SEBI (Investment Advisers) Regulations

SEBI has published its FAQs on the SEBI (Investment Advisers) Regulations. Any person who is providing investment advisory services will need to get himself registered with SEBI under these regulations.

“Investment advice” is an advice relating to investing in, purchasing, selling or otherwise dealing in securities or investment products, and advice on investment portfolio containing securities or investment products, whether written, oral or through any other means of communication for the benefit of the client and shall include financial planning.

Provided that the investment advice given through newspaper, magazines, any electronic or broadcasting or telecommunications medium, which is widely available to the public shall not be considered as investment advice for the purpose of IA regulations. However, investment advisers who make public appearance or make recommendations or offer an opinion concerning securities
or public offers through public media while making recommendations through public media, are required to comply with the relevant provisions of these regulations.

Members of the Institute of Company Secretaries of India, Institute of Chartered Accountants of India, Institute of Cost and Works Accountants of India who provide investment advice to their clients incidental to their professional services are exempted from obtaining registration under IA Regulations.

For example :- An advice by a professional CA as a tax consultant to his tax client for investing in ELSS in the course of tax planning will be treated as incidental to his profession as a tax consultant.

However, if they are engaged in providing investment advisory services in securities as an activity or business to clients or investors which is not incidental to their main activity then they are required to get registration as an investment adviser.

The FAQs can be found at this link, here

Form GNL-4 introduced by MCA

Ministry of Corporate Affairs has introduced form GNL-4 to replace form erstwhile form 67. The form GNL-4 is to be used as an addendum for filing documents to complete the defect/ rectification in the original forms filed by the stakeholders.

MCA notification for introducing the form can be seen here

Full Mobile Number Portability - TRAI

TRAI has allowed full mobile number portability with effect from 3rd May, 2015. Hitherto only intra circle mobile number portability was allowed from 2009. Now both inter and intra licensed area mobile number portability is to be introduced from 3rd May, 2015. TRAI has issued notification dated 25th February, 2015 in this regard.

The explanatory memorandum to the notification states as follows:

The Telecom Regulatory Authority of India issued the Telecommunication Mobile Number Portability Regulations, 2009 (8 of 2009) dated 23rd September, 2009 laying down the basic business process framework for implementation of intra-circle mobile number portability in the country. The regulation 6,7,8,9,10,11,12 and 13 of the Regulations came into effect in all telecom service areas in the country from 20th January 2011 through the Authority’s direction dated 18th January, 2011.

2. Now the Government has decided to implement inter-service area mobile number portability (Full Mobile Number Portability). Accordingly, necessary amendments to the MNP service license were issued by the Department of Telecommunications (DoT) through letter No. 800-22/2013-AS-II dated 3rd November, 2014 wherein it is stated that Full MNP would be implemented in the country within six months from the said amendment. In this context the Authority issued a draft The Telecommunication Mobile Number Portability (Sixth Amendment), 2015 on 23rd January, 2015 seeking comments of stakeholders for facilitating Full MNP. In addition, the draft amendments also proposed some changes to the existing porting process viz. reduction in timelines for number return process, refining non-payment disconnection issues etc.

3. In response to the draft Amendment, fifteen stakeholders submitted their comments. These comments have been examined by the Authority and, after deliberations, this Sixth Amendment to the MNP Regulations is being issued. The explanation for the amendments made in the Regulations is provided in the following paragraphs.

Time period for implementation
4. As per the DoT’s amendment to the MNP service licence, full MNP (inter and intra Licensed Service Area MNP) is to be implemented within six months from the date of the said amendment to the Licenses. Accordingly, the Authority has made the Sixth Amendment to the MNP Regulations effective from 3rd May 2015.

Forwarding of porting request by the Recipient Operator
5. On a request by a subscriber for porting of his number, the Recipient Operator (RO) will forward the porting requests to the MNP Service provider (MNPSP) to which the number range holder (service provider who originally allocated the mobile number) belongs. Even if a subscriber ports his mobile number from one MNP Zone to another, the same MNPSP will continue to handle his porting requests for all subsequent portings. This is required as the porting history of the subscriber is maintained by the MNPSP of the MNP zone to which his number range holder belongs.
Time period for Donor Operator to raise non-payment disconnections:

6. The MNP Regulations provide that in case a post paid subscriber defaults in the payment which was due to the Donor Operator (DO), the DO may request the RO for disconnection of the ported mobile number. It is noticed that in many cases, the DO raises disconnection requests (due to non-payment of outstanding bill) long after the subscriber has ported his number. Therefore, there is a need to bring order in this matter so that non-payment disconnection cases are settled in a timely manner by the Donor as well as the RO to avoid any inconvenience to the subscriber at a later date. Accordingly, in the Amendment, time period of ‘thirty days’ from the due date of the outstanding bill has been specified for a DO to raise the non-payment notice to the subscriber who has defaulted in the payment. It is also stipulated that after completion of ‘sixty days’ from the due date of payment of the outstanding bill, the DO will not be entitled to raise non-payment disconnection requests to the RO through the MNP service provider.

Increase in Notice period for disconnection by the RO

7. In response to the draft Amendment, most stakeholders have requested for increase in the notice period given by the RO to the subscriber who has defaulted in the payment to the DO from the existing fifteen days period to thirty days. After examination, the Authority has agreed to increase the time period. However, provision has been made for barring outgoing services of such defaulting subscriber for fifteen days, so as to prompt the subscriber to pay the outstanding amount due to the DO. Further, the extended period will also help inter-service area porting subscribers who may have to settle outstanding payments of a different service area from where the subscriber ported his mobile number. In case the subscriber fails to make payment within fifteen days, his mobile number will be disconnected permanently by the RO and number will be returned to the number range holder after sixty days.

