RELAXATION IN TIMELINES FOR COMPLIANCE WITH REGULATORY REQUIREMENTS

COMPANY Apr 25, 2020 0 1578 Add to Reading List

The epidemic has cast its shadow in various economic activities with huge disarray in global production, supply chains and trade.

In view of the current nationwide lock directed by the Government of India due to the release of covid-19, the need has been felt to extend the deadline for processing various investor requests relating to compliance and disclosure to be made under SEBI Regulations and various.

SEBI circulars. Further, SEBI has to amend various rules as per the requirement of time.

Further, in view of the current scenario of lockdown in the country, SEBI has issued instructions for certain activities undertaken by depository and depository participants to process various investor requests related to compliance and disclosure 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 relaxed timelines for compliance with regulatory requirements by Depository and depository participants.

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/MIRSD/DOP/CIR/P/2020/72

24^th April, 2020

To,

All Depositories
Depository Participants (DPs) through Depositories

Madam / Sir,

Subject: Relaxation in timelines for compliance with regulatory requirements by Depository and depository participants.

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.	10^th of the following month i.e. 10^th 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	15^th May for half year ended March 31, 2020.	June 30, 2020 for half year ended March 2020.	–

For compliance requirements above Nos. III, IV and V, depository / depository participants are allowed to clear back 15 days time period after May 17, 2020.
The depository is directed to bring the provisions of this circular to the attention of its participants and also publicize them.
This circular is issued in exercise of the 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 regulate securities to do.

Yours faithfully

D Rajesh Kumar

General Manager

Market Intermediaries Regulation and Supervision Department