APAC Monthly Private Wealth Legal Developments – August 2024

1. SFC publishes updated list of prescribed persons which have reached clearing threshold under OTC derivatives regime

The SFC has issued a circular to notify licensed corporations that an updated list of prescribed persons who have reached the clearing threshold under the Securities and Futures (OTC Derivatives Transactions – Clearing and Record Keeping Obligations and Designation of Central Counterparties) Rules has been posted on the SFC's dedicated webpage for the over-the-counter (OTC) derivatives regulatory regime.

The updated list has been compiled based on information currently available to the HKMA and/or the SFC. It is the responsibility of each prescribed person to ensure its compliance with the above rules, including ascertaining whether each of its counterparties has reached the clearing threshold where applicable.  [30 Aug 2024]

2. HKMA hosts launch ceremony for Project Ensemble Sandbox and introduces four main themes of asset tokenisation use cases

The HKMA has hosted the launch ceremony for the Project Ensemble Sandbox and introduced four main themes of asset tokenisation use cases for the initial round of experimentation, marking a significant step in the advancement of tokenisation in real-world application within the financial sector.

Mr Eddie Yue, the Chief Executive of the HKMA, delivered opening remarks at the launch ceremony and outlined the role that the sandbox is intended to play within the HKMA’s broader vision of cultivating a dynamic digital asset ecosystem in Hong Kong.

The sandbox was launched in March 2024 (see our previous update), and the HKMA has completed its building and setup, designed to facilitate interbank settlement using experimental tokenised money, focusing on transactions involving tokenised assets. Participating banks from the Project Ensemble Architecture Community (established in May 2024 – see our previous update) have connected their tokenised deposit platforms to the sandbox, paving the way to conduct experiments for both interbank payment-versus-payment and delivery-versus-payment settlement.

The initial round of experimentation will cover tokenisation of both traditional financial assets and real-world assets, focusing on four main themes: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance. The HKMA will continue to actively engage with the industry to gauge interest in tokenisation, develop new themes and identify further use cases for tokenisation.

The SFC welcomes the launch of the sandbox and will co-lead with the HKMA on tokenisation initiatives for the asset management industry. Ms Julia Leung, the Chief Executive Officer of the SFC, delivered opening remarks at the launch ceremony in support of Project Ensemble and the sandbox.

On the international front, the HKMA will explore collaborating with the BIS Innovation Hub Hong Kong Centre, and will engage the CBDC Expert Group to further advance the sandbox.  [28 Aug 2024]

3. HKMA and Digital Policy Office jointly announce full operation of CDI-CDEG linkage following trial

The HKMA and the Digital Policy Office have jointly announced the full operation of the connection arrangement between the HKMA’s Commercial Data Interchange (CDI) and the Government’s Consented Data Exchange Gateway (CDEG), which was established in late December 2023 (see our previous update).

With the successful completion of the trial run by pilot banks, the CDI-CDEG linkage (also known as 'CR@CDI') is now open to all CDI participating banks.

As the first government data source of the CDI, the Companies Registry (CR) has connected to the CDI through CDEG. By connecting to the CR via the CDI-CDEG linkage, banks can directly obtain company particulars (such as company names, registered office addresses and share capital structure), which helps streamline various banking processes including account opening, fraud detection and know-your-client checks.

The connection facilitates financial institutions, upon authorisation, to access government data related to corporate and business operations, thereby supporting the digitalisation of the financial services industry. The HKMA and the Digital Policy Office will continue to explore the possibility of including additional business operation data in the future.

Since its launch, the CDI has enhanced the small and medium-sized enterprise loan approval processes, facilitating over 27,000 loan applications and reviews, with an estimated credit approval amount exceeding HK$23.8 billion as of the end of June 2024. The HKMA will explore the feasibility of extending the use of CDI to personal level (beyond corporate level), leveraging the CDI-CDEG linkage.  [26 Aug 2024]

4. SFC and SEHK jointly announce temporary modifications to requirements for specialist technology companies and de-SPAC transactions, commencing on 1 September 2024

The SFC and The Stock Exchange of Hong Kong Limited (SEHK) have jointly announced temporary modifications to the Listing Rules and amendments to the SEHK's guidance materials relating to (1) specialist technology companies and (2) de-SPAC transactions conducted by special purpose acquisition companies (SPACs). 

