The Third Half

What a beautifully poignant and heart rending Macedonian movie “The Third Half” directed by Darko Mitrevski and starring Sasko Kocev, Katarina Ivanovska, Richard Sammel, Emil Ruben, Mitko Apostolovski among others.

Its football at the time of the world war II in Macedonia. Dimitrija (Mitko Apostolovski) is an owner of a local football club and he has only a rag tag team of amateurs. The team has Kosta (Sasko Kocev) who is a Christian falls in love with a Rebecca (Katarina Ivanovska) who is a Jew.

Her father is a rich banker and does not approve of the liaison. Dimitrija gets a coach Rudolph Spitz (Richard Sammel) the famous European coach, he is German but his mother is Jew so his allegiance is towards Jews.

Slowly Spitz builds the rag tag team into a fighting unit and they start winning matches in the local league. Then the Germans enter the town in cohoots with the Bulgarian government decides that the Macedonian team should lose the finals of the championship.

The Macedonian team wins but is over ruled as having lost. The Bulgarians then start rounding off the Jews in the town which includes Rebecca’s father, his assistant and the rabbi and bundled into a sealed train carriage to somewhere from where they don’t return.

Its such a powerfully made movie, raw with emotions of despair, love, sadness, anguish on one side and brutality on the other side. Its based on the true story of Macedonian Jews having deported in trains to their death.

All the main characters Sasko Kocev, Katarina Ivanovska, Richard Sammel, Emil Ruben, Mitko Apostolovski have done such powerful roles befitting their character. Katarina Ivanovska looks breathtakingly beautiful and has acted quite well. Even the minor characters have done good acting. Darko Mitrevski has done a good job as a Director and script writer (part). This was worthy of an Oscar. IMDB 7/10

onboarding of FPIs

SEBI has vide its circular dated 27th March, 2023 streamlined the process of onboarding of Foreign Portfolio Investors into the market. The salient features are given below.

https://www.sebi.gov.in/legal/circulars/mar-2023/streamlining-the-onboarding-process-of-fpis_69390.html

a. Grant of FPI registration on the basis of scanned copies of application forms and supporting documents:
i. The DDP may grant FPI registration to the applicant on the basis of scanned copies of executed Common Application Form (‘CAF’), scanned copies of certified supporting documents and applicable fees submitted by the applicant.
ii. The DDP shall thereafter update the CAF module as per the standard process, for issuance of Permanent Account Number (‘PAN’).
iii. Post allotment of PAN to the applicant, the scanned copies of certified Know Your Client (‘KYC’) documents of the applicant shall be uploaded on the KYC Registration Agencies (‘KRA’) by the DDP/ Custodian. Other intermediaries/ entities may access such documents from the KRA and complete their KYC requirements for opening the demat, trading and bank accounts.
iv. The Custodian shall ensure that appropriate systems and procedures are in place to prevent any activity in such accounts till verification of physical documents is carried out.
v. Only upon receipt and verification of the physical documents by the DDP/ Custodian, the Custodian shall make an application to the Clearing Corporation (‘CC’) for allotment of a CP Code to the FPI and carry out necessary steps for enabling the FPI to transact in the Indian securities markets.
b. Use of Digital Signatures by FPIs:
i. FPIs may use digital signatures for the purpose of execution of CAF and other registration related documents, provided such digital signatures are in accordance with the provisions of the Information Technology Act, 2000.
c. Certification of copies of original documents by authorized bank officials using SWIFT mechanism:
i. At present, copies of all documents submitted by the FPI applicants are to be accompanied with originals for verification. In case the original of any document is not produced for verification, then the copies are required to be physically attested by entities authorized for attesting the documents, as mentioned in Para 8 of Part B of the Master Circular.
ii. In lieu of physical attestation, certification of copies of original documents by authorized bank officials (i.e. officials of Multinational Foreign Banks or any Bank regulated by RBI) through SWIFT mechanism may be accepted by DDPs/ Custodians for the purpose of verification of documents.
iii. The authorized bank official shall be required to send copies of original documents to the DDP/Custodian digitally and certify the authenticity of these documents through authentic free format SWIFT message types (such as SWIFT MT 599) sent to the DDP/ Custodian.
d. Verification of PAN through the CAF module available on the websites of the Depositories:
i. In cases where PAN application by the FPI applicant is made via the CAF portal, the DDP/Custodian may verify the PAN of the FPI basis its availability on the CAF module hosted on the website of the depositories, where the PAN is reflected via an automated secure feed from the Income Tax department.
e. Submission of unique investor group ID by FPI applicants in lieu of complete details of group constituents:
i. At present, an FPI applicant, at the time of registration, is required to provide details of FPIs with whom it share ownership of more than fifty percent or common control, under the ‘Clubbing of Investment Limit’ section of the CAF. Depositories in turn generate a unique FPI investor group ID for identifying each such FPI investor group.
ii. For operational convenience, it is now specified that in case an FPI applicant belongs to an existing FPI investor group, it may submit its unique FPI investor group ID in the CAF, in lieu of providing complete details of all group constituents. In case the applicant wants to club additional FPIs (apart from itself) in such unique investor group ID, the FPI may only provide details of such additional FPIs, along with the investor group ID.

nomination for trading & demat a/cs

SEBI circular on the subject, which is self explanatory. The nomination facility has been extended upto 30th September, 2023. I don’t understand why there needs to an expiry date for the nomination facility, if it has to be done by the investors, it has to be done. They will be the losers if they don’t do the same. And the whole idea of freezing of the demat or trading accounts if the nomination is not done is bizarre to say the least.

SEBI, vide circular no. SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23, 2021 had mandated providing choice of nomination details, i.e., either furnishing of nomination or declaration for opting out of nomination for investors opening
new trading and or demat account(s) on or after October 01, 2021 and for all existing eligible trading and demat account holders latest by March 31, 2022 failing which the trading accounts shall be frozen for trading and demat account shall be frozen for debits.

Thereafter, on the basis of representations received from various stakeholders, vide SEBI circular SEBI/ HO/ MIRSD/ MIRSD_RTAMB/P /CIR/2022/23 dated February 24, 2022, the timeline for mandatory submission of ‘choice of
nomination’ for existing trading and demat accounts was extended to March 31, 2023.

Based on the assessment of the trading as well as demat accounts in which choice of nomination details (i.e. furnishing of nomination or declaration for opting out of nomination) has not been updated and on the basis of representations
received from the stakeholders, it has been decided that the provisions mentioned at para 7 of SEBI circular dated July 23, 2021 read with para 3 (a) of SEBI circular dated February 24, 2022 with regard to freezing of accounts shall come into force with effect from September 30, 2023 instead of March 31, 2023.

Stock Brokers and Depository Participants shall encourage their clients to update ‘choice of nomination’ by sending a communication on fortnightly basis by way of emails and SMS to all such UCCs/demat accounts wherein the ‘choice of
nomination’ is not captured. The communication shall provide guidance through which the client can provide his/her ‘choice of nomination’.

nomination of mutual funds

SEBI (Securities and Exchange Board of India) circular dated 28th March, 2023 which is self explanatory.

SEBI vide Circular No. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2022/82 dated June 15, 2022 read with SEBI Circular No. SEBI/HO/IMD/IMD-I DOF1/P/CIR/2022/105 dated July 29, 2022, prescribed the requirement for nomination/ opting out of nomination for all the existing individual unit holder(s) holding mutual fund units either solely or jointly, by March 31, 2023, failing which the folios shall be frozen for debits.

Based on representations received from the market participants, it has been decided that the provision mentioned at para 4 of SEBI circular dated June 15, 2022 with regard to freezing of folios, shall come into force with effect from September 30, 2023 instead
of March 31, 2023.

