No. SEBI/HO/MRD/DDAP/CIR/P/2020/16 (Dated 28

th January, 2020)

With reference to SEBI circulars dated June 07, 2016, February 23, 2017 and January 10, 2019, which, inter

alia, provides norms on composition of IPF Trust, and functions and composition of committees at MIIs,

SEBI has issued a circular wherein it is clarified that:

a. Norms for composition of IPF Trust, as provided in Clause 3(i) (4) of SEBI circular dated February 23,

2017, are uniformly applicable across Exchanges and Depositories.

b. The functions of IPF Trust, as prescribed in Clause 3(i) (4) of SEBI circular dated February 23, 2017,

shall be applicable only to Exchanges.

Depositories shall ensure compliance with these norms within three months from the date of this circular.

Additionally, with reference to Gazette notification dated June 04, 2019, amending SECC Regulations, 2018

and SEBI (D&P) Regulations, 2018, inter alia, in respect of names of committees at MIIs, it is clarified that

in SEBI circular dated January 10, 2019, read with circular dated February 15, 2019:

a. The name of “Investor grievance redressal committee” shall be read as “Grievance redressal

committee”.

b. The name of “Member selection committee” shall be read as “Member committee”.

The Circular is available at: https://www.sebi.gov.in/…/ipf-trust-and-committees…

SEBI/HO/CDMRD/DRMP/CIR/P/2020/15 (Dated 27th January, 2020)

1. SEBI vide Circular CIR/CDMRD/DRMP/01/2015 dated October 01, 2015 and

SEBI/HO/CDMRD/DRMP/CIR/P/2016/77 dated September 01, 2016 prescribed Risk Management Framework

for the Commodity Derivatives Segment (CDS). These circulars, inter alia, stipulated minimum value for Initial

Margin (IM) and Margin Period of Risk (MPOR).

2. CPSS-IOSCO Principles for Financial Market Infrastructure (PFMI) inter alia prescribes under Key

Considerations for Principle 6 on margin that margining model should to the extent practicable and prudent,

limit the need for destabilising, pro-cyclical changes.

3. It is further explained under Clause 3.6.10 of PFMI that:

a. Limiting procyclicality: A CCP should appropriately address pro-cyclicality in its margin

arrangements. In this context, pro-cyclicality typically refers to changes in risk management practices

that are positively correlated with market, business, or credit cycle fluctuations and that may cause or

exacerbate financial instability.

b. For example, in a period of rising price volatility or credit risk of participants, a CCP may require

additional initial margin for a given portfolio beyond the amount required by the current margin model.

This could exacerbate market stress and volatility further, resulting in additional margin requirements.

To support this objective, a CCP could consider increasing the size of its prefunded default arrangements

to limit the need and likelihood of large or unexpected margin calls in times of market stress. These

procedures may create additional costs for CCPs and their participants in periods of low market

volatility due to higher margin or prefunded default arrangement contributions, but they may also result

in additional protection and potentially less costly and less disruptive adjustments in periods of high

market volatility.

4. In light of the above and given the wide variation of liquidity and volatility among different commodity

derivatives, it has been decided, in consultation with stakeholders, to categorize commodities as per their

realized volatility and to prescribe floor values of IM and IMPOR depending upon their categories.

5. Accordingly, norms regarding Minimum IM and minimum MPOR for commodity derivatives segment stands

revised as per the framework mentioned in the circular. The norms on risk management prescribed vide circulars

referred to at Para ‘1’ above, which are not modified shall continue to prevail.

Initial categorisation of commodities as prescribed under Para ‘5’ of the circular shall be done and notified by

CCs within 15 days of the circular. The revised norms with regard to IM, MPOR and lean period margin may

be implemented by CCs in a phased manner and shall be fully implemented within a period of three months

from the date of the circular. The corresponding update in stress testing scenarios, if applicable, shall also be

done by CCs immediately after the circular is fully implemented.

The circular is available at: https://www.sebi.gov.in/…/review-of-margin-framework…

3. MERCHANTING TRADE TRANSACTIONS (MTT) – REVISED GUIDELINES – RBI/2019-20/152

A.P. (DIR Series) Circular No.20 (Dated 23rd January, 2020)

RBI has issued a circular containing directions issued under sections 10(4) and 11(1) of the Foreign Exchange

Management Act (FEMA), 1999 (42 of 1999) without prejudice to permissions / approvals, if any, required

under any other law wherein attention of Authorised Dealer Category-I banks (AD banks) is invited to A.P.

(DIR Series) Circular No.115 dated March 28, 2014 containing directions relating to merchanting trade

transactions.

With a view to further facilitate merchanting trade transactions, the existing guidelines have been reviewed and

the revised guidelines are being issued in supersession of the A.P. (DIR Series) Circular ibid.

