NEWSLETTER – Regulatory Updates

SEBI
1. SEBI Vide Circular No.: SEBI/HO/MIRSD/SECFATF/P/CIR/2024/12
dated 20.02.2024 issued a circular with respect to “Centralization of
certifications under Foreign Account Tax Compliance Act (FATCA)
and Common Reporting Standard (CRS) at KYC Registration
Agencies (KRAs)”

SEBI has issued a circular to intermediaries registered under Section 12 of

the Securities and Exchange Board of India Act, 1992, regarding the
centralization of certifications under the Foreign Account Tax Compliance
Act (FATCA) and Common Reporting Standard (CRS) at KYC Registration
Agencies (KRAs). Intermediaries acting as reporting financial institutions
(RFIs) are required to upload FATCA and CRS certifications obtained from
clients onto the KRA system starting from July 01, 2024, with existing
certifications prior to this date to be uploaded within 90 days of
implementation. The responsibility for obtaining and reporting these
certifications, as well as ensuring their reasonableness, lies with the
intermediaries, who must update them as necessary. KRAs are instructed to
develop systems in coordination with each other and in consultation with
SEBI.
Further, read here:

2. SEBI Vide Circular No.: SEBI/HO/DDHS/DDHS-PoD/P/CIR/2024/10

dated 08.02.2024 issued a circular with respect to “Revised Pricing
Methodology for Institutional Placements of Privately Placed
Infrastructure Investment Trust (InvIT)”
 SEBI vide this circular, effective immediately, has revised the pricing
methodology for institutional placements of privately placed Infrastructure
Investment Trusts (InvITs) to promote ease of doing business. Following
industry requests and recommendations from the Hybrid Securities Advisory
Committee, SEBI has decided that the floor price for institutional placement
of privately placed InvITs shall be based on the Net Asset Value (NAV) per
unit. This modification allows privately placed InvITs to undertake
institutional placements based on the NAV of their assets, enhancing
efficiency in the process.
Further, read here:

3. SEBI Vide Circular No.: SEBI/HO/CFD/PoD-1/P/CIR/2024/009 dated

06.02.2024 issued a circular with respect to “Guidelines for returning of
draft offer document and its resubmission”

SEBI has issued guidelines to ensure the completeness and compliance of

draft offer documents filed by issuers and lead managers for public or rights
issues of securities, in line with Schedule VI of Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements) Regulations,
2018. The guidelines aim to streamline the process by scrutinizing draft
offer documents based on specified criteria and returning non-compliant
documents to issuers for revisions, thereby promoting greater clarity and
consistency in disclosures and facilitating timely processing.
Further, read here:
FSSAI

1. FSSAI vide Order no. F. No. QA/3/2021/FSSAI -Part(3) dated

04.03.2024 issued direction to all notified laboratories regarding testing
of pesticide in Tea samples

FSSAI has issued a directive instructing all laboratories notified under

sections 43(1) and 43(2) of The Food Safety and Standards Act, 2006, to
conduct testing for six specific pesticides (Cypermethrin, Acephate,
Imidacloprid, Acetamiprid, Dinotefuran, Fipronil) in addition to the existing
20 banned pesticides and those specified for Tea as per FSS (Contaminants,
Toxins and Residues) regulations, 2011.
Further, read here:

2. FSSAI vide Order no. F. No. RCD-10002/1/2022-Regulatory-FSSAI

dated 04.03.2024 issued notification with regard to Appointment of
Designated Officers (DOs) for Central licensing at Seaport / Airport

In pursuance to Subsection (5) of Section 10 and Section 36 of the FSS Act, 2006 read
with Regulation 1.2.1 (1) of Food Safety and Standards (Licensing and Registration of
Food Business) Regulations, 2011; the FSSAI appointed Designated Officers for the area
of jurisdiction mentioned.
Further, read here:
3. FSSAI vide Order no. F. No. RCD-02001/09/2021-Regulatory-FSSAI
dated 21.02.2024 issued advisory with regard to “Time-bound
processing of applications for Licenses marked for inspections”

FSSAI has issued an advisory emphasizing timely processing of license

applications, particularly in cases marked for inspections. Pre-license
inspections are mandated only for specific categories, while for others,
inspections should be completed within 15 days of marking. Designated
Officers are instructed not to delay processing unnecessarily and to grant
licenses based on document scrutiny if inspections are not completed within
the stipulated timeframe. Commissioners of Food Safety and Directors of
Regional Offices are tasked with monitoring application pendency and
ensuring compliance with prescribed timelines.
Further, read here:

4. FSSAI vide Order no. F. No. F. No. RCD-15001/6/2021-Regulatory-

FSSAI dated 21.02.2024 issued advisory with regard to “Time-bound
processing of applications for Licenses marked for inspections”

FSSAI has issued a circular regarding the use of the term "ORS" in product
names by Food Business Operators (FBOs). Following approval from with
the Office of Controller General of Patents, Designs, and Trademarks
(CGPDTM), FBOs are allowed to use "ORS along with other prefix or
suffix" as a whole, in compliance with Section 17 of the Trade Marks Act,
1999. However, FBOs must prominently display a disclaimer on the front of
the packaging indicating that the product is not an ORS formula
recommended by WHO, ensuring consumer clarity.
 Further, read here:

5. FSSAI vide Notification no. FileNo. TIC/4/2022/IMPORTS/FSSAI

dated 02.02.2024, notified list of Authorised Officer under Section 25
read with Section 47 (5) of FSS Act 2006 and Regulations 13 (1) of FSS
(Imports) Regulations 2017-reg.

