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One of the ways in which eminent authorities communicate their actions and decisions to the general public is by issuing notifications and circulars. The article discusses the significant notifications issued by the authorities in the previous week.
Table of Contents
(SEBI) has recently issued several notifications regarding the Framework for the protection of the interest of public equity shareholders in listed companies that are undergoing CIRP under IBC, Real Estate Investment Trusts, Substantial Acquisition of Shares and Takeovers and Payment of Fees which are discussed below –
SEBI issued the consultation paper on 10th November 2022, which discussed the following-
Upon considering the implications of the proposals mentioned above on the market participants, including investors, issuer companies and public comments are invited on the matters in the prescribed manner.
SEBI issued this notification vide Notification No. SEBI/LAD-NRO/GN/2022/98 on 9th November 2022 for the further amendment of the SEBI regulations, namely (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
The amendments stated in this notification are discussed below
Further, it was stated that the proviso shall be applicable only if there are changes in the public sector undertaking.”
2. In regulation 8(3)(e), after the words “frequently traded;” and prior to the word “and”, the following provisos have been inserted – Provided that the price determined according to (e) won’t apply in the event of disinvestment of a public sector undertaking by the Central Govt or a State Govt, as per the case and would be applicable if there is a change in the control in the public sector undertaking.”
3. In regulation 22(2), after the word “cash” and prior to the words “of an amount”, there has been the insertion of words and symbol “or providing irrevocable and unconditional bank guarantee issued favouring the manager to the open offer by any SCB, subject to the approval of the RBI,”
4. In regulation 22,(2), before the proviso, the following Explanation has been inserted, namely-
“Explanation. – For sub-regulation (2), a bank guarantee will be issued only by such SCBs having a rating of AAA‟ from a credit rating agency that is registered with SEBI on any of its long-term debt instruments.”
These regulations came into force from November 09, 2022.
The Board vide Notification No. SEBI/LAD-NRO/GN/2022/100 issued the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2022 for further amending the SEBI (Real Estate Investment Trusts) Regulations, 2014 on November 09, 2022, stating the following amendments –
The sub-regulation (3) of regulation has been substituted with the following sub-regulation, namely-
“(3) The sponsor(s) and sponsor group(s) would collectively hold a minimum of 15% of the total units of the REIT for at least 3 yrs from the date of listing of the units pursuant to the initial offer on a post-issue basis:
Any holding of the sponsor(s) and sponsor group(s) that exceeds the minimum holding shall be held for at least 1 year from the date of listing of such units.”
“(4) Notwithstanding anything contained in any agreement or contract, the sponsor(s) and the sponsor group(s) would continue to be liable to the REIT and unit holders for all acts of omission or commission, covenants or representation regarding the formation of the REIT and the transfer or sale of assets or Holdco or SPV to the REIT.”
The regulations came into force from 09.11.22
SEBI vide SEBI/LAD-NRO/GN/2022/99 issued the SEBI (Payment of Fees) (Amendment) Regulations, 2022 to amend further the SEBI (Foreign Portfolio Investors) Regulations, 2019, and the SEBI (Foreign Venture Capital Investors) Regulations, 2000 on November 09, 2022, providing the following amendments.
In the SEBI (Foreign Portfolio Investors) Regulations, 2019 –
These regulations came into force from November 01, 2022.
Another eminent authority that released a significant notification is the Directorate General of Foreign Trade or DGFT, which has been discussed below.
DGFT issued a notification regarding amendments in the Foreign Trade Policy in sync with RBI A.P.(DIR Series) Circular No.10 dated 11 July 2022 on October 28, 2022, vide Notification No. 43/2015-20, stating the following amendments
Para 2.46 Import for export has been revised.
Para 2.53 Applicability of FTP Schemes for Export Realisations in Indian Rupees has been revised.
Para 3.20 Status Holder has been revised.
Para 4.21 Currency for Realisation of Export Proceeds
The notifications issued by various authorities can be quite helpful for the general public. The proposal can be beneficial for Public Equity Shareholders in the Case of Listed Companies undergoing CIRP as per the IBC and the other notifications by SEBI and DGFT regarding the latest amendments and can provide the much-needed information to the investors, shareholders or any other relevant person.
Read Our Article: SEBI guidelines amend SEBI KRA Regulations, 2011
Shubhangi has completed her B. A.LLB (H) with specialization in Business Laws from Amity University. She is particularly interested in legal research and writing and wishes to utilize her knowledge to create informative legal content. She has prior experience in corporate and criminal litigation and has great drafting skills. She has also published various research papers in reputed journals.
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