Gopi PD

The Securities and Exchange Board of India (SEBI) has called for public comments on a new index derivates framework aimed at improving investor protection, promoting market stability in this sector and ensuring sustained capital formation. 📲 IBLJ is now on WhatsApp! Follow now: https://lnkd.in/guJEz_8i 📩 Sign up for our email newsletters here: https://lnkd.in/gaCDifmU #lawdotasia #iblj #cblj #ablj #india #investments #capitalmarkets #finance #legalnews #inhousecounsel #lawfirms #legal #law #lawyers

1

📢 𝗦𝗘𝗕𝗜 𝗨𝗽𝗱𝗮𝘁𝗲𝘀 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 𝗳𝗼𝗿 𝗔𝗜𝗙𝘀 On September 19, 2024, SEBI announced modifications to the valuation framework for Alternative Investment Funds (AIFs) to enhance consistency and transparency. Key changes include: 1. Securities not covered under existing guidelines will follow endorsed guidelines from eligible AIF associations representing at least 33% of SEBI-registered AIFs. 2. Aiming for uniformity in valuation for thinly traded and non-traded securities by March 31, 2025. 3. Changes in valuation methodology will not be considered 'material changes' if aligned with the new guidelines, ensuring transparency to investors. 4. New eligibility criteria for independent valuers are established, requiring registration with IBBI and relevant professional qualifications. 5. The deadline for AIFs to report valuations based on audited data has been extended from six to seven months. #sebi #valuation #investment #investmentfunds

6

📢 𝗦𝗘𝗕𝗜 𝗨𝗽𝗱𝗮𝘁𝗲𝘀 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 𝗳𝗼𝗿 𝗔𝗜𝗙𝘀 On September 19, 2024, SEBI announced modifications to the valuation framework for Alternative Investment Funds (AIFs) to enhance consistency and transparency. Key changes include: 1. Securities not covered under existing guidelines will follow endorsed guidelines from eligible AIF associations representing at least 33% of SEBI-registered AIFs. 2. Aiming for uniformity in valuation for thinly traded and non-traded securities by March 31, 2025. 3. Changes in valuation methodology will not be considered 'material changes' if aligned with the new guidelines, ensuring transparency to investors. 4. New eligibility criteria for independent valuers are established, requiring registration with IBBI and relevant professional qualifications. 5. The deadline for AIFs to report valuations based on audited data has been extended from six to seven months. #sebi #valuation #investment #investmentfunds

3

Update on Credit Reporting Frequency: A New Era Begins on January 1, 2025 The Reserve Bank of India (RBI) Governor, Shaktikanta Das, recently announced a significant change in the credit reporting landscape. Starting January 1, 2025, banks and financial institutions will update credit records more frequently. Credit data will now be updated every fortnight on the 15th and the last day of each month or at shorter intervals as agreed upon between credit institutions (CIs) and credit information companies (CICs). Current vs. Future Reporting: At present, CIs report credit information to CICs on a monthly basis or at mutually agreed shorter intervals. This shift to more frequent updates marks a pivotal improvement in the credit reporting system. What This Means: The availability of accurate credit information at shorter intervals is crucial for both lenders and borrowers. Parijat Garg, a digital lending consultant, emphasizes that "fresher credit information is better for banks and non-banking financial companies (NBFCs)." Manish Jain, Country Managing Director of Experian India, further adds, "The data should be updated fortnightly or weekly. Else, in the age of pay-day, three-day, seven-day, 21-day loans, the credit score you see may not be a true representation of your financial behaviour today." As a law firm specializing in corporate law, we understand the importance of this development. Accurate and up-to-date credit information is vital for making informed lending decisions and ensuring the financial stability of both institutions and individuals. Stay informed and prepared for these upcoming changes to leverage the benefits of timely credit information updates. #RBI #CreditReporting #CorporateLaw #FinancialInstitutions #CreditInformation #BankingReforms #LegalUpdate #MCALegal #MohitChaurasia Image courtesy: Pinterest

6

3 Comments

The Reserve Bank of India launched the PRAVAAH (Platform for Regulatory Application, VAlidation, and AutHorization) portal, on 28th May, 2024. This initiative aims to simplify and streamline the process of seeking approvals and processing applications under various regulations and reduce overall compliance costs while maintaining adherence to specified time limits. Mr. Asish Abraham, Partner, Mr. Bhusan Porwal, Principal Associate, and Ms. Aastha Sahay, Associate have authored an insightful article on the PRAVAAH portal, elaborating upon the salient features, impact and benefits of the same. #RBI #PRAVAAH #portal #regulatory #corporate #FEMA

45

1 Comment

**RBI Streamlines FPI-to-FDI Reclassification Framework** In a significant regulatory update, the Reserve Bank of India (RBI) has introduced a structured operational framework enabling foreign portfolio investors (FPIs) to convert their holdings into foreign direct investment (FDI) if equity holdings in Indian companies exceed the 10% cap. The framework provides clarity by mandating reclassification within five trading days, subject to approvals from the Indian government and the company, and is applicable only in sectors where FDI is permitted. Additionally, full compliance with reporting requirements under FEMA regulations is mandatory, ensuring adherence to India’s regulatory landscape. This move complements the Securities and Exchange Board of India’s (SEBI) updated guidelines, effective May 30, 2024, further aligning FPI-to-FDI conversion procedures. RBI’s initiative underscores its commitment to fostering transparency and compliance in cross-border investments, bolstering India’s position as a global investment hub. Read more on Mint: https://lnkd.in/gY6A3VUw #RBI #ForeignInvestment #FDI #FPI #Investment #Compliance #RegulatoryUpdate

