EXTENSION OF THE FSSAI ANNUAL RETURN AND RENEWAL
Due to an increase in cases related to the Covid-19 Pandemic, the Regulatory Compliance Division of the Food Safety and Standards Authority of India (FSSAI) has decided to assist FBOs and ensure ease of doing business by extending the following relaxations provided previously via FSSAI circular.
The deadline for submitting online Annual Returns has been extended.
The deadline for submitting online annual yearly returns (D-1) for the fiscal year 2020-21, which were due on or before May 31, 2021, has been extended until August 31, 2021 (it was earlier extended until June 30, 2021).
Renewal of a licence without a late fee:
It has been determined to waive the late charge if the renewal of the licence is not submitted at least 30 days prior to the expiration date. The late fee varies between Rs. 100 to Rs. 3000. No late cost for licence renewals will be charged until August 31, 2021 (formerly extended until June 30, 2021), i.e. no late fee for licence renewal applications will be charged if filed on or before August 31, 2021.
So because the process for renewing a licence or registration is entirely online, and renewals can be filed up to 180 days before the licence or registration expires, food businesses are advised to file the renewal application well ahead of time to avoid their licences and registrations expiring and causing them unnecessary hassle. The late fee will be imposed on renewals submitted after August 31, 2021, in accordance with the FSS (Licensing and Registration of Food Businesses) Regulations 2011.
ALIGNMENT OF AMC KEY EMPLOYEES’ AND MF SCHEME UNITHOLDERS’ INTERESTS
SEBI issued a circular on November 6, 2020, outlining the rules for holding liquid assets in open ended debt schemes as well as stress testing open ended debt schemes. A committee was formed to discuss the rules for holding liquid assets in open-ended debt schemes.
Within one month of the date of issuance of this circular, AMFI is encouraged to prescribe a suitable framework for liquidity risk management for open ended debt schemes (excluding Overnight Fund, Gilt Fund, and Gilt Fund with 10-year constant duration) in cooperation with SEBI. All AMCs must implement the aforementioned structure.
The standard to be used for all regulatory limit computations other than Asset Allocation Limits (e.g., Macaulay Duration, Risk-o-meter, investment limits applicable to issuer, sector, and group) is 100% of Net Assets.
The base for asset allocation limits (applicable for Banking and PSU Bond Funds, Floater Funds, Credit Risk Funds, and Corporate Bond Funds scheme categories in terms of SEBI circular on ‘Categorization and Rationalization of Mutual Fund Schemes’) is net assets minus the extent of minimum stipulated liquid assets, which is 10%.
For all existing open ended debt schemes, the structure provided by AMFI will take effect on December 1, 2021. Mutual funds, on the other hand, may choose to implement the AMFI framework before the effective date at their discretion.