A specialist technology company is a company primarily engaged in the research and development of, and the commercialisation and/or sales of, products and/or services that apply science and/or technology within an acceptable sector of any of the specialist technology industries under the Listing Rules.

A SPAC is a shell company that raises funds through its listing for the purpose of acquiring a business at a later stage (a de-SPAC transaction) within a pre-defined time period after listing.

The modifications will be in effect temporarily for a fixed period of three years from 1 September 2024 to 31 August 2027. The SEHK may review and consult the public on these requirements before the end of this period, if necessary.

The modifications are designed to address the change in market conditions since the introduction of both listing regimes, taking into account the SEHK’s experience gained from handling specialist technology companies’ listing applications and de-SPAC transactions. They include:

• Reducing the initial market capitalisation thresholds of specialist technology companies under Main Board Listing Rule 18C.03(3);
• Reducing the minimum independent third party investment required for a de-SPAC transaction under Main Board Listing Rule 18B.41; and
• Aligning the independence test for third party investors in a de-SPAC transaction pursuant to Main Board Listing Rule 18B.40 with that for sophisticated independent investors in specialist technology companies.

The SEHK has also published amendments to its guidance materials that align the definition of a 'sophisticated investor' for independent third party investment more closely with the requirement for identifying qualified sophisticated independent investors in specialist technology companies – see marked-up changes to the Guide for New Listing Applicants, the guidance letter HKEX-GL113-22 and the frequently asked questions on SPACs.  [23 Aug 2024]

5. HKMA issues guiding principles on consumer protection in respect of use of GenAI

The HKMA has issued a circular to authorised institutions (AIs) to provide guiding principles on the use of generative artificial intelligence (GenAI) in customer-facing applications, from a consumer protection perspective. 

On 5 November 2019, the HKMA issued guiding principles in respect of the use of big data analytics and artificial intelligence (AI) by AIs (see our previous update), focusing on four key aspects: (1) governance and accountability, (2) fairness, (3) transparency and disclosure, and (4) data privacy and protection (see summary of the principles in Annex 1 to the present circular). The use of big data analytics and AI has continued to increase, as seen by a recent survey conducted by the HKMA (see summary of the survey results in Annex 2 to the present circular).

The HKMA has noted an increasing interest by the banking sector in adopting GenAI in their operations. Although the adoption is still at an early stage (with most of the current applications focusing on improving banks’ operational efficiency, such as internal chatbots and coding), the ability of GenAI in content-creation means that it could be more extensively adopted in customer-facing activities. The HKMA expects AIs to apply and extend the 2019 guiding principles to the use of GenAI and continue to adopt a risk-based approach commensurate with the risks involved. However, given that GenAI uses complex models, potential risks such as lack of explainability and hallucination could cause even more significant impact on customers. The HKMA has therefore set out additional principles under each of the four aspects to ensure that appropriate safeguards for consumer protection are in place when GenAI is adopted for customer-facing applications:

• Governance and accountability – The board and senior management of AIs should remain accountable for all GenAI-driven decisions and processes, and have thoroughly considered the potential impact of GenAI applications on customers through an appropriate committee.
• Fairness – AIs should ensure that GenAI models produce objective, consistent, ethical and fair outcomes to customers.
• Transparency and disclosure – AIs should provide an appropriate level of transparency to customers regarding their GenAI applications through proper, accurate and understandable disclosure.
• Data privacy and protection – AIs should implement effective protection measures to safeguard customer data.