In continuation of the previous orders issued regarding notification of the

Authorised Officers. The Competent Authority hereby notifies the following
FSSAI officials as Authorised Officers for the following locations in
addition to their existing jurisdictions of points of entry, in line with the
provisions contained in Section 47 (5) of FSS Act, 2006 and Regulation 13
(1) of FSS (Imports) Regulations, 2017 for imported food clearance at food
import entry points
Further, read here:

IBBI

1. Insolvency And Bankruptcy Board Of India (Insolvency Resolution

Process For Corporate Persons) (Amendment) Regulations, 2024

In exercise of the powers conferred under sections 5, 7, 9, 14, 15, 17, 18, 21,
24, 25, 29, 30, 196 and 208 read with section 240 of the Insolvency and
Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board
of India issued the subsequent regulations to modify the Insolvency and
Bankruptcy Board of India (Insolvency Resolution Process For Corporate
 Persons) Regulations, 2016. These amendments specifically amends
Regulations 4D, 36 A, and 18.
Further, read here:

2. Insolvency And Bankruptcy Board Of India (Liquidation Process)

(Amendment) Regulations, 2024
In exercise of the powers conferred by sections 5, 33, 34, 35, 37, 38, 39, 40,
41, 43, 45, 49, 50, 51, 52, 54, 196 and 208 read with section 240 of the
Insolvency and Bankruptcy Code, 2016 (31 of 2016) the Insolvency and
Bankruptcy Board of India issued the subsequent regulations to modify the
Insolvency and Bankruptcy Board of India (Liquidation Process)
Regulations, 2016. This amendment specifically amends Regulations 31A,
37, 45 and 46A.
Further, read here:

3. IBBI vide Circular no. IBBI/IP/65/2024 dated 01.02.2024, notified the

circular with respect to “Measures for facilitating efficient conduct of
the processes by the Insolvency Professionals”.

In this latest circular from the IBBI measures have been outlined to enhance
the efficiency of Insolvency Professionals (IPs) in conducting processes. The
circular emphasizes adherence to the Code of Conduct and provides clarity
on rendering professional services during the implementation of resolution
plans approved by the Adjudicating Authority. Additionally, compliance
regarding billing and invoicing for services availed by IPs from
professionals has been addressed.
Further, read here:
4. IBBI vide Circular no. IBBI/IPE/64/2024 dated 01.02.2024, notified the
circular with respect to “Measures for rationalisation of the regulatory
framework of Insolvency Professional Entities”.

The IBBI has issued a circular to streamline the regulatory framework for
Insolvency Professional Entities (IPEs). This includes clarifications on
disciplinary proceedings, assignment limits, and fee structures for IPEs
acting as Insolvency Professionals (IPs). Notably, disciplinary actions will
target individual partners or directors of the IPEs involved in contraventions,
while assignment limits and fee structures applicable to individual IPs will
not apply to IPEs.
Further, read here:

5. IBBI vide Circular no. IBBI/II/66/2024 dated 12.02.2024, notified that

the Resolution Professional shall share the Report prepared by him
under Section 99 of Insolvency and Bankruptcy Code, 2016 to both
debtor as well as the Creditor in order to promote transparency and
informed decision-making.
The resolution professional (RP) in an insolvency resolution process of a
debtor under Chapter III of Part III of the Insolvency and Bankruptcy Code,
2016 (Code) examines the application filed under section 94 or 95 of the
Code and submits a report to the Adjudicating Authority under sub-section
(1) of section 99 of the Code, recommending for approval or rejection of the
application. Sub-section (10) of section 99 mandates the RP to share a copy
of this report to the debtor or the creditor, as the case may be.
 Further, read here:

6. IBBI vide Circular no. IBBI/LIQ/67/2024 dated 13.02.2024, notified the

circular with respect to “Reporting / Sharing of information in the
Voluntary Liquidation process”.

IBBI Vide this Circular directed that the liquidator shall ensure that, if the
corporate person falls under the category of financial service provider, it
shall declare that: (i) the category of Financial Service Providers has been
notified by the Central Government under section 227 of the Code, and (ii)
the corporate person has obtained prior permission from the appropriate
regulator.
Further read here:

7. IBBI vide Circular no. IBBI/LIQ/68/2024 dated 13.02.2024, notified the

circular with respect to “Deposit and withdrawal of unclaimed
dividends and / or undistributed proceeds in accordance with regulation
39 of the Insolvency and Bankruptcy Board of India (Voluntary
Liquidation Process) Regulations, 2017”.