AMCs and RTAs shall encourage the unit holder(s) to fulfil the requirement for nomination/ opting out of nomination by sending a communication on fortnightly basis by way of emails and SMS to all such unit holder(s) who are not in compliance with the requirement of nomination. The communication shall provide guidance by which the unit holder(s) can provide nomination or opt out of nomination.

medical for rare diseases

The Central Government has given full exemption from basic customs duty on all drugs and Food for Special Medical Purposes imported for personal use for treatment of all Rare Diseases listed under the National Policy for Rare Diseases 2021 through a general exemption notification.

In order to avail this exemption, the individual importer has to produce a certificate from Central or State Director Health Services or District Medical Officer/Civil Surgeon of the district. Drugs/Medicines generally attract basic customs duty of 10%, while some categories of lifesaving drugs/vaccines attract concessional rate of 5% or Nil.

While exemptions have already been provided to specified drugs for treatment of Spinal Muscular Atrophy or Duchenne Muscular Dystrophy, the Government has been receiving many representations  seeking  customs duty relief for drugs and medicines used in treatment of  other Rare Diseases. Drugs or Special Foods required for the treatment of these diseases are expensive and need to be imported. It is estimated that for a child weighing 10 kg, the annual cost of treatment for some rare diseases, may vary from ₹10 lakh to more than ₹1 crore per year with treatment being lifelong and drug dose and cost, increasing with age and weight.

This exemption will result in substantial cost savings and provide much needed relief to the patients. 

The Government has also fully exempted Pembrolizumab (Keytruda) used in treatment of various cancers from basic customs duty.

life ambitions

Daily writing prompt

When you were five, what did you want to be when you grew up?

View all responses

Haha, who remembers that far, i am 60 now can hardly remember what i wanted to become when i was five years old. But i do remember that i wanted to be a train driver or motorman as they say, not at five years of age, but later on when i was still in school. Later in teens, i wanted to become a cricketer like the famous Indian leg spinner B.S. Chandrashekhar, or Chandra as they call him.

SDD compliance

Circular from NSE that those companies who are exempt from SEBI compliance report u/r 24A of the SEBI LODR are required to submit their SDD compliance report on a quarterly basis within 21 days of the end of the quarter.

ship lease in IFSC

IFSCA (International Financial Services Centre Authority), India has vide its circular dated 22nd March 2023 clarified certain aspects of ship lease in IFSC. Details given below

Reference may be drawn to the Circular No. 496/IFSCA/FC/SLF/2022-23/001 dated August 16, 2022 (‘Circular’), issued by the International Financial Services Centres Authority (hereinafter referred to as ‘IFSCA’ or ‘the Authority’), inter-alia specifying ‘permissible activities under operating lease’.

Post issuance of the said Circular, IFSCA has received several representations from stakeholders inter-alia requesting enablement of voyage charter and other commercial transactions for employment of ships, as permissible activities under operating lease.

The matter was referred to the Directorate General of Shipping, India, which clarified that these activities are an integral part of the ecosystem and may be included as part of the shipping ecosystem in the IFSC, as at present many of the Indian players are going off-shore for availing these services.

Further, it has been decided that undertaking of ‘Asset Management Support Services’ may also be extended to ‘group entities’ of lessor in IFSC instead of limiting it only to the wholly owned subsidiary (ies) of the lessor and its branch set up in IFSCs in India.

In view of the above, Clause 3.E of the said Circular stands substituted as under:
“A lessor in IFSCs shall be permitted to undertake all or any of the following activities:
(i) Operating lease;
(ii) Voyage Charters, Contract of Affreightments, employment in shipping pools and all other legal commercial transactions for employment of ships;
(iii) Asset Management Support Services for assets owned or leased out by the lessor or by any of its Group Entities set up in IFSCs in India;
Here the term ‘Group Entities’, shall mean an arrangement involving two or more entities related to each other through any of the relationships, viz. Subsidiary – parent (defined in terms of AS 21), Joint venture (defined in terms of AS 27), Associate (defined in terms of AS 23), a related party (defined in terms of AS 18), Common brand name and investment in equity shares (of 20% and above).
(iv) Sale and lease back, purchase, novation, transfer, assignment, and such other similar transactions in relation to ship lease;
(v) any other related activity with the prior approval of the IFSCA.
Explanation: A transaction shall be classified as a lease if it is in accordance with the Indian Accounting Standards (Ind AS 116) on Leases.”

freedom

Daily writing prompt

What’s something most people don’t understand?