5

#SEBI's evolving policies on beneficial ownership disclosure present Foreign Portfolio Investors with new challenges and opportunities for adaptation and compliance. In an article for moneycontrol.com, Siddharth Shah and Shikhar Kacker explore the challenges #FPI face due to the evolving policy landscape and the impending deadline, emphasising the need for a pragmatic approach and its potential impact on global investors. https://lnkd.in/d2iAdteS #KCOInsights #KhaitanCo 

9

Simplified Registration for Foreign Portfolio Investors (FPI): SEBI’s New Circular Explained In a significant move to ease the onboarding process for Foreign Portfolio Investors, SEBI has introduced a streamlined registration framework under Circular No: SEBI/HO/AFD/AFD-PoD-3/P/CIR/2024/156. This document highlights the key provisions, procedural changes, and the impact on institutional investors globally. Stay informed to leverage these regulatory advancements effectively. For further insights and support, connect with our experts at Aikyam Capital. #AikyamCapital #NewUpdates #FPI #SEBI #Investors

21

Learn how #IBMMQ is crucial part of the financial market sectors in India and for the Clearing Corporation of India Ltd. (CCIL) #WorkSmartWithMQ

2

#MCOpinionPro | Two key measures in the monetary policy are from an old RBI playbook. Both have consequences, one unintended and another intended. 📖 Read to know what these are and why they are important. by Rajrishi Singhal 👇 https://lnkd.in/d6pxuSfi #RBI #MonetaryPolicy #CashReserveRatio

3

REDD Asia has provided leading coverage of increased regulatory scrutiny in India about the abuse of Alternative Investment Funds (AIFs) by non-banking financial companies (NBFCs) to evergreen stressed assets and keep their books clean. In June 2022, REDD first highlighted that ECL Finance had reduced its wholesale book by INR 50bn (USD 598m) by moving real estate loans to AIFs and selling down loans to asset reconstruction companies. REDD also pointed to other NBFCs transferring wholesale loans to AIFs they had a relationship with, and wrote half dozen articles accurately predicting which way the regulatory winds would blow. REDD's 7 June Insight column showed noted that the Reserve Bank of India’s latest curbs on ECL Finance and its sister firm, Edelweiss Asset Reconstruction Company, put asset managers and shadow bankers on notice it would scrutinize any compliance lapses resulting in evergreening of stressed exposures. Turn to REDD for the latest on everything India credit at https://hubs.la/Q02Bz24R0. #RegulatoryDevelopments #PivateCreditIndia #HighYieldOpportunities

14

𝗦𝗘𝗕𝗜 𝗦𝗲𝘁 𝘁𝗼 𝗧𝗶𝗴𝗵𝘁𝗲𝗻 𝗙&𝗢 𝗡𝗼𝗿𝗺𝘀 𝗔𝗺𝗶𝗱 𝗥𝗶𝘀𝗶𝗻𝗴 𝗥𝗲𝘁𝗮𝗶𝗹 𝗣𝗮𝗿𝘁𝗶𝗰𝗶𝗽𝗮𝘁𝗶𝗼𝗻 The Securities and Exchange Board of India (SEBI) plans to tighten guidelines for futures and options (F&O) trading, responding to increased retail participation. Proposed changes may include higher margin requirements, stricter eligibility criteria, and net worth disclosures. SEBI has sought input from the Association of Mutual Funds in India (AMFI) and formed a committee with brokerage firms and asset management companies to provide recommendations. SEBI's chairperson, Madhabi Puri Buch, highlighted concerns about retail investors' significant losses in the F&O market. #finance #news #SEBI #Derivatives #RetailInvesting #MarketRegulation Source:- https://lnkd.in/giSyk3NQ

https://lnkd.in/girNavcv n this insightful video, join Naha, Aniruddha- Chief Investment Officer of PGIM India Mutual Fund PMS & AIF business, as they delve into the strategic use of leverage in Alternative Investment Funds (AIFs). Whether you are an investor looking to understand the nuances of leveraging or a financial professional seeking deeper insights, this video provides valuable knowledge and practical perspectives on the strategic role of leverage in AIFs. Don't forget to like, share, and subscribe for more expert insights on investment strategies! #investmentmanager #AIF #PGIMalternate #pms Aditya Prabhu Kiran Joshi Abhijeet Sharma Uday Koppalkar Sri Chakri Prakash Mandavilli Ganesh P N

7

Operational Framework for Reclassification of FPI to FDI! In a significant move to streamline investments, the Reserve Bank of India, in collaboration with the Government of India and SEBI, has introduced a structured Operational Framework for reclassifying Foreign Portfolio Investment (FPI) to Foreign Direct Investment (FDI) under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019. This framework applies in cases where Foreign Portfolio Investors (FPIs) exceed their investment limits, enabling a smooth transition to FDI status. By facilitating compliance and simplifying investment classifications, this initiative is poised to enhance the ease of doing business in India. To Know More Visit: https://lnkd.in/eqyGTEt6   #Corpbiz #OperationalFramework #Reclassification #FPItoFDI #RBI #InvestmentFramework #SEBI #ComplianceSimplified #FDIstatus #EaseofDoingBusiness #InvestmentRegulations

2