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SEBI extends regulatory norms compliance timeline for RTAs, depository participants, brokers

Through a circular, the regulator eased compliance requirement with regard to processing of demat request forms by issuer or registrar of share transfer agents (RTA) and depository participants (DP).

July 29, 2020 / 07:15 PM IST

Amid the coronavirus pandemic, regulator SEBI on Wednesday gave extension till September 30 to depository participants, share transfer agents and brokers for compliance with various regulatory requirements.

Through a circular, the regulator eased compliance requirement with regard to processing of demat request forms by issuer or registrar of share transfer agents (RTA) and depository participants (DP).

Under the norms, processing of demat request forms by issuer or RTA needs to be done within 15 days, while the same for depository participants is within seven days.

The period from March 23 till September 30 shall be excluded for computing the existing timelines for compliance, SEBI said in the circular.

Further, a 15-day period after September 30 has been allowed to registered depository participants to clear the backlog.

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SEBI has also given time till September 30 to depository participants for submitting internal audit report for half-year ended March 31.

The markets watchdog has also relaxed compliance requirement pertaining to redressal of investor grievances, transmission of securities and closure of demat account.

Timeline for systems audit on annual basis for financial year ended March 31 has also been extended till September 30, as per the circular.

Through a separate circular, SEBI extended the timelines for compliance with regulatory requirements for trading members, clearing members and depository participants till September 30.

For submission of cyber security and cyber resilience audit for the year ended March 31, 2020, SEBI has given time till September 30.

Other relaxations pertain to client funding reporting, reporting for artificial intelligence and machine learning applications, risk based supervision for the year ended March 31.

In addition, internal audit report, system audit report and compliance certificate for margin trading for CM segment for half-year ended March 31 can also be submitted till September 30.

Among others, due date for net worth certificate for members as well as net worth certificates in margin trading for half-year ending March 2020 have been extended till September 30.

Under the norms, KYC (know your customer) application form and supporting documents of clients need to be uploaded on system of KRA (KYC registration agency) within 10 days.

For this, SEBI said period of exclusion will be from March 23, 2020 till September 30, 2020.

Submissions towards weekly monitoring of client funds, clients' and fund balance data on monthly basis and daily margin trading reporting have been extended till September 30.

SEBI also gave an extension of five months from due date for updation in income tax permanent account number of key management personnel and directors, and for issuing annual global statement to clients.

The decision to extend timelines for compliance with regulatory requirements is taken in view of the prevailing situation due to COVID-19 pandemic and representation received from depositories and stock exchanges, SEBI said in the circulars.
PTI
first published: Jul 29, 2020 06:55 pm

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