CORPORATE LAW UPDATES CIRCULAR NO. SEBI/HO/MIRSD/MIRSD_RTAMB/P /CIR/2021/655, DATED 03-11-2021
SEBI eases norms for processing investor service request by RTAs
Editorial Note: To enhance the ease of doing business for investors, the SEBI has decided to simplify norms for processing investor’s service request by RTAs. While responding to queries, complaints, and service requests through hard copies and digitally, the RTA shall also process the same received through the e-mail address of the holder which is already registered with the RTA and the documents furnished shall have e-sign of the holder(s)/claimant(s). The new framework will come into effect from Jan 1, 2021.
CIRCULAR NO. SEBI/LAD-NRO/GN/2021/56, DATED 09-11-2021
SEBI amends mutual funds norms to include silver related instruments and real estate assets in Mutual Fund Schemes
Editorial Note: The SEBI has amended the Mutual Fund regulations in order to include silver or silver related instruments, and real estate assets in definition of mutual fund. In case of a silver exchange traded fund scheme, the assets of the scheme being silver or silver related instruments may be kept in the custody of a custodian registered with the Board. Moneys collected under any silver exchange traded fund scheme shall be invested only in silver or silver related instruments.
NOTIFICATION NO. SEBI/ LAD-NRO/GN/2021/57, DATED 09-11-2021
SEBI specifies norms co-investment under Alternative Investment Funds Regulations, 2021
Editorial Note: The market regulator, SEBI has notified the Securities and Exchange Board of India (Alternative Investment Funds) (Fifth Amendment) Regulations, 2021 whereby new clause has been inserted in clause 2 in relation to co-investment made by investors of Alternative Investment Funds. The terms of Co-investment in an investee company by a Manager or Sponsor or co-investor, shall not be more favourable than the terms of investment of the Alternative Investment Fund.
NOTIFICATION NO. SEBI/LAD-NRO/GN/2021/55, DATED 09-11-2021
Any person holding more than 10% or more equity shares will be deemed as related party w.e.f. April 1, 2023
Editorial Note: The SEBI has amended the Listing Obligations and Disclosure Requirements Regulations, 2015 whereby the scope and definition of related party has been extended. The amendment states that any person or any entity, holding equity shares of twenty per
cent or more; or of ten per cent or more, with effect from April 1, 2023; in the listed entity at any time, during the immediate preceding financial year; shall be deemed to be a related party.
NOTIFICATION NO. G.S.R. 785 (E), DATED 09-11-2021
MCA relaxes norms relating to transmission of securities; issues revised Form IEPF-5
Editorial Note: The MCA notifies the IEPF Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2021. Amendment has been made to Schedule II which prescribes documents to be submitted to authority to register transmission of securities. Threshold limit for value of securities has been increased from Rs. 2 lakhs to Rs. 5 lakhs where documents such as succession certificate/probate of will / court
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decree and Indemnity bond is required to be submitted to authority to register transmission.
PRESS RELEASE, DATED 12-11-2021
MCA and IEPFA further simplifies IEPFA claim settlement process towards ease of doing business in India
Editorial Note: In a major step towards the mission of Ease of Living and Ease of Doing Business, MCA has further simplified claim settlement process through rationalization of various requirements under IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. For claimants, requirement of Advance Receipt has been waived off, requirement of Succession Certificate/ Probate of Will/ Will has been relaxed up to Rs 5,00,000 (five lakh) both for Physical & DEMAT shares.
LETTER REF NO. SEBI/HO/IMD/DF1/OW/P/2021/324 11/1, DATED 12-11-2021
SEBI registered investment adviser can’t provide services of creating or rebalancing ‘basket of foreign securities’, clarifies SEBI
Editorial Note: The securities market regulator, SEBI in an interpretative letter as clarified that services of creation or rebalancing of foreign stacks by a SEBI registered Investment adviser doesn’t come under purview of SEBI (Investment advisers) regulations, and therefore, can’t provide services of an creating or rebalancing of stacks in capacity of an Investment adviser.
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