On October 10, 2024, the Reserve Bank of India (RBI) issued a circular concerning the submission of information to Credit Information Companies (CICs) by Asset Reconstruction Companies (ARCs). This revision updates earlier guidelines from November 25, 2010, and aims to align ARCs with the practices applicable to banks and Non-Banking Financial Companies (NBFCs), thereby enhancing the tracking of borrowers’ credit histories post loan transfers.
Under the new guidelines, ARCs shall become members of all CICs and submit necessary data in accordance with the Uniform Credit Reporting Format established by the RBI. ARCs shall ensure that the information they maintain is updated regularly, at least on a fortnightly basis, or at shorter intervals as mutually agreed with the CICs.
In cases where data is rejected by CICs, ARCs shall rectify and upload the corrected information within seven days of receipt. Furthermore, each ARC shall implement a standard operating procedure (SOP) for CIC-related activities, which includes providing comprehensive customer information and ensuring that all records, including repayment details, are consistently updated.
To prevent lapses in reporting, ARCs shall centralize the handling of no-objection certificates and appoint a nodal officer for CIC interactions. Customer grievance redressal shall be prioritized, especially regarding the updating or alteration of credit information, and these processes shall be integrated with any existing grievance mechanisms.
Compliance with the timelines established under the Credit Information Companies Regulation Act (CICRA) is mandatory, and any deviations must be reported in periodic reviews to the Board. This circular is issued under the authority of Section 12 of the Securitizations and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
All ARCs are required to implement systems and processes to comply with these guidelines by January 1, 2025.
Guidelines for utilization of office space or manpower or both by Finance Company(ies)/ Unit(s) undertaking ship leasing activity in IFSC
The International Financial Services Centres Authority (IFSCA) has issued guidelines for utilization of office space or manpower by finance companies/units undertaking ship leasing activities in the International Financial Services Centre (IFSC). The Indian government has amended the Special Economic Zones Rules, 2006, effective March 14, 2024. This change expands Rule 21B to cover both aircraft and ship leasing activities, allowing ship leasing to benefit from the same regulations as aircraft leasing.
Rule 21B allows IFSC units engaged in aircraft or ship leasing to share resources. Specifically, if IFSCA permits, these units can use office space, manpower, or both from other IFSC units authorized for aircraft or ship leasing, subject to IFSCA approval
A group entity is characterized by a structure that includes two or more entities connected through one of the following relationships:
- Subsidiary-Parent (as per AS 21)
- Joint Venture (as per AS 27)
- Associate (as per AS 23)
- Related Party (as per AS 18)
- Common Brand Name
- Investment in equity shares (20% or above)
The guidelines aim to facilitate efficient operations and reduce costs for ship leasing companies in IFSC. By allowing the sharing of resources, entities can optimize their office space and manpower utilization, streamlining their business processes.
To be eligible, the applicant entity must be a registered ship lessor with IFSCA. The proposed entity seeking to share resources must qualify as a ‘group entity’ of the applicant or its parent entity. This includes subsidiaries, joint ventures, associates, related parties, or entities with common brand names and significant equity investments.
Applicant entities must submit a duly filled application with a one-time fee of USD 2500. The application must be made before the proposed entity’s incorporation in IFSC. The proposed entity must incorporate and apply for registration as a ship lessor within six months of approval.
The guidelines address the growing demand for ship leasing activities in IFSC. By providing clarity on resource sharing, IFSCA aims to attract more international shipping companies, promote India’s maritime economy, and establish IFSC as a hub for financial services.
Sixth Amendment to the Tripura Shops and Establishments Act
The Tripura government has proposed the sixth amendment to the Tripura Shops and Establishments Act, 1970, aiming to improve the ease of doing business and enhance worker benefits. This amendment follows five previous revisions, with the most recent being the Tripura Shops and Establishments (Fifth Amendment) Act, 2021
The Tripura Shops and Establishments Act has evolved significantly since its enactment, with five key amendments:
- Tripura Shops and Establishments (Amendment) Act, 1982
- Tripura Shops and Establishments (Amendment) Act, 1988
- Tripura Shops and Establishments (Third Amendment) Act, 2000
- Tripura Shops and Establishments (Fourth Amendment), 2018
- Tripura Shops and Establishments (Fifth Amendment) Act, 2021
Sections 10 (a) and (b) state:
No woman shall be allowed or permitted to work-
- in any establishment for public entertainment or amusement other than a cinema or a theatre, after six o’clock post meridiem,
- in any shop or commercial establishment, after eight o’clock post meridiem.
The Tripura government has introduced the Tripura Shops and Establishments (Sixth Amendment) Bill, 2024, to update the existing Tripura Shops and Establishments Act, 1970. Regulating and amending the particulars in regard to women’s employment.
Key Changes:
- Extended Working Hours for Women: The amendment seeks to modify Section 10(a) and (b), allowing women to work night shifts in shops and commercial establishments without compromising their rights.
- Increased Flexibility for Employers: The proposed changes will enable employers to operate their shops/establishments for longer hours without violating workers’ rights.
- No Additional Financial Liability: The entire amount incurred due to these amendments will be borne by the employers, with no added financial liability on the government exchequer.
The proposed amendments have been vetted by the Law Department, and the Council of Ministers has been requested to approve the changes. The Hon’ble Chief Minister has given consent for placing the matter before the Council of Ministers.
Disclaimer: The information published in the above newsletter is collected from various sources in electronic medium and analyzed by the firm. The reader is advised to consult the attorney qualified in their jurisdiction, before acting on any information contained in this newsletter. India Juris excepts no liability what so ever in this regard.
