IPOs revised timelines – UPI in ASBA

SEBI has vide its circular dated 2nd June, 2021 revised its timelines for implementation of UPI in ASBA in respect of IPOs. This is after the stakeholders approached SEBI seeking additional time for implementation of system changes especially in view of the covid pandemic. Salient features are as follows:

1. SEBI vide Circular No. SEBI/HO/CFD/DIL2/CIR/P/2021/2480/1/M dated March 16, 2021 (hereinafter referred to as “the circular”), which came into effect from May 01, 2021 had put in place measures to have a uniform policy to further streamline the processing of ASBA applications through UPI process among intermediaries/SCSBs and also provided a mechanism of compensation to investors. 

2. The stakeholders have approached SEBI seeking additional time for implementing the system changes given the prevailing uncertainty due to the Covid-19 pandemic. 

3. In view of the representations received from stakeholders, the implementation timelines for the provisions of “the circular” shall be as under: 

3.1SMS Alerts: Para 9 of “the circular” prescribed the details to be sent by SCSB’s in SMS alerts. While SCSB’s shall continue to send SMS alerts during the actual block/debit/unblock of UPI mandate in the prescribed format, the details of total number of shares applied/allotted/non-allotted etc shall be included in SMS for Public Issues opening on/after January 01, 2022. 

3.2Web Portal for CUG: For ease of doing business, Para 10 of “the circular” prescribed a web portal to be hosted by Sponsor Banks for closed user group (hereinafter referred to as “CUG”) entities. In view of the representations received from the stakeholders, it has been decided that: 

3.2.1 The automated web portal shall be live and operational after due testing and mock trials with the CUG entities for Public Issues opening on or after October 01, 2021. The requisite information on this automated portal shall be updated periodically in intervals not exceeding two hours. 

3.2.2 In the interim, for the Public Issues opening from the date of this circular and till the automated web portal is live and operational, the Sponsor Banks shall send the details prescribed in Para 10 of “the circular” to the e-mail address of CUG entities periodically in intervals not exceeding three hours. In case of exceptional events viz., technical issues with UPI handles/PSPs/TPAPS/SCSB’s etc, the same shall be intimated immediately to the CUG entities so as to facilitate the flow of information in the Public Issue process. 

3.2.3 The Stock Exchanges and Lead Managers shall facilitate providing the requisite data of CUG entities to Sponsor Bank for the development of automated web portal. Such information shall be provided to the Sponsor Bank before opening of the Public Issue. 

3.3Completion of Unblocks by T+4: Para 13 of “the circular” prescribed the process and timeline for ensuring the completion of unblocks pertaining to UPI mandates on T+4 (T: Issue Closing Date). while the process of unblocking shall be completed by T+4, in view of the representations received from stakeholders, the following shall be the revised timelines: 

3.3.1 The Registrar to the Issue shall provide the allotment/ revoke files to the Sponsor Bank by 8:00 PM on T+3 i.e, the day when the Basis of Allotment (BOA) has to be finalized. 

3 3.3.2 The Sponsor Bank shall execute the online mandate revoke file for Non-Allottees/ Partial Allottees and provide pending applications for unblock, if any, to the Registrar to the Issue, not later than 5:00 PM on BOA+1. 

3.3.3 Subsequent to the receipt of the pending applications for unblock from the Sponsor Bank, the Registrar to the Issue shall submit the bank-wise pending UPI applications for unblock to the SCSBs, not later than 6:30 PM on BOA+1. 

3.3.4 To ensure that the unblocking is completed on T+4, the Lead Managers, on a continuous basis and before the opening of the public issue shall take up the matter with the SCSB’s at appropriate level. 

4. This circular comes into force with immediate effect. 

5. The contents of the circular shall be mentioned in the DRHP and RHP filed on or after the date of this circular. 

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foreign portfolio investors

SEBI circular dated 1st June, 2021 allowing a one off, “off-market” transfer of securities by foreign portfolio investors for transferring to IFSC at Gift City, Ahmedabad, which gives substantial tax benefits as per the Finance Act, 2021. Gist of circular follows:

1. The Finance Act, 2021 provides tax incentives for relocating foreign funds to International Financial Services Centre (IFSC) in order to make the IFSC in GIFT City a global financial hub. 

2. In view of the above objective and to further facilitate such ‘relocation’, it has been decided that a FPI (‘original fund’ or its wholly owned special purpose vehicle) may approach its DDP for approval of a one-time ‘off-market’ transfer of its securities to the ‘resultant fund’. The terms ‘original fund’, ‘relocation’ and ‘resultant fund’ will have the same meaning as assigned to them under the Finance Act, 2021. 

3. The DDP after appropriate due diligence may accord its approval for a one-time ‘offmarket’ transfer of securities for such relocation. 

4. Relocation request will imply that the FPI has deemed to have applied for surrender of its registration and the DDP may be guided by the guidelines pertaining to surrender of FPI registration. 

5. The ‘off-market’ transfer shall be allowed without prejudice to any provisions of tax laws and FEMA. 6. Para 3, Part C of SEBI Circular No. IMD/FPI&C/CIR/P/2019/124 dated November 05, 2019 stands modified to the extent of para 2 above. 

https://www.sebi.gov.in/legal/circulars/jun-2021/-off-market-transfer-of-securities-by-fpi_50380.html

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Manimuzhakkam

Poignant award winning Malayalam movie “Manimuzhakkam” (1976) directed by P.A. Backer and starring Harikeshan Thampi.

Its a very interesting plot in the sense that the script very subtly delves into identity conflicts of a person based on others’ perception and religious beliefs. Jose (Harikeshan Thampi) is an orphan bought up in a christian convent upto his college days. Then he is discovered by his long lost Hindu family and he immediately faces an identity crisis. Earlier in the college a girl dates him until she discovers that he grew up in an orphanage.

Then he finishes college with first class and his family proposes his marriage to another Hindu girl until her family discovers that he was brought up in a christian upbringing. He goes to Madras for a job whereupon he is taken upon by a catholic family as a potential suitor for their girl. Until they learrn of his real story.

There is a lot of subtle messaging going on, which is quite well done. But the movie lacks the tempo to be a robust hit. The music is dreary and depressing. The plot slows at various places to depict the social awkwardness of Jose considering the fact of his early life in an orphanage. The last scene is very riveting like Charlie Chaplin’s The Modern Times.

Overall movie is good and it has won the national & state award also, but it fails to raise above the mediocre. imdb 2/10

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Sponge

This is one of the best business reads i have come across in a long time. Ambi Parameswaran has captured his years of experience at top notch advertising firms like Rediffusion, FCB Ulka to give us a masterpiece.

And he has said in a story form. Various stories culled from his vast experience in a beautifully written simple format. Every story is dovetailed into a theme with lessons garnered from that theme and plus he gives us book recommendations relating to that theme, so i have a long list of “to read” books, which i am going to delve into. The story headings are also very apt for each story like “The Chaiwala Test”, “Biases, Biases, Biases” etc.

Most of the stories have positive endings but a few of them not so good, but there are lessons to be learnt from them as well. So all in all, its an excellent book, the narrative is quite good and not at all heavy like many business/ management books. Goodreads 5/5

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Swapnadanam

K.G. George’s haunting award winning psycho drama movie “Swapnadanam” (1976) starring Dr. Mohandas, Rani George, Suman, among others.

George has managed to maintain a suspense almost throughout the movie, which lies to his credit. The story is about an introverted socially awkward doctor Gopi (Dr. Mohandas) who has no social skills to talk about being forced into marriage to his cousin Sumithra (Rani George) in an arranged marriage kinda setting as a quid pro quo for funding his medical education.

Whilst in medical college, he falls in love with a student but that does not materialize much to his dismay and that plays at the back of his mind in his marriage. His wife Sumithra is a kind of rich snobbish girl bred with much life comforts. Their marriage is falling apart and he has no back up plan nor a support system to ensure it doesn’t.

George has beautifully played with lot of themes during the movie. There is hitchcockian suspense with jazz music playing in the background. He has pushed Gopi close to his mother and takes him close to the servant too. The consummation takes place much later, which is when the man breaks up because he has to attend to a dying patient at his clinic. Very bold scenes for a 1976 movie production.

George has bought about the tension in the household between Sumithra and Gopi and his mother very well. Gopi has to stay in a house with comforts provided by his father in law which rankled him to the extreme. Also the house belonged to Sumithra’s friend Rosi (Mallika Sukumaran) so that interplay between Gopi and Rosie is also played out very well. Her brother Mohan (Suman) who is a real estate agent also stays in the house and the script manages to weave a doubt around Mohan and Sumithra.

