Article compiles 5 Circulars issued by SEBI between 25.06.2020 to 30.06.2020 which related to Collection of stamp duty on issue, transfer and sale of units of AIFs, Relaxation in Timelines for compliance with regulatory requirements, Guidelines for Portfolio Managers- Extension of Implementation timeline, Relaxation of Gap between two board meeting/Audit Committee Meetings of listed entities due to CoVID-19 and Further extension of time for submission of Annual Secretarial Compliance report by listed entities.

1. Collection of stamp duty on issue, transfer and sale of units of AIFs

Relevant Circular no. and date: SEBI Circular No. SEBI/HO/IMD/DF6/CIR/P/2020/113 dated 30th June 2020

Effective date: 1st July 2020

What is New?

Appointment of RTA

Alternate Investment Funds where Registrar & Transfer Agent have not been appointed so far, shall appoint Registrar & Transfer Agent, at the earliest, but not later than 15th July 2020 for the followings-

a. To enable collection of applicable stamp duty on Issue, Transfer, and

b. Sale of Units of Alternate Investment Funds.

c. He shall ensure the proper compliance of the provisions of the Indian Stamp Act, 1899 and rules made thereunder.

Payment of Stamp Duty

As the provisions of the amended Indian Stamp Act, 1899 and the rules made thereunder are to be implemented and effective from 1st July 2020, till such time RTA are appointed, as an interim measure.

Alternate Investment Funds shall keep the applicable stamp duty on issue, Transfer and sale of units of Alternate Investment Funds in a designated bank Account.

AIF shall transfer the said amount to RTA upon appointment for onwards remittance to state/union territories as per the provisions of Indian stamp Act.

Collection of Stamp duty

As regards transactions (issue, transfer and sale of units of  AIFs in demat mode) through recognized stock exchange  or depository as defined under SCRA, 1956 and depositories Act 1996 respectively, the respective stock exchange/ Authorized clearing corporation or a Depository is already empower to collect stamp duty as per the amended Indian Stamp Act, 1899 and the rules made thereunder.

2. Relaxation in Timelines for compliance with regulatory requirements

Relevant Circular no. and date: SEBI Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/112 dated 30th June 2020

What is new?

As per the Circular, it has been decided to further extend the timelines for compliance with regulatory requirements  by Depositories Participants and Registrar and transfer agent.

Processing of Demat request form  by issuer/RTA Period excluded from 23rd March 2020 till 31st July 2020

A period of 15 days after 31st July 2020 is allowed to DPs, to clear the back log

Processing of Demat request form  by DP Period excluded from 23rd March 2020 till 31st July 2020

A period of 15 days after 31st July 2020 is allowed to DPs, to clear the back log

Submission of half yearly internal Audit report by DPs for half year ended on 31st March 2020 31st July 2020 for half year ended on March 31, 2020.
Redressal of investor grievances Period excluded from 23rd March 2020 till 31st July 2020

A period of 15 days after 31st July 2020 is allowed to DPs, to clear the back log

Transmission of securities Period excluded from 23rd March 2020 till 31st July 2020

A period of 15 days after 31st July 2020 is allowed to DPs, to clear the back log

Closure of Demat Account Period excluded from 23rd March 2020 till 31st July 2020

A period of 15 days after 31st July 2020 is allowed to DPs, to clear the back log

Time for reporting of Artificial Intelligence and machine learning by trading members, clearing members Extended till 31st July 2020 for the quarter ending on  June 30, 2020

3. Guidelines for Portfolio Managers- Extension of Implementation timeline

Relevant Circular no. and date: SEBI Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/111 dated 29th June 2020

What is new?

As per the circular, it has been decided to extend the timelines for compliance with requirements of SEBI Circular dated February 13, 2020, by further 3 months

Effective date:

The Provisions of said Circular shall be applicable 1st October, 2020.

4. Relaxation of Gap between two board meeting/Audit Committee Meetings of listed entities due to CoVID-19

Relevant Circular no. and date: SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/110 dated 26th June 2020

What is new?

 As per this circular, the relaxation of maximum gap between two board meetings/Audit committee meetings as provided in SEBI Circular dated 19th March 2020 is further extended till 31st July 2020.

However, the board of directors and audit committee of listed entities shall ensure that they meet atleast four times a year as prescribed under Regulations 17(2) and 18(2)(a) of the LODR Regulations.

5. Further extension of time for submission of Annual Secretarial Compliance report by listed entities

Relevant Circular no. and date: SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/109 dated 25th June 2020

What is new?

As per this circular it has been decided to further extend the timeline for submission of the Annual Secretarial Compliance Report by one more month to 31st July, 2020

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