Daily Updates and News

RBI

RBI has released guidelines for ‘on tap’ licensing of Universal Banks in the Private Sector. The guidelines state that individuals with 10 years senior-level experience are eligible to promote a bank but large industry houses have been excluded as eligible entities, although they can invest up to 10 percent. It also prescribes the minimum voting equity capital requirements, the pattern of shareholding in the bank and the procedure for application for setting up banks in the private sector. The validity of the in-principle approval issued by RBI has also been revised from 12 months to 18 months from the date of granting in-principle approval and would thereafter lapse automatically. 

SEBI:

The Securities and Exchange Board of India has decided that the following documents shall be provided to clients in vernacular languages:

1. Document stating the Rights & obligations of stock broker, sub-broker and clients (including additional rights & obligations in case of internet / wireless technology based trading).
2. Uniform Risk Disclosure Document (for all segments / exchanges).
3. Guidance Note - Do’s and Don’ts for trading on exchange(s) for trading on exchanges.

The Board has advised stock exchanges having nationwide terminals to provide the above said documents in 15 vernacular languages viz. Assamese, Bengali, Gujarati, Hindi, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Oriya, Punjabi, Sindhi, Tamil, Telugu and Urdu to clients through their members and also to make it available on their websites. These documents are already available on the websites of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. The Stock brokers have also been advised by the stock exchanges, to make available these documents to their clients on demand and also display the same on their own website.

BENAMI TRANSACTIONS (PROHIBITION) AMENDMENT BILL 2016:

The Rajya Sabha on Tuesday passed the Benami Transactions (Prohibition) Amendment Bill 2016. The Bill provides for rigorous imprisonment of up to seven years and a fine to 25% of the fair market value of the benami property. The Lok Sabha had passed the Bill in the current session of parliament. The Benami Transactions (Prohibition) Amendment Bill amends the definition of “benami” transactions to exclude intra-family transactions. The Bill also enables adjudicating authorities and an Appellate Tribunal to deal with such transactions.

Thanks & Regards,

Meetesh Shiroya