IBBI has issued the circular clarifying the deposit and withdrawal of
unclaimed dividends and / or undistributed proceeds in accordance with
Regulation 39 of the Insolvency and Bankruptcy Board. Regulation 39 of
the Insolvency and Bankruptcy Board of India (Voluntary Liquidation
Process) Regulations, 2017 provides a framework for the management of
unclaimed deposits and undistributed proceeds during the voluntary
liquidation process. To facilitate the request received from a stakeholder,
 under Regulation 39(7), who claims to be entitled to any amount deposited
into the Corporate Voluntary Liquidation Account for withdrawal before the
dissolution of the corporate person, the liquidator shall apply to the Board,
for the release of the amount for onward distribution to the stakeholders.
Further, read here:

8. IBBI vide Circular no. IBBI/LIQ/70/2024 dated 22.02.2024, notified the

circular with respect to “Enhancing Transparency and Stakeholder
Engagement in Liquidation Process”.

The Circular has been issued to enhance transparency and stakeholder

engagement in the liquidation process. Liquidators are now directed to share
progress reports with Stakeholders’ Consultation Committee members, seek
their input in preparing the Preliminary Report, and submit Form H and
process closure orders to the Board. These measures aim to improve
oversight and keep stakeholders informed throughout the process.
Further, read here:

9. IBBI vide Circular no. IBBI/LIQ/68/2024 dated 22.02.2024, notified the

circular with respect to “Deposit and withdrawal of unclaimed
dividends and / or undistributed proceeds in accordance with regulation
46 of the Insolvency and Bankruptcy Board of India (Liquidation
Process) Regulations, 2016 (Liquidation Regulations).”

IBBI has issued the circular clarifying the deposit and withdrawal of
unclaimed dividends and / or undistributed proceeds in accordance with
Regulation 46 of the Insolvency and Bankruptcy Board. Regulation 46 of
 the Insolvency and Bankruptcy Board of India (Liquidation Process)
Regulations, 2016 provides a framework for the management of unclaimed
deposits and undistributed proceeds during the liquidation process. To
facilitate the request received from a stakeholder, under sub-regulation (7) of
regulation 46, who claims to be entitled to any amount deposited into the
Corporate Liquidation Account for withdrawal before the dissolution of the
corporate debtor, the liquidator, after due verification, shall apply to the
Board in the form, for the release of the amount for onward distribution to
such stakeholder.
Further, read here:

RBI
1. Reserve Bank of India (RBI) Amendment to Master Direction on
Prepaid Payment Instruments dated August 27, 2021

The Reserve Bank of India (RBI) has issued Amendments to the Master
Directions on Prepaid Payment Instruments (MD-PPIs) on 23.02.2024 to
allow authorized bank and non-bank PPI issuers to issue prepaid payment
instruments (PPIs) for making payments across various public transport
systems. This decision aims to enhance convenience, speed, affordability,
and safety of digital payment methods for commuters using public transport
services. The amendment, effective immediately, falls under the provisions
of the Payment and Settlement Systems Act, 2007.
Further, read here:
2. RBI Vide Notification No.: RBI/2023-24/128 dated 28.02.2024 issued
Guidelines with respect to “Capital Adequacy – Review of Trading
Book”

The Reserve Bank of India has updated the Capital Adequacy Guidelines to
align with changes in trading book classification and valuation, as outlined
in the Master Direction on Investment. Effective from April 1, 2024, these
modifications impact commercial banks (excluding Regional Rural Banks)
and introduce recalibrated market risk capital requirements. Banks are
advised to review their strategies and capital planning measures
accordingly.

Further, read here:

3. RBI Vide Circular No.: RBI/DoS.DSG/2023-24/110 dated 27.02.2024

issued Master Direction –Reserve Bank of India (Filing of Supervisory
Returns) Directions - 2024

The Reserve Bank of India (RBI) has issued the Master Direction on Filing
of Supervisory Returns, consolidating all supervisory return filing
instructions for various financial entities. Effective immediately, this
directive applies to commercial banks, cooperative banks, select financial
institutions, and non-banking financial companies (NBFCs). The directive
outlines responsibilities, data architecture requirements, accuracy standards,
and timelines for submitting returns. It also specifies penalties for non-
compliance. The RBI aims to streamline reporting processes and ensure
accurate and timely data submission from supervised entities.

Further, read here:

4. RBI Vide Circular No.: RBI/2023-24/127 dated 27.02.2024 issued
Guidelines with respect to “Appointment/re-appointment of Director,
Managing Director or Chief Executive Officer in Asset Reconstruction
Companies”

The Reserve Bank of India (RBI) has mandated that Asset Reconstruction
Companies (ARCs) must obtain prior approval for the appointment or re-
appointment of any Director, Managing Director, or Chief Executive
Officer, as per the Securitization and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002. To ensure uniformity in the
application process, ARCs are required to submit a specified form and a list
of documents at least ninety days before the vacancy arises or the proposed
appointment date. These guidelines aim to streamline the approval process
for key appointments in ARCs.

Further, read here: