Under the new system, companies are required to view the complaints pending against them and submit Action Taken Reports, along with supporting documents electronically in SCORES
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Wednesday said all investor complaints should be forwarded electronically through its recently launched centralised database system, SCORES.
“... henceforth all complaints shall be forwarded electronically through SCORES only,” reports PTI quoting a SEBI circular.
The regulator had in June operationalised a centralised database to fastrack redressal of investor complaints against listed companies, called Sebi Complaints Redressal System (SCORES).
Under the new system, companies are required to view the complaints pending against them and submit ATRs (Action Taken Reports), along with supporting documents electronically in SCORES.
In the circular issued yesterday, SEBI said updation of actions taken in the past would not be possible with physical ATRs.
“Hence, submission of physical ATR will not be accepted for complaints lodged in SCORES,” it said.
Market intermediaries can view the complaints in the SCORES system by logging in with their user id and password, which will be communicated separately by the regulator. SEBI will also send a daily alert on pending complaints at the e-mail ID registered with it for regulatory communications.
“Failure on the part of the entity in updating the ATR on the SCORES will be considered as non-redressal of complaint and will be shown as pending against the entity,” it said.
SCORES facilitates online movement of complaints to the concerned listed companies by enabling online upload of ATRs by these companies.
In the FSDC meeting held in May, sources said, RBI was of the view that if such services are offered by banks, there should be effective firewalls or they should offer the services through a separate legal entity which could then be regulated by SEBI
New Delhi: Concerned over banks offering wealth management services beyond the existing regulatory framework, the Reserve Bank of India (RBI) has decided to bring in exhaustive rules for such services in consultation with market regulator Securities and Exchange Board of India (SEBI).
“Both the RBI and SEBI are studying the issue...,” a source said.
The matter came up for discussions in the last meeting of the Sub-Committee of Financial Stability and Development Council (FSDC) held on 16th August here and chaired by RBI governor D Subbarao.
The present regulatory guidelines permit banks offering wealth management services to give only non-discretionary or advisory services.
However, over the time there has been a ‘blurring of activities’ between offering non-discretionary and discretionary services (like investment management), they said.
“Banks may actually be offering a greater gamut of services than is permitted under the extant guidelines,” sources said.
The RBI in consultation with SEBI had earlier circulated a questionnaire to banks offering the services.
All major banks like SBI, ICICI and Standard Chartered offer wealth management services in the country.
RBI, SEBI and the government began to look at ways to revise the norms for offering by banks after the alleged multi-crore fraud at Citibank’s Gurgaon branch came to light late last year, sources added.
Several depositors and high-networth individuals (HNIs) were duped in the Rs460.91-crore fraud, allegedly engineered by Citibank’s global wealth manager Shivraj Puri who was working at the branch of the bank.
The RBI has already imposed a Rs25 lakh fine on the bank for not following account opening and anti-money laundering norms at the Gurgaon branch.
Wealth management services are tailor-made asset management facility provided to HNIs.
In the FSDC meeting held in May, sources said, RBI was of the view that if such services are offered by banks, there should be effective firewalls or they should offer the services through a separate legal entity which could then be regulated by SEBI.
“The estimate RBI has done is that transition to Basel-III would not be much of an issue for our banks, as all the capital ratios of our banks are at about the minimum requirement of Basel-III,” RBI deputy governor Anand Sinha said on Wednesday
Mumbai: Reserve Bank of India (RBI) deputy governor Anand Sinha on Wednesday allayed fears that the implementation of Basel-III norms will seriously hit domestic banks, reports PTI.
“The estimate RBI has done is that transition to Basel-III would not be much of an issue for our banks, as all the capital ratios of our banks are at about the minimum requirement of Basel-III.
“Moreover, capital requirement on increased covering of risks would not be applicable to our banks as either those activities are not allowed or the magnitude is quite small,” Mr Sinha told a session on the topic at the Ficci-IBA banking summit here.
The Basel-III norms kick in from 1 January 2013 and have to be completed by 1 January 2019.
Crisil Ratings director Ramaraj Pai said that public sector banks would need a whopping Rs8 trillion in core capital by 2019.
As of FY09- these banks had a core (Tier-I) capital of only Rs70,000 crore, well above the Basel-II requirements.
Mr Sinha said, “Resecuritisation is not allowed in the country and there is a whole lot of capital load that we don’t have, similarly our trading books are much smaller.
“The stress point for our banks would be to adjust to the amortised portion of pensions and gratuity liabilities in opening balance sheet on 1 April 2013, while transitioning to the international financial reporting standards or IFRS.”
Mr Sinha also pointed out that going forward, the capital requirements, including core equity capital, are likely to be substantial for supporting high gross domestic product (GDP) growth, and the credit to GDP ratio, at 55%, is currently lower than some of the Asian countries.
But he warned that this ratio is bound to jump as a rapidly growing and structurally changing economy will demand more funds. He said initiatives like financial inclusion, and rising loan demand from more credit intensive sector like manufacturing and infrastructure, would pose challenges.
“So in our estimate, the Basel-III transition is not a problem, but going ahead there would be large capital requirements and that has to be managed,” Mr Sinha said.
He added, “We are in the process of drafting the Basel-III guidelines, after which we will request the banks, and RBI also would separately estimate what is the capital requirement so that you have the adequate time frame to plan for that.”
The RBI is also looking at to what extent banks’ holdings under the statutory liquidity ratio (SLR) provisions will be eligible as liquid funds under the Basel-III norms, Mr Sinha said. At present, the 24% mandatory SLR exposure of banks is not a readily available liquid asset.
However, he admitted that “the definition of liquid assets is very stringent under Basel-II and strictly speaking, SLR requirements would not qualify as liquid assets under it, because SLR need being mandatory has to be complied with at all times”.
“Our dilemma is asking banks to maintain more liquid assets over and above SLR, as it would put them in a competitively disadvantageous position. Therefore, we are considering to what extent the SLR can be reckoned towards Basel-III requirements for holding big assets or if there is any other way,” he said.