Friday, 16 September 2016

UPDATES

SEBI

SEBI has released a Master Circular for Mutual Funds which is a compilation of all the circulars issued by SEBI on Mutual Funds, which are operational as on date of this circular.  The Master Circular has 17 Chapters which include Governance norms, Disclosures and Reporting norms, Loads, fees and expenses, among other things. This Master Circular shall supersede the previous Master Circular CIR/IMD/DF/18/2014 dated October 01, 2014. Further, in case of any inconsistency between the master circular and the applicable circulars, the contents of the relevant circular shall prevail.

RBI

RBI has set up a working group to review the guidelines for hedging of commodity price risk by residents in the overseas market amid rising volumes of cross-border trade. The working group will review guidelines for hedging of commodity price risk by residents in overseas markets during the development phase of our domestic commodity derivative market. The eight member group headed by RBI Executive Director Mr. Chandan Sinha will assess the risks faced by resident entities and their hedging requirements and also identify gaps in the existing regulatory framework in relation to the hedging requirements of commodities, participants and products. It will also suggest the broad principles for guiding the regulatory regime for overseas hedging of commodity risks in addition to recommending a modified framework for residents hedging commodity risk overseas. The Working Group with members drawn from RBI, SEBI, Commercial Banks and corporate sector will submit its report by February 28, 2017.