In the past few weeks, there have been small but important changes in rules and regulations of SEBI, FEMA and Companies Act. This article will provide you with a summary of these newly introduced changes.
Changes, Challenges and Controversies in Corporate Law
SEBI had, on 2nd September, 2015, notified the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) replacing the Listing agreement. Since the SEBI Listing Regulations consolidate and streamline the existing listing agreements for different segments of the capital market into one single document across various types of securities listed on the stock exchanges, the actual Listing Agreement to be signed by the listed entities need not be as detailed and intricate.
The SEBI Listing Regulations, provide for a shortened version of the Listing Agreement which would be required to be signed by a company getting its securities listed on Stock Exchanges. SEBI has, on 13th October, 2015, notified the format of the uniform Listing Agreement by circular No. CIR/CFD/CMD/6/2015.
This week’s article provides you with the applicability of the Listing Agreement, the requirement of existing listed entities to sign this agreement and format of the new Listing Agreement.
The Reserve Bank of India (“RBI”) on 6th October 2015, through A.P. (DIR Series) Circular No. 19, relaxed the norms for investment by Foreign Portfolio Investors (FPIs) in government debt and also announced higher investment limits in rupee terms in government securities with a view to bring in an Rs. 1.2 lakh crores by March 2018, over and above the existing limit of Rs 1.5 lakh crores. The Medium Term Framework (“MTF”) for FPI limits in Government securities has been announced to provide a more predictable regime.
Also, with RBI easing foreign ownership in government debt, markets regulator SEBI issued detailed guidelines for hiking the overseas investment limits in such securities to Rs 1.86 lakh crores by January 1, 2016.
This article will provide a summary of the features of MTF issued by the RBI and SEBI.
The RBI, on 29th September, 2015, through A.P. (DIR Series) Circular No.17, relaxed external commercial borrowing to allow Indian corporates to raise funds from overseas market by issue of rupee-denominated bonds. In its fourth bimonthly monetary policy RBI has decided to permit corporates to issue rupee denominated bonds often referred as ‘masala bond’ with a minimum maturity of 5 years at overseas locations within the ceiling of foreign investment permitted in corporate debt of $51 billion. there will be no restriction on the end use of funds except a small negative list. The framework for the rupee denominated bonds will be announced separately. This article will provide you with the broad contours of the framework.
The Government of India enacted The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (“Black Money Act”) on May 26, 2015 to address the issue of undisclosed assets held abroad. It provides for separate taxation of income and assets acquired abroad from income not disclosed but chargeable to tax in India. To effectively deal with assets held abroad by persons resident in India in violation of the Foreign Exchange Management Act, 1999 (“FEMA”) for which declarations have been made and taxes and penalties have been paid under the provisions of the Black Money Act, RBI has issued the Foreign Exchange Management (Regularization of assets held abroad by a person resident in India) Regulations, 2015 though Notification No. FEMA 348/2015-RB dated September 25, 2015 vide G.S.R. No. 738 (E) dated September 25, 2015.
Subscribe to CCC – newsletter
* = required field