8-Apr-2022: Cabinet approves signing of Bilateral Memorandum of Understanding (MoU) between Securities and Exchange Board of India and Financial Regulatory Commission, Mongolia
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today has approved the proposal for signing a bilateral Memorandum of Understanding (MoU) between Securities and Exchange Board of India (SEBI) and Financial Regulatory Commission, Mongolia (FRC).
Major impact: FRC, like SEBI, is a co-signatory to International Organization of Securities Commissions’ Multilateral MoU (IOSCO MMoU). However, the IOSCO MMoU does not have under its scope the provision for technical assistance. The proposed bilateral MoU would, in addition to contributing towards strengthening the information sharing framework leading to effective enforcement of securities laws, also help in establishing a technical assistance programme. The technical assistance programme would benefit the Authorities by way of consultations on matters relating to capital markets, capacity building activities and training programmes for the staff.
Background: The Securities and Exchange Board of India (SEBI) was established under the Securities and Exchange Board of India Act, 1992 to regulate the securities markets in India. The objectives of the SEBI are to protect the interest of the investors and to regulate and promote development of securities markets in India. Clause (ib) under sub-section (2) of Section 11 of SEBI Act, 2002 empowers SEBI to call for information from, or furnishing information to, other authorities, whether in India or outside India, having functions similar to those of the Board, in the matters relating to the prevention or detection of violations in respect of securities laws, subject to the provisions of other laws. For furnishing any information to any authority outside India, SEBI may enter into an arrangement or agreement or understanding with such authority with the prior approval of the Central Government. In this backdrop, FRC has requested SEBI to sign a bilateral MoU for mutual cooperation and technical assistance. Until now, SEBI has signed 27 bilateral MoUs with capital market regulators of other countries.
Established in 2006, the Financial Regulatory Commission (FRC) is a parliamentary authority mandated to supervise and regulate the non-bank sector; including the insurance and securities markets, and participants of the microfinance sector. The FRC is responsible for providing stable and sound financial markets. The Commission exercises power over non-bank financial institutions, insurance companies and intermediaries, securities firms, and savings and credit cooperatives. At the same time, it ensures the rights of individual financial market clients (securities holders, domestic and foreign investors, and insurance policyholders) and protects against financial malpractices.
8-Jul-2020: SEBI signs MoU with CBDT
Securities and Exchange Board of India (SEBI) signed a Memorandum of Understanding (MoU) with Central Board of Direct Taxes (CBDT), Government of India, today, for data exchange between the two organizations.
The MoU was signed by Ms. Anu J Singh, Pr. DGIT(Systems), CBDT and Ms. Madhabi Puri Buch, Whole Time Member, SEBI in the presence of senior officers from both the organizations via video conference.
The MoU will facilitate the sharing of data and information between CBDT and SEBI on an automatic and regular basis. The MoU will ensure that both CBDT and SEBI have seamless linkage for data exchange.
In addition to regular exchange of data, CBDT and SEBI will also exchange with each other, on request and Suo moto basis, any information available in their respective databases, for the purpose of carrying out scrutiny, inspection, investigation and prosecution.
The MoU is an ongoing initiative of CBDT and SEBI, who are already collaborating through various existing mechanisms. A Data Exchange Steering Group has also been constituted for the initiative, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the data sharing mechanism. The MoU marks the beginning of enhanced cooperation and synergy between SEBI and CBDT. The MoU comes into force from today.
24-Jun-2020: Relaxations for Listed Companies having stressed assets
SEBI has decided to relax the pricing methodology for preferential issues by listed companies having stressed assets and exempt allottees of preferential issues from open offer obligations in such cases, with immediate effect.
Relaxations
- Eligible listed companies having stressed assets will be able to determine pricing of their preferential allotments at not less than the average of the weekly high and low of the volume weighted average prices of the related equity shares during the two weeks preceding the relevant date.
- Allottees of preferential issue in such eligible companies will be exempted from making an open offer if the acquisition is beyond the prescribed threshold or if the open offer is warranted due to change in control, in terms of Takeover Regulations.
Eligibility
A listed entity satisfying any two out of the following three conditions shall be considered as stressed and therefore be eligible for aforesaid relaxations:
- Any listed company that has made disclosure of defaults on payment of interest/ repayment of principal amount on loans from banks / financial institutions/ Systemically Important Non-Deposit taking Non-banking financial companies/ Deposit taking Non-banking financial companies and /or listed or unlisted debt securities in terms of SEBI Circular dated November 21, 2019, and such default is continuing for a period of at least 90 calendar days after occurrence of such default.