Ending up in Madras for a closure is a little manufactured i thought. The movie is shown in flashback when doctors at the hospital in Madras give him a narco analysis test to bring out the truth.

The intensity of Dr. Mohandas as Gopi and the mix of playfulness, neglect, & anger of Rani Chandra as Sumithra is done beautifully. Both of them have acted extremely well. Very sorry to learn that she died very young in a plane accident. She was one good talent gone too soon. imdb 6/10

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Uttarayanam

Award winning avant garde Malayalam film “Uttarayanam” (1974) directed by G. Aravindan and starring Sukumaran, Adoor Bhasi among others.

The underlying theme of the movie is exposing corruption in ideology. The film focuses on the main protagonist Ravi who is a masters in literature and reads literary masters but does not find any employment anywhere, typical of the scene in 70s Kerala.

His grandfather was a follower of the Gandhian principles of non violence whereas his father had taken up the revolutionary ideals of Bhagat Singh. The film moves into flashback mode to show us the conflicting ideologies at play.

He seeks company of Kumaran Master, the last known friend of his father, who gives him letter of recommendations to one Gopalan who had during the revolutionary movement turned sides against them, but is now a corrupt politician. His friend David who hated politics from his college days is now a trade union leader, mediating for business persons against difficult labour situations. His another friend from college days Premkumar (Sukumaran) who is now a medical rep but spends his leisure time on drinks, smoke and women.

So Ravi is a confused aatma frustrated at not getting his due worth. His family is worse off, not having even milk to drink coffee with. There are only empty promises and corrupt ideologies with hypocrisy ruling the roost.

Aravindan has crafted a masterpiece with his first ever movie. His opening long shot of a train amidst the green foliage of Kerala is breathtaking and so is the camera work and cinematography throughout the movie. There are long shots which are picturesque as well as stunning close range shots through cubby holes, windows, doors which are quite brilliant. The silhouette shot of the cover image is breathtaking. Its a kind of a neo realism cinema practiced by the masters like Satyajit Ray, Vittoria de Sica and others with closer to the ground natural settings. imdb 7/10

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Nirmalyam

Brilliant Malayalam award winning movie “Nirmalyam” (1973) written and directed by M.T. Vasudevan Nair and starring P.J. Antony, Sumithra, Ravi Menon among others.

The basic theme of the movie is the neglect of temples in small villages and consequent neglect of the arts and culture of Kerala except when a foreign tourists come visiting. But the undercurrent throughout is the abject poverty of the people, the lack of opportunities for young people, the sad & desolate future for women.

The film revolves around an oracle who is sort of a go between the worshippers and god. He faces bleak future because nobody is coming to the temple, no offerings are made and he has to beg from house to house for some little grain. He has a son who is educated but unemployed and loafing around with no gooders and a daughter who is not educated and staring at a bleak times. He has two more young daughters who don’t go to school because they have no books nor school uniform to wear.

A young priest joins the temple but he is looking to escape the priest hood by studying for competitive exams. He seduces the oracle’s daughter and has sex with her inside the temple. A small pox virus breaks out in the village which is when the oracle is summoned for his divine help.

P.J. Antony has done a magnificent role as the oracle with his long locks which he keeps playing with and erect persona going with the intense eyes, he is deadly in extreme. Its a once in a lifetime performance for which he won the National award for best actor. Others have done an equally good job, especially Sumithra as the seduced daughter – she is quite brilliant as the hopeless female with no future. The ending of the movie is quite spectacular. The music is very good and so is the camera work, cinematography which captures the essence of the movie quite beautifully. imdb 8/10

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PLI for pharma – operational guidelines

https://pib.gov.in/PressReleasePage.aspx?PRID=1723447

With an aim to enhance India’s manufacturing capabilities by increasing investment and production in the sector and to contribute to product diversification to high value goods in the pharmaceutical sector, Department of Pharmaceuticals notified the ‘Production Linked Incentive (PLI) Scheme for Pharmaceuticals’ vide Gazette Notification No.31026/60/2020-Policy-DoP dated 3rd March, 2021. The approved outlay of the scheme is Rs 15000 crore. The scheme envisages to create global champions out of India who have the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value chains. Based on a series of consultations with pharmaceutical industry and stakeholders in the Government, the operational guidelines for the scheme have been prepared and issued on 1st June. The scheme is now open to applications from the industry.
The applications are invited in three groups based on the Global Manufacturing Revenue of FY 2019-20 of the applicants. A special carve out for MSMEs has been kept under the scheme. All the applications will be submitted through an online portal maintained by SIDBI, the Project Management Agency for the scheme. Application can be made on the online portal, URL of which is https://pli-pharma.udyamimitra.in. The application window is for 60 days staring from 2nd June, 2021 to 31st July, 2021 (Both dates inclusive)

