SEBI relaxes its Guidelines for preferential issue and institutional placement of units by a listed REIT
Real Estate Investment Trusts (REITs) are now permitted to make institutional placements two weeks after the date of prior institutional investment. Prior to this amendment, the Guidelines had stipulated for a gap of six months between two institutional placements. Further, the amendment provides that the REIT can opt for a pricing method for any preferential issues made during the period beginning from 28th September 2020 to 31st December 2020. In this regard, SEBI has specified the pricing method to be followed.
SEBI amends Operating Guidelines for Investment Advisers in IFSC
In addition to the companies and LLPs, the amendment now also permits ‘other similar structures recognised under the laws of the parent jurisdiction’ to apply for registration as Investment Advisers in IFSC. The amendment further clarifies that there is no necessity of forming a separate company or LLP in cases where the applicant is already a company of LLP in IFSC. Clause 4 has been amended to clarify that when IAs offer investment advisory services to persons resident outside India or non-resident Indians they must comply with guidelines issued by the relevant overseas regulator or authority. The present amendment has also clarified that either the IAs or the parent entity must fulfil the net worth requirement which is presently fixed at USD500,000. The requirement must be met separately and independently for each activity undertaken by it under the relevant regulations.
SEBI issues an Advisory on Recovery of Assets of Defaulter Members of Stock Exchanges and of Debit Balance Clients
Through this Circular SEBI categorically advises Stock Exchanges and Clearing Corporations to initiate suitable action for liquidating assets of the defaulter member and of the debit balance clients. This action must be initiated before the appropriate court within six months from the declaration of the member as a defaulter. Additionally, such action extends to both movable and immovable assets of the defaulter member, which are not in possession of the SE/ CC. Moreover, the recovery of the funds of the debit balance clients will be limited only to the extent of the debit balance.
SEBI relaxes its Guidelines for preferential issue and institutional placement of units by a listed InvIT
Infrastructure Investment Trusts (InvITs) can now make institutional placements two weeks after the date of prior institutional investments. Prior to this amendment, the Guidelines had stipulated for a gap of six months between two institutional placement. Further, the amendment provides that the InvIT can opt for a pricing method in case of any preferential issues made during the period beginning from 28th September 2020 to 31st December 2020. In this regard, SEBI has specified the pricing method to be followed.
RBI extends relaxation in marginal standing facility till March 2021.
RBI has extended the marginal standing facility relaxation for a further period of six months up to 31st March, 2021.
Highlights of the Companies Amendment Act 2020.
The Amendment removes the penalty, imprisonment for 9 offenses which relate to non-compliance with orders of the national company law tribunal (NCLT), and reduces the amount of fine payable in certain cases.
The Companies (Meetings of Board and its Powers) Third Amendment Rules, 2020.
MCA has allowed matters like approval of the annual financial statements, the approval of the Board’s report and the approval of the prospectus etc to be held through video conferencing or other audiovisual until 31st December 2020.
The Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2020.
The independent directors of companies shall within thirteen months shall apply online to the institute for inclusion of his name in the data bank.
MCA extends Time for conducting EGMs through Video Conferencing.
The Ministry of Corporate Affairs vide its notification dated 28th September 2020 has extended the time for conducting EGMs through Video Conference or Other Audio Visual Means till 31st December 2020. The extension also applied to provisions for passing of resolutions through postal ballots alone without the need for conducting an EGM. Image download link:
Companies fresh start scheme 2020 extended till 31st December 2020.
The Companies Fresh Start Scheme 2020, which was introduced by the MCA and was valid from 1 April 2020 to 30 September 2020, has now been extended due to continued disruption caused by the coronavirus pandemic in certain parts of the country.
