SEBI issues relaxation in timelines for
compliance with regulatory requirements by Depository and Depository Participants
due to COVID 19
The pandemic has cast its shadow across
various economic activities with massive dislocation in global production,
supply chains and trade. In wake of the current nationwide lock down 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 Compliance and disclosures to be made under SEBI Regulations and various
SEBI circulars. Also, SEBI feels to amend various regulations as per
the need of the time. Also,
in the wake of current scenario of lockdown in country, SEBI has issued
directions for certain activities carried out by Depository and depository
participants for processing various investor requests pertaining to Compliance
and disclosures to be made under SEBI Regulations and various SEBI circulars.
Thus,
SEBI vide Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/72 dated 24.04.2020
after considering the current situation due to COVID 19 states relaxation in timelines for
compliance with regulatory requirements by Depository and depository
participants.
SEBI vide Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/72
dated 24.04.2020 states:
1. In view of the situation arising due to COVID-19 pandemic, extended lockdown period
and based on representation received from the Depositories regarding
relaxation in timelines for compliance with regulatory requirements by
Depositories and depository participants, it has been decided to provide
relaxation in timelines as under:
|
S. No.
|
Compliance
Requirements
|
Existing
Timelines
/ Due Date
|
Extended
Timelines
/ Due Date
|
SEBI Circular Reference
|
|
I.
|
Submission of BO Grievances Report to Depositories.
|
10th of the following month
i.e. 10th April for the month of March 2020.
|
May 18, 2020 for the month of March 2020
and
April
2020.
|
SEBI/HO/MIRSD/MIRSD 2/CIR/P/2016/95
dated September 26,
2016.
|
|
II.
|
Submission
of half yearly
Internal Audit Report (IAR) by DPs for
half year ended 31st
March
2020.
|
15th May 2020 for half
year ending March 2020.
|
June 30, 2020,
for half year ended March 2020.
|
SEBI/HO/MIRSD/MIRSD 2/CIR/P/2016/95
dated September 26,
2016.
|
|
III.
|
Redressal of
investor grievances.
|
Within
15 days of the date of receipt of the complaint
through SCORES & within
30 days of the date of receipt of the complaint other than received
through SCORES.
|
Period of
exclusion shall be from March 23, 2020 till
May
17, 2020.
|
SEBI/HO/MIRSD/MIRSD
6/CIR/P/2017/20 dated
March 10, 2017
&
Regulation 36 (f) of SEBI (Depositories & Participants)
Regulations, 2018.
|
|
IV.
|
Transmission of securities.
|
Within 7 days, after receipt of all requisite
documents.
|
Period of
exclusion shall be from March 23, 2020 till
May
17, 2020.
|
CIR/MIRSD/10/2013
dated October 28, 2013.
|
|
V.
|
Closure of demat account
|
Within a
period of 30 days.
|
Period of
exclusion shall be from March 23, 2020 till
May
17, 2020.
|
CIR/MIRSD/12/2013
dated December 4, 2013.
|
|
VI.
|
Systems audit on annual basis.
|
Within three months of the end of the financial year.
|
July 31, 2020 for the financial year ended
March 31,
2020.
|
SEBI/HO/MIRSD/CIR/PB
/2018/147 dated December 3, 2018.
|
|
VII.
|
Reporting for Artificial Intelligence (AI) and Machine
Learning (ML)
applications.
|
Within 15
calendar days of the expiry of the quarter.
|
May 31, 2020 for quarter ended March 2020.
|
SEBI/HO/MIRSD/DOS2/
CIR/P/2019/10 January 04, 2019.
|
|
VIII.
|
Risk Based
Supervision
|
15th May for half year
ended March 31, 2020.
|
June 30, 2020 for half year ended March 2020.
|
-
|
2. For compliance requirements at S. Nos. III, IV and V above, a 15-day
time period after May 17, 2020 is allowed to Depository / depository
participants, to clear the back log.
3. Depositories are directed to bring the provisions of this circular
to the notice of their 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.
0 Comments