Relaxation in adherence to prescribed
timelines issued by SEBI due to Covid 19
In the wake of current scenario of
lockdown in country, SEBI has issued directions for Registrars to an Issue and Share
Transfer Agents / Issuer Companies, holding SEBI registration under Category 1
or Category 2 of RTI/STA and felt to extend timelines for processing various
investor requests pertaining to
physical securities and Compliance and disclosures to be made
under SEBI Regulations and various SEBI circulars.
SEBI issued relaxations vide Circular
No. SEBI/HO/MIRSD/RTAMB/CIR/P/2020/59
dated April 13, 2020 which states:
1. In wake of the current nationwide
lock down of 21 days as directed by Government of India due to issue of
Covid-19, a need has been felt to extend the timelines for processing of
various investor requests
pertaining to physical
securities and Compliance and
disclosures to be made under SEBI Regulations and various SEBI circulars. The
directions are being issued for Registrars to an Issue and Share Transfer
Agents / Issuer Companies, holding SEBI registration under Category 1 or
Category 2 of RTI/STA.
2. Considering the nationwide lock down
and marginal / skeleton staff strength of RTAs / Issuer companies,
"relaxation is hereby being given to intermediaries / market participants
for equivalent period of lock down declared by Government of India i.e. 21
days, over and above the prescribed time limits, respectively, for activities /
investor requests / compliance as per the annexure.
3. In
the event of
further extension in
the lock down
period as directed
by Government of India / State Governments, additional relaxation
in prescribed timelines for equal number
of extended days in lock down is also being given to intermediaries / market
participants.
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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