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What something most people don’t understand is freedom is hard fought. Democracy, human rights, rule of the law is absolutely vital in a society. There cannot be a rule of the mob.

Unfortunately even media don’t understand this and support fascist dictators tacitly or openly. Judicial officers cavorting to despotic leaders is despicable. Human rights is the most important right in the world. Everything else comes after that – religion, race, colour, ethnicity etc.

When i see educated people becoming fanboys of fascist leaders, i feel that the society is going downhill. They cannot see the black from the white.

penalty on Karur Vysya Bank

The Reserve Bank of India (RBI) has, by an order dated March 21, 2023, imposed a monetary penalty of ₹3 million on Karur Vysya Bank Ltd. (the bank) for non-compliance with certain provisions of the Reserve Bank of India (Frauds- Classification and reporting by commercial banks and select FIs) directions 2016.

A Select Scope Inspection (SSI) of the bank was conducted by RBI during the period from February 21, 2022 to March 04, 2022. An examination of the SSI report and all related correspondence pertaining to the same revealed that the bank failed to report a few accounts as frauds to RBI within a week of the respective Joint Lenders’ Forum (JLF) decisions to do so. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the directions issued by RBI, as stated therein.

After considering the bank’s reply to the notice, oral submissions made during the personal hearing and additional submissions made by it, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank, to the extent of non-compliance with such directions.

network outage

Advisory from TRAI (Telecom Regulatory Authority of India), which is self explanatory

It has been observed that incidences of major network outage of telecom networks occurring due to technical reasons or due to natural calamities are not reported by the Telecom Service Providers (TSP) to TRAI. These major network outages in the country for prolonged duration, especially in border and hilly areas, adversely affect the availability or quality of service in affected areas.

To understand the root cause of major network outages and get relevant support from local authorities extended to the service providers, if needed, the Authority has decided to collect the information about any such outage at the district level.

In view of the above, the Access Service Providers have been directed to report the following:

1. all incidences of major network outages affecting the telecom services to the entire consumers of a district (revenue district as defined by the Union/State Government) continuously for a period of more than four hours, within twenty-four hours of their occurrence, in the format specified in the Direction.
2. the root cause of such major network outage and corrective actions taken thereof, within seventy-two hours of restoration of services, in the format specified in the Direction.

The Direction shall come into force with immediate effect.

technology

Daily writing prompt

How has technology changed your job?

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Technology has changed my job tremendously, lots of things which we were doing manually by going repeatedly to the government offices and paying bribe has now become online, making it that much smoother and easier for us.

Say No to Say Yes

Daily writing prompt

How often do you say “no” to things that would interfere with your goals?

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Most often, if the things are toxic or stressful or too difficult to implement, then the goals keep changing. One has to be subtle about it. You cannot focus on the goals at the cost of one’s health, happiness, well being, family care, love & relationship.

skill

Daily writing prompt

What’s a secret skill or ability you have or wish you had?

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Its not a secret skill or ability, but to play musical instruments is one skill i wish i had. That is sorely missing from my repertoire. Music soothes the brain and i wish i could play some musical instruments for hours on end and perfect it.

favorite weather

Daily writing prompt

What is your favorite type of weather?

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Favorite weather is undoubtedly winter but monsoon is also good especially after the hot summer months. The beginning of any weather season is good and welcome, but extremes of any weather is bad. Summer is terrible, we are now in summer, which will last until mid June or so when we can expect the first rains to come in by 2nd or week of June.