RBI
Reserve Bank of India (RBI) has issued Master Direction on Reserve Bank of India (Financial Services provided by Banks) Directions, 2016. As per the Direction, a Bank is not allowed to contribute more than 10% of its Paid up capital and reserves as per last audited balance sheet in factoring subsidiaries and factoring companies. Further it is not
allowed to contribute more than 49% in the equity of a Debt funded
NBFC. The master Direction does not allow a bank to undertake Mutual
fund or Insurance business with risk participation except through a
subsidiary set up for the same purpose. An AD Category I Scheduled Bank
can become a trading or clearing member if its net worth is more than
500 crores and its NPA does not exceed 3%. The Master Direction came
into force from 28th May, 2016.
SEBI
Securities and Exchange Board of India (SEBI) has notified Disclosure of the Impact of Audit Qualifications by the Listed Entities. The circular requires a Listed Entity to disseminate
the cumulative impact of all the audit qualifications in a separate
format, while submitting the annual audited financial results to the
stock exchanges to ensure that the investment decisions can be taken
wisely by investors. This will ensure that the information is
available to the investors, without delay, enabling them to take well
informed investment decisions. It will further dispense with the
existing requirement of filing Form A or Form B for audit report with
unmodified or modified opinion respectively and requirement of making
adjustment in the books of accounts of the subsequent year. The
management of the Companies shall have the option to explain its vies
on the audit qualifications. The Circular shall be applicable to all the
Listed Companies submitting their Financial Year ended 31st March, 2016.
Thanks & Regards,
Meetesh Shiroya
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