SEBI

SEBI again gives relaxation in timelines for compliance with regulatory requirements

SEBI again gives relaxation in timelines for compliance with regulatory requirements by trading/ clearing members, depositories participants

CIRCULAR

SEBI/HO/MIRSD/DOP/CIR/P/2020/235

December 01, 2020

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/Clearing Corporations (including those in International Financial Services Centres)
4. Depository Participants through Depositories
5. KYC Registration Agency

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 Stock Exchanges, SEBI had earlier provided relaxations in timelines for compliance with various regulatory requirements by the trading members / clearing members/ depository participants, vide circular nos. SEBI/HO/MIRSD/DOP/CIR/P/2020/61 dated April 16, 2020, SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020, SEBI/HO/MIRSD/DOP/CIR/P/2020/68 dated April 21, 2020 and SEBI/HO/MIRSD/DOP/CIR/P/2020/72 dated April 24, 2020.

2. Later, vide circular nos. SEBI/HO/MIRSD/DOP/CIR/P/2020/82 dated May 15, 2020, SEBI/HO/MIRSD/DOP/CIR/P/2020/101 dated June 19, 2020, SEBI/HO/MIRSD/DOP/CIR/P/2020/112 dated June 30, 2020, SEBI/HO/MIRSD/DOP/CIR/P/2020/141 dated July 29, 2020, SEBI/HO/MIRSD/DOP/CIR/P/2020/142 dated July 29, 2020and SEBI/HO/MIRSD/DOP/CIR/P/2020/191 dated October 01, 2020, timelines / period of exclusion were further extended for certain compliance requirements.3.In view of the prevailing situation due to Covid-19 pandemic and representation received from the Stock Exchanges, it has been decided to extend the timelines for compliance with the following regulatory requirements by the trading members / clearing members, as under:

S. No.
Compliance requirements for which timelines are extended
Extended
timeline
I Internal Audit for half year ended on September 30, 2020 31.12.2020
II System Audit for half year ended on September 30, 2020 31.12.2020
III
Half yearly net worth certificate as on September 30, 2020.
31.12.2020
IV
Cyber Security and Cyber Resilience Audit for half year ended on September 30, 2020
31.01.2021

4. In view of the request received from the Depositories, it has been decided to extend the timelines for compliance with the following regulatory requirements by depository participants (DPs), as under:

S. No.
Compliance requirements for which timelines are extended
Extended timeline /
Period of exclusion
I
Submission of half yearly Internal Audit Report by DPs for the half year ended on September 30, 2020
December 31, 2020
II
KYC application form and supporting documents of the clients to be uploaded on system of KRA within 10 working days
Period of exclusion
shall be from March 23, 2020 till December
31, 2020.
 
A 15-day time period after December 31, 2020 is allowed to Depository / DPs, to clear the back log
III
Systems audit on annual basis for the financial year ended March 31, 2020
December 31, 2020
 
5. Stock Exchanges/Clearing Corporations and Depositories are directed to abcaus.in bring the provisions of this circular to the notice of their members and participants respectively 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, to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
 
Yours faithfully
Rachna Anand
General Manager
Market Intermediaries Regulation and Supervision Department
 
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