Corporate Updates – 20-08-2014


SEBI has released a Discussion Paper on Review of Clause 36 and related clauses of Equity Listing Agreement and to provide appropriate regulatory framework to assist listed entities to understand and comply with their disclosure obligations under Equity Listing Agreement / Regulations (proposed). The need for review was initiated on the basis of Examination of disclosures made by listed entities under Clause 36 and other related clauses over a period has brought out disparities in disclosures across listed entities and Stock Exchange(s), leading to unequal information being available with the investors. Market participants in various forums have also pointed out that Clause 36 in its present form only highlights certain ‘material events’ which are at best an indicative and a broad list.


In order to broaden the network of sub-agents under the Money Transfer Service Schemes (MTSS), RBI has permitted Non-Deposit Accepting NBFCs with asset size of Rs. 100 Crore and above to act as sub-agents under MTSS. NBFCs desirous to act as sub-agents under the MTSS shall take prior approval from the concerned Regional Offices of the Reserve Bank of India. Further there shall be no co-mingling of the Indian agent’s funds with that of the NBFC’s funds and the Indian agent should maintain with a designated bank, a security deposit in favour of the NBFC sub-agent. No NBFC, acting as sub-agent, should appoint any other entity as its sub-agent.

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