Digital Personal Data Protection Act – Implications for financial entities and fin-tech sector
By Prashant Phillips and Sameer Avasarala
The article in this issue of Corporate Amicus discusses elaborately the implications of the new Digital Personal Data Protection Act, 2023 for the financial entities and the fin-tech sector. It, in this regard, discusses topics like, meeting consent and notice requirements; interplay with sectoral regulations; legitimate purposes for processing; and how Data Fiduciaries in the financial sector need to review internal protocols and mechanisms concerning disclosure and/or sharing of personal data. Similarly, the article also deliberates on liabilities if an entity is covered as ‘significant data fiduciary’, and how entities can avail certain exemptions from compliance under this new law. According to the authors, entities in the financial and fin-tech sectors may well consider undertaking appropriate readiness assessments for assessing and ensuring that their frameworks for processing personal data including notice and consent architecture, technical, organizational and security measures remain ‘future-ready’ and responsive to implementation timelines and rule-making guidance anticipated soon.
Notifications and Circulars
- Companies (Incorporation) Second Amendment Rules, 2023 notified
- SEBI – Procedure for seeking prior approval for change in control notified
- SEBI – Timeline for listing of securities after closure of public issue reduced from T+6 days to T+3 days
- SEBI – Online Disputes resolution in the Indian Security Market
- SEBI (Foreign Portfolio Investors) (Second Amendment) Regulations, 2023 notified
- Guidelines issued for extension of validity of industrial license
- Employees’ State Insurance (Central) Amendment Rules, 2023 notified
- Pan Masala – Enforcement date of ‘Note’ for warning extended by FSSAI
Ratio decidendi
- Stockbroker Company, being a Financial Service Provider, is outside the purview of ‘Corporate Person’ under Insolvency & Bankruptcy Code, 2016 – NCLT, New Delhi
- Unsecured Financial Creditors can be classified as assenting or dissenting unsecured financial creditors – Differential payment structure is not discriminatory – NCLAT, New Delhi
- Arbitration award in a case involving insufficiently stamped agreement cannot be set aside under Section 34 of Arbitration and Conciliation Act, 1996 – Delhi High Court
News Nuggets
- Arbitration – Pre-reference interest amount cannot be added to principal amount in determining pendente lite interest
- Arbitration – Section 29A providing time limit for passing award, is a non-derogable provision – Section 4 thus has no application
- Arbitral award to be set aside in a case where the arbitrator had appeared as a counsel for an ‘affiliate company’ of the claimant
- Arbitration – Family members when bound by arbitration agreement
- Insolvency – Section 9 petition is not maintainable against claim for compensation penalty under a contract
- Insolvency – Greater Noida Industrial Development Authority is a ‘secured creditor’ under Section 3(30) of IBC
- Insolvency – Writ of prohibition cannot be issued to a creditor to proceed against a personal guarantor under IBC
- Insolvency – Leased aircraft is ‘property’ under Section 3(27) of IBC
