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 relaxed timelines for compliance with regulatory requirements by Depository and depository participants.
Full text of the SEBI Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/72 dated 24.04.2020 is as follows;-
Securities and Exchange Board of India
CIRCULAR
SEBI/HO/MIRSD/DOP/CIR/P/2020/72
April 24, 2020
To,
1. All Depositories
2. Depository Participants (DPs) through Depositories
Madam / Sir,
Subject: Relaxation in timelines for compliance with regulatory requirements by Depository and depository participants.
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. |
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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
3. Depositories are directed to bring the provisions of this circular to the notice of their participants and also disseminate the same on their
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
Yours faithfully
D Rajesh Kumar
General Manager
Market Intermediaries Regulation and Supervision Department
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