- Existence of Inter-creditor agreement in terms of Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions 2019 dated June 07, 2019.
- Downgrading of credit rating of the financial instruments (listed or unlisted), credit instruments / borrowings (listed or unlisted) of the listed company to “D”.
Other Conditions
Eligible listed companies shall also be required to comply with the following conditions to avail the relaxations:
- The preferential issue will be made to persons/entities that are not part of the promoter or promoter group. Further, certain other persons including an Undischarged insolvent, Wilful defaulter, Fugitive economic offender, those Disqualified to act as director, prohibited by SEBI from trading in securities and accessing the securities market will also be ineligible.
- The resolution for the preferential issue at the aforesaid pricing and exemption from open offer shall be passed by majority of minority.
- Proposed end-use of proceeds of such preferential issue will be disclosed. The proceeds should not be used for any repayment of loans taken from promoters/ promoter group/ group companies.
- Monitoring agency will be appointed for monitoring end-use of the proceeds of such a preferential issue. The monitoring agency shall not be an associate to the company. The Audit Committee shall also monitor the proceeds of such a preferential issue.
- The shares issued to the investors in such an issue shall be locked in for a period of three years from the latest date of trading approval granted by all the stock exchanges where the specified securities are listed.
- The statutory auditor and the Audit Committee shall certify that eligibility norms as mentioned at point 2 above and conditions at point 3 (i) to (iii) have been met at the time of dispatch of notice for general meeting proposed for passing the special resolution and also at the time of allotment.
The above framework is aimed at helping stressed companies raise capital through timely financial intervention, at the same time protecting the interest of shareholders. To give effect to these relaxations, SEBI ICDR Regulations and SEBI Takeover Regulations have been amended. The relaxations introduced vide notifications dated June 22, 2020, are expected to make fund raising through preferential allotments relatively easier for stressed companies.
26-Feb-2020: Mauritius FPIs can continue to invest in India, SEBI
The Securities and Exchange Board of India (SEBI) has clarified that foreign portfolio investors (FPIs) from Mauritius will continue to be eligible for registration as foreign investors in India but subject to increased monitoring.
The regulatory clarification was necessitated after Mauritius was placed in the list of ‘jurisdictions under increased monitoring’, commonly referred to as the ‘Grey List’.
This led to apprehensions that the Mauritius-based FPIs will not be able to trade in the Indian capital market.
19-Sep-2018: SEBI changes total expense ratio (TER) of mutual funds
SEBI has announced changes in the total expense ratio (TER) of mutual funds. It made the changes to bring in transparency in appropriation of expenses, and reducing mis-selling and churning.
Transparency in expenses: All commission and expenses, etc. shall necessarily be paid from the scheme only and not from the AMC/Associate/Sponsor/Trustee, or any other route. Further, SEBI said that the mutual fund industry must adopt the full trail model of commission in all schemes without payment of any upfront commission or upfronting of any trail commission.
Total Expense Ratio: The total expense ratio (TER) will be as follows:
|
AUM (Rs crore) |
TER for equity-oriented schemes (%) |
TER for other schemes (excl. Index, ETFs and Fund of Funds) |
|
0 - 500 |
2.25 |
2.00 |
|
500 - 750 |
2.00 |
1.75 |
|
750 - 2,000 |
1.75 |
1.50 |
|
2,000 - 5,000 |
1.60 |
1.35 |
|
5,000 – 10,000 |
1.50 |
1.25 |
|
10,000 – 50,000 |
TER reduction of 0.05% for every increase of 5,000 crore AUM or part thereof |
TER reduction of 0.05% for every increase of 5,000 crore AUM or part thereof |
|
> 50,000 |
1.05 |
0.80 |
In case of close-ended and interval schemes, TER for equity-oriented schemes shall be a maximum of 1.25 per cent and for other than equity oriented schemes shall be a maximum of 1.00 per cent.
The TER for index schemes, Exchange Traded Funds (ETFs) and Fund of Funds shall be maximum of 1.00 per cent. The TER for fund of funds (FoFs) shall be a maximum of twice the TER of the underlying funds.
- FoFs investing primarily in Liquid, Index and ETF schemes: Total TER (including the TER of underlying schemes) shall be maximum of 1.00 per cent.
- FoFs investing primarily in active underlying schemes: Total TER (including the TER of the underlying schemes), shall be maximum of 2.25 per cent for equity oriented schemes, and maximum of 2 per cent for other than equity oriented schemes.
