Capital Markets

Deadline Extension

Change: Sebi extends deadline to add or opt-out nominees for demat accounts and submit PAN and KYC details for physical securities till December 31, 2023.

Impact: It will ensure that proceeds from demat accounts reach the legal heirs or the right beneficiaries, and facilitate ease of business. Also, investors will get more time to comply with the directives and avoid having their folios frozen due to a lack of proper documents.

Transparency

Change: Sebi will allow only online remittance through its website to IPEF.

Impact: It will ease and expedite the payment process and enhance accessibility for all contributors to the fund.

Change: Sebi has asked finfluencers to register with the regulator and strictly adhere to its regulations, while barring unregistered entities from partnering with MFs and stockbrokers for promotional activities.

Impact: It will help investors get accurate and unbiased information about various investment instruments, like mutual funds, stocks, etc., and help minimise frauds and mis-selling of instruments.

Flexibility

Change: Sebi provides flexibility to LCs to issue debt securities for meeting their incremental financing needs.

Impact: It will facilitate the ease of doing business and compliance over three years while dispensing the need for LCs to file a statement regarding compliance with the framework.

Sebi: Securities and Exchange Board of India; LC: Large Corporates; PAN: Permanent Account Number; KYC: Know-Your-Customer; IPEF: Investor Protection Education Fund.

Pension

Ease of Process

Change: PFRDA introduces the default scheme option for NPS Tier II accounts, which will initially be available only to government employees. Previously, it was provided only with Tier I accounts.

Impact: It will enable NPS Tier II account holders to contribute to the fund without needing to separately select fund managers to manage money, thus easing the process.

PFRDA: Pension Fund Regulatory And Development Authority; NPS: National Pension System

Banking

Property Documents

Change: RBI asks all REs to release original property documents within 30 days after full repayment of the loan amount, and arrange for their delivery from a bank branch or where the records are available. In the event of the borrower’s demise, the REs must ensure proper procedure to return the papers to the legal heirs. REs also have to bear costs to replace the papers in case of loss or damage.

Impact: It will help address customer grievances and disputes over delays, and promote responsible lending conduct among the REs.

RBI: Reserve Bank of India; RE: Registered Entity

*List is not exhaustive | Compiled by Sanjeeb Baurah