transmission of securities

SEBI has vide its circular dated 4th January, 2019 clarified that in case of transmission of shares held in demat mode, it shall follow the same procedure in respect of documentation as is specified in case of transmission of shares in physical mode. In physical mode, it has been specified that succession certificate or probate of will or will or letter of administration or court decree etc. as may be applicable in terms of the Indian Succession Act, 1925 are the documentary requirements.

Now in terms of the aforesaid circular, the same documentary requirements shall be applicable to transmission of securities held in demat made. So basically the successors or heirs have to produce the above set of documents to prove their title and submit the same to the depository participant.

Copy of SEBI circular is enclosed here

Brave Param Vir Chakra Stories

Just completed this absolutely brilliant and breath taking book on the soldiers who were accorded the highest gallantry award by the Indian government i.e. the Param Vir Chakra. Written by Rachna Bisht Rawat in the form of independent stories covering each recipient of the award. She has done a painstaking job in researching the subjects, going across to the family members or the battalion to get more details on the soldiers. The narrative she has kept as moving back and forth between the situation of the war and their past childhood, but it is quite engrossing. 

Most of the Param Vir Chakra were given posthumously and few lived to tell their tale. The stories starts from 1947-18 war over Kashmir with Pakistan, touches briefly on Indian soldiers' deployment as part of the UN force in Congo, the disastrous and unplanned Indo-China war of 1962, the second Kashmir war of 1965, the Indo-Pak war of 1971 which resulted in Bangladesh independence, the retaking of the Saltoro ridge in Siachin glacier in 1987, again another disastrous and unwarranted interference by Indian soldiers in Sri Lanka as part of the Indian Peace Keeping Force and the Kargil war of 1999. 

All stories have goosebumps moment in them, but in my view the most daring and courageous feat is that of Bana Singh who was awarded the Param Vir Chakra for the retaking of Saltoro ridge in the Siachen glacier in 1987 a war which was fought at 18000 feat in sub zero temperatures where man can hardly breathe for a few minutes at the most. The most daring breath taking and courageous feat ever in history of mankind. 

These are stories of soldiers who are ill equipped with poor equipment, clothing, helmets, bullet proof jackets, boots, ammunition etc. but who had abundance of courage to not let down their duty.

Goodreads review 5/5 

customer protection

Gist of RBI notification dated 4th January, 2019 on customer protection for authorised non banks pre-paid instruments.

Please refer to paragraph 9 of Statement on Developmental and Regulatory Policies regarding framework for limiting customer liability in respect of unauthorised electronic payment transactions involving PPIs, announced in the Fifth Bi-monthly Monetary Policy Statement for 2018-19 by the Reserve Bank of India (RBI).

2. As you are aware, a framework for ‘Risk Management’ and ‘Customer Protection’ has already been laid down in paragraphs 15 and 16 of Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPI MD) issued vide DPSS.CO.PD.No.1164/02.14.006/2017-18 dated October 11, 2017 (updated as on December 29, 2017). With a view to further strengthen customer protection for the PPIs which are issued by entities other than banks, the criteria for determining the customers’ liability in unauthorised electronic payment transactions resulting in debit to their PPIs have been reviewed as under:

Applicability

3. The provisions of these directions will be applicable to all authorised non-bank PPI issuers (referred to as ‘PPI issuer’ hereafter). Bank PPI issuers will continue to be guided by DBR.No.Leg.BC.78/09.07.005/2017-18 dated July 6, 2017 or DCBR.BPD.(PCB / RCB). Cir.No.06/12.05.001/2017-18 dated December 14, 2017, as applicable. PPIs issued under the arrangement of PPI-MTS (PPIs for Mass Transit Systems) as per paragraph 10.2 of PPI MD will be outside the purview of these directions except for the cases of contributory fraud / negligence / deficiency on the part of the PPI-MTS issuer.

