Relaxation in timelines for compliance with regulatory requirements by Depository and depository participants
Summary
SEBI issued a circular on April 24, 2020, granting relaxation in compliance timelines for Depositories and Depository Participants due to the COVID-19 pandemic. The extension applies to various regulatory requirements including grievance reporting, audits, securities transmission, and system audits, with specific new due dates provided. Additionally, a fifteen-day grace period was allowed after May 17, 2020, to clear backlogs for certain specified compliance areas.
Text
In view of the situation arising due to COVID-19 pandemic, extended lockdown period and based on representation received from the Depositories regarding relaxation in timelines for compliance with regulatory requirements by Depositories and depository participants, it has been decided to provide relaxation in timelines as under:
Submission of BO Grievances Report to Depositories is extended to May 18, 2020 for the month of March 2020 and following month i.e. 10th April for the month of April 2020.
Submission of half yearly Internal Audit Report (IAR) by DPs for half year ended 31st March 2020 is extended to June 30, 2020.
Redressal of investor grievances through SCORES within 15 days and other complaints within 30 days; period of exclusion shall be from March 23, 2020 till May 17, 2020.
Transmission of securities within 7 days after receipt of all requisite documents; period of exclusion shall be from March 23, 2020 till May 17, 2020.
Closure of demat account within a period of 30 days; period of exclusion shall be from March 23, 2020 till May 17, 2020.
Systems audit on annual basis is extended to July 31, 2020 for the financial year ended March 31, 2020.
Reporting for Artificial Intelligence (AI) and Machine Learning (ML) applications within 15 calendar days of quarter expiry is extended to May 31, 2020 for quarter ended March 2020.
Risk Based Supervision reporting for half year ended March 31, 2020 is extended to June 30, 2020.
For compliance requirements at S. Nos. III, IV and V above, a 15-day time period after May 17, 2020 is allowed to Depository / depository participants, to clear the back log.
Depositories are directed to bring the provisions of this circular to the notice of their participants and also disseminate the same on their website.
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.
Source: SecMarx — Relaxation in timelines for compliance with regulatory requirements by Depository and depository participants. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.