Tag Archives: reporting

reporting formats for mutual funds

SEBI circular dated 12th April, 2021 wherein they have revised the reporting format for mutual funds. Read on.

A. Pursuant to regulatory revamp exercise of SEBI (Mutual Funds) Regulations, 1996 (hereinafter called as “MF Regulations”) and various circulars issued thereunder, a circular no. SEBI/HO/IMD/DF2/CIR/P/2021/024 dated March 04, 2021 has been issued. Further, based on the consultation with industry the formats for the following reports i.e. reports to be submitted by AMCs to Trustees, by AMCs to SEBI and by Trustees to SEBI have been reviewed and
revised as under:

  1. Reporting by AMCs to Trustees
    1.1.Bi-monthly Compliance Certificate (BCC)
    In partial modification to the SEBI circular No. MFD/CIR/09/014/2000 dated January 5, 2000, the Compliance Certificate to be submitted by the AMC to the Trustees on a Bi-monthly basis shall be discontinued.
    1.2.Half yearly Compliance Certificate (HYCC) by AMC to Trustees
    In partial modification to the SEBI circular No. MFD/CIR/09/014/2000 dated January 5, 2000, the Compliance Certificate to be submitted by the AMC to the Trustees on an half yearly basis shall be discontinued. The contents of both BCC and HYCC have been suitably incorporated in the Quarterly Report by AMC to Trustees.
    1.3.Quarterly Report by AMC to Trustees (QR)
    The AMC shall submit QR to the trustees, as required in sub-regulation (4) of Regulation 25 of MF Regulations, on its activities and the compliance with MF Regulations and various circulars issued thereunder. The format of QR is prescribed at Annexure I. The same shall be submitted by AMC to Trustees by 21st calendar day of succeeding month for the quarters ending March, June, September and December.
  2. Reporting by AMCs to SEBI
    2.1.Compliance Test Report by AMC to SEBI (CTR)

    To synchronize the frequency of submission of the CTR and QR, SEBI circulars No. MFD/CIR/5/360/2000 dated July 4, 2000, SEBI/ IMD/CIR No. 11 /36222/2005 dated March 16, 2005 and SEBI/IMD/CIR NO 6/98057/07 dated July 5, 2007 have been modified to the extent that, instead of exceptional reporting, complete CTR shall be submitted by
    AMC to SEBI on a quarterly basis, by 21st calendar day of succeeding month for the quarters ending March, June, September and December. The revised format of CTR is prescribed at Annexure II.
  3. Reporting by Trustees to SEBI
    3.1.Half Yearly Trustee Report by Trustees to SEBI (HYTR)
    a) In partial modification to the SEBI circular No. MFD/CIR/09/014/2000 dated January 5, 2000, the HYTR containing the broad coverage of report of trustees to SEBI has been revised & prescribed at Annexure III.
    b) Trustees, shall submit corrective steps taken with respect to the noncompliance reported in the HYTR.
    c) Trustees shall continue to submit HYTR for the half year ending September and March within two month from the end of the half year.
    B. Applicability
  4. For QR and CTR reports, the circular shall come into effect for reporting from the quarter ending June, 2021;
  5. For HYTR report, the circular shall come into effect for reporting from the halfyear ended March, 2021;
  6. BCC and HYCC shall be discontinued subsequent to the effective date of the QR report as mentioned at paragraph B(1) above.

Leave a comment

Filed under securities laws

Reporting of large transactions

RBI circular dated 16th January, 2020 wherein they have streamlined the reporting of large exposures of Primary Urban Co-operative Banks having total assets of Rs.500 crores and above. Exposures to include all fund based, non fund based including investment exposure on the borrower. They have set up a three pronged strategy to report large exposures viz. exposure to large borrowers, reporting of technically/ prudentially written off accounts and reporting of balance in current account.

https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=11790&Mode=0

We draw your attention to RBI Circular DOR (PCB). BPD.Cir.No.7/13.05.000/2019-20 dated December 27, 2019 on “Reporting of Large Exposures to Central Repository of Information on Large Credits (CRILC) – UCBs“. In terms of the instructions, Primary (Urban) Co-operative Banks (UCBs) having total assets of ₹500 crore and above as on 31st March of the previous financial year (hereinafter referred to as “banks”) shall report credit information, including classification of an account as Special Mention Account (SMA), on all borrowers having aggregate exposures of ₹5 crore and above with them to Central Repository of Information on Large Credits (CRILC) maintained by the Reserve Bank. Aggregate exposure shall include all fund-based and non-fund based exposure, including investment exposure on the borrower.

