INSITE - INDIA - 02 Oct 2023
- Jodha Legal
- Oct 2, 2023
- 7 min read
INDIA INTERNATIONAL ARBITRATION CENTRE (CONDUCT OF ARBITRATION) REGULATIONS, 2023
Summary: On September 1, 2023, the India International Arbitration Centre (Conduct of Arbitration) Regulations, 2023 (Regulations) were published in the Gazette of India.
In Detail: When parties agree to use the Center for arbitration, whether before or after a dispute arises, or when a court orders arbitration under the Center's guidance, the parties shall be deemed to have agreed that the arbitration is to be conducted or administered by the Centre in accordance with the provisions of these regulations.
Key highlights of the regulations:
(1) Efficient and Time-Bound Process: These regulations establish a streamlined and time-sensitive arbitration process, including frequent hearings.
(2) Fast-Track Procedure: A special procedure is outlined, ensuring that awards are rendered within six months from the initiation of arbitration by the Arbitral Tribunal.
(3) Emergency Arbitrator: The regulations provide an expedited mechanism for appointing an Emergency Arbitrator to grant urgent interim relief during a dispute.
(4) Interim Measures: Parties can request temporary protective measures related to the dispute from the Arbitral Tribunal during the arbitration proceedings.
(5) Nomination of Arbitrators: Parties have the option to select an Arbitrator from the India International Arbitration Centre (IIAC's) panel of Arbitrators or choose another arbitrator in exceptional circumstances.
(6) Appointment by Chairperson: The Chairperson holds the authority to appoint arbitrators, including those from the IIAC's panel, based on advice from the Advisory Panel. Consideration is given to the Arbitrator's qualifications and their ability to efficiently handle the case.
(7) Jurisdiction: If a party disputes the existence or validity of the arbitration agreement, or questions the competence of the Center to administer the arbitration, the Arbitral Tribunal, once formed, will make the final determination.
The Regulations follow the spirit of changes made to the Arbitration and Conciliation Act in 2015 and 2019. These changes aimed to align India's arbitration procedures with international best practices. They also encouraged using organized institutions for domestic arbitrations rather than handling them informally.
SEBI NOTIFIES NEW FORMAT OF ABRIDGED PROSPECTUS FOR PUBLIC ISSUE OF NON-CONVERTIBLE DEBT SECURITIES AND/OR NON-CONVERTIBLE REDEEMABLE PREFERENCE SHARES.
Summary: On September 4, 2023, the Securities and Exchange Board of India (SEBI) introduced a new, more user-friendly format of simplified prospectus for public issues of Non-Convertible Debt Securities and/or Non-convertible Redeemable Preference Shares. This format places essential information on the front page of the offer document and includes a QR code for easy access to the full prospectus.
In Detail: Starting from October 1, 2023, the new format for the Abridged Prospectus, as outlined in Annex-I of the Circular, will apply to all public issuances. The goal is to make information more straightforward and consistent across different documents.
Key Highlights:
(1) Object: To make sure the information in the Abridged Prospectus is complete, accurate, and doesn't mislead.
(2) Duties of Issuer/ Merchant Bankers: It's crucial to make sure that the Abridged Prospectus provides clear, truthful, and accurate information without any misleading details. Also, any statements about qualities or characteristics should be backed up with specific, measurable facts to make the information trustworthy. If a statement can't be supported by such facts, it shouldn't be included. This ensures that the document follows the rules for disclosing information transparently and in accordance with the law.
The issuer and Merchant Bankers must put a QR code on the last page of the Abridged Prospectus. Additionally, they can also put a QR code on the front page of other documents like the cover page or advertisements if they think it's necessary.
NATIONAL APPRENTICESHIP PROMOTION SCHEME 2.0 (NAPS)
Summary: By the way of notification dated August 25, 2023, the Indian government's Ministry of Skill Development and Entrepreneurship introduced new guidelines for the National Apprenticeship Promotion Scheme-2 (NAPS-2). This new scheme replaces the earlier version, National Apprenticeship Promotion Scheme-1 (NAPS-1).
In detail: The Apprentices Act of 1961 (applicable to all sectors) requires establishments with 30 or more workers, including contract labour, to engage apprentices. The Act specifies that the number of apprentices should fall within the range of 2.5% to 15% of the total workforce, with a minimum of 5% reserved for two categories: fresher apprentices (those without prior institutional or skill training) and skill certificate holder apprentices (individuals holding a skill certificate for training of less than a year, issued by a body recognized under the National Skills Qualifications Framework).
Objective of the scheme: NAPS-2 aims to boost apprenticeship training in India by offering stipend support to apprentices under the Apprentice Act of 1961. It also works on strengthening the apprenticeship system and helping stakeholders. This scheme continues the government's efforts to make apprenticeship processes simpler and build on the momentum of the previous scheme, NAPS.
Key Highlights of the scheme:
(1) To develop skilled workforce by promoting hands-on experiential training.
(2) To incentivize establishments to take on apprentices by offering partial stipend support.
