Relaxation in timelines for compliance with regulatory requirements - SEBI - SEBI/HO/MIRSD/DOP/CIR/P/2020/101

CIRCULAR SEBI/HO/MIRSD/DOP/CIR/P/2020/101 June 19, 2020 To, 1. All Recognised Stock Exchanges and Clearing Corporations (including those in International Financial Services Centres) 2. All Depositories 3. Trading members / Clearing Members through Stock Exchanges and Clearing Corporations (including those in International Financial Services Centres) 4. Depository Participants through Depositories 5. KYC Registration Agencies 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 no. SEBI/HO/MIRSD/DOP/CIR/P/2020/82 dated May 15, 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 No. SEBI/HO/MIRSD/DOP/CIR/P/2020/61 dated April 16, 2020. S. No. in circular for which timeline is extended further Extended timeline / Period of exclusion Client Funding Reporting I Till July 31, 2020 for the months of April, May and June 2020. Reporting for Artificial Intelligence (AI) and Machine Learning (ML) applications. II Till July 31, 2020 for the quarter ended on March 31, 2020. Compliance certificate for Margin Trading for CM Segment. III Till July 31, 2020. Risk based supervision. IV Internal Audit Report for half year ending (HYE) March 31, 2020. V Net worth certificate in Margin Trading for CM Segment for HYE March 31, 2020. VIII Net worth certificate for all members for HYE March 2020. IX Penalty for non-collection / short collection of upfront margins in cash segment. X Till July 31, 2020. Maintaining call recordings of orders/instructions received from clients. XI Compliance requirements for which timelines were extended vide SEBI circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020. S. No. in circular for which timeline is extended further 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 July 31, 2020. Compliance requirements for which timelines were extended vide SEBI circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/68 dated April 21, 2020. S. No. in circular for which timeline is extended further Extended timeline / Period of exclusion Submission towards weekly monitoring of client funds under the provisions of Enhanced Supervision. I Till July 31, 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 Three months from the due date. Issue of Annual Global Statement to clients. V 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 , and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets. Yours faithfully D Rajesh Kumar General Manager Market Intermediaries Regulation and Supervision Department