2. The operational guidelines for reporting the CRILC– UCBs return are as follows:

i. The reporting frequency of the CRILC– UCBs return is quarterly to start with. The banks need to submit the data on large exposures within 30 days from the end of the quarter through XBRL reporting platform of RBI. Banks may put in place appropriate systems to be in readiness to submit the return on a more frequent periodicity.

ii. CRILC – UCBs return will comprise of three sections viz. Section 1: Exposure to Large Borrowers, Section 2: Reporting of Technically / Prudentially Written-off Accounts and Section 3: Reporting of Balance in Current Account, as below:

  1. In Section 1: Exposure to Large Borrowers, the bank needs to report the credit information of all borrowers having aggregate exposures (fund-based, non-fund based and investment exposure) of ₹5 crore and above.

  2. In Section 2: Reporting of Technically / Prudentially Written-off Accounts, the bank needs to report the data on the amount written off, if any, for borrowers whose technically/prudentially written off amount is ₹5 crore or more and which are not reported in Section 1.

  3. In Section 3: Reporting of balance in Current Account, the bank needs to report the data on Current Account holders whose (i) balance (either credit or debit) in current account as on reporting date is ₹1 crore and above or (ii) total of credit summation (sum of all credit transactions) during the reporting quarter is ₹5 crore and above or (iii) total of debit summation (sum of all debit transactions) during the reporting quarter is ₹5 crore and above.

iii. The detailed instructions for each Section is provided in the CRILC-UCBs return installer (macro enabled excel template).

iv. Banks are advised to take utmost care about data accuracy and integrity while submitting the data on large credits to the Reserve Bank of India, failing which penal action would be undertaken.

3. In the light of DoR instructions referred above and in exercise of the powers conferred under Section 27 (2) read with Section 56 (a)(i) of the Banking Regulation Act, 1949(AACS), you are advised to submit the data in CRILC-UCBs return with effect from the quarter ended December 31, 2019. The format of reporting is enclosed.

Leave a comment

Filed under Uncategorized

Amendment to form FC-GPR – reporting of FDI by Indian companies

RBI has vide its circular no. RBI/2013-14/490 A.P. (DIR Series) Circular No.102 dated 11th February 2014 revised the form FC-GPR for reporting of Foreign Direct Investment into the country by inserting a clause requiring companies to report whether the inward remittance is towards the greenfield venture (new venture) or a brownfield venture (already existing). The gist of the RBI circular is given below and also available at this link.

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8742&Mode=0

Attention of Authorised Dealers Category-I (AD Category – I) banks is invited to provisions of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations 2000 notified vide Notification No. FEMA 20/2000-RB dated May 3, 2000 (hereinafter referred to as Notification No. FEMA 20), as amended from time to time. Attention of AD Category – I banks is also invited to A.P. (DIR Series) Circular No.40 dated April 20, 2007A.P. (DIR Series) Circular No. 44 dated May 30, 2008 and  A. P. (DIR Series) Circular No.110 dated June 12, 2013.

2. In terms of para 9 (1) A of Schedule I to the FEMA Notification No. 20 dated May 03, 2000 as amended from time to time, Indian companies are required to report the details of the amount of consideration received for issuing shares and convertible debentures under the Foreign Direct Investment (FDI) scheme to the Regional Office of the Reserve Bank in whose jurisdiction the Registered Office of the company operates, within 30 days of receipt of the amount of consideration. Further, in terms of Para 9 (1) B of Schedule ibid, the companies are required to report the details of the issue of shares / convertible debentures in form FC-GPR, to the Regional Office concerned, within 30 days of issue of shares / convertible debentures.

3. In order to further capture the granular details of FDI as regards Brownfield/Greenfield investments and the date of incorporation of investee company, Form FC-GPR has been revised. Accordingly, the details of FDI should, henceforth, be reported in the revised Form FC-GPR, enclosed as Annex-I

4. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.

Leave a comment

Filed under Uncategorized