The HKMA encourages AIs to explore the use of big data and AI (particularly GenAI) in enhancing consumer protection.  [19 Aug 2024]

6. HKMA and Cyberport launch GenA.I. Sandbox to promote responsible innovation

The HKMA has announced that it has launched the new Generative Artificial Intelligence Sandbox (GenA.I. Sandbox) in collaboration with the Hong Kong Cyberport Management Company Limited (Cyberport). The announcement was made at FiNETech2, the second edition of the FiNETech series.

The GenA.I. Sandbox aims to promote responsible innovation in GenAI and will empower banks to pilot their novel generative AI use cases within a risk-managed framework, supported by essential technical assistance and targeted supervisory feedback. Details of the GenA.I. Sandbox, including the eligibility criteria and the application process, will be announced in the coming weeks. Through interactive engagement with the industry, the HKMA will draw insights from the GenA.I. Sandbox and share good practices, while keeping its guidance relevant and fit-for-purpose in the light of the latest development.

Following the inaugural FiNETech event in April 2024 (see our previous update), the 'FiNETech2 – Into the A.I. verse' edition on 13 August 2024 brought together over 300 professionals from the banking, securities, insurance, and technology sectors, and showcased innovative AI technologies and explored potential applications in risk management, anti-fraud, customer services and process re-engineering.

Ms Carmen Chu, Executive Director (Banking Supervision) of the HKMA, delivered opening remarks at FiNETech2. She noted that as systems become more sophisticated and influential, it is important to ensure their ethical development and deployment. Financial institutions must maintain dynamic yet robust guardrails that keep pace with the rapid advancements in technology and address the evolving risks associated with these innovations.

In addition to this event, a number of other initiatives have been or will be launched in the coming months, including a practical training focusing on AI adoption, a use case sharing video, and a study report on practical aspects of generative AI.

The HKMA will also organise additional editions of FiNETech, focusing on the areas of greentech and distributed ledger technology, and continue to drive tangible progress in fintech adoption by banks and other financial institutions. [13 Aug 2024]

7. HKEX and SFC notify relevant parties of annual rehearsal on 7 September 2024 on contingency procedures for system outage

The Stock Exchange of Hong Kong (one and two), Hong Kong Futures Exchange Limited, OTC Clearing Hong Kong Limited, Hong Kong Securities Clearing Company Limited, HKFE Clearing Corporation Limited and The SEHK Options Clearing House Limited have issued circulars to exchange participants, clearing participants and members, CCASS participants, designated banks and related parties regarding the annual rehearsal for data centre failover and system recovery emergency situations scheduled to be conducted on 7 September 2024.

The objective of the rehearsal is to enable those participating to familiarise themselves with the contingency procedures and related operational matters upon a simulated service outage in the relevant data centres. Further details are provided and linked in the circulars. Those who wish to participate should complete the relevant registration form by 30 August 2024.

The SFC has also issued a circular to relevant regulated intermediaries regarding the HKEX rehearsal in relation to specified processes under the Hong Kong investor identification regime.  [13 Aug 2024]

8. SFC updates FAQs relating to Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules

The SFC has updated its FAQs relating to the Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules. 

Question 6A has been added. It discusses how intermediaries should comply with section 5(3)(c)(iii) of the rules to provide clients with the name of the market or exchange on which the relevant contract has been executed, if a client order on an overseas-listed stock has been executed in multiple trading venues not limited to a market or exchange.  [8 Aug 2024]

9. HKMA informs AIs of updates to list of participating jurisdictions and list of reportable jurisdictions for AEOI, expected to take effect on 1 January 2025

The HKMA has issued a circular to inform AIs of a legislative exercise which seeks to amend the list of participating jurisdictions and expand the list of reportable jurisdictions for the purpose of the automatic exchange of financial account information in tax matters (AEOI).

Hong Kong has since June 2016 implemented the Common Reporting Standard for AEOI promulgated by the Organisation for Economic Co-operation and Development (OECD). This is an important part of the international effort to enhance tax transparency and combat cross-border tax evasion. 

