Relaxation in time period for
certain activities carried out by depository participants, RTAs / issuers,
KRAs, stock brokers
In the wake of pandemonium caused by
spread of the COVID-19 virus, temporary relaxations in compliance requirements
and other facilitation measures are very much needed.
The following measures have been
undertaken by SEBI.
Also, in the wake of current scenario
of lockdown in country, SEBI has issued directions for certain activities
carried out by depository participants, RTAs / issuers, KRAs, stock brokers for
processing various investor requests pertaining to Compliance and disclosures
to be made under SEBI Regulations and various SEBI circulars.
SEBI vide Circular SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated
16.04.2020 states:
1. In view of the situation arising
due to COVID-19 pandemic and extended lockdown
period, based on representations received from the Depositories
regarding relaxation in compliance with the time period for the following
activities carried out by the depository participants, stock brokers, share
transfer agent / issuer, it has been decided to provide the relaxation as under:
|
S.
No.
|
Requirements
|
Existing timeline
|
Period
of
exclusion
|
Reference SEBI Regulation /
Circular
|
|
I.
|
Processing
of the demat request form by Issuer
/RTA
|
15 days
|
From
March 23,
2020 till
May 17,
2020.
|
Regulation 74 (5) of SEBI
(Depositories & Participants)
Regulations, 2018.
|
|
II.
|
Processing
of the demat request form by the
Participants.
|
7 days
|
Regulation 74 (4) of SEBI
(Depositories & Participants)
Regulations, 2018.
|
|
|
III.
|
KYC application
form and supporting documents of the clients to be uploaded on system of KRA within 10 working days.
|
10 days
|
SEBI circular
no. MIRSD/Cir- 26/2011 dated December 23, 2011.
|
2. As specified in the table above, the period
beginning from March 23, 2020 till May 17, 2020 shall be excluded for computing the
existing timelines specified in Regulation 74 (4) and 74 (5) of SEBI (Depositories
& Participants) Regulations, 1996 and the aforementioned circular dated
December 23, 2011. Further, a 15-day time period after May 17, 2020 is allowed
to the SEBI registered intermediary, to clear the back log.
3. Stock Exchanges 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 website.
4. 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.
DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT
PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION.
IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS
ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.
THE AUTHOR – CS DEEPAK SETH (ASSOCIATE
PARTNER HELPINGHANDS PROFESSIONALS LLP) AND CAN BE REACHED AT
CONTACTHHPRO@GMAIL.COM OR 9910248911.
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