Categories of electronic payment transactions

4. For the purpose of this circular, electronic payment transactions have been divided into two categories:

1. Remote / Online payment transactions (transactions that do not require physical PPIs to be presented at the point of transactions e.g. wallets, card not present (CNP) transactions, etc.).
2. Face-to-face / Proximity payment transactions (transactions which require the physical PPIs such as cards or mobile phones to be present at the point of transactions e.g. transactions at Point of Sale, etc.).

5. Reporting of unauthorised payment transactions by customers to PPI issuers

1. PPI issuers shall ensure that their customers mandatorily register for SMS alerts and wherever available also register for e-mail alerts, for electronic payment transactions.
2. The SMS alert for any payment transaction in the account shall mandatorily be sent to the customers and e-mail alert may additionally be sent, wherever registered. The transaction alert should have a contact number and / or e-mail id on which a customer can report unauthorised transactions or notify the objection.
3. Customers shall be advised to notify the PPI issuer of any unauthorised electronic payment transaction at the earliest and, shall also be informed that longer the time taken to notify the PPI issuer, higher will be the risk of loss to the PPI issuer / customer.
4. To facilitate this, PPI issuers shall provide customers with 24x7 access via website / SMS / e-mail / a dedicated toll-free helpline for reporting unauthorised transactions that have taken place and / or loss or theft of the PPI.
5. Further, a direct link for lodging of complaints, with specific option to report unauthorised electronic payment transactions shall be provided by PPI issuers on mobile app / home page of their website / any other evolving acceptance mode.
6. The loss / fraud reporting system so established shall also ensure that immediate response (including auto response) is sent to the customers acknowledging the complaint along with the registered complaint number. The communication systems used by PPI issuers to send alerts and receive their responses thereto shall record time and date of delivery of the message and receipt of customer’s response, if any. This shall be important in determining the extent of a customer’s liability. On receipt of report of an unauthorised payment transaction from the customer, PPI issuers shall take immediate action to prevent further unauthorised payment transactions in the PPI.

Limited liability of a customer

6. A customer’s liability arising out of an unauthorised payment transaction will be limited to:

Customer liability in case of unauthorised electronic payment transactions through a PPI
S. No.	Particulars	Maximum Liability of Customer
(a)	Contributory fraud / negligence / deficiency on the part of the PPI issuer, including PPI-MTS issuer (irrespective of whether or not the transaction is reported by the customer)	Zero
(b)	Third party breach where the deficiency lies neither with the PPI issuer nor with the customer but lies elsewhere in the system, and the customer notifies the PPI issuer regarding the unauthorised payment transaction. The per transaction customer liability in such cases will depend on the number of days lapsed between the receipt of transaction communication by the customer from the PPI issuer and the reporting of unauthorised transaction by the customer to the PPI issuer -
	i. Within three days#	Zero
	ii. Within four to seven days#	Transaction value or ₹ 10,000/- per transaction, whichever is lower
	iii. Beyond seven days#	As per the Board approved policy of the PPI issuer
(c)	In cases where the loss is due to negligence by a customer, such as where he / she has shared the payment credentials, the customer will bear the entire loss until he / she reports the unauthorised transaction to the PPI issuer. Any loss occurring after the reporting of the unauthorised transaction shall be borne by the PPI issuer.
(d)	PPI issuers may also, at their discretion, decide to waive off any customer liability in case of unauthorised electronic payment transactions even in cases of customer negligence.
# The number of days mentioned above shall be counted excluding the date of receiving the communication from the PPI issuer.

The above shall be clearly communicated to all PPI holders.

Reversal timeline for zero liability / limited liability of a customer

7. On being notified by the customer, the PPI issuer shall credit (notional reversal) the amount involved in the unauthorised electronic payment transaction to the customer’s PPI within 10 days from the date of such notification by the customer (without waiting for settlement of insurance claim, if any), even if such reversal breaches the maximum permissible limit applicable to that type / category of PPI. The credit shall be value-dated to be as of the date of the unauthorised transaction.