Details of the legislative amendments are set out in Annex A to the circular:

• In response to an OECD recommendation, the Government has carried out a legislative exercise to amend the list of participating jurisdictions under Schedule 17E to the Inland Revenue Ordinance (IRO). This involves the addition of 11 jurisdictions which have already activated or have committed to activating exchange relationship for AEOI with Hong Kong, and the removal of 9 jurisdictions which have not activated exchange relationships with Hong Kong.
• The legislative exercise also expands Hong Kong’s AEOI network by including 3 jurisdictions which have indicated a wish to activate exchange relationships for AEOI with Hong Kong in the list of reportable jurisdictions, with the first reporting year being 2026. Financial institutions are expected to commence data collection for tax residents of these additional 3 jurisdictions starting from 1 January 2025 and file the first submission to the Inland Revenue Department in 2026.

The legislative amendments will take effect on 1 January 2025.

The HKMA reminds AIs of the guidance and expectations in respect of the implementation of AEOI by AIs as set out in the HKMA’s circular of 11 October 2016 (see our previous update), which is superseded by the present circular.

AIs should carefully review the updated lists of participating jurisdictions and reportable jurisdictions to ensure ongoing compliance. They should commence any necessary planning and preparations sufficiently in advance of 1 January 2025, the expected commencement date of the legislative amendments.

AIs should also bear in mind the high-level guiding principles on customer communications for AEOI purposes (see Annex B of the present circular). Among other things, they should adopt a balanced approach in meeting statutory obligations under the AEOI regime while treating customers fairly, and to consider individual circumstances and customer experience when communicating with customers.  [07 Aug 2024]

10. PBOC and HKMA sign MOU on cross-boundary linkage of payment systems

Mr Lu Lei, Deputy Governor of the People's Bank of China (PBOC), and Mr Howard Lee, Deputy Chief Executive of the HKMA, have signed a memorandum of understanding (MOU) on behalf of their respective authorities on cross-boundary linkage of payment systems between the Mainland and Hong Kong, establishing a cooperation framework for the linkage. Mr Lu and Mr Lee also exchanged views on a range of topics of mutual interest, including financial cooperation between the Mainland and Hong Kong.  [02 Aug 2024]

11. HKEX issues circulars on optional practice session on 24 August 2024 for severe weather trading

Following the provision of information on severe weather trading on 15 July 2024 (see our previous update), further circulars have been issued by the Stock Exchange of Hong Kong Limited (one and two), the Hong Kong Futures Exchanges Limited, the SEHK Options Clearing House Limited, the HKFE Clearing Corporation Limited, and the Hong Kong Securities Clearing Company Limited to exchange participants, China Connect exchange participants and clearing participants. 

The circulars provide details of an optional practice session scheduled to be held on 24 August 2024, aimed at enabling participants to verify their system and operational flow set up under severe weather trading, set to be launched on 23 September 2024. The circulars also remind participants about the readiness declaration which is required to be submitted by 30 August 2024 (details of which were provided in the earlier circulars of 15 July 2024 – see our previous update). Participants that have been admitted to the assistance scheme referred to in the 15 July 2024 circulars will not be required to complete the declaration by 30 August 2024.  [02 Aug 2024]

12. HKEX announces inclusion of GS-VERs on Core Climate platform from 1 August 2024

The HKEX has announced the inclusion of Gold Standard's Verified Emission Reductions (GS-VERs) on its Core Climate platform from 1 August 2024. 

Gold Standard is among the world's most widely adopted carbon credit certification programmes and focuses on accelerating global progress towards combatting climate change and sustainable development. The GS-VERs are a form of carbon offset that can be traded on the voluntary market for carbon credits. Each GS-VER represents one tonne of CO2 emissions. 

The inclusion of GS-VERs will allow a more diverse range of internationally certified climate projects to be available on the Core Climate platform and reflects the HKEX's commitment to provide investors and corporates with more options to support climate projects as they transition to net zero. 

The Core Climate platform will support the trading, settlement, custody, and retirement of GS-VERs, providing a seamless and integrated experience for users. All entities onboarded to the platform are eligible to access GS-VERs through the platform. The trading fees for GS-VERs will be waived until further notice. Further details about the product can be found in a circular.

