Perspectives

SEBI has vide its circular dated 2nd June, 2021 revised its timelines for implementation of UPI in ASBA in respect of IPOs. This is after the stakeholders approached SEBI seeking additional time for implementation of system changes especially in view of the covid pandemic. Salient features are as follows: 1. SEBI vide Circular No. SEBI/HO/CFD/DIL2/CIR/P/2021/2480/1/M dated March 16, 2021 (hereinafter referred to as “the circular”), which came into effect from May 01, 2021 had put in place measures to have a uniform policy to further streamline the processing of ASBA applications through UPI process among intermediaries/SCSBs and also provided a mechanism of compensation to investors.  2. The stakeholders have approached SEBI seeking additional time for implementing the system changes given the prevailing uncertainty due to the Covid-19 pandemic.  3. In view of the representations received from stakeholders, the implementation timelines for the provisions of “the circular” shall be as u

 SEBI circular dated 1st June, 2021 allowing a one off, "off-market" transfer of securities by foreign portfolio investors for transferring to IFSC at Gift City, Ahmedabad, which gives substantial tax benefits as per the Finance Act, 2021. Gist of circular follows: 1. The Finance Act, 2021 provides tax incentives for relocating foreign funds to International Financial Services Centre (IFSC) in order to make the IFSC in GIFT City a global financial hub.  2. In view of the above objective and to further facilitate such ‘relocation’, it has been decided that a FPI (‘original fund’ or its wholly owned special purpose vehicle) may approach its DDP for approval of a one-time ‘off-market’ transfer of its securities to the ‘resultant fund’. The terms ‘original fund’, ‘relocation’ and ‘resultant fund’ will have the same meaning as assigned to them under the Finance Act, 2021.  3. The DDP after appropriate due diligence may accord its approval for a one-time ‘offmarket’ transfer of sec

update from GST portal The Government, vide  Notification No. 19/2021 , dated 1st June, 2021, inter alia, has waived the late fee payable, in  excess of amount  as specified in the Tables, as given below: (Note: Please refer to  respective  State/UT Notifications for waiver of State/UT tax). For the registered persons who have failed to furnish the return in FORM GSTR-3B, for the  months /quarter of July, 2017 to April, 2021,  by the due date: Sl.No Return in FORM GSTR-3B for the month/ quarter of Amount of Central & State/UT tax payablein the return If Return furnished between Late fee payable waived in excess of (Rs) 1 July, 2017 to April, 2021 NIL 1st June, 2021 and 31st August,2021 500 2 July, 2017 to April, 2021 Not NIL 1st June, 2021 and 31st August,2021 1000 For the tax period of June, 2021  onwards  or  quarter ending  June, 2021  onwards : Sl.No Class of registered persons Late fee payable waived in excess of (Rs) 1 Registered persons whose total amount of Central Tax &

IFSCA has vide its circular dated 2nd June, 2021 introduced an application form for Alternative Investment Funds (AIFs) to register in the International Financial Service Centre, IFSC, GIFT City, Ahmedabad.  The details of the same are given in this circular  here

 RBI has vide its circular dated 4th June, 2021 enhanced the covid relief to the MSME sector by increasing the aggregate credit exposure from Rs.25 crores to Rs.50 crores. Under the resolution framework for Covid stress, banks can now consider giving higher reliefs to the MSME sector. This is a welcome move. Read on  https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12105&Mode=0 A reference is invited to the  circular DOR.STR.REC.12/21.04.048/2021-22  on “Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)” dated May 5, 2021. 2. Clause 2 of the above circular specifies the eligibility conditions for MSME accounts to be considered for restructuring under the framework, which  inter alia  include sub-clause (iii) which states that the aggregate exposure, including non-fund based facilities, of all lending institutions to the MSME borrower should not exceed ₹25 crore as on March 31, 2021. 3. Based on a review, it has be

 https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12104&Mode=0 RBI has given relief to individuals and small borrowers having credit exposure upto Rs.25 crores to be given covid relief. The limit has been enhanced to Rs.50 crores. Whatever resolution has to be done by the banks for them has to be as per the earlier RBI circular dated 5th May, 2021. Read on.  A reference is invited to  circular DOR.STR.REC.11/21.04.048/2021-22  on “Resolution Framework – 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses” dated May 5, 2021. 2. Clause 5 of the above circular specifies the eligible borrowers who may be considered for resolution under the framework and includes the following sub-clauses: (b) Individuals who have availed of loans and advances for business purposes and to whom the lending institutions have aggregate exposure of not more than ₹25 crore as on March 31, 2021. (c) Small businesses, including those engaged in retail and wholesale trade, othe