Relaxation in timelines for compliance with regulatory requirements - SEBI - SEBI/HO/MIRSD/DOP/CIR/P/2020/142

CIRCULAR SEBI/HO/MIRSD/DOP/CIR/P/2020/142 July 29, 2020 To, 1. All Depositories 2. Depository Participants through Depositories 3. Registrars to an Issue Share Transfer Agents (RTA) 4. 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 the Depositories, SEBI had earlier provided relaxations in timelines for compliance with various regulatory requirements by the depository participants (DPs) / Registrars to an Issue Share Transfer Agents (RTAs), vide circular nos. SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020 , and SEBI/HO/MIRSD/DOP/CIR/P/2020/72 dated April 24, 2020. Later, vide circular no. SEBI/HO/MIRSD/DOP/CIR/P/2020/112 dated June 30, 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 representation received from the Depositories, it has been decided to further extend the timelines for compliance with the regulatory requirements by DPs / RTAs / KRAs, mentioned in the SEBI circulars, as under: Compliance requirements for which timelines were extended vide SEBI circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/62 dated April 16, 2020 . S. Nos. for which timeline is extended Extended timeline / Period of exclusion Processing of the demat request form by Issuer / RTA. I Period of exclusion shall be from March 23, 2020 till September 30, 2020. A 15-day time period after September 30, 2020 is allowed to Depository / DPs, to clear the back log. Processing of the demat request form by the Participants. II KYC application form and supporting documents of the clients to be uploaded on system of KRA within 10 working days. III Compliance requirements for which timelines were extended vide SEBI circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/72 dated April 24, 2020. S. Nos. for which timeline is extended Extended timeline / Period of exclusion Submission of half yearly Internal Audit Report (IAR) by DPs for half year ended March 31, 2020. II September 30, 2020. Redressal of investor grievances. III Period of exclusion shall be from March 23, 2020 till September 30, 2020. A 15-day time period after September 30, 2020 is allowed to Depository / DPs, to clear the back log. Transmission of securities. IV Closure of demat account. V Systems audit on annual basis. VI September 30, 2020 for the financial year ended on March 31, 2020. 3. All other conditions specified in the aforementioned circulars shall continue to remain applicable. 4. Depositories are directed to bring the provisions of this circular to the notice of their 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 Narendra Rawat General Manager Market Intermediaries Regulation and Supervision Department