SEBI

SEBI further extends time for submission of Undertaking by TM/CM for bank accounts

SEBI further extends time for submission of Undertaking / Indemnity bond by Trading/Clearing Members for bank accounts till October 31, 2020

SECURITIES & EXCHANGE BOARD OF INDIA

CIRCULARSEBI/HO/MIRSD/DOP/CIR/P/2020/193

October 01, 2020

To,
1. All Recognised Stock Exchanges
2.All Recognised Clearing Corporations
3.All Depositories

Madam / Sir,

Subject: Standard Operating Procedure in the cases of Trading Member/ Clearing Member leading to default-Extension of timeline for submission of the Undertaking cum Indemnity bond by the Trading members (TMs) / Clearing Members(CMs)for all the bank accounts

1. In terms of clause 9 of SEBI circular SEBI/HO/MIRSD/DPIEA/CIR/P/2020/115 dated July 01, 2020 on the captioned subject, TMs / CMs are required to provide a list of all their bank accounts to the Stock Exchanges (SEs)/ Clearing Corporations (CCs) and the SEs / CCs shall obtain an Undertaking cum Indemnity bond from the TM within 90 days from the date of the said SEBI circular.

2. 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 timeline for submission of the Undertaking cum Indemnity bond by the TM / CM for all the bank accounts by a period of one month i.e. till October 31, 2020.

3. It has also been decided to provide flexibility to the SEs/ CCs for modifying the Undertaking cum Indemnity bond they need to take from TMs/ CMs and suitably modify the draft undertaking wherever required.

4. Stock Exchanges and Clearing Corporations are directed to bring the provisions of this circular to the notice of their members and also disseminate the same on their websites.

5. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, 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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