Introduction

Edition 15/21-22

Week – July 12th to July 16th

Quote for the week:

“Innovation distinguishes between a leader and a follower.”   

  -Steve Jobs

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 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”), SEBI, High Court and Supreme Court.

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

• SEBI issues Circular on valuation of securities with multiple put options present ab-initio.
• International Financial Services Centres Authority (“IFSCA”) provides a new framework for setting up of International Trade Financing Services Platform (“ITFS”)
• IBBI amends IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

We have prepared a comprehensive summary for quick reference of the aforesaid updates and Judgements / orders issued during the week of July 12, 2021 to July 16, 2021.

Thank you,

Swift team

Table of Contents

REGULATORY UPDATES

SEBI UPDATES

1. SEBI issues Circular on valuation of securities with multiple put options present ab-initio
2. SEBI issues clarifications with respect to Block Mechanism in demat account of clients undertaking sale transactions vide Circular dated July 16, 2021
3. SEBI introduces Expected Loss (“EL”) based Rating Scale and Standardisation of Rating Scales Used by Credit Rating Agencies vide Circular dated July 16, 2021

IFSCA UPDATES

1. IFSCA provides a new framework for setting up of ITFS

IBBI UPDATES

1. IBBI amends IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 vide Gazette Notification dated July 14, 2021

JUDGEMENTS/ ORDERS

NCLT

1. National Company Law Tribunal Initiates Corporate Insolvency Resolution Process (“CIRP”) against M/s. Gammon Engineers and Contractors Private Limited

SEBI

1. SEBI grant exemption to the acquirer from public announcement of an open offer for acquiring substantial and indirect acquisition of shares or control

HIGH COURT

1. Delhi High Court held that no party can be permitted to unilaterally appoint an Arbitrator, as the same would defeat the purpose of unbiased adjudication of dispute between the parties
2. Delhi International Arbitration Centre (DIAC) was appointed to arbitrate dispute between Delhivery and SS Supply Chain Solutions

SUPREME COURT

1. The constitutional validity of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, challenged