Relaxation in timelines for compliance with regulatory requirements - SEBI - SEBI/HO/MIRSD/DOP/P/CIR/2021/607

CIRCULAR SEBI/HO/MIRSD/DOP/P/CIR/2021/607 July 30, 2021 To, 1. All Recognised Stock Exchanges and Clearing Corporations 2. Trading members / Clearing Members through Stock Exchanges / Clearing Corporations 3. 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 , SEBI/HO/MIRSD/DOP/CIR/P/2020/68 dated April 21, 2020 and SEBI/HO/MIRSD/DOP/CIR/P/2020/72 dated April 24, 2020 . 2. Later, vide circular nos. SEBI/HO/MIRSD/DOP/CIR/P/2020/82 dated May 15, 2020 , SEBI/HO/MIRSD/DOP/CIR/P/2020/101 dated June 19, 2020 , SEBI/HO/MIRSD/DOP/CIR/P/2020/112 dated June 30, 2020 , SEBI/HO/MIRSD/DOP/CIR/P/2020/141 dated July 29, 2020 , SEBI/HO/MIRSD/DOP/CIR/P/2020/142 dated July 29, 2020 , SEBI/HO/MIRSD/DOP/CIR/P/2020/191 dated October 01, 2020 , SEBI/HO/MIRSD/DOP/CIR/P/2020/235 dated December 01, 2020 , SEBI/HO/MIRSD/DOP/CIR/P/2020/255 dated December 31, 2020 and SEBI/HO/MIRSD/DOP/P/CIR/2021/559 dated April 29, 2021 and SEBI/HO/MIRSD/DOP/P/CIR/2021/587 dated June 30, 2021 , timelines / period of exclusion were further extended for certain compliance requirements. 3. In view of the prevailing situation due to Covid-19 pandemic and representation received from Stock Exchanges, it has been decided to extend the timelines for compliance with the following regulatory requirements by the Trading Members / Clearing Members / KYC Registration Agencies, as under: Sr. No. Submission/Compliance Current timeline / Period of exclusion Extended timeline / Period of Exclusion 1. KYC application form and supporting documents of the clients to be uploaded on system of KRA within 10 working days. Till July 31, 2021, documents may be uploaded on to the system of KRA within 15 working days. *A 30-day time period is provided to SEBI Registered Intermediary after July 31, 2021 to clear the backlog Till September 30, 2021, documents may be uploaded on to the system of KRA within 15 working days. *A 30-day time period is provided to SEBI Registered Intermediary after September 30, 2021 to clear the backlog 2. Submission of Internal Audit Report for Half year ended (HYE) March-2021 Till July 31, 2021 Till September 30, 2021 3. System Audit /Cyber Audit Report Algo / Type III Members for the period ended March 31, 2021 4. Submission of System Audit Report for the period ended March 2021 5. Submission of Cyber Security Cyber Resilience Audit Report for the period ended March 2021 6. Reporting of Risk Based Supervision 7. Maintaining call recordings of orders / instructions received from clients 8. To operate the trading terminals from designated alternate locations Till December 31, 2021 4. The relaxation in compliance requirement at S. No. 7 is provided with respect to trading members working from designated alternate locations. However, the trading member and the Stock Exchange shall send a confirmation on the registered mobile number of the client immediately after execution of the order. 5. Stock Exchanges / Clearing Corporations are directed to bring the provisions of this circular to the notice of their members / participants and also disseminate the same on their websites. 6. 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