Launched in October 2022 (see our previous update), the HKEX's Core Climate is the only carbon marketplace that offers Hong Kong Dollar and Renminbi settlement for the trading of international voluntary carbon credits. The platform hosts over 80 participants and offers quality carbon credits from more than 50 internationally certified projects across Asia, South America, and West Africa, covering forestry, solar, wind, and biomass initiatives.  [01 Aug 2024] 

1. MAS: EMRG convenes inaugural meeting, identifies priority areas

The Monetary Authority of Singapore (MAS) has announced that its Equities Market Review Group (EMRG) held its inaugural meeting on 19 August 2024. Attendees discussed key challenges and opportunities facing Singapore’s equities market, and identified the following priority areas for the two workstreams:

• the Enterprise and Markets workstream will focus on ideas to encourage listings, increase investor participation, improve trading liquidity and facilitate fair valuation for listed equities; and
• the Regulatory workstream will study ideas to streamline the regulatory framework, improve the listing process, enhance the effectiveness of the disclosure-based regime, and strengthen corporate governance standards, investor access and recourse.

The EMRG also announced the members of the two workstreams, which comprise a cross-section of capital market practitioners, investor advocacy groups, industry associations, and academia.  [27 Aug 2024]

2. MAS consults on amendments to requirements for preparation of financial statements and reports under CCIS

MAS has published a consultation paper (CP) seeking views on the proposals to:

• require authorised schemes, including real estate investment trusts (REITs) to prepare their financial statements in accordance with the Singapore Financial Reporting Standards (International) (SFRS(I)) instead of the Statement of Recommended Accounting Practice 7: Reporting Framework for Investment Funds (RAP 7); and
• retain certain disclosures required by RAP 7 but are not required by SFRS(I) by prescribing these disclosures in the Code on Collective Investment Schemes (CCIS).

Feedback is requested by 14 September 2024.  [15 Aug 2024]

3. MAS: PQ on impact of global IT outage on Fis

MAS has published a written response to a Parliamentary Question (PQ) on measures to minimise risks of cross-border scams and fraud. MAS' response highlights that Financial institutions (FIs) participating in real-time payment linkages with other countries have implemented anti-scam controls, including a default transaction notification threshold of $100 or lower and a daily transaction limit of not more than $1,000. FIs will continue to actively monitor changes in scam typologies and will adjust their measures as appropriate.  [07 Aug 2024]

4. MAS establishes Review Group to recommend measures to strengthen equities market

MAS has announced that it has set up a Review Group to recommend measures to strengthen the development of the equities market in Singapore. The Review Group will be chaired by Mr Chee Hong Tat, Minister for Transport, Second Minister for Finance and Board Member of MAS, and comprise key private-sector stakeholders and public-sector representatives.

The Review Group will be supported by two workstreams: the Enterprise and Markets workstream will aim to address market challenges, foster listings, and facilitate market revitalisation; and the Regulatory workstream will focus on enhancing the regulatory regime to facilitate market growth and foster investor confidence.  [02 Aug 2024]

1. Bappebti Regulation No. 8 of 2024: Amendment to guidelines for the implementation of crypto asset physical/spot market in futures exchanges

The Indonesian Futures Commodity Trading Supervisory Agency (Bappebti) has issued the second amendment to Bappebti Regulation No. 8 of 2021 on Guidelines for the Implementation of Crypto Asset Physical/Spot Market in Futures Exchanges (Bappebti Regulation 8/2021, in Indonesian language) following the first amendment under Bappebti Regulation No. 13 of 2022. The newly issued Bappebti Regulation No. 8 of 2024 requires existing prospective crypto assets physical/spot traders which already obtain registration evidence as prospective crypto assets physical/spot traders to: (i) submit applications for approval as crypto assets physical/spot traders to Bappebti within 1 month since the futures exchange and futures clearing institution obtains approval from Bappebti; and (ii) fulfil the requirements and obtain approval as crypto assets physical/spot traders from Bappebti by no later than 16 October 2024.

