Bowling for Columbine

Brilliant hard hitting documentary film (2002) by Michael Moore about the gun culture and what is wrong with that. The film starts with Michael opening a bank account in  a small town and getting a free gun in exchange. Strangely everything wrong with that - guns being given free in exchange for opening a bank account. Then it goes on to the Oklahoma bombings and the Columbine school massacre and various other school shootings including a 6 year old kid shooting another 6 year old kid. Moore delves into what is wrong with American culture, the fear of everybody by Americans, their supposedly violent history which he contradicts by saying that other countries have had much more violent historical past. At one point, he also refers to Gandhi who overthrew an entire British empire without shooting a gun. The film explores everything that is wrong with America today including their racism, their fear, their violence on the telly, the non stop 24/7 TV coverage of events, their leaders' penchant for destroying other countries. He then goes to Canada and does an analysis of why there are'nt so many shootings in Canada compared to US. In the end he has an interview with Charles Heston, the film actor (of western roles) cum President of the National Rifle Association, who could not give any satisfactory replies to Moore. Brilliant documentary for anybody to watch. 

exit option to REIT/ INVIT holders

SEBI has vide two identical circulars dated 17th July, 2020 made rules giving exit option to dissenting holders in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (INvIT). Dissenting unit holders means those who have not voted in favour of the resolution under regulation 22(6A) or regulation 22(8) of the SEBI (REIT) Regulations or Regulation 22(5C) or Regulation 22(7) of the SEBI (InvIT) Regulations. 

These sub regulations pertain to trustee and investment manager seeking delisting of the units and securing approval of the unit holders for the same AND change in sponsor or designated sponsor or change in control of sponsor or designated sponsor and seeking approval of the unit holders for the same. 

Under both these exit option regulations, detailed provisions have been made in respect of what acquirer and investment manager is required to do in sequential fashion, the escrow account to be created, price to be arrived at, Letter of Offer to be given, meeting to be convened of the unit holders for voting and submission of compliance report thereon. 

Copies of SEBI circular can be found 

InvIT regulations

ReIT Regulations

Aakrosh

Revisited the 1980 Govind Nihalani arthouse movie Aakrosh starring Naseeruddin Shah, Om Puri, Amrish Puri, Smita Patil (in a brief role). Written by Vijay Tendulkar the film revolves around the alleged murder of his wife by an adivasi wood cutter. Naseer takes up the case as his first lawyerly assignment as the court assigned defence counsel with Amrish Puri acting as the prosecution counsel. There are a series of mysterious incidents involving Naseer which leads him to believe that all that is related to the case. Nihalani has managed to put in an under current of Hitchcockian suspense throughout the movie. Classic case of upper caste domination over the adivasis and trampling of their rights to justice. It is a deadly movie by any standards. The intensity of Naseer and Om Puri is stunning in its magnificience. Superb screenplay and camera work. Govind Nihalani has gone on to direct such brilliant movies as Ardh Satya, Tamas, Party among others. 

Insurance claims -

IRDA has issued a circular dated 16th July, 2020 wherein they have recognised make shift or temporary hospitals erected during the covid pandemic by the respective governments as recognised hospitals and claims to be allowed in respect thereto. Further where any network hospital provider has made arrangements for such make shift or temporary hospitals, such hospitals shall also be considered for cash less claims. 

This is a very important advisory from IRDA in respect of claims during covid pandemic. 

Gist of the circular is as below:

   Reference is invited to IRDAI circular Ref. No: IRDAI/HLT/REG/CIR/054/03/2020 dated 04^th March, 2020, specifying guidelines on handling of claims reported under Covid-19.

 

2.        In view of increase in number of COVID-19 cases, in order to leverage on the extant healthcare systems put in place, it is important to recognise the make-shift or temporary hospitals permitted by Government for settlement of health insurance claims for insurance companies.

 

3.        In the above backdrop, in order to ensure that the costs of treatment of COVID – 19 are covered as per the terms and conditions of policy contract, a make-shift or temporary hospital permitted by Central / State government shall be regarded as a hospital or network provider and insurers shall settle the claims as per the following norms.

 

a)      Where a policyholder who is diagnosed as Covid-19 positive is admitted into any such make-shift or temporary hospital on the advice of a medical practitioner or appropriate Government authorities, notwithstanding the definition of hospital specified in the terms and conditions of policy contract, the treatment costs shall be settled by insurers. 

 

b)      Where any network provider has set up any such make-shift or temporary hospital, such make-shift or temporary hospital shall be regarded as the extension of the network provider and cashless facility shall be made available.  

 

4.        Insurers are advised to expedite settlement of all such claims in accordance to the applicable regulatory framework.

 

5.        All insurers are also advised to incorporate the above norms in claim guidelines and inform to all the TPAs immediately.

 

6.        These guidelines shall come in to force with immediate effect.

 

7.        These guidelines are issued under the powers vested with Regulation 27 (vi) of IRDAI (Health Insurance) Regulations, 2016 read with Section 34 (1) of Insurance Act, 1938.

 

Copy of the circular can be found here

Asset reconstruction companies

RBI has vide its circular dated 15th June, 2020 laid down fair practices code for Asset Reconstruction Companies and mandated them to adopt the same and abide by the same. 