(3) To provide opportunities for individuals who have completed short-term skill training programs initiated by various Central and State Government initiatives to enhance their skills further.
(4) To promote apprenticeship enrollment, especially in small establishments, including Micro, Small, and Medium Enterprises (MSMEs), and those situated in underserved areas such as aspirational districts and the North-East Region.
Comparison of NAPS-1 and NAPS-2
NAPS-1 introduced a stipend cost-sharing model where the government covered 25% of the stipend defined by law for a specific type of apprentice, up to a maximum of INR 1,500 per month per apprentice. This scheme also facilitated a technology-driven apprenticeship program. Establishments would register on a dedicated portal (www.apprenticeshipindia.org), declare apprenticeship openings, and issue offer letters to selected apprentices. Additionally, NAPS-1 allowed the government to share the basic training cost for apprentices who had no formal trade training. The government would pay up to INR 7,500 per apprentice, limited to 500 hours or 3 months of training, to entities registered as Basic Training Providers (BTPs) under the scheme.
NAPS-2 maintains the stipend cost-sharing model from NAPS-1, but with a key difference. Previously, establishments had to pay the full stipend amount, including the government's share, to the apprentice and then seek reimbursement. NAPS-2 simplifies this by requiring establishments to pay only 75% of the stipend directly to the apprentice through the apprenticeship portal. After this payment, the government will initiate a direct benefit transfer for the remaining 25% to the apprentice within 72 hours. It's important to note that partial stipend support is available only for apprentices under 35 years old when they register on the portal.
NAPS-2 also encourages "large private establishments" to forgo the stipend support and cover the entire cost themselves. Moreover, NAPS-2 eliminates the mechanism for sharing basic training costs with BTPs.
Regarding the issuance of contracts to apprentices, a legal requirement, NAPS-2 mandates that establishments providing training under the scheme can issue contracts only to individuals who have updated their Aadhaar number and completed e-KYC on the apprenticeship portal.
In terms of apprenticeship advisers, their role under NAPS-1 included reviewing and approving apprenticeship contracts, monitoring training implementation, and reviewing employer claims. NAPS-2 expands their responsibilities to include physical verification of at least 10% of the establishments in their jurisdiction each quarter to ensure proper apprenticeship training at the grassroots level. Additionally, these advisers have the authority to oversee the stipend payment process for establishments under their purview.
RBI ALLOWS PRE-SANCTIONED CREDIT LINES THROUGH UPI
Summary: The Reserve Bank of India (RBI) has released a circular announcing that the Unified Payments Interface (UPI) System will now cover pre-approved credit lines issued by banks for transactions. Earlier only the deposited amount could be transacted through UPI.
In Detail: On April 6, 2023 the RBI proposed to broaden the reach of the UPI by allowing the transfer of funds to and from pre-approved credit lines offered by banks. At present, UPI is compatible with savings accounts, overdraft accounts, prepaid wallets, and credit cards.
The RBI, in a circular titled 'Operation of Pre-Sanctioned Credit Lines at Banks through UPI,' announced the expansion of UPI's capabilities by incorporating credit lines as a source of funds.
The RBI also explained, "Under this arrangement, individuals can now conduct transactions using the UPI System through a pre-approved credit line issued by a Scheduled Commercial Bank, subject to the individual customer's prior consent."
The RBI's decision to incorporate credit lines into UPI transactions is directed at reducing the cost of financial services and fostering the development of distinct financial products within the Indian market. This action is a component of the ongoing endeavor to enhance the functionalities of the UPI system. These inclusions of credit lines will not only benefit the banks but also consumers and business.
THE INDIAN GOVERNMENT IS SET TO RELEASE THE RULES OF THE DIGITAL PERSONAL DATA PROTECTION (DPDP) ACT
Summary: The Indian government will set up the Data Protection Board (DPB) under the Digital Personal Data Protection Act, within the next 30 days additionally the government is also preparing to release the rules for the Digital Personal Data Protection (DPDP) Act, which was passed in August 2023.
In Detail: The rules for the Digital Personal Data Protection Act, 2023 will come out in the coming month according to The Minister of State for Electronics and Information Technology. Different portions of the Act will come into effect after the IT Ministry passes the notifications to give them force and prescribe further rules.
The period from August 11, 2023 when the Act was notified, until the DPB is established should not be seen as a safe period for the companies. If a data breach occurs during this time, the DPB will address it once it becomes operational.
There will likely be three categories of data fiduciaries with different timelines for complying with the Act's provisions. The first category, which includes government entities, panchayats, or MSMEs lacking digital readiness, will likely to have the longest transition time. Smaller private entities and startups will come next. However, major tech companies like Google, Meta, Apple, and others already complying with global data protection laws like GDPR should also comply promptly unless they can provide justified reason for needing additional time. Companies aligned with GDPR should not take long, but if extra time is necessary for requirements beyond GDPR, they should specify the same. Non-digital companies will have a longer transition period. If architectural enhancements are needed, such as the right to erasure or verifiable parental consent for processing children's data, more time will be considered, the minister explained.
Comments