- RBI extends guidelines on LEI to Primary UCBs & NBFCs
Circular number – RBI/2022-23/34 DOR.CRE.REC.28/21.04.048/2022-23
Dated – 21.04.2022
On a review, it has been decided that the guidelines on LEI stand extended to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs). It is further advised that non-individual borrowers enjoying aggregate exposure of ₹5 crore and above from banks1and financial institutions (FIs)2 shall be required to obtain LEI codes as per the timeline given in the Annex.
Borrowers who fail to obtain LEI codes from an authorized Local Operating Unit (LOU) shall not be sanctioned any new exposure nor shall they be granted renewal/enhancement of any existing exposure. However, Departments/Agencies3of Central and State Governments (not Public Sector Undertakings registered under Companies Act or established as Corporation under the relevant statute) shall be exempted from this provision.
These directions are issued under sections 21, 35A and 56 of the Banking Regulation Act, 1949, sections 45JA and 45L of the Reserve Bank of India Act, 1934, section 30A of the National Housing Bank Act, 1987 and section 6 of the Factoring Regulation Act, 2011.
- RBI directs UCBs to not to create any honorary positions/titles at Board level
Circular number – RBI/2022-23/33 DOR.GOV.REC.No.26/18.10.004/2022-23
Dated – 21.04.2022
It has been observed during the course of supervisory reviews that some of the Urban Co-operative Banks (UCBs) have adopted the practice of creating honorary designations (remunerated or otherwise)/conferring titles at Board level, such as Chairman Emeritus, Group Chairman, etc., which are not recognised in applicable statutes or regulations.
While such positions/titles may be indicative of certain privileges/rights for the incumbent to access all board materials and participate in board/committee meetings, enforcing liability or obligations on such person may be difficult. Such positions may be seen as creating conflicts of interest as well as creation of a parallel or shadow authority impeding effective and independent functioning of the legally constituted board in the best interest of all its stakeholders.
As such, UCBs are directed not to create any honorary positions/titles at Board level or confer such titles that are non-statutory in nature and to eliminate any such existing position/titles within one year from date of this circular.
These directions are issued under Section 35A and Section 36(1)(d) of the Banking Regulation Act, 1949 (AACS).
- CBDT notifies SEEPZ Special Economic Zone Authority U/s. 10(46)
Notification number – 36/2022-Income Tax
Dated – 20.04.2022
In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘SEEPZ Special Economic Zone Authority’ (PAN AAALS4995G), an Authority constituted under the Special Economic Zone Act, 2005 by the Government of India, in respect of the following specified income arising to that Authority, namely:-
(a) Lease rentals/Service charges from various units operating in the SEZ;
(b) Income by way of Gate Pass Entry Fees, Fine & Penalties from various units and other misc. income (Fire cess income, sale of garbage, contribution for crèch facilities); and
(c) Interest on Bank Deposits and Investments.
This notification shall be effective subject to the conditions that SEEPZ Special Economic Zone Authority:-
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and
(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
This notification shall be deemed to have been applied for the financial years 2020-2021 and 2021-2022 and shall be applicable with respect to the financial years 2022-2023, 2023-2024 and 2024-2025.
- SEBI signs MoU with Manitoba Securities Commission, Canada
Press Releases No. 14/2022
Dated – 20.04.2022
The Securities and Exchange Board of India (SEBI) and the Manitoba Securities Commission (MSC) have entered into a bilateral Memorandum of Understanding (MoU) for mutual co-operation, exchange of information and technical assistance. MSC is SEBI’s counterpart in the province of Manitoba, Canada. The MoU has been signed by Ms. Madhabi Puri Buch, Chairperson, SEBI and Mr. David Cheop, Chief Executive Officer and Chairperson, MSC. The MoU took effect on April 20, 2022.
The MoU will strengthen cross border co-operation in the area of securities regulation. This will facilitate mutual assistance, contribute towards efficient performance of the supervisory functions, aid in imparting technical domain knowledge, and enable effective enforcement of the laws and regulations governing the securities markets.
Signing of this MoU will also make investors based in the province of Manitoba eligible to obtain registration as Foreign Portfolio Investors (FPIs) with SEBI.