Navigating Regulatory Updates in February 2023: What You Need to Know

Navigating Regulatory Updates in February 2023: What You Need to Know


Regulatory updates refer to changes or amendments made to laws, regulations, and policies that govern various aspects of businesses. These changes are made to ensure that businesses operate in a manner that is safe, fair, and in line with the best interests of consumers, employees, and society at large.


There are several categories of compliance that businesses need to adhere to, including finance and taxation, secretarial, industry-specific, commercial, labour, and environmental health and safety (EHS).

In February 2023, several regulatory updates were implemented across various compliance categories. Here are the top changes in each category:


FINANCE AND TAXATION:


In February 2023, the Finance and Taxation category saw 112 regulatory updates, some of which are highlighted below:


  • The Ministry of Finance (MoF) has rescinded two notifications (No. 13/2021-Customs and No. 34/2022-Customs) regarding the exemption of the Social Welfare Surcharge tariff on Agriculture Infrastructure and Gold Imports.

  • The Insurance Regulatory Development Authority of India (IRDAI) has set the cession of the sum insured on each general insurance policy reinsured with Indian Re-insurers to 4% for FY24, with no limit on the sum insured applicable to cessions.

  • The Central Board of Indirect Taxes and Customs (CBIC) has issued the 2023 amendment to the Project Imports Regulations, 1986, which became effective from 02.02.2023.

  • The International Financial Services Centres Authority (IFSCA) has notified All Fund Management Entities (FMEs) to submit their registration applications for their scheme or fund in IFSC using the format provided in their notification.

  • The Securities and Exchange Board of India (SEBI) has authorized 39 additional entities to use Aadhaar authentication services as sub-KUAs in the securities market after registering themselves with UIDAI.

  • The Central Board of Direct Taxes (CBDT) has issued the Centralised Processing of Equalisation Levy Statement Scheme, 2023, which provides for the furnishing, validity, and processing of equalisation levy statements.

  • The CBDT has substituted several forms in the appendix-II of the Income Tax Rules, 1962, through the first amendment of 2023.

  • The Union Cabinet has approved the "Vibrant Villages Programme" with INR 4800 crore till FY26 to provide funds for the development of essential infrastructure and livelihood opportunities in 19 districts and 46 border blocks to retain the population in border areas.

  • The IFSCA has issued a consultation paper on the handling of client funds for portfolio management services under the IFSCA (Fund Management) Regulations, 2022.

  • The Reserve Bank of India (RBI) has introduced a Foreign Contribution (Regulation) Act-related transaction code in NEFT and RTGS systems through a notification.

  • The Income Tax department has issued the Form for individual/HUF/AOP/BOI/artificial juridical person (AJP) as per section 115BAC, which was proposed by the Finance Bill, 2023.

  • The CBIC has amended the Form of application for a license under the Public Warehousing Licensing Regulations, 2016/Private Warehousing Regulations, 2016/Special Warehousing Regulations, 2016 by providing for antecedent verification HMV to be completed within 45 days of the receipt of the application.

  • The Goods and Services Tax Network (GSTN) has advised on the geocoding of the address of the principal place of business, which can now be accessed on the GST portal under the services/registration tab in the FO portal.





Secretarial:


In February 2023, the Secretarial category saw 145 regulatory updates, some of which are highlighted below:


  • SEBI issued a consultation paper on the regulatory framework for REITs and InvITs to issue depository receipts, and stakeholders were invited to provide suggestions and comments by February 21, 2023.

  • BSE issued a notification about the standard operating procedure under SEBI (PTI) Regulations, 2015 to ensure compliance with Structured Digital Database (SDD). Listed entities need to confirm compliance with the SDD requirement in their annual secretarial audit report.

  • NSE issued a notification regarding the submission timelines of the system audit report of vendors providing co-location as a facility (CaaS). Empanelled vendors of the exchange providing CaaS need to submit the half-yearly system audit report as per the notified timelines. Reports for April 1 to September 30 should be submitted by November 30, and for October 1 to March 31, reports should be submitted before May 31.

  • NSE issued a notification regarding the generation of membership certificates through the ENIT portal, and the module/process of certificate generation has been migrated from the digital portal to the ENIT portal.

  • SEBI issued a circular regarding the enhanced obligations and responsibilities of qualified stock brokers (QSBs), which has strengthened the compliance and monitoring requirements for stock brokers. The circular also lays down the parameters for designating a stock broker as QSB, a framework for the identification of QSBs and their obligations and responsibilities.

  • SEBI issued the 2023 amendment to the SEBI (Buy-Back of Securities) Regulations, 2018. The amendment includes the definition of frequently traded shares and secretarial auditor, among other changes.

