The weekly messenger | Edition 33.22

Regulatory News

Companies (Registered Valuers and Valuation) Amendments Rules, 2022 – 21 November 2022

The Ministry of Corporate Affairs (MCA) has issued the Companies (Registered Valuers and Valuation) Amendment Rules, 2022, wherein the following key amendments have been notified:

• In clause (c) of sub-rule (2) of Rule 3 ‘Eligibility for registered valuers’, the word ‘ineligible’ has been substituted with the word ‘eligible’.

• Every partnership entity or a company shall be eligible to be a registered valuer only if it is a member of a registered valuers organization.

• Following new rules have been inserted:

-      Rule 7A ‘Intimation of changes in personal details etc., by registered valuer to authority’;

-      Rule 14A. ‘Intimation of changes in the composition of governing board, etc. by the registered valuers organisations to the authority’.

These Regulations shall come into force w.e.f. 23 November 2022. 

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Reporting of trades in Non-convertible Securities – Chapter XVI of Operational Circular issued under SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 – 24 November 2022

The Securities and Exchange Board of India (SEBI) vide its Circular dated 10 August 2021 had prescribed the requirements w.r.t. operational and other aspects relating to the issue and listing of Non-convertible Securities, which also contains provisions relating to reporting, clearing and settlement of OTC trades by all person(s) dealing in non-convertible securities.

Considering the incompleteness and/or inaccuracy of the information on OTC trades in listed Non-convertible Securities being provided to the Stock Exchange(s) by the investors, the SEBI has issued a standardized format which is to be used for reporting of such trades.

The provisions of this Circular shall come into force w.e.f. 1 January 2023.

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Basel III Framework on Liquidity Standards – Standing Deposit Facility – 23 November 2022

The Reserve Bank of India (RBI) has issued a notification on ‘Basel III Framework on Liquidity Standards – Standing Deposit Facility (SDF)’, wherein it has advised that the overnight balances held by banks with RBI under SDF shall be eligible as ‘Level 1 High Quality Liquid Assets (HQLA)’ for the purpose of computation of Liquidity Coverage Ratio (LCR).

This circular would be applicable to all Commercial Banks (excluding Local Area Banks, Regional Rural Banks and Payments Banks) and these instructions shall come into force with immediate effect.

For more information, click here.