8. Further, PPI issuers shall ensure that a complaint is resolved and liability of the customer, if any, established within such time, as may be specified in the PPI issuer’s Board approved policy, but not exceeding 90 days from the date of receipt of the complaint, and the customer is compensated as per provisions of paragraph 6 above. In case the PPI issuer is unable to resolve the complaint or determine the customer liability, if any, within 90 days, the amount as prescribed in paragraph 6 shall be paid to the customer, irrespective of whether the negligence is on the part of customer or otherwise.

Board approved policy for customer protection

9. Taking into account the risks arising out of unauthorised debits to PPIs owing to customer negligence / PPI issuer negligence / system frauds / third party breaches, PPI issuers need to clearly define the rights and obligations of customers in case of unauthorised payment transactions in specified scenarios. PPI issuers shall formulate / revise their customer relations policy, with approval of their Boards, to cover aspects of customer protection, including the mechanism of creating customer awareness on the risks and responsibilities involved in electronic payment transactions and customer liability in such cases of unauthorised electronic payment transactions. The policy must be transparent, non-discriminatory and should stipulate the mechanism of compensating the customers for the unauthorised electronic payment transactions and also prescribe the timelines for effecting such compensation. PPI issuers shall provide the details of their Board approved policy in regard to customers’ liability formulated in pursuance of these directions, as well as the provisions of paragraph 15 and 16 of PPI MD, to all customers at the time of issuing the PPI. PPI issuers shall display their Board approved policy, along with the details of grievance handling / escalation procedure, in public domain / website / app for wider dissemination.

Burden of proof

10. The burden of proving customer liability in case of unauthorised electronic payment transactions shall lie on the PPI issuer.

Reporting and monitoring requirements

11. The PPI issuers shall put in place a suitable mechanism and structure for reporting of the customer liability cases to the Board or one of its Committees. The reporting shall, inter-alia, include volume / number of cases and the aggregate value involved and distribution across various categories of cases. The Board or one of its Committees shall periodically review the unauthorised electronic payment transactions reported by customers or otherwise, as also the action taken thereon, the functioning of the grievance redressal mechanism and take appropriate measures to improve the systems and procedures.

12. Directions contained in paragraph 16.4 of PPI MD as applicable to non-bank PPI issuers are being modified accordingly.

13. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007), and shall come into effect from March 01, 2019.

MSME - trade receivables

Vide a notification issued by the Govt. of India on 2nd November, 2018, all companies with a turnover of more than Rs.500 crores, and all Central Public Sector Enterprises shall get themselves registered at the Trade Receivables Discounting System Platform set up by the RBI. The Registrar of Companies in each state shall be the competent authority to monitor the compliance of these instructions in respect of companies under its respective jurisdiction and Department of Public Enterprises is the authority for the public sector enterprises.

The RBI guidelines in respect of the Trade Receivables Discounting Sytem (TReDS) is given here

So this is another set of compliances to be done by these big companies. 

CERSAI

Gist of RBI notification dated 27th December, 2018 follows

It is now mandatory for banks/ NBFCs etc. to file security interest created on immoveable property (other than equitable mortgage by deposit of title deeds), moveable and intangeable assets in CERSAI.

CERSAI is central registry of securitisation asset reconstruction and security interest of India. It is an online platform for registration of transaction of securitisation, asset reconstruction of financial assets, and creation of security interest over property as contemplated in the SARFAESI Act.

Please refer to circulars DBOD.Leg.No.BC.86/09.08.011/2010-11 dated April 21, 2011, RPCD.CO.RRB.BC.No.72/03.05.33/2010-11 dated May 19, 2011, DNBS.(PD). CC.No.24/SCRC/26.03.001/2010-2011 dated May 25, 2011 and RPCD.CO.RCB.BC. No.73/07.38.03/2010-11 dated May 26, 2011 advising banks/financial institutions(FIs) to register the transactions relating to securitization and reconstruction of financial assets and those relating to mortgage by deposit of title deeds with CERSAI.