The eligible products have been categorized into three categories. The products covered under the scheme are formulations, biopharmaceuticals, active pharmaceutical ingredients, key starting material, drug intermediates, in-vitro diagnostic medical devices, etc. The category-1 and category-2 products attract 10% incentive and category-3 products attract 5% incentive on the incremental sales. Incremental sales of a product mean sales of that product in a year over and above the sales of that product in FY 2019-2020.

Based on clearly laid out selection criteria given in the guidelines, a maximum of 55 applicants will be selected under the scheme. An applicant, through a single application, can apply for more than one product and the products applied by an applicant can be in any of the three categories. The applicants will be required to achieve minimum cumulative investment per year over a period of 5 years as prescribed under the scheme. The investment could be under new plant and machinery, equipment and associated utilities, research and development, transfer of technology, product registration and expenditure incurred on building where plant and machinery are installed. Investment made on or after April 01, 2020 will be considered as eligible investment under the scheme.

Thereafter, the selected manufacturers will be able to receive production linked incentives based on incremental sales of pharmaceutical products for a period of 6 years. A selected participant will be able to get a maximum incentive of Rs 1000 crore, Rs 250 crore and Rs 50 crore respectively depending upon its group over the period of the scheme. Additional incentive will be available based on performance but subject to certain conditions. In no case, the total incentive including additional inventive, would be more than Rs 1200 crore, Rs 300 crore and Rs 60 crore per selected participant respectively for the three groups over the period of the scheme.

An Empowered Group of Secretaries will undertake periodic reviews of the scheme to ensure its smooth implementation along with the other PLI schemes of the Govt. of India. A Technical Committee will assist the department in all technical issues which arise during the implementation of the scheme. SIDBI, the Project management Agency selected for this scheme, will be responsible for implementation and will be the interface with the industry for all issues with respect to online applications, selection of applicants, verification of investments, verification of sales and disbursal of incentives etc.

The pharmaceutical and the in-vitro diagnostic industry is expected to actively participate in the scheme and contribute to further strengthening the sector.

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The Gold Coast

A 622 page turner from the master story teller Nelson De Mille in “The Gold Coast”.

John Sutter is a pompous New York attorney specialising in family matters, with a beautiful wife Susan and living in her family mansion in Gold Coast. One of the last remaining mafia dons Frank Bellarosa buys their next door mansion and their lives change inexorably thereafter.

Both John and Susan are drawn to the magnetism and the charm of the Italian mafia don and they become like pawns in his world of things. There is a pending murder investigation against Frank for which John agrees to become the attorney for the day to secure bail on the same day as the arrest, in fact before lunch time. John being not a criminal lawyer had to agree because Frank helped him in an IRS investigation into John’s financial affairs.

Large pages are devoted to the interplay between John and Frank and the irretrievable break down of the marriage between John and Susan. Nelson has built up the story very well and carried it through and through admirably for 622 pages, because with a long book like this, invariably the reader tends to start yawning, half way through. Nelson’s writing is magnificent, its throbbing with excitement and pulsating with the joy of bringing somebody’s story to life. Goodreads 5/5

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LODR compliances – corp gov.

SEBI has mandated an additional set of compliances for listed entities – under regulation 27 of the Listing Obligations and Disclosure Requirements Regulations 2015. Now disclosures around loans/ guarantees/ letters of comfort/ securities provided by listed entities to their promoter or promoter group entities or any other entity controlled by them, either directly or indirectly has to be made on a half yearly basis from the financial year 2021-22.

The format of the report is given in this circular

https://www.sebi.gov.in/legal/circulars/may-2021/format-of-compliance-report-on-corporate-governance-by-listed-entities_50338.html

Apart from this, there are three other corporate governance reporting to be done in various periods as enumerated under:

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fee structure for IFSC insurance intermediaries

IFSCA circular dated 24th May, 2021 laying down the fee structure for setting up/ registration of insurance intermediaries in IFSC at GIFT City, Ahmedabad. Read on.

