Relaxation in timelines for compliance with regulatory requirements
Summary
SEBI extends compliance timelines for trading members, clearing members, and KYC Registration Agencies due to the COVID-19 pandemic. The extension covers specific regulatory requirements such as KYC uploads, audit reports, and operating from alternate locations until September or December 2021. Stock Exchanges and Clearing Corporations are directed to disseminate these provisions to their members.
Text
In view of the prevailing situation due to Covid-19 pandemic and representation received from Stock Exchanges, it has been decided to extend the timelines for compliance with the following regulatory requirements by the Trading Members / Clearing Members / KYC Registration Agencies, as under:
KYC application form and supporting documents of the clients to be uploaded on system of KRA within 15 working days. A 30-day time period is provided to SEBI Registered Intermediary after September 30, 2021 to clear the backlog
Submission of Internal Audit Report for Half year ended (HYE) March-2021
System Audit /Cyber Audit Report – Algo / Type III Members for the period ended March 31, 2021
Submission of System Audit Report for the period ended March 2021
Submission of Cyber Security & Cyber Resilience Audit Report for the period ended March 2021
Reporting of Risk Based Supervision
Maintaining call recordings of orders / instructions received from clients
To operate the trading terminals from designated alternate locations
The relaxation in compliance requirement at S. No. 7 is provided with respect to trading members working from designated alternate locations. However, the trading member and the Stock Exchange shall send a confirmation on the registered mobile number of the client immediately after execution of the order.
Stock Exchanges / Clearing Corporations 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 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.