2. The Government of India has subsequently issued a Gazette Notification dated January 22, 2016 for filing of the following types of security interest on the CERSAI portal:

1. Particulars of creation, modification or satisfaction of security interest in immovable property by mortgage other than mortgage by deposit of title deeds.
2. Particulars of creation, modification or satisfaction of security interest in hypothecation of plant and machinery, stocks, debts including book debts or receivables, whether existing or future.
3. Particulars of creation, modification or satisfaction of security interest in intangible assets, being know how, patent, copyright, trademark, licence, franchise or any other business or commercial right of similar nature.
4. Particulars of creation, modification or satisfaction of security interest in any ‘under construction’ residential or commercial or a part thereof by an agreement or instrument other than mortgage.

3. CERSAI had started registration of the data in respect of paragraphs 2 (a) to (c) above, for the security interests created on or after January 22, 2016, w.e.f. May 25, 2016 for Scheduled Commercial Banks and w.e.f. July 1, 2016 for all other entities registered with them. Further, the registration of data in respect of paragraph 2(d) above has commenced since June 8, 2017 for all banks and FIs registered with CERSAI. Meanwhile, the banks/ FIs have also started registering the security interests created before January 22, 2016 (subsisting records). However, it is observed that the extent of registration on the CERSAI portal is very low, both for current and subsisting records.

4. Banks/FIs are therefore advised to complete filing the charges pertaining to subsisting transactions by March 31, 2019. Banks/FIs are also advised to file the current charges relating to all transactions with CERSAI on an ongoing basis.

GSTR3B -waiver of late fee

The Central Government has vide a notification click here waived the late fee on delayed filing of form GSTR3B. Any amount of late fee which is in excess of Rs.25/- per day is waived. Similarly where the tax payable is NIL and still the registered person has to file the return, any excess late fee over Rs.10 per day is waived off. This is applicable for all GSTR3B returns from July, 2017 onwards i.e. from the inception of GST system.

So here it is only a partial waiver. But where the registered person has failed to furnish the return for the periods July 2017 to September, 2018 but has subsequently filed the same between 22nd December, 2018 and 31st March, 2019, the entire late fee is waived off.

This sounds ridiculous unless I am missing some thing here. That means if you have not filed at all but are filing now between those above dates, then you get full waiver, otherwise only partial waiver.

This begs a major question - why the hell did the government deem it so bloody important to levy a late fee and penalty in the first place if they have to go back and waive it from retrospective effect. Sounds like poor governance from the government.

CRZ notification

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the Coastal Regulation Zone (CRZ) Notification, 2018 which was last reviewed and issued in 2011, with periodic amendments to some clauses. The move comes in the backdrop of a series of representations received by the Ministry of Environment, Forest & Climate Change from various Coastal States/UTs, besides other stakeholders, for a comprehensive review of the provisions of the CRZ Notification, 2011, particularly related to the management and conservation of marine and coastal eco-systems, development in coastal areas, eco-tourism, livelihood option and sustainable development of coastal communities etc.

Benefits

The proposed CRZ Notification, 2018 will lead to enhanced activities in the coastal regions thereby promoting economic growth while also respecting the conservation principles of coastal regions. It will not only result in significant employment generation but also to better life and add value to the economy of India. The new notification is expected to rejuvenate the coastal areas while reducing their vulnerabilities.

Salient Features:

(i)         Allowing FSI as per current norms in CRZ areas: As per CRZ, 2011 Notification, for CRZ-II (Urban) areas, Floor Space Index (FSI) or the Floor Area Ratio (FAR) had been frozen as per 1991 Development Control Regulation (DCR) levels. In the CRZ, 2018 Notification, it has been decided to de-freeze the same and permit FSI for construction projects, as prevailing on the date of the new Notification. This will enable redevelopment of these areas to meet the emerging needs.