Failure to comply with the requirement within the required timeline, will make the registration evidence of such prospective crypto assets physical/spot traders invalid. This amendment is effective from 15 August 2024.  [24 Aug 2024]

2. OJK Expands Reporting Institutions for the Financial Information Service System (SLIK)

OJK issued OJK Regulation No. 11 of 2024 on the Second Amendment to OJK Regulation No. 18/POJK.03/2017 on Debtor Reporting and Information Requests Through the Financial Information Service System (OJK Regulation 11/2024), which is effective as of 31 July 2024.

OJK Regulation 11/2024 regulates the Financial Information Service System (in Indonesian, Sistem Layanan Informasi Keuangan), commonly known by its acronym, SLIK. SLIK includes information on debtors (e.g. their identity, management and shareholding composition for corporates, facilities received, collateral, guarantors, quality of funding, risk coverage or guarantees) provided by relevant financial institutions. SLIK is utilised by relevant financial institutions to, among other things: (i) implement credit or financing risk management and/or insurance or guarantee risk management; (ii) identify the quality of debtors to comply with OJK regulations or other authorised parties; or (iii) assess potential cooperation between financial institutions and third parties.

Through OJK Regulation 11/2024, the financial institutions that are required to report to SLIK is now expanded to include the following: (i) insurance companies that market credit insurance and/or suretyship products (including their sharia units); (ii) sharia insurance companies that market sharia financing insurance and/or sharia suretyship products; (iii) guarantee companies (including their sharia units); (iv) sharia guarantee companies; and (v) information technology-based (peer-to-peer) lending services companies (including their sharia units). These financial institutions, that were not included in the scope of a 'reporting party' under the previous regime, are now required to comply with this reporting obligation by 31 July 2025.  [16 Aug 2024]

1. SECT strengthens collaboration with AMLO and SET

The Securities and Exchange Commission Thailand (SECT) has announced that it has strengthened its collaboration with the Anti-Money Laundering Office (AMLO) and The Stock Exchange of Thailand (SET), in order to fight against illegal securities trading activities under the Securities and Exchange Act (SEA) and the Anti-money Laundering Act (AMLA). This collaboration aims to dismantle economic criminal activities, particularly those related to securities trading, and to enhance the law enforcement capabilities of each agency as well as their joint operations. These efforts are expected to boost investor confidence in the Thai capital market.  [26 Aug 2024]

2. SECT amends Thailand ESG Fund regulations

SECT has issued amendments to the regulations related to Thailand ESG Fund aimed at expanding investment options and encouraging the allocation of funds to companies excelling in environmental conservation or sustainability, as well as companies exhibiting corporate governance excellence and having a corporate value-up plan. The amendments have immediate effect.  [16 Aug 2024]

1. RBI Governor discusses Fintech innovation

The RBI has published a speech by Governor Shri Shaktikanta Das, delivered at the Global Fintech Fest. The Governor identified a number of priories for the FinTech sector, including:

• digital financial inclusion;
• Digital Public Infrastructure (DPI);
• consumer protection and cybersecurity;
• sustainable finance; and
• global integration and cooperation, including future technologies and regulatory architecture.  [28 Aug 2024]

2. SEBI issues advisory regarding investment in some SMEs

The Securities and Exchange Board of India (SEBI) has issued an advisory regarding investment in securities in the small and medium enterprises (SME) platform of India's stock exchanges. This follows SEBI's observations that, post listing, some SME companies and/or their promoters have projected an unrealistic picture of their operations by making public announcements, typically followed up with various corporate actions such as bonus issues, stock splits, and preferential allotments.

SEBI has recently passed Orders against such entities, which are available on the SEBI website. SEBI urges investors to be watchful of the aforesaid patterns, exercise caution while investing in such securities, and not to invest based on unverified social media posts, tips or rumours.  [28 Aug 2024]

3. SEBI consults on mandatory offering of UPI block mechanism for secondary market trading

SEBI has published a consultation looking at whether secondary market trading using the unified payment interface (UPI) block mechanism should be mandatorily offered by Qualified Stock Brokers (QSBs). The consultation also seeks views on whether a '3-in-1 trading account facility' can be offered by QSBs as an alternative.

