In view of the prevailing situation due to Covid-19 pandemic and representations received from the Stock Exchanges, it has been decided to further extend the timelines for compliance with the regulatory requirements by the Trading Members / Clearing Members / Depository Participants (DPs).
Securities and Exchange Board of India
CIRCULAR
SEBI/HO/MIRSD/DOP/CIR/P/2020/141
July 29, 2020
To,
1. All Recognised Stock Exchanges and Clearing Corporations (including those in International Financial Services Centres)
2. Trading members / Clearing Members through Stock Exchanges and Clearing Corporations (including those in International Financial Services Centres) KYC Registration Agency
Madam / Sir,
Subject: Relaxation in timelines for compliance with regulatory requirements
1. In view of the situation arising due to COVID-19 pandemic, lockdown imposed by the Government and representations received from Stock Exchanges, SEBI had earlier provided relaxations in timelines for compliance with various regulatory requirements by the trading members / clearing members / depository participants, vide circular nos. SEBI/HO/MIRSD/DOP/CIR/P/2020/61 dated April 16, 2020, SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020, and SEBI/HO/MIRSD/DOP/CIR/P/2020/68 dated April 21, 2020. Later, vide circular nos. SEBI/HO/MIRSD/DOP/CIR/P/2020/82 dated May 15, 2020 and SEBI/HO/MIRSD/DOP/CIR/P/2020/101 dated June 19, 2020, timelines / period of exclusion was further extended for certain compliance requirements.
2. In view of the prevailing situation due to Covid-19 pandemic and representations received from the Stock Exchanges, it has been decided to further extend the timelines for compliance with the regulatory requirements by the Trading Members / Clearing Members / Depository Participants, mentioned in the SEBI circulars, as under:
| Compliance requirements for which timelines were extended vide SEBI circular SEBI/HO/MIRSD/DOP/CIR/P/2020/61 dated April 16, 2020. | S. Nos. for which timeline is extended | Extended timeline / Period of exclusion |
| Client Funding Reporting for the months of June and July 2020. | I | Till September 30, 2020. |
| Reporting for Artificial Intelligence (AI) and Machine Learning (ML) applications for the quarter ended on June 30, 2020. | II | |
| Compliance certificate for Margin Trading for CM Segment for the half year ended (HYE) on March 31, 2020. | III | |
| Risk based supervision for the year ended March 31, 2020. | IV | |
| Internal Audit Report for HYE March 31, 2020. | V | |
| System Audit Report (Algo) for HYE March 31, 2020. | VI | |
| Annual System Audit Report for the year ended March 31, 2020. | VII | |
| Net worth certificate in Margin Trading for CM Segment for HYE March 31, 2020. | VIII | |
| Net worth certificate for all members for HYE March 31, 2020. | IX | |
| Maintaining call recordings of orders/instructions received from clients. | XI | |
| Compliance requirements for which timelines were extended vide SEBI circular SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020. | S. Nos. for which timeline is extended | Extended timeline / Period of exclusion |
| KYC application form and supporting documents of the clients to be uploaded on system of KRA within 10 working days. | III | Period of exclusion shall be from March 23, 2020 till September 30, 2020. |
| Compliance requirements for which timelines were extended vide SEBI circular SEBI/HO/MIRSD/DOP/CIR/P/2020/68 dated April 21, 2020. | S. Nos. for which timeline is extended | Extended timeline / Period of exclusion |
| Submission towards weekly monitoring of client funds under the provisions of Enhanced Supervision. | I | Till September 30, 2020. |
| Submission of data on monthly basis towards clients’ and fund balance under the provisions of Enhanced Supervision. | II | |
| Daily margin trading reporting. | III | |
| Update in Income Tax Permanent Account Number of Key Management Personnel / Directors. | IV | Five months from the due date. |
| Issue of Annual Global Statement to clients. | V | |
| New relaxation (not included in above SEBI circulars) | ||
| Cyber Security & Cyber Resilience Audit for the year ended March 31, 2020. | – | Till September 30, 2020. |
3. All other conditions specified in the aforementioned circulars shall continue to remain applicable.
4. Stock Exchanges, Clearing Corporations 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 websites.
5. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Yours faithfully
Narendra Rawat
General Manager
Market Intermediaries Regulation and Supervision Department