(ii)        Densely populated rural areas to be afforded greater opportunity for development: For CRZ-III (Rural) areas, two separate categories have now been stipulated as below:

(a)  CRZ-III A - These are densely populated rural areas with a population density of 2161 per square kilometre as per 2011 Census. Such areas shall have a No Development Zone (NDZ) of 50 meters from the HTL as against 200 meters from the High Tide Line stipulated in the CRZ Notification, 2011 since such areas have similar characteristics as urban areas.

(b)  CRZ-III B - Rural areas with population density of below 2161 per square kilometre as per 2011 Census. Such areas shall continue to have an NDZ of 200 meters from the HTL.

(iii)       Tourism infrastructure for basic amenities to be promoted: Temporary tourism facilities such as shacks, toilet blocks, change rooms, drinking water facilities etc. have now been permitted in Beaches. Such temporary tourism facilities are also now permissible in the "No Development Zone" (NDZ) of the CRZ-III areas as per the Notification. However, a minimum distance of 10 m from HTL should be maintained for setting up of such facilities.

(iv)      CRZ Clearances streamlined: The procedure for CRZ clearances has been streamlined. Only such projects/activities, which are located in the CRZ-I (Ecologically Sensitive Areas) and CRZ IV (area covered between Low Tide Line and 12 Nautical Miles seaward) shall be dealt with for CRZ clearance by the Ministry of Environment, Forest and Climate Change. The powers for clearances with respect to CRZ-II and III have been delegated at the State level with necessary guidance.

(v)       A No Development Zone (NDZ) of 20 meters has been stipulated for all Islands: For islands close to the main land coast and for all Backwater Islands in the main land, in wake of space limitations and unique geography of such regions, bringing uniformity in treatment of such regions, NDZ of 20 m has been stipulated.

(vi)       All Ecologically Sensitive Areas have been accorded special importance: Specific guidelines related to their conservation and management plans have been drawn up as a part of the CRZ Notification.

(vii)      Pollution abatement has been accorded special focus: In order to address pollution in Coastal areas treatment facilities have been made permissible activities in CRZ-I B area subject to necessary safeguards.

(viii)     Defence and strategic projects have been accorded necessary dispensation. 

Background:

With the objective of conservation and protection of the coastal environment, Ministry of Environment and Forest and Climate Change notified the Coastal Regulation Zone Notification in 1991, which was subsequently revised in 2011. The notification was amended from time to time based on representations received.

A need was felt overtime to undertake a comprehensive revision of the notification on the basis of number of representations from various Coastal States/UTs, besides other stakeholders particularly related to the management and conservation of marine and coastal eco-systems, development in coastal areas, eco-tourism, livelihood options and sustainable development of coastal communities etc. Therefore, the Ministry of Environment, Forest & Climate Change constituted a Committee in June 2014 under the Chairmanship of Dr. Shailesh Nayak (Secretary, Ministry of Earth Sciences) to examine the various issues and concerns of Coastal States/UTs and other stakeholders for recommending appropriate changes in the CRZ Notification, 2011.

The Shailesh Nayank Committee held wide ranging consultations with State Governments and other stakeholders and submitted its recommendations in 2015. The recommendations were further examined in consultation with Members of Parliament of Coastal States and Union Territories besides other concerned Ministries of Government of India. A draft notification was issued in April, 2018 for inviting comments from public at large.

A number of suggestions and comments were received by the Government and based on overall imperative of sustainable development of Coastal areas and need for conserving the Coastal environment, Government has approved the Coastal Regulation Zone Notification 2018 which is expected to go a long way in meeting the aspirations of Coastal communities besides ensuring welfare of poor and vulnerable populations.

The changes brought about in the CRZ Notification will further add to creating additional opportunities for affordable housing. This will benefit not only the housing sector but the people at large looking for shelter. The Notification is so designed that it balances the needs in such a way that both are fulfilled. Tourism has been one of the greatest creators of livelihood and jobs. The new Notification will boost tourism in terms of more activities, more infrastructure and more opportunities and will certainly go a long way in creating employment opportunities in various aspects of tourism. This will also give boost to people, desirous of seeing and enjoying the beauty of the mighty seas.