CORPORATE LAW UPDATES
CIRCULAR NO. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/698, DATED 22-12-2021
SEBI restores validity period of observation letter for launching new fund offers
Editorial Note: Based on consultation with stakeholders, the SEBI has decided to restore the validity period of observation letter issued by SEBI to six months for launching of New Fund Offers (NFOs). Earlier, SEBI vide. Circular SEBI/HO/IMD/DF3/CIR/P/2 dated March 23, 2020, had extended the validity period of observation letter issued by SEBI for launch of all NFOs from six months to one year from the date of SEBI letter. This circular shall come into force with immediate effect.
CIRCULAR NO. SEBI/HO/DDHS/DDHS_DIV2/P/CIR/2021/697, DATED 22-12-2021
SEBI permits InVITs & REITs to conduct unitholders’ AGM and other meetings virtually till June 30, 2022
Editorial Note: Based on representations from REITs/InvITs, SEBI has decided to extend the facility to conduct annual meetings and other meetings of unit holders through VC/OAVM till June 30, 2022. Earlier, SEBI vide circular no. SEBI/HO/DDHS/DDHS/CIR/P/2021/21 dated February 26, 2021 permitted REITs/InvITs to conduct annual meetings of unit holders through VC/OAVM till December 31, 2021 and other meetings of unit holders through VC/OAVM till June 30, 2021.
REGULATION 23 OF THE SEBI (VENTURE CAPITAL FUNDS), REGULATIONS 1996 – WINDING UP
Where appellants decided to wind up scheme launched under VCF regulations as per regulation 23, however, more than 5 years had elapsed and admittedly entire proceeds had not been distributed to investors, nor scheme had been wound up, therefore, there being failure on part of appellant to perform obligations under regulation 24(2) read with regulation 23(1)(2A)
of VCF regulations, impugned order passed by Adjudicating Officer imposing penalty on appellant was justified – Cinema Capital Advisory (P.) Ltd. v. Securities and Exchange Board of India – [2021] 133 taxmann.com 209 (SAT – Mumbai)
CIRCULAR NO. SEBI/HO/IMD/IMD-I/DOF1/P/CIR/2021/0000000679, DATED 10-12-2021
SEBI issues clarification w.r.t. to amendments to SEBI (Portfolio Managers) Regulations, 2020
Editorial Note: The SEBI has issued clarification w.r.t the amendments to the SEBI (Portfolio Managers) Regulations, 2021. SEBI has clarified that Portfolio Managers shall have to submit a monthly report regarding their portfolio management activity on the SEBI Intermediaries Portal within 7 working days of the end of each month which includes details of Co-investment offered by the Portfolio Manager. Portfolio Managers shall also furnish such reports to their clients every quarter.
CIRCULAR NO. SEBI/HO/IMD/IMD-I/DOF9/P/CIR/2021/682, DATED 10-12-2021
SEBI directs AIFs to publish Investor Charter and disclose data on complaints on their websites
Editorial Note: With a view to providing relevant information to investors about the various activities pertaining to AIFs, the SEBI has prepared an Investor Charter (IC) for AIFs. IC is a brief document containing details of services provided to investors, details of grievance redressal mechanism, etc., at one single place. SEBI has also directed all AIFs to disclose on their website’s details of the complaints latest by 7th of succeeding month. The provisions shall come into effect from Jan 01, 2022.
CIRCULAR NO. SEBI/HO/IMD/DF2/CIR/P/2021/683, DATED 10-12-2021
SEBI extends the date of implementation of Risk Management Framework (RMF) for Mutual Funds to April 01, 2022
Editorial Note: The SEBI, on the request received from Association of Mutual Funds in India (AMFI), has decided to extend the date of implementation of Risk Management Framework to April 01, 2022 which was to be effective from January 01, 2022. Also, SEBI specified norms for investment in Bills Re Discounting Scheme as well as guidelines on usage of pool accounts by mutual funds.
GENERAL CIRCULAR NO. 20/2021, DATED 08-12-2021
MCA allows Cos. to conduct EGMs via video conference/other audio visual means up to June 30, 2022
Editorial Note: The MCA has decided to allow companies to convene and conduct EGM through video conferencing or other audio-visual means or transact through postal ballot in accordance with framework up to June 30, 2022. Earlier, vide. General Circular no. 10/2021 Dated 23-06-2021, the MCA had allowed companies to conduct EGM via video conferencing or other audio-visual means or transact through postal ballot up to Dec 31, 2021.
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