Further Relaxation in Timelines of Compliances by SEBI
CIRCULAR
To,
1. All Recognised Stock Exchanges and Clearing Corporations (including those in International Financial Services Centres)
2. All Depositories
3. Trading members / Clearing Members through Stock Exchanges and Clearing Corporations (including those in International Financial Services Centres)
4. Depository Participants through Depositories
5. Registrars to an Issue & Share Transfer Agents (RTA)
Madam / Sir,
Subject: Relaxation in timelines for compliance with regulatory requirements
1. In view of the situation arising due to COVID-19 pandemic, lockdown imposed by the Government and representations received from the Depositories, SEBI had earlier provided relaxations in timelines for compliance with various regulatory requirements by the depository participants (DPs) / Registrars to an Issue & Share Transfer Agents (RTAs), vide circular nos. SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020, and SEBI/HO/MIRSD/DOP/CIR/P/2020/72 dated April 24, 2020.
2. In view of the prevailing situation due to COVID-19 pandemic and representation received from the Depositories, it has been decided to further extend the timelines for compliance with the regulatory requirements by DPs / RTAs, mentioned in the SEBI circulars, as under:
|
Compliance requirements for which timelines were extended vide SEBI circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020. |
S. No. in circular for which timeline is extended further |
Extended timeline /Â Period of exclusion |
|
Processing of the Demat request form by Issuer / RTA. |
I |
Period of exclusion shall be from March 23, 2020, till July 31, 2020.
A 15-day time period after July 31, 2020, is allowed to Depository / DPs, to clear the backlog. |
|
Processing of the Demat request form by the Participants. |
II |
|
Compliance requirements for which timelines were extended vide SEBI circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/72 dated April 24, 2020. |
S. No. in circular for which timeline is extended further |
Extended timeline /Â Period of exclusion |
|
Submission of half-yearly Internal Audit Report (IAR) by DPs for the half-year ended on 31st March 2020. |
II |
July 31, 2020, for the half year ended on March 31, 2020. |
|
Redressal of investor grievances. |
III |
Period of exclusion shall be from March 23, 2020, till July 31, 2020.
A 15-day time period after July 31, 2020, is allowed to Depository / DPs, to clear the backlog. |
|
Transmission of securities. |
IV |
|
|
Closure of Demat account. |
V |
3. Vide circular no. SEBI/HO/MIRSD/DOP/CIR/P/2020/101 dated June 19, 2020, SEBI, inter-alia, extended the timeline for Reporting of Artificial Intelligence and Machine Learning by Trading Members (TM) / Clearing Members (CM) till July 31, 2020, for the quarter ended on March 31, 2020. In view of the representation received from the Stock Exchanges, the timeline for Reporting of Artificial Intelligence and Machine Learning by Trading Members (TM) / Clearing Members (CM) is extended till July 31, 2020, for the quarter ending on June 30, 2020.
4. All other conditions specified in the aforementioned circulars shall continue to remain applicable.
5. Stock Exchanges, Clearing Corporations and Depositories are directed to bring the provisions of this circular to the notice of their members/participants and also disseminate the same on their websites.
6. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
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