The circular is available at: https://www.rbi.org.in/Scripts/NotificationUser.aspx…

(i) Stakeholders may please note that as part of Government of India’s Ease of Doing Business(EODB) initiatives, the Ministry of Corporate Affairs would be shortly notifying & deploying a new Web Form christened ‘SPICe+’ (pronounced ‘SPICe Plus’) replacing the existing SPICe form.

(ii) SPICe+ would be an integrated Web form offering multiple services viz. name reservation, incorporation, DIN allotment, mandatory issue of PAN, TAN, EPFO, ESIC, Profession Tax (Maharashtra) and Opening of Bank Account. It will also facilitate allotment of GSTIN wherever so applied for by the Stakeholders. After deployment of SPICe+ web form, RUN shall be applicable only for change of name of existing companies.

(iii) Upon notification & deployment, all new name reservations for new companies as well as new incorporations shall be applied through SPICe+ only

(iv) However, incorporation of companies for names reserved through the existing RUN service shall continue to be filed in the existing SPICe eform along with related linked forms as applicable and if marked under resubmission shall be resubmitted in SPICe eform.

(v) Resubmission of SPICe forms submitted prior to date of deployment of SPICe+ web form shall also be filed in the existing SPICe eform and related linked forms as applicable.Message

Due to the proposed changes to the RUN web service (for companies), RESUBMISSION OPTION for name reservation SHALL NOT BE AVAILABLE for forms processed by CRC from 1st Feb 2020 ONWARDS for approximately 15 days. Hence, stakeholders are advised to EITHER AWAIT DEPLOYMENT OF SPICe+ AND THEN APPLY FOR NAMES through SPICe+ web form or perform due diligence while submitting any application in existing RUN web service for name reservation. RUN applications (for companies) processed filed w.e.f 1st February 2020 onwards shall either be approved or rejected based on checks performed by CRC officers. Stakeholders may kindly note and plan accordingly.

This relates to appointment of Company Secretaries in Private Companies and Applicability of Secretarial Audit.

Amendment: (To be effective from 1st April 2020)

(a) The requirement for appointment of Company Secretary for a private limited company: The threshold changes from Rs. 5 crores to Rs. 10 crores of paid up share capital .

(b) Secretarial Audit – The additional criteria of “Outstanding Loan or Borrowings from banks or Public Financial Institutions exceeds Rs 100 Cr.” has been inserted apart from existing Paid up share capital & Turnover criteria

[Official Notification:]

http://www.mca.gov.in/Ministry/pdf/AmdtRules_06012020.pdf

MCA.GOV.IN

www.mca.gov.in

https://www.cdslindia.com/issuer/issuer-joiningpro.html

CDSLINDIA.COM

Issuer-Admission-Procedure | CDSL

In order to admit its securities with CDSL, a company should first establish electronic connectivity with CDSL. The company can establish a direct in-house electronic connectivity with CDSL or can utilize the services of a Registrar and Transfer Agent (RTA) having electronic connectivity with CDSL.

https://pib.gov.in/PressReleasePage.aspx?PRID=1591576

PIB.GOV.IN

GSTR-9 & GSTR -9C more simplified & last dates of submission extended

The Government has decided today to extend the due dates of filing of Form GSTR-9 (Annual Return) an

https://placement.icsi.edu/

PLACEMENT.ICSI.EDU

ICSI

Every Registered person shall display his Good and Service Tax Identification Number on the name of board exhibited at the entry of his principal place of business and every additional place or places of business.

http://www.cbic.gov.in/…/09.10.2019_CGST%20Rules…

https://mcacms.gov.in/#/

Ministry of Corporate Affairs (MCA) has introduce Online Compliance Monitoring System (MCACMS) for issuing show cause notices and submitting replies from companies/directors for non-compliance under provision of Companies Act, 2013.

MCACMS Portal started sending show cause notices for certain violations by email to the Company /Director / Company Secretary. The Show cause notice will carry a CMS reference Number such as F. No. D/RCXXX/XXX/2019/XX/YY-YY.

The notice will carry details of non-compliances under which section the notice is issued for and the timelines for submitting the reply. The Company is required to serve a copy of the said notice to the directors/KMPs and the notice will be treated as deemed to have been served upon every officers in default of the company in terms of the Companies Act. 2013. The recipient of showcase notice has to submit reply at the portal.

One can opine that in case if there is any default in complying with the provision of applicable law, rules and regulations as defined thereunder will going to receive notices from regulators. Hence, it is hereby advised to comply with each and every provision of the Act in true letter and spirit so as to avoid any action from Registrar of Companies (ROC) and any other regulatory authority, if any.

MCACMS.GOV.IN

mcacms.gov.in