After publishing the last issue of Samhita, I had a chat with the Founder of the Dementia Village that I wrote about. As always, he had tons of information and insights to share but the following legal questions he raised were very pertinent as well as disturbing, considering that Dementia patients are mentally unsound :
The current labour laws in India permit only 8 hours duty for a caretaker. However in the case of a dementia caregiver, changing them every 8 hours poses different problems since the patient would have got adjusted to one of them and would find it difficult to accept that there is a different person coming in shifts. Looks simple to us but with memory loss and other behavioural problems patients get disturbed even more. Adjustment issues arise for the caregivers as well. The law needs to be modified.
How to take a dementia patient’s signature for drawing his pension or operating his bank account ? The law does not recognise the signature or consent of a mentally unsound person. Unless there is a joint holder, operation becomes difficult in a dementia case which is generally brushed aside as normal age related senility with no advance precaution taken.
How to protect the property and other assets of a dementia patient from being misused by devious relatives ? Due to unsound mind and loss of memory the patients are unable to take their own decisions and property can get into fraudulent hands. This is true during their lifetime and also thereafter, especially in the absence of a will.
All the above concerns are practical, real and thought-provoking calling for some advocacy and attention of the legislators to the plight of dementia patients and more importantly caregivers. Instead of waiting for the numbers to grow and worsen, action must be taken. Perhaps civil society, caregivers and other ecosystem stakeholders must take up these issues. Just like in other areas such as cancer where the awareness is growing on account of heightened activity by NGOs and support groups working in this space.
Talking of cancer, I cannot but highlight that October is dedicated for Breast Cancer (BC) awareness. With BC being on the rise, there are programmes galore but unfortunately most women are not interested in attending until they are actually affected. The 2020 theme is “Give Hope. Save Lives”. I would say an early detection is the way to save lives because BC is the best form of cancer to get. Largely curable and we are able to get back to normal lives – even better lives post cancer, provided we make the right changes in Eating Right, Breathing Right and Thinking Right. This week I had the opportunity to share my life experiences as a BC Victor – at Rotary and Sanjeevani – Life Beyond Cancer’s panel discussion (a Mumbai based Trust). Ruby Ahluwalia, a senior bureaucrat and BC Victor herself is the founder of this Trust that is doing incredible service to society since 2012 through their varied programmes. Present across the country, Sanjeevani is well networked with hospitals, doctors, caregivers, volunteers, interns, employees, social workers, colleges etc. Leveraging technology, they are able to reach out to the remotest part of the country and deliver hope to the underprivileged cancer patients and families. Do visit https://www.sanjeevani-lifebeyondcancer.com/about-us to find out what a person with a vision and a heart can do !
What’s cooking inside the 246th issue of Samhita ? For a change, no ingredients from MCA & RBI. SEBI, FCRA, IT & GST changes are carried. My young colleagues Sreenivasan and Krithika are serving 2 distinct ‘cuisines’ – one on certain changes by SEBI on regulations related to Non-convertible Debentures and the other on the hot FCRA Amendment Act, 2020, that has shaken the NGO funding space. Do read and encourage the young authors. I don’t know what our English language teacher Balaji has to offer this time. I am sure he has tossed up something interesting for all of us ! For any previous issues of Samhita and thereaders’ feedback, please visit https://sharadasc.com/resource-center/.
Amendments to SEBI LODR, ILDS & Debenture Trustee Regulations
An article by Sreenivasan Narasimhan, Associate, on amendments to SEBI LODR, ILDS & Debenture Trustee Regulations intends to inform the reader about the recent changes to the SEBI regulations to boost and protect investor sentiment in the debt markets in light of recent defaults in payment of interest to the debt holders.
Timeline for listing of securities issued on Private Placement
SEBI on receiving requests from various market participants, has clarified vide Circular dated 05.10.2020 the timeline for listing of securities i.e. Debt Securities, Non-Redeemable Convertible Preference Shares and Municipal Debt Securities issued under various SEBI Regulations.
The timelines mentioned in the Circular are as follows:
Details of Activity
Due date for listing
Closure of issue
Receipt of funds
Allotment of securities
Issuer to make listing application to Stock Exchange
Listing permission from Stock Exchange
In case of delay in listing securities within the above mentioned due dates the issuer shall:
Pay penal interest of 1% p.a. over the coupon rate for the period of delay to the investor (i.e. from date of allotment to the date of listing)
Utilise the issue proceeds of its 2 subsequent privately placed securities only after receiving final listing approval from Stock Exchanges.
EGMs through VC/ OAVM for unit holders of REITs and InvITs- Extended
SEBI vide Circular dated 22.06.2020 had allowed REITs and InvITs to hold EGMs conducted during the calendar year 2020 through Video Conference or Other Audio Visual Means. This relaxation was available upto 30.09.2020. Vide Circular dated 08.10.2020 the same has been extended upto 31.12.2020.
Extended validity of SEBI observations & increased threshold for filing of fresh offer document
A public issue / rights issue under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations) is required to be completed within 12 months of receiving comments from SEBI. However, in view of the impact of COVID-19 pandemic, validity of such SEBI observations which have expired / will expire between 01.10.2020 and 31.03.2021 stand extended upto 31.03.2021 subject to an undertaking by the Lead manager.
Increase / decrease of up to 50% of the estimated fresh issue size does not require filing of a fresh offer document with prescribed fees (provided there have been no changes in the objectives), as against the existing 20% limit for the same. This relaxation which was only until 30.09.2020 has now been extended upto 31.03.2021.
SEBI notified the SEBI (LODR) (Third Amendment) Regulations, 2020 on 08.10.2020. Highlights of the amendments are:
In case of listed non-convertible debt securities, listed entities are required to maintain a 100% asset cover or as per the Information Memorandum / Offer Document / Debenture Trust Deed which shall be sufficient to discharge the principal amount at all times.
The statutory auditor is required to provide an asset cover certificate on half yearly basis as against the earlier requirement of the certificate from a practising Chartered Accountant.
CBIC had on 01.10.2020 issued a notification specifying that all the registered persons required to follow e-invoicing shall follow a special procedure to prepare an invoice as specified in Rule 48 of the Central Goods and Service Tax Rules, 2017 during the period of 01.10.2020 – 31.10.2020.
Such registered persons shall obtain an Invoice Reference Number by uploading the particulars in Form GST INV-01 on the Central Goods and Service Tax Electronic Portal. This shall be executed within 30 days and if there is any failure in the upload of the invoice within 30 days, the same shall not be treated as an invoice.
Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.
S. C. Sharada & Associates,
Company Secretaries. #405, 7th Cross, IV Block, Koramangala, Bangalore – 560 034.
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