & Public Distribution

Bureau of Indian Standards introduces two new standards to enhance Safety and Quality of Electric Vehicles in India (June 22, 2024)

The Bureau of Indian Standards (BIS) has introduced two new standards, IS 18590: 2024 and IS 18606: 2024, aimed at enhancing the safety of electric vehicles in the L, M, and N categories. These standards focus on the critical component of electric vehicles—the powertrain—ensuring it meets stringent safety requirements. Additionally, they emphasize the safety and performance of batteries, ensuring they are both powerful and secure. However, the shift to electric mobility extends beyond cars and trucks. E-rickshaws and E-Karts are gaining popularity across India. To address this, BIS has introduced IS 18294: 2023, which establishes safety standards specifically for these vehicles. These standards cover various aspects, from construction to functionality, ensuring the safety of both drivers and passengers. With these new standards, BIS has raised the bar, now having a total of 30 Indian Standards dedicated to electric vehicles and their accessories, including charging systems.

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