COVID-19 impact | SEBI gives more time to brokers, clearing members for compliance with rules

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New Delhi: Markets regulator SEBI on April 29 extended timelines for compliance with certain regulatory requirements by trading members, clearing members and depository participants in view of the second wave of the COVID-19 pandemic.

The deadline for maintaining call recordings of orders or instructions received from clients has been extended till June 30, 2021, SEBI said in a circular.

Also, the regulator has given time till June-end to brokers for operating the trading terminals from designated alternate locations.

In addition, SEBI has extended time until July 31 with regard to submission of internal audit report as well as net worth certificate for half year ended March 2021, risk based supervision report, filing report on Artificial Intelligence (AI) and Machine Learning (ML) applications and making submission of cyber security and cyber resilience audit report for the period ended March 2021, among others.

In view of the prevailing situation due to the pandemic and representation received from the Association of National Exchanges Members of India (ANMI), stock exchanges and depositories, Sebi said it has decided to extend the timelines for compliance with certain regulatory requirements by trading as well as clearing members, depository participants and KYC registration agencies.

In addition, SEBI has given relaxation in time period for certain activities, including redressal of investor grievances, processing of demat requests and closure of demat account carried out by depository participants.

During the period from April 1 to June 30, timeline permitted for redressal of grievances has been extended to 30 days.

According to the norms, KYC (Know Your Customer) application form and supporting documents of clients need to be uploaded on a system of KRA (KYC Registration Agency) within 10 days.

In this regard, SEBI said “till June 30, documents may be uploaded on to the system of KRA within 15 working days”.

A 30-day period after June 30 will be given to clear the backlog.

In a separate circular, the regulator has clarified that it has added certain relaxations from compliance requirement till July 31 with regard to processing of the demat request form by registrar of share transfer agent (RTA).

With regards to the half-yearly Internal Audit Report (IAR) to be submitted by RTAs within 45 days from the closure of the half year, Sebi said the timeline of May 15  for submission of such report for the half-year ended March 31, has been extended to July 31.