Additional expenses of 30 bps for penetration in B-30 cities: The additional expense permitted for penetration in B-30 cities, shall be based on inflows from retail investors. The definition of ‘retail investors’ shall be determined in consultation with the industry. Pending such clarification, the additional incentive shall be permitted for inflows from individual investors only and not on inflows from corporates and institutions. Further, the B-30 incentive shall be paid as trail only.
Performance Disclosure: Adequate disclosure of all schemes’ returns (category wise) vis-à-vis its benchmark (total returns) shall be made available on the website of AMFI.
Upon implementation of the above decisions, the trustees and AMC boards shall monitor the implementation by the respective AMCs and shall report to SEBI periodically.
25-Apr-2018: Further amendments to the Laws on REITs and INVITs in India
The Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 (SEBI REIT Regulations) and the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 (SEBI InvIT Regulations), which were last amended on 27 December 2017, have been further amended by the notifications issued by the Securities and Exchange Board of India (SEBI) on 10 April 2018 (hereinafter referred to as the REIT Amendment Regulations and InvIT Amendment Regulations, respectively). The REIT and InvIT Amendment Regulations have been introduced to further facilitate the growth of infrastructure investment trusts (InvIT) and the real estate investment trusts (REIT).
REITs are similar to mutual funds. While mutual funds provide for an opportunity to invest in equity stocks, REITs allow one to invest in income-generating real estate assets. REITs raise funds from a large number of investors and directly invest that sum in income-generating real estate properties(which could be offices, residential apartments, shopping centres, hotels and warehouses). The trusts are listed in stock exchanges so that investors can buy units in the trust. REITs are structured as trusts. Thus, the assets of an REIT are held by an independent trustee on behalf of unit holders.
30-May-2017: SEBI targets participatory note norms
The Securities and Exchange Board of India (SEBI) plans to further tighten norms for issuance of offshore derivative instruments (ODIs) and participatory notes (PNs) as part of its overall effort to reduce the exposure investors take via such instruments in the Indian equity market.
In a consultation paper released on Monday, the capital market regulator has proposed levying a regulatory fee of $1,000 on every foreign portfolio investor (FPI) that issues ODIs or PNs.
It is proposed that beginning April 1, 2017, for a period of every three years, regulatory fees of $1,000 be levied on each ODI issuing FPI for each and every ODI subscriber coming through such FPI.
Government is concerned that P-notes are being used for money laundering. Special Investigation Team (SIT) wants stricter compliance measures put in place for trading P-notes. However, when the government proposed putting trading restrictions on P-notes in the past, the Indian market became extremely volatile.
A few ODI subscribers invest through multiple issuers. This move will discourage the ODI subscribers from taking ODI route and encourage them to directly take registration as an FPI.
The regulator has also proposed to prohibit ODIs from being issued against derivatives for speculative purposes. Currently, ODIs are issued against derivatives along with equity and debt.
SEBI has given time until December 31, 2020, to wind up ODIs issued against derivatives, which are not for hedging purpose.
In June last year, SEBI issued instructions on Know Your Customer (KYC) norms for ODI subscribers, transferability of ODIs, reporting of suspicious transactions and periodic review of systems.
1-Mar-2017: Shri Ajay Tyagi takes charge as Chairman, SEBI
Shri Ajay Tyagi took charge as Chairman, Securities and Exchange Board of India. Prior to this, he was Additional Secretary, Department of Economic Affairs, Ministry of Finance, handling the portfolios of Capital Market Division, Investment Division, Infrastructure Division and Currency and Coinage Division.
He is an Indian Administrative Service Officer of Himachal Pradesh Cadre. He has held several responsible positions with distinction in the State and Central Governments.
24-Mar-2022: PNGRB has authorized approximately 33,768 km length of Natural Gas Pipeline Network across the country
The Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in a written reply to a question in the Lok Sabha today informed that the Government has set a target to raise the share of natural gas in energy mix to 15% in 2030 from about 6.7% now. Various steps taken by the Government in this direction include expansion of National Gas Grid Pipeline, expansion of City Gas Distribution (CGD) network, setting up of Liquefied Natural Gas (LNG) Terminals, allocation of domestic gas to Compressed Natural Gas (Transport) / Piped Natural Gas (Domestic) CNG(T)/PNG(D) in no cut category, allowing marketing and pricing freedom to gas produced from high pressure/high temperature areas, deep water & ultra-deep water and from coal seams, Sustainable Alternative Towards Affordable Transportation (SATAT) initiatives to promote Bio-CNG, etc.
