Relaxation in timelines for compliance with regulatory requirements
Summary
SEBI extends compliance timelines for Depository Participants, Registrars to an Issue, Share Transfer Agents, and KYC Registration Agencies due to the COVID-19 pandemic. The extension covers specific regulatory requirements previously addressed in earlier circulars, with a general exclusion period running until September 30, 2020. Depositories are directed to disseminate these provisions to their participants and publish them on their websites.
Text
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.
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 / KRAs, mentioned in the SEBI circulars, as under:
Processing of the demat request form by Issuer / RTA and by the Participants. Period of exclusion shall be from March 23, 2020 till September 30, 2020.
KYC application form and supporting documents of the clients to be uploaded on system of KRA within 10 working days. A 15-day time period after September 30, 2020 is allowed to Depository / DPs, to clear the back log.
Submission of half yearly Internal Audit Report (IAR) by DPs for half year ended March 31, 2020. September 30, 2020.
Redressal of investor grievances and Transmission of securities. Period of exclusion shall be from March 23, 2020 till September 30, 2020.
Closure of demat account. A 15-day time period after September 30, 2020 is allowed to Depository / DPs, to clear the back log.
Systems audit on annual basis. September 30, 2020 for the financial year ended on March 31, 2020.
All other conditions specified in the aforementioned circulars shall continue to remain applicable.
Depositories are directed to bring the provisions of this circular to the notice of their 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.