  • NSE issued a notification regarding the registration and regulatory framework for online bond platform providers, and the deadline for applying for the certificate of registration as a stock broker has been extended to March 1, 2023.

  • NSE issued a notification regarding the portal for uploading daily margin trading files, and the module for reporting daily margin trading files has been migrated from the digital portal to the ENIT portal.

  • SEBI issued a 2023 amendment to the SEBI (Real Estate Investment Trusts) Regulations, 2014, which includes the insertion of a clause defining ‘independent director,’ among other changes.

  • RBI issued FAQs on digital lending guidelines, which resolve points related to which lending transactions will qualify as digital lending, and whether all LSPs need to appoint grievance redressal officers, among others.

  • SEBI issued a notification regarding the introduction of an issue summary document (ISD) and disseminating issue advertisements. The ISD will be introduced for the public issue of specified securities and the buy-back of equity shares in the XBRL format.

  • SEBI issued a circular regarding website maintenance by stock breakers and depository participants, which will be effective from August 16, 2023.

  • SEBI issued a consultation paper on streamlining disclosures by listed entities and strengthening compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which provides for the submission of the first financial results by newly-listed entities.

  • RBI issued a circular regarding the implementation of Indian accounting standards (Ind AS), which requires all ARCs to prepare their financial statements as per Ind AS and reduce certain amounts from their net owned funds while calculating the capital adequacy ratio.

  • NSE issued a notification regarding the acceptance of an electronic bank guarantee, and NSE Clearing Ltd. has started the facility for accepting electronic bank guarantees (E-BG) in collaboration with National e-Governance Service Limited (NeSL).




Commercial:


In February 2023, the Commercial category saw 48 regulatory updates, some of which are highlighted below:


  • The 2023 amendment to the Legal Metrology (Packaged Commodities) Rules, 2011 was issued by the Ministry of Consumer Affairs, Food, and Public Distribution (MoCAFPD) and will be effective from 01.04.2023.

  • An amendment to the Sodium Tripolyphosphate (Quality Control) Order, 2020 was issued by the Ministry of Chemicals and Fertilizers.

  • The Ministry of Heavy Industries (MoHI) has issued a notification announcing the launch of two production linked incentive (PLI) schemes, namely the PLI scheme for Automobile and Auto-component industry and the PLI scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage. These schemes will have an overlay of INR 25,938 crores over 5 years and INR 18,100 crores over 7 years, respectively.

  • The Ministry of Commerce and Industry (MoC&I) has issued a notification aligning the RoDTEP schedule for chapters 28, 29, 30, and 73 with the first schedule of the Customs Tariff Act, 1975.

  • The Ministry of Consumer Affairs, Food & Public Distribution (MoCAFPD) has issued a notification regarding the ‘Conformity Assessment Scheme’ aimed at facilitating the adoption of the standard IS 19000:2022 by startups & MSMEs to enhance the confidence of industry and consumers. The scheme has been designed to certify online customer reviews in order to prevent fake and misleading reviews.

  • The import policy and policy condition of ITC (HS) code 080280 of chapter 8 and ITC (HS) code 21069030 of chapter 21 of ITC (HS), 2022 schedule-I (import policy) have been amended by the Directorate General of Foreign Trade (DGFT).




Industry Specific:


In February 2023, the Industry Specific category saw 213 regulatory updates, some of which are highlighted below:


  • The CEA (Flexible Operation of Coal-based Thermal Power Generating Units) Regulations, 2023 were released by the Central Electricity Authority (CEA), outlining requirements for flexible operation of coal-based thermal power plants, including minimum power level capabilities and ramp rate capabilities.

  • SEBI introduced rules for Transaction in Corporate Bonds through Request for Quote (RFQ) platform by Alternative Investment Funds (AIF), requiring AIF to place quotes on the RFQ platform and undertake at least 10% of the total secondary market trades in corporate bonds by value in a month.

  • The Maritime Anti-Piracy Act, 2022 was enacted by the Ministry of Law and Justice (MOL&J) to provide protection for action taken in good faith and bail provisions.

  • The Ministry of Electronics and IT (MeitY) issued guidelines for online gaming under the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, obligating intermediaries offering online games to comply.

  • The Ministry of Finance (MoF) issued an RBI framework for invoicing and payments for international trade in Indian rupees to promote global trade growth with a focus on exports from India.



ENVIRONMENT, HEALTH, AND SAFETY:


In February 2023, the ENVIRONMENT, HEALTH, AND SAFETY category saw 21 regulatory updates, some of which are highlighted below:


  • The 2023 amendment to the E-Waste (Management) Rules, 2022 was issued by the Ministry of Environment, Forest, and Climate Change (MoEF&CC), with the effective date set for 01.04.2023.