Feedback is requested by 12 September 2024.  [28 Aug 2024]

4. IFSCA: Securities Contracts (Regulation) Amendment Rules, 2024

The International Financial Services Centres Authority (IFSCA) has published the Securities Contracts (Regulation) Amendment Rules, 2024. The rules come into force on the date of their publication in the Official Gazette.  [28 Aug 2024]

5. RBI Governor discusses DPI and emerging tech

The RBI has published a speech by Governor Shri Shaktikanta Das, delivered at the 'Global conference on DPI and emerging technologies'. Topics covered included:

• India's experience with DPI, including the success of the UPI;
• artificial intelligence (AI) and DPI, including such challenges as data privacy and the need for ethical AI governance; and
• the potential for DPI to enhance the efficiency of cross-border payment.  [26 Aug 2024]

6. SEBI consults on faster Rights Issue with flexibility of allotment to selective investors

SEBI has published a consultation on various proposals for enabling faster Rights Issue with flexibility of allotment to selective investors. Responses to the consultation are requested by 10 September 2024.  [20 Aug 2024]

7. SEBI consults on expanding scope of sustainable finance framework in Indian securities market

SEBI has published a consultation on a proposal to introduce a framework for social bonds, sustainable bonds and sustainability-linked bonds to expand sustainable finance in the Indian securities market. Responses to the consultation are requested by 6 September 2024.  [16 Aug 2024]

8. SEBI consultations: Foreign investment, IA and RA regulatory framework, bonus issue trading

SEBI has published the following consultation papers (CPs):

• CP on investment by foreign investors through segregated portfolios/ P-notes/ODIs – this consultation contains proposals to address regulatory variances in the disclosure and other regulatory requirements for foreign investments made through Offshore Derivative Instruments (ODIs), segregated portfolios of Foreign Portfolio Investors (FPIs), and regular FPIs. Responses are requested by 27 August 2024.
• CP on review of regulatory framework for IAs and RAs – this consultation contains proposals for simplifying, easing and reducing the registration requirements and cost of compliance for investments advisors (IAs) and research analysts (RAs) registered with SEBI. Responses are requested by 26 August 2024.
• CP on streamlining the process and reduction in timelines of bonus issue (enabling T+2 trading of shares post record date where T being record date) – this consultation contains proposals to ensure uniformity in the timelines for credit and trading of bonus shares. Responses are requested by 26 August 2024.  [06 Aug 2024]

9. IFSCA consults on amendment of FM regulations

IFSCA has published a CP on the review of the IFSCA (Fund Management) Regulations, 2022 (FM regulations). The CP contains proposals to amend the FM regulations to further IFSCA's efforts to create a globally benchmarked regulatory framework and its development of the Gujarat International Finance Tec-City (GIFT)-IFSC. Responses are requested by 26 August 2024.  [05 Aug 2024]

1. BSP: Outcome of open finance hackathon

The Bangko Sentral ng Pilipinas (BSP) has announced that an app that can help Filipinos plan for a financially secure retirement has emerged as the top proof-of-concept (POC) at 'Race to the Future: The Open Finance PH Hackathon' conducted by the BSP in partnership with the International Finance Corporation (IFC).

To support open finance, hackathon participants developed solutions for three use cases: next generation financial management through account aggregation; reducing barriers to micro-, small- and medium-sized enterprises (MSMEs) lending; and digital payments innovation.  [23 Aug 2024]

2. BSP: Sustainability report 2023

The BSP has released its 2023 sustainability report, which lays out the rationale and progress of its climate response. The BSP’s sustainability agenda has three main thrusts: first, managing climate and environment-related risks to price and financial stability; second, mobilising green finance; and third, implementing sustainability in own operations.  [16 Aug 2024]