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insurance claims on cyclones tauktae & yaas

IRDAI circular dated 31st May, 2021 asking general insurance companies and health insurance companies to expeditiously process insurance claims relating to cyclones Tauktae & Yaas. Read on.

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EPFO advance

https://pib.gov.in/PressReleasePage.aspx?PRID=1723083

To support its subscribers during the second wave of COVID-19 pandemic, EPFO has now allowed its members to avail second non-refundable COVID-19 advance. The provision for special withdrawal to meet the financial need of members during pandemic was introduced in March 2020, under Pradhan Mantri Garib Kalyan Yojana (PMGKY). An amendment to this effect was made by Ministry of Labour & Employment in Employees’ Provident Funds Scheme, 1952 by inserting therein sub-para (3) under paragraph 68L, through notification in the Official Gazette.

Under this provision, non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member’s credit in the EPF account, whichever is less, is provided. Members can apply for lesser amount also.

The COVID-19 advance has been a great help to the EPF members during the pandemic, especially for those having monthly wages of less than Rs. 15,000. As on date, EPFO has settled more than 76.31 lakh COVID-19 advance claims thereby disbursing a total of Rs. 18,698.15 crore.

During the second wave of Covid-19 pandemic, ‘mucormycosis’ or black fungus has been declared an epidemic recently. In such trying times, EPFO endeavours to lend a helping hand to its members by meeting their financial needs. Members who have already availed the first COVID-19 advance can now opt for a second advance also. The provision and process for withdrawal of second COVID-19 advance is same as in the case of first advance.

Considering urgent need of members for financial support in these trying times, it has been decided to accord top priority to COVID-19 claims. EPFO is committed to settle these claims within three days of their receipt. For this, EPFO has deployed a system driven auto-claim settlement process in respect of all such members whose KYC requirements is complete in all respects. Auto-mode of settlement enables EPFO to reduce the claim settlement cycle to just 3 days as against the statutory requirement to settle the claims within 20 days.

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Panitheeratha Veedu

Award winning Malayalam family drama film “Panitheeratha Veedu” (1973) directed by K.S. Sethumadhavan and starring Prem Nazir, Nanditha Bose, Bahadoor, Alummoodan among others.

Basically too many sub plots with the under current of grinding poverty, depression, misery, dejection, in each of sub plots. Prem Nazir is not able to give relief to anybody who look upto him, because he himself is under a cloud with his family suffering from a violent father, abject poverty and unhappy mother & sister.

Story of a young Leela who is being forced into prostitution by their foster parents, estranged father & son, violent family battles, sad life of an unwed mother – all heady mix of emotions, sadness, grief in this family movie.

There were long shots of Prem Nazir walking – don’t know what it means. Shobana has done a good role as the young Leela, was very authentic. Others are okay, Prem Nazir is more like a confused aatma in the movie. The title means “Unfinished House” its a metaphor for unfinished agenda, but whether he is able to fulfill it is not shown in the movie because the last shot is of him leaving in a train from Ooty station. There probably could have been a sequel to the movie.

Lovely songs by M.S. Vishwanathan and P. Jayachandran saves the day somewhat.

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Sarasayya

Award winning Malayalam noir film “Sarasayya” (1971) starring Sathyan, Madhu, Sheela, Jayabharati among others.

Heavy duty emotional film this one, right from first frame and that too with heavy dialogues and equally dense music. If not anything else, the music was killing the viewer.

Sathyan is a leprosy doctor and researcher but he gets emotionally involved with his patient Sheela. Young Madhu is also a doctor who gets smitten by Sheela. In the meanwhile Sheela’s sister Jayabharati has a troubled marriage with an oddball character. Their father is mentally challenged. Sheela is indebted to Sathyan because he recovers her fully from leprosy.

But Sathyan rapes Sheela one day in an emotional state and she denies such thing ever happened to her beau Madhu. The father meanwhile dies from accidental poisoning and police gets involved. Too much of emotional wrangling going on among the characters, with copious amount of tears flowing. The saving grace in the movie is undoubtedly Madhu who was the cool, assured, sorted out character. The director has tried to add some oddball comic characters to the plot, but it fails to entice the viewer. IMDB 2/10

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