  • The Punjab Ground Water Extraction and Conservation Directions, 2023 were issued by the Government of Punjab, with the aim of promoting water conservation and improving the water balance.

  • A notification was issued by the Ministry of Environment, Forest, and Climate Change (MoEF&CC), emphasizing the importance of generating public awareness and undertaking campaigns to manage plastic waste and eliminate single-use plastics in both urban and rural areas.

  • A notification was issued by the Ministry of Labour and Employment (MoL&E), ensuring decent working conditions and social security for all categories of organized and unorganized workers.

  • Guidelines on extended producer responsibility for plastic packaging (EPR) were announced by the Ministry of Environment, Forest, and Climate Change (MoEF&CC), with mandatory targets set for EPR, recycling of plastic packaging waste, reuse of rigid plastic packaging, and use of recycled plastic content.




Labour:


In February 2023, the Labour category saw 58 regulatory updates, some of which are highlighted below:


  • The launch of ‘Nidhi Aapke Nikat’, a district outreach programme, by EPFO was notified by the Ministry of Labour & Employment (MoL&E). The programme facilitates grievance redressal and information exchange network among employers and employees, and between district authorities and state/central authorities.

  • The Employees’ State Insurance Corporation (ESIC) issued a notification regarding the integration of newborn baby registration into the HIS for insurance-ERP. This will simplify the process of adding newborn IPs/IW at ESI hospitals to their respective family details in the insurance module.

  • The admissibility of assurance benefits payable to the beneficiaries of the EDLI scheme was notified by the Employees Provident Fund Organisation (EPFO). All regional offices have been directed to ensure that all persons entitled to receive EDLI benefits receive them without any delay.

  • The Employees’ State Insurance Corporation (ESIC) issued a notification emphasizing the timely preparation, completion, and maintenance of annual performance appraisal reports (APARs). The timely filing of APAR is considered a public duty, and all instances of delay and failure must be reported to the competent authority.

  • The Pension Fund Regulatory and Development Authority (PFRDA) notified the Minimum Timelines for Maximum Subscribers’ Benefits - Reduction in Turn Around Time to perform various activities from T+4 to T+2. Under T+2 timelines, more services have been added to the bouquet.



 

Comments

Post a Comment

Popular posts from this blog

Compliance Management System

The Compliance Management System Advantage: Overcoming Compliance Hurdles with Ease In today's ever-changing regulatory landscape, organizations face increasing complexities and challenges in meeting compliance requirements. Navigating through the myriad of regulations, policies, and procedures can be a daunting task. However, with the advent of digital solutions and software tools known as Compliance Management Systems (Compliance Management System), organizations can now overcome these compliance hurdles with ease. A Compliance Management System is a powerful digital solution designed to streamline compliance processes, automate documentation, and ensure adherence to regulatory standards. Join us as we explore the challenges and discover how a Compliance Management System can be a game-changer for your organization's compliance efforts. let's dive into the challenges organizations face in managing compliance and the advantages of having a Compliance Management System 1 - ...
Read more

Managing Compliance in the Digital Age: A Guide to Compliance Management System

Managing Compliance in the Digital Age: A Guide to Compliance Management System As technology continues to advance, businesses face increasing pressure to comply with an ever-growing array of regulations and standards. This can be a complex and time-consuming process, especially for companies that rely on manual methods to manage their compliance efforts. In today's digital age, however, there is a solution that can help businesses streamline their compliance processes and minimize the risk of noncompliance: a Compliance Management System. A Compliance Management System is a software platform designed to help businesses automate and manage their compliance efforts more efficiently. It provides a centralized hub for storing and tracking compliance-related data, documents, and tasks, and can help companies identify and mitigate potential risks before they escalate. By using a Compliance Management System, businesses can save time, reduce costs, and minimize the risk of noncompliance...
Read more

Board Meeting Management Tool

 Maximizing Compliance Efforts: The Benefits of Using a Board Meeting Management Tool for Secretarial Compliances in India Secretarial compliance in India refers to the compliance requirements set by the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI). These requirements are mandatory for all registered companies in India to ensure that they are conducting their business operations in accordance with the law and Avasec is the best board meeting management tool for this purpose. The secretarial compliance requirements can be broadly categorized into three areas: Board Meetings, Annual General Meetings (AGM), and Filings. Board Meetings are mandatory for every company to conduct, and compliance requirements related to these meetings include agenda preparation, minutes preparation, attendance recording, and filing of board meeting reports and to handle all these things you can trust on Avasec Board Meeting Management Tool . AGM requirements ...
Read more