As on 31.12.2021, PNGRB has authorized approximately 33,768 km length of Natural Gas Pipeline Network across the country. Out of this, 20,334 km length of natural gas pipelines including spur lines, are operational and a total of 15,194 km length of pipelines is under various stages of construction. The length of operational pipelines has increased from 16,368 kms on 31.03.2019 to 20,334 kms on 31.12.2021.
With the aim to increase coverage of CGD Networks in the country, Petroleum & Natural Gas Regulatory Board (PNGRB) has authorized 268 GAs for development of CGD Network in the country. Further, Letters of Intent have been issued for 21 GAs. Also, PNGRB has launched 11A CGD bidding round for development of CGD Networks in 6 GAs (covering 27 districts). After that, the CGD network shall potentially cover 98% population and 88% geographical areas of the country. The number of CNG stations established by various authorized entities has increased from 1,742 on 31.03.2019 to 3,878 on 31.01.2022. The pipelines being laid by the CGD entities has also increased from 1,61,992 inch kms to 3,52,961 inch kms on 31.01.2022.
10-Feb-2022: Government has set a target to raise the share of natural gas in energy mix to 15% by 2030
The Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in a written reply to a question in the Lok Sabha today informed that the Government has set a target to raise the share of natural gas in energy mix to 15% by 2030. At present, share of natural gas in primary energy mix has increased from 6.3% to 6.7% from 2020 to 2021.
Petroleum & Natural Gas Regulatory Board (PNGRB) grants authorization to the entities for the development of City Gas Distribution (CGD) network in Geographical Areas (GAs) as per PNGRB Act, 2006 and Regulation framed there under. Establishment of CNG stations and providing PNG connections are part of development of CGD network and the same is done by the authorized CGD entities in their authorized GAs as per the Minimum Work Plan (MWP). PNGRB also authorizes entities for laying of pipeline infrastructure for development of CGD network.
Investment for the development of CGD network and natural gas pipeline infrastructure is done by the authorized entities, both private and public as per the techno commercial requirements. The authorized entities have done an investment for approximately Rs.14,556 crore this year. Further, PNGRB has received bids for 61 GAs in the 11th round which entail investment of more than Rs.80,000 crore.
As part of initiative to make natural gas available to more and more consumers, government has approved partial capital grant of Rs. 5176 crore for the Jagdishpur-Haldia-Bokaro-Dhamra Pipeline (JHBDPL) project and Rs.5559 crore for North East Gas Grid. Till now Rs.4549.204 crore has been utilized in JHBDPL project and Rs.1030 crore has been utilized in North East Gas Grid.
30-Jul-2021: Union Health Minister, Shri Mansukh Mandaviya chairs a review meeting with National Medical Commission (NMC)
The Union Minister of Health and Family Welfare, Shri Mansukh Mandaviya chaired a review meeting with the National Medical Commission today. Important issues of medical education were discussed in the meeting.
As apprised by officials of NMC in the meeting, efforts are underway to ensure that the National Exit Test ( NExT) will be conducted in the first half of 2023 as per the roadmap. To test the procedure and remove anxiety among medical students, a Mock Run is also being planned and will be conducted in 2022. It was also discussed that the results of NExT (Step 1 and 2) will then be used for
- Qualifying Final M.B.B.S. Exam.
- To get License to practice Modern Medicine in India.
- For merit-based allocation of PG seats in Broad specialties.
During the review meeting, ways to make NExT an examination of world-class standard was also discussed and deliberated. The importance of the NExt Exam lies in the fact that it will be the same for everyone whether trained in India or any part of the world and hence it will solve the problem of foreign medical graduates (FMGs) / Mutual recognition. While addressing the meeting, Shri Mansukh Mandaviya emphasised that the Government of India is committed to creating quality medical education and transparent examination infrastructure and health services and is relentlessly working with all stakeholders to achieve this objective.
About National Medical Commission (NMC): NMC has been established by an Act of Parliament known as National Medical Commission Act, 2019 which came into force on 25.9.2020 with the objective of improving access to quality and affordable medical education, ensuring adequate and high-quality medical professionals in all parts of India and to provide equitable and universal health care.
Broad functions of NMC include laying down policies for maintaining a high quality and high standards in medical education and making necessary regulations; laying down policies for regulating medical institutions, medical researches and medical professionals; assessing the requirements in healthcare, including human resources for health and healthcare infrastructure and developing a road map for meeting such requirements; promoting, coordinating and framing guidelines and laying down policies by making necessary regulations for the proper functioning of the Commission, the Autonomous Boards and the State Medical Councils. It also ensures coordination among the Autonomous Boards.
