Relaxation in timelines for compliance with regulatory requirements
Summary
SEBI extends compliance timelines for trading members, clearing members, and depository participants until July 31, 2020, due to the COVID-19 pandemic. The extension applies to specific regulatory requirements previously outlined in circulars dated April 16, April 21, and May 15, 2020. Stock Exchanges, Clearing Corporations, and Depositories are directed to disseminate these provisions to their members.
Text
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, and SEBI/HO/MIRSD/DOP/CIR/P/2020/68 dated April 21, 2020. Later, vide circular no. SEBI/HO/MIRSD/DOP/CIR/P/2020/82 dated May 15, 2020, timelines / period of exclusion was further extended for certain compliance requirements.
In view of the prevailing situation due to Covid-19 pandemic and representations received from the Stock Exchanges, it has been decided to further extend the timelines for compliance with the regulatory requirements by the Trading Members / Clearing Members / Depository Participants, mentioned in the SEBI circulars, as under: Client Funding Reporting (I) Till July 31, 2020; Reporting for AI/ML applications (II) Till July 31, 2020; Compliance certificate for Margin Trading (III) Till July 31, 2020; Risk based supervision (IV) Till July 31, 2020; Internal Audit Report (V) Till July 31, 2020; Net worth certificate in Margin Trading (VIII) Till July 31, 2020; Net worth certificate for all members (IX) Till July 31, 2020; Penalty for non-collection of upfront margins (X) Till July 31, 2020; Maintaining call recordings (XI) Till July 31, 2020. KYC application form upload (III under Cir 62) Period of exclusion March 23, 2020 till July 31, 2020. Submission towards weekly monitoring of client funds (I under Cir 68) Till July 31, 2020. Submission of data on monthly basis (II under Cir 68) Till July 31, 2020. Daily margin trading reporting (III under Cir 68) Till July 31, 2020. Update in Income Tax PAN of Key Management Personnel (IV under Cir 68) Three months from the due date. Issue of Annual Global Statement to clients (V under Cir 68) Till July 31, 2020.
All other conditions specified in the aforementioned circulars shall continue to remain applicable.
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.
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.
Source: SecMarx — Relaxation in timelines for compliance with regulatory requirements. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.