The Gist of the Fair Practices Code is given below:

Fair Practices Code for Asset Reconstruction Companies In order to achieve the highest standards of transparency and fairness in dealing with stakeholders, Asset Reconstruction Companies (ARCs) are advised to put in place Fair Practices Code (FPC) duly approved by their Board. The following paragraphs provide the minimum regulatory expectation while each ARC’s Board is free to enhance its scope and coverage. The FPC must be followed in right earnest and the Board must involve itself in its evolution and proper implementation at all times. The FPC shall be placed in public domain for information of all stakeholders. 1. ARC shall follow transparent and non-discriminatory practices in acquisition of assets. It shall maintain arm’s length distance in the pursuit of transparency. 2. In order to enhance transparency in the process of sale of secured assets, (i) invitation for participation in auction shall be publicly solicited; the process should enable participation of as many prospective buyers as possible; (ii) terms and conditions of such sale may be decided in wider consultation with investors in the security receipts as per SARFAESI Act 2002; (iii) spirit of Section 29A of Insolvency and Bankruptcy Code, 2016 may be followed in dealing with prospective buyers. 3. ARCs shall release all securities on repayment of dues or on realisation of the outstanding amount of loan, subject to any legitimate right or lien for any other claim they may have against the borrower. If such right of set off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and the conditions under which ARCs are entitled to retain the securities till the relevant claim is settled/ paid. 4. ARCs shall put in place Board approved policy on the management fee, expenses and incentives, if any, claimed from trusts under their management. The Board approved policy should be transparent and ensure that management fee is reasonable and proportionate to financial transactions. 5. ARCs intending to outsource any of their activity shall put in place a comprehensive outsourcing policy, approved by the Board, which incorporates, inter alia, criteria for selection of such activities as well as service providers, delegation of authority depending on risks and materiality and systems to monitor and review the operations of these activities/ service providers. ARC shall ensure that outsourcing arrangements neither diminish its ability to fulfil its obligations to customers and the RBI nor impede effective supervision by RBI. The outsourced agency, if owned/controlled by a director of the ARC, the same may be made part of the disclosures specified in the Master Circular. 6. In the matter of recovery of loans, ARCs shall not resort to harassment of the debtor. ARCs shall ensure that the staff are adequately trained to deal with customers in an appropriate manner. (i) ARCs shall put in place a Board approved Code of Conduct for Recovery Agents and obtain their undertaking to abide by that Code. ARCs, as principals, are responsible for the actions of their Recovery Agents. (ii) It is essential that the Recovery Agents observe strict customer confidentiality. (iii) ARCs shall ensure that Recovery Agents are properly trained to handle their responsibilities with care and sensitivity, particularly in respect of aspects such as hours of calling, privacy of customer information, etc. They should ensure that Recovery Agents do not induce adoption of uncivilized, unlawful and questionable behaviour or recovery process. 7. ARCs should constitute Grievance Redressal machinery within the organisation. The name and contact number of designated grievance redressal officer of the ARC should be mentioned in the communication with the borrowers. The designated officer should ensure that genuine grievances are redressed promptly. ARCs' Grievance Redressal machinery will also deal with the issue relating to services provided by the outsourced agency and recovery agents, if any. 8. ARCs shall keep the information, they come to acquire in course of their business, strictly confidential and shall not disclose the same to anyone including other companies in the group except when (i) required by law; (ii) there is duty towards public to reveal information; or (iii) there is borrower’s permission. 9. Compliance with FPC shall be subject to periodic review by the Board. Copy of RBI circular can be found here

Lifeboat

https://www.youtube.com/watch?v=w8f-wy7qwi8

A classic Alfred Hitchcock movie (1944) that is shot entirely on a lifeboat. A ship is torpedoed in the second world war and few of the inhabitants find refuge in a lifeboat. Among them are a columnist Connie Porter (Tallulah Bankhead) Alice MacKenzie (Mary Anderson). Also pulled in is a German guy who does not speak English. Initially there is much resistance to the German's presence on the boat but they allow him to survive considering he is a prisoner of war. Subsequently they have to depend on the German navigation skills when a storm breaks out. They all assume they are heading for Bermuda on the basis of sun position and planets but the German knows otherwise. Its a cat and mouse psychological drama played between the characters on the lifeboat. Meanwhile one guy Gus Smith (William Bendix) has to have his leg amputated as gangrene sets in. They run out of water and food and there is a lot of flare up between the characters. There is love interest between Stanley (Hume Cronyn) and Alice and sparks fly between Connie and John Kovac (John Hodiak). The story is written by John Steinbeck of the "Grapes of Wrath" fame. Alfred Hitchcock has done a brilliant job with the direction, but it is the cinematography which is breathtaking. Shot entirely in black and white, the film did run into some controversy with its sympathetic portrayal of the Germans. This is one movie in which Alfred Hitchcock does not appear himself in a cameo role, he could not have since the movie was shot entirely on a lifeboat. 

SEBI - relaxations

SEBI has vide its circular dated 15th July, 2020 given relaxations in respect of debt listing, listing of non convertible redeemable preference shares and commercial papers to use unaudited financials with limited review provided that these unaudited financials are not more than 6 months old. 

It has also extended the timelines for submission of quarterly/ half-yearly/ yearly financial accounts as on 31st march, 2020 to 31st July, 2020.

Those issuers who propose to list their debentures/ preference shares/ commercial papers during the month of July, 2020 can use the available financial statements as on 31st December, 2019.

Copy of SEBI circular can be found here