NMC also acts as the appellate jurisdiction with respect to decisions of Autonomous Boards and lays down policies and codes to ensure observance of professional ethics in the medical profession and promotes ethical conduct during the provision of care by medical practitioners.
25-Sep-2020: National Medical Commission (NMC) constituted; Medical Council of India (MCI) stands abolished.
Historic reform in the field of medical education has been effected by the Union Government with the constitution of the National Medical Commission (NMC), along with four Autonomous Boards. With this, the decades old institution of the Medical Council of India (MCI) stands abolished. Along with NMC, the four Autonomous Boards of UG and PG Medical Education Boards, Medical Assessment and Rating Board, and Ethics and Medical Registration Board have also been constituted to help the NMC in day to day functioning.
This historic reform will steer medical education towards a transparent, qualitative and accountable system. The basic change that has happened is that the Regulator is now 'selected' on merits, as opposed to an 'elected' Regulator. Men and Women with impeccable integrity, professionalism, experience and stature have been now placed at the helm to steer the medical education reforms further.
The Notifications in this regard were issued late last night on the 24th September, 2020.
Dr S C Sharma (retd. Prof, ENT, AIIMS, Delhi) has been selected as the Chairperson for a period of three years. Besides the Chairperson, NMC will have 10 ex-officio members that include Presidents of the four Autonomous Boards, Dr. Jagat Ram, Director PGIMER, Chandigarh, Dr Rajendra A Badwe, Tata Memorial Hospital, Mumbai and Dr Surekha Kishore, Executive Director, AIIMS, Gorakhpur. In addition, NMC will have 10 nominees from Vice Chancellors of Health Universities from States/UTs, 9 nominees from State Medical Councils, and three expert members from diverse professions. Dr Smita Kolhe, a renowned social worker working in tribal Melaghat area of Maharashtra and Shri Santosh Kumar Kraleti, CEO, Foot Soldiers for Health Pvt Ltd have been nominated as these expert members. Dr R K Vats will head the Secretariat as Secretary of the NMC.
In addition to NMC, four Autonomous Boards have also been constituted and come into effect from today. The … Board will be chaired by ….. and will have …..The Commission has four Autonomous Boards, namely Under-Graduate Medical Education Board, Post-Graduate Medical Education Board, Medical Assessment and Rating Board and Ethics and Medical Registration Board to oversee UG/ PG education, accreditation and assessment and the matters related to ethics and professional conduct of doctors.
The NMC will carry forward the reforms initiated by the Board of Governors under Dr V K Paul. Already, number of MBBS seats has increased over the last six years by 48% from around 54000 in 2014 to 80,000 in 2020. The PG seats have increased by 79% from 24000 to 54000 in the same duration.
The key functions of the NMC will be further streamlining regulations, rating of institutions, HR assessment, focus on research. Besides they will work on modalities of the common final year exam after MBBS (NEXT- National Exit Test) to serve for both registration and PG entrance; prepare guidelines for fee regulation by private medical colleges; and developing standards for Community Health Providers to serve in primary healthcare with limited practicing licence.
It may be recalled that the National Medical Commission Act, 2019 was passed by the Parliament in August, 2019.
With the coming into effect of the NMC Act from 25th September, 2020, the Indian Medical Council Act, 1956 stands repealed and the Board of Governors appointed in supersession of Medical Council of India has also been dissolved with effect from the said date.
13-Feb-2018: It is now mandatory to qualify NEET to pursue foreign medical course
A common National Entrance Exam viz. National Eligibility cum Entrance Test has been made mandatory for admission to all medical courses in the country. Indian students can also pursue medical education abroad and have to qualify a Screening Test called Foreign Medical Graduates Exam (FMGE), for registration to practice in India after obtaining primary medical qualification (MBBS) overseas. It has come to notice that medical institutions / Universities of foreign countries admit Indian students without proper assessment or screening of the students’ academic ability to cope up with medical education with the result that many students fail to qualify the Screening Test.
In this regard, the proposal of Medical Council of India (MCI) to amend the Screening Test Regulations, 2002, making it mandatory to qualify NEET to pursue foreign medical course has been approved by this Ministry.
Thus, the Indian Citizens / Overseas Citizen of India intending to obtain primary medical qualification from any medical institution outside India, on or after May 2018, shall have to mandatorily qualify the NEET for admission to MBBS course abroad. The result of NEET shall be deemed to be treated as the Eligibility Certificate for such persons, provided that such persons fulfils the eligibility criteria for admission to the MBBS course prescribed in the Regulations on Graduate Medical Education, 1997.