Corporate Updates – 02-05-2017


RBI has issued Guidelines on Merchant Acquisition for Card Transactions. Co-operative banks have been permitted to install both onsite/offsite ATM networks and can issue debit cards on their own or through sponsor banks based on certain eligibility conditions. Also, all co-operative banks have been allowed to enter into credit card business on their own or co-branding arrangement with other banks, subject to fulfillment of the guidelines prescribed in this regard. All co-operative banks can act as Point of Sale (POS) acquiring bank by deploying their own POS terminals with prior approval of RBI subject to fulfillment of conditions specified in this regard. All co-operative banks not intending to act as Point of Sale (POS) acquiring bank are permitted to deploy third party POS terminals without prior approval of Reserve Bank of India (RBI) subject to fulfillment of conditions specified in this regard. The co-operative banks desirous to deploy their own POS terminals and act as POS acquiring bank may approach the respective Regional Offices of RBI for necessary permission in this regard, with requisite information/documents.


SEBI has issued a Consultation Paper on permitting Category III Alternative Investment Funds (AIFs) in the commodity derivatives market. SEBI had constituted an advisory committee known as Commodity Derivatives Advisory Committee (CDAC) to advise SEBI for effectively regulating and developing the commodity derivatives market. CDAC has advised that the commodity derivatives market should be opened up to institutional participation both domestic as well as international in a phased manner. Category III AIF’s are those AIF’s which employs diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives. Comments from public are invited on the proposal contained in this paper and same should reach SEBI latest by May 20, 2017.

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