The weekly messenger | Edition 41.20

REGULATORY NEWS

Introduction of UPI mechanism and Application through Online interface and Streamlining the process of Public issues of securities under – SEBI (Issue and Listing of Debt Securities) Regulations, 2008, SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013, SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008 and SEBI (Issue and Listing of Municipal Debt Securities Regulations, 2015)  - 23 November 2020
 
The Securities and Exchange Board of India (SEBI) vide its Circular dated 16 August 2018, had laid down the process for payment for applications in public issue of debt securities through the facility of Application Supported by Blocked Amount (ASBA). Now after consulting the various stakeholders, the SEBI has decided to the following modes in addition to the already specified modes under the ASBA circular:

• Providing an option to investors to apply in public issues of debt securities through the app / web interface of Stock Exchange(s) with a facility to block funds through Unified Payments Interface (UPI) mechanism for application value up to Rs. 2 Lac;
• Permitting the UPI mechanism to block funds for application value up to Rs. 2 Lac submitted through intermediaries (Syndicate members, Registered Stock Brokers, Registrar and Transfer agent and Depository Participants).

The provisions of this circular shall be applicable to a public issue of securities under the captioned Regulations which opens on or after 1 January 2021. Stock Exchanges, PCI, Sponsor Banks and Self Certified Syndicate Banks shall make required changes to implement the same from 1 January 2021.  Further, SEBI Circular dated 27 July 2012 shall stand repealed from that date.
 
For more information, click here.
 
IRDAI (Minimum Information Required for Investigation and Inspection) Regulations, 2020 – 23 November 2020
 
The Insurance Regulatory and Development Authority of India (IRDAI) has issued the IRDAI (Minimum Information Required for Investigation and Inspection) Regulations, 2020. The objective of these Regulations is to specify minimum information required to be maintained by insurer, intermediary or insurance intermediary, so as to enable the investigating officer to discharge satisfactorily his or her functions under section 33 of the Insurance Act, 1938.
 
These Regulations would be applicable to all Insurers and Intermediaries or Insurance Intermediaries, as defined under the Act or IRDA Act, 1999, for the purpose of investigation and inspection by the Authority.
 
These Regulations shall come into force after six months from the date of publication on the official Gazette of India which is 23 November 2020.
For more information, click here.