Reduction in timelines for Number return process

8. In the existing MNP Regulations, in case of disconnection of a mobile number in the network of RO, it is mandated that such mobile number will be returned to the number range holder after the expiry of ninety days. This implies that once a mobile number is disconnected, it remains unutilized for as long as ninety days. For effective utilization of such a mobile number, the Authority has reduced this time period to sixty days.

Online filing of petitions - CERC

The Central Electricity Regulatory Commission has vide its circular dated 22nd January, 2015 provided for online filing of the petitions and pleadings by the parties before the Commission. The gist of their circular is given below:

The Central Electricity Regulatory Commission determines the tariff of the generating
companies and transmission licensees covered under the jurisdiction of the Commission and
regulate inter-State transmission of electricity and adjudicates the disputes relating thereto apart
from other functions based on the petitions filed before the Commission. Presently, all petitions
and pleadings are filed by the parties before the Commission in accordance with Regulation 27
of Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999. The
Regulation provides for filing of petitions and pleadings through CD/electronic media on such
terms and conditions as may be decided by the Commission.
2. In order to improve and expedite the process of disposal of petitions, the Commission has
decided to introduce electronic filing of all petitions, applications, replies, rejoinders, etc with
effect from 1st February, 2015. As a first step in this direction, all the petitions, replies and
rejoinders, etc filed by the parties are being digitized for creating data base to facilitate e-filing.
3. The generating companies, licensees, system operators, and any other person who has
filed or is intending to file a petition before the Commission are requested to henceforth file soft
copy of all the pleadings like petitions, replies, rejoinders, written submissions, documents,
affidavits, etc in pdf and word format in a CD along with the usual hard copies. All
pleadings/filings/submissions made after 1st March, 2015 shall be accepted only if accompanied
by soft copy, as stated above. The parties are also requested to mail the petition, replies,
rejoinder, written submissions, etc. to registry@cercind.gov.in

Domestic Carriage Charges - TRAI regulation

The Telecom Regulatory Authority of India (TRAI) today issued the “Telecommunication Interconnection Usage Charges (Twelfth Amendment) Regulations” which prescribe a revised domestic carriage charge of 35 paisa per minute. 

         

An Access Service provider in India offers access services within the Licensed Service Area (LSA) only.  Inter-LSA calls have to be routed through a National Long Distance Operator (NLDO).  The charges to be paid by an access provider to the NLDO to cover the cost for carrying inter-LSA calls are called carriage charges. TRAI had prescribed the carriage charges through the Interconnection Usage Charges (IUC) Regulations of 23^rd February, 2006 which stipulated a ceiling of 65 paisa per minute.  These charges were reviewed again in 2008/2009 but the same ceiling of 65 paisa per minute was retained. 

To review the IUC, the Authority issued a Consultation Paper on 19.11.2014 to seek the views of stakeholders on various component of IUC including domestic carriage charges. Stakeholders were asked to submit written comments by 11.12.2014 and counter-comments by 18.12.2014. On the request of some stakeholders, the dates for submission of comments and counter-comments were extended up-to 22.12.2014 and 29.12.2014 respectively. Written comments were received from two industry associations, 15 TSPs and 47 other stakeholders, including companies, organizations, firms and individuals. Counter-comments were received from six TSPs and one individual. An Open House Discussion was held on 09.01.2015 in Delhi with stakeholders. 

On the basis of comments received from stakeholders either in writing or during the Open House Discussion and internal analysis, the Authority has reduced the ceiling of the domestic carriage charge to 35 paisa per minute from the existing 65 paisa per minute through these Regulations which will be effective from 1^st March, 2015. 

TRAI has already issued regulations prescribing Mobile Termination Charge and Fixed Termination Charge and International Termination Charge on 23^rd February, 2015. 

Full text of the “Telecommunication Interconnection Usage Charges (Twelfth Amendment) Regulations” is available on TRAI’s website: www.trai.gov.in.

Coastal Zone Regulations - exemptions for memorials/ monuments etc.

The Ministry of Environment & Forests has vide its notification dated 17th February, 2015 given exemption to construction of memorials/ monuments in Coastal Zone IV areas subject to clearance from the State Coastal Zone Management ARea.

The exemption is for reclamation from the seas as well as dressing or altering the sand dunes, hills, natural landscapes.

CRZ-IV is water area from low tide line to 12 nautical miles on seaward side and shall include the water area of the tidal influenced water body from the mouth of the water body at the sea upto the influence of the tide which is measured as 5 parts per thousand during the driest part of the year.

http://envfor.nic.in/sites/default/files/SO%20NO.556%20E-12302012072610.pdf

Indian Accounting Standards notified

Ministry of Corporate Affairs has notified the Indian Accounting Standards Rules on 16th February, 2015.

Listed and unlisted companies and having net worth of Rs.500 crores or more are required to follow the IndAs from the financial year 2016-17 onwards with comparatives for the year ending 31st March, 2016.  Holding, subsidiary, associate or joint venture of these category companies will also follow this schedule

Listed Companies having net worth of less than Rs.500 crores will start adhering to the IndAs from the financial year 2017-18 with comparatives for financial year ending 31st March, 2017. Unlisted companies with networth of Rs.250 crores to Rs.500 crores will also follow this schedule. As again, the holding, subsidiary, associate or joint venture companies of such category companies will follow this schedule.

Companies listed on the SME platform or Institutional Trading Platform are not required to follow the schedule for other listed companies.

Networth shall be determined as at 31st March, 2014.

Of course any company wanting to voluntarily follow the IndAS can do so from the financial year 2015-16 onwards with comparatives for the financial year ending 31st March, 2015. But once a company starts following the IndAS then for all subsequent financial years, it has to the follow the IndAS standards.

The standards are available at the MCA website.