Retail Digital Rupee (CBDC or e-Rupee ) launched today

 

RBI had announced that Retail Digitally Rupee will be launched from 01^st December 2022 on pilot basis. The bank has finally launched the currency known as e-₹R (e Rupee) today. The Central Bank Digital Currency (CBDC) is expected to outscore the present methods of retail transactions. The highlights of the electronic currency and details of pilot phase are as follows-

        1.  It is an electronic version of currency which we normally use for cash transactions.

  2. It is exchanged for transactions instead of currency and it will have same denominations in paper/coin currency.

   3. The e₹-R would be in the form of a digital token that represents legal tender.

  4. The e₹-R would offer features of physical cash like trust, safety and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks. 

During the test phase, the customers of selected banks/cities can use the digital currency. The first phase of launching this e-rupee will begin with four banks, viz., State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four cities across the country. The pilot launch would initially cover four cities, viz., Mumbai, New Delhi, Bengaluru and Bhubaneswar and later extend to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna and Shimla. Four more banks, viz., Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank will join this pilot subsequently. 

The introduction of e-R is expected to boost the digital transactions and to speed up the journey to becoming a digital economy. General public would convert the physical cash in their hand into the digital form in future for ease of transactions. Just like how digital wallets/payment services in android devices conquered the hearts of people during the past 6-7 years, we could hope that e-Rupee would turnout to be a common mode of retail transactions in near future.

SEBI’s move to ensure secure online bond platforms

SEBI has recently made it mandatory for all “online bond platform providers” to register themselves with SEBI as Stock Brokers. 

Online Bond platform provider (OBPP)

“Online bond platform provider” means any person operating or providing an online bond platform and “online bond platform” means any  electronic  system,  other  than  a  recognised  stock  exchange  or  an  electronic  book  provider platform, on which the debt securities which are listed or proposed to be listed, are offered and  transacted

Eligibility

As per new regulation, any person who wish to act as Online Bond platform provider shall obtain a certificate of registration from SEBI as a stock broker under the Securities and Exchange Board of India (Stock Brokers) Regulations, 1992.

Existing online providers shall obtain certificate within 3 months or within such period as may be prescribed by SEBI or if it has made an application for grant of a certificate of registration within the specified period, till the disposal of such application by SEBI.

The new norms was introduced w.e.f 9th November 2022 by amending Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021.

This would help the enhance the confidence of non-institutional investors to rely on registered online platforms. The investors could also stay away from unregistered online bond providers. The experts are hopeful that more controls and checks would be introduced in this line of securities trade to provide a low-risk, secure environment for investors willing to enter bond market.

Alternate thresholds for appointment/removal of Independent Directors in Listed Companies

New thresholds introduced in SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 for appointment of Independent Directors in listed companies.

The amended regulation has set out an easy mechanism wherein public shareholders are entrusted with powers to appoint/ remove independent directors in case the shareholders fail to vote in favour of respective resolution.

As per Regulation 25(2A) of SEBI (LODR) Regulations 2015, the appointment, re-appointment or removal of an independent director of a listed entity, was subject to the approval of shareholders by way of a special resolution. As per the new proviso to sub-regulation 2A introduced by SEBI, where a resolution proposed for appointment/removal of Independent Director fails to get requisite majority (Special Resolution), then the resolution shall be tested for complying with following two conditions-

• Simple majority (Ordinary Resolution)

• Votes cast by the public shareholders in favour of the resolution exceed the votes cast against the resolution

If the aforesaid conditions are complied with, then the resolution proposing appointment shall be considered as passed.

Same condition shall also apply for removal of Independent Director appointed under the aforesaid alternate thresholds.

No doubt, the new thresholds would act as a protective shield for independent directors in listed companies wherein majority of the affairs of the Company are controlled by promoters.