Financial changes in November: SEBI’s insider trading norms, RBI’s new NBFC-P2P rules and ICICI Bank’s credit card revisions

To avoid temporary suspension of pension payments, it's crucial for pensioners to submit their Jeevan Pramaan life certificate by November end.

Big changes are coming to India's financial landscape starting from November 1. Market regulator Securities and Exchange Board of India’s (SEBI) insider trading prevention norms will come into force, followed by the Reserve Bank of India’s (RBI) tighter NBFC-P2P (peer-to-peer) lending regulations for escrow accounts. Then to avoid pension payment suspension, pensioners must submit their life certificate by November end.

Further, ICICI Bank has revised the terms and benefits on credit cards while some banks are increasing interest rates on credit cards. So, it's essential for the cardholders to review the revised terms and regulations to minimise additional charges.

SEBI's move to prevent insider trading in mutual funds

Starting November 1, 2024, mutual funds will fall under SEBI's Prohibition of Insider Trading Regulations (PIT regulations). This means senior fund house employees cannot sell their mutual fund holdings if they possess confidential information about potential issues within the firm or its schemes. This move addresses concerns surrounding instances where fund managers' poor decisions led to sharp declines in net asset values (NAV), leaving investors vulnerable while some senior officials, who anticipated problems, sold their units in advance.

SEBI has broadened the scope of insider trading norms to include mutual fund officials, board members, sponsors, trustees, auditors, legal advisors, bankers and consultants. These individuals are considered "connected persons" with access to unpublished price-sensitive information that could significantly impact a scheme's NAV or unitholders' interests. The new regulations aim to prevent insider trading and protect investor interests.

Also read | Festive home loan bonanza: These public and private banks are offering the lowest interest rates

NBFC-P2P lenders face tighter regulations on escrow accounts

Earlier, NBFC-P2P lending platforms were required to maintain two escrow accounts – one for funds from lenders pending disbursals and another for collections from borrowers, with no specific timeline for fund transfers.

The amended regulations by the Reserve Bank of India (RBI) effective from November allow the two-escrow-account structure but with stricter guidelines, mandating that funds in these accounts be transferred within one day (T+1) of transaction (where 'T' is the date of receipt).

Funds in the lenders’ escrow account can only be disbursed to borrowers, and funds in the borrowers’ escrow account can only be used for repayments to lenders, ensuring stricter segregation and timely processing of transactions.

Jeevan Pramaan life certificate submission deadline

To avoid temporary suspension of pension payments, it's crucial for pensioners to submit their Jeevan Pramaan life certificate by November end. You can easily submit it online through the Jeevan Pramaan portal, your pension disbursing bank's mobile or internet banking, or opt for doorstep banking services or doorstep digital life certificate service via India Post Payments Bank.

Missing the November deadline will lead to an immediate suspension of your pension payments. The Jeevan Pramaan life certificate serves as a vital proof of life and eligibility for continued pension payments.

Also read | 5 ways to submit a life certificate from home conveniently

ICICI Bank revises credit card terms

ICICI Bank has revised its credit card terms, effective November 15. Key changes include an increase in the spending limit to Rs 75,000 per quarter from Rs 35,000 for airport lounge access, capping rewards on utility, insurance and grocery transactions. The bank is revising its fuel surcharge waiver policy for credit cardholders. The bank will waive fuel surcharges on transactions up to Rs 50,000 per month for its entire credit card portfolio. For the exclusive Emeralde Mastercard Metal Credit Card, the waiver limit increases to spending of up to Rs 1 lakh per month.

Moreover, the spending threshold for annual fee reversal and milestone benefits will exclude rent, government, and education payments made via credit cards. This change applies to all credit cards of the bank. It has also discontinued the spa facility at airports, besides introducing Rs 199 annual fee for supplementary cardholders. The bank will charge one percent for educational and utility transactions via third-party payment apps.

Credit card interest rate hikes on the cards

From November 1, HSBC Platinum Credit Card holders will incur a higher monthly interest rate of 3.75 percent, up from 3.49 percent, while other benefits remain unchanged.

SBI Card has also revised finance charges on unsecured credit cards to 3.75 percent monthly, up from 3.50 percent, excluding Shaurya and Defense SBI Card.