Introduction

Edition 04/21-22

Week – April 26th to April 30th

Quote for the week:

“Never discourage anyone... who continually makes progress, no matter how slow.” 

  - Plato

We welcome you to our weekly newsletter!

The ‘Swift e-Bulletin’ - weekly newsletter, covers all regulatory updates and critical judgements passed during the week. We hope that you liked our previous editions and found it to be of great value in its content. We want this newsletter to be valuable for you so, please share your feedback and suggestions to help us improve.

Further, various regulatory authorities have been proactive in bringing significant regulatory changes in recent challenging times. This week’s newsletter covers various Circulars/notifications issued by certain regulatory authorities such as the Securities and Exchange Board of India (“SEBI”), the Reserve Bank of India (“RBI”), the International Financial Services Centres Authority (“IFSCA”), and the Insolvency and Bankruptcy Board of India (“IBBI”) and critical judgements and orders passed by the National Company Law Tribunal (“NCLT”), National Company Law Appellate Tribunal (“NCLAT”) SEBI, Supreme Court and High Court.

The Regulatory authorities provided various updates/relaxations, some of which being:

1. SEBI grants relaxations from compliance with the SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015 (“LODR”)
2. Guidelines by RBI regarding Appointment of Statutory Central Auditors (“SCAs”)/Statutory Auditors (“SAs”) of Commercial Banks (excluding Regional Rural Banks (“RRBs”), Urban Co-operative Banks (“UCBs”) and Non-Banking Financial Company (“NBFCs”) (including Housing Finance Companies (“HFCs”)
3. IFSCA issues fee structure for Finance Company/Unit in the IFSCA;
4. IBBI amends the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016;

We have prepared a comprehensive summary for quick reference of the aforesaid updates and Judgements / orders issued during the week of April 26, 2021 to April 30, 2021.

Thank you,

Swift team

Table of Contents

REGULATORY UPDATES

SEBI UPDATES

1. SEBI standardizes and strengthens policies on Provisional Rating policies for Debt Instruments by Credit Rating Agencies (“CRAs”) vide Circular dated April 27, 2021
2. SEBI aligns the interest of Key Employees of the Asset Management Companies (“AMCs”) with the Unitholders of the Mutual Fund schemes vide Circular dated April 28, 2021
3.  SEBI amends disclosure requirements for portfolios and performance of the scheme vide Circular dated April 29, 2021
4. SEBI grants relaxations from compliance with the SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015 (“LODR”) due to the CoVID-19 pandemic vide Circular dated April 29, 2021
5. SEBI grants relaxations from compliance with certain provisions of the SEBI ((LODR) Regulations, 2015 / other applicable circulars due to the CoVID-19 pandemic vide Circular dated April 29, 2021
6. SEBI issues addendum to its Circular on “Relaxation in adherence to prescribed timelines issued by SEBI due to COVID 19” dated April 13, 2020 vide Circular dated April 29, 2021
7. SEBI relaxes timelines for compliance with regulatory requirements vide Circular dated April 29, 2021
8. SEBI modifies the timelines for updation of Scheme Information Document (“SID”) and Key Information Memorandum (“KIM”) vide Circular dated April 30, 2021

RBI UPDATES

1. RBI issues guidelines for Appointment of SCAs/SAs of Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs) vide Notification dated April 27, 2021

IFSCA UPDATES

1. IFSCA prescribes methods/framework for computation of regulatory capital for Finance Company’s (“FCs”) and Finance Units (“FUs”) vide Circular dated April 26, 2021
2. IFSCA issues guidelines for Banking Units (“BU”) offering Portfolio Management (“PMS”) and Investment Advisory Services (“IAS”) vide Circular dated April 26, 2021
3. IFSCA issues fee structure for Finance Company/Unit in the IFSCA vide Circular dated April 26, 2021

IBBI UPDATES

1. IBBI amends the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 vide Gazette Notification dated April 27, 2021
2. IBBI amends the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 vide Gazette Notification dated April 27, 2021

JUDGEMENTS/ ORDERS

NCLT

1. National Company Law Tribunal allows the Restoration of M/s Georgics Private Limited

NCLAT

1. NCLAT set aside the order of the NCLT, Hyderabad Bench and concluded that investigation into the affairs of the Company need to be passed under Section 210 (2) of the Companies Act, 2013

SEBI

1. SEBI imposesd penalty on Company Seretary and Director of the Company

HIGH COURT

1. Delhi High Court disposes of the applications related to trademark on ground that the use of trademark by the defendant will not create any confusion or deception in the minds of the general public

SUPREME COURT

1. Supreme Court dismisses the appeal filed by the Commissioner of Income Tax against Reliance Energy Limited in the capacity of the issue to the extent of deduction under Section 80-IA of the Income Tax Act, 1961