Relaxation in timelines for compliance with regulatory requirements by trading members / clearing members

Last updated: 22 April 2020

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The Securities and Exchange Board of India (SEBI) has extended the deadlines for several compliance requirements for trading and clearing members. This decision was made in response to the COVID-19 pandemic and the extended lockdown period. The relaxation applies to submissions for weekly client fund monitoring, monthly client and fund balance reporting, daily margin trading reporting, updates to Key Management Personnel/Director PANs, and the issuance of Annual Global Statements to clients.

Securities and Exchange Broad of India

CIRCULAR

SEBI/HO/MIRSD/DOP/CIR/P/2020/68

April 21, 2020

To,

All Recognised Stock Exchanges and Clearing Corporations (including those in International Financial Services Centres)

Madam / Sir,

Subject: Relaxation in timelines for compliance with regulatory requirements by trading members / clearing members.

1. In view of the situation arising due to COVID-19 pandemic and extended lockdown period, based on representation received from Stock Exchanges, it has been decided to extend the timelines for the following compliance requirements by their trading members / clearing members:

S. No.	Compliance	SEBI Circular Reference
I.	Submission towards weekly monitoring of client funds under the provisions of Enhanced Supervision.	SEBI/HO/MIRSD/MIRSD2/ CIR/P/2016/95 dated September 26, 2016 read with CIR/HO/MIRSD/MIRSD2/ CIR/P/2017/64 dated June 22, 2017 and CIR/HO/MIRSD/MIRSD2/ CIR/PB/2017/107 dated September 25, 2017.
II.	Submission of data on monthly basis towards clients’ and fund balance under the provisions of Enhanced Supervision.	SEBI/HO/MIRSD/MIRSD2/ CIR/P/2016/95 dated September 26, 2016 read with CIR/HO/MIRSD/MIRSD2/ CIR/PB/2017/107 dated September 25, 2017.
III.	Daily margin trading reporting.	CIR/MRD/DP/54/2017 dated June 13, 2017.
IV.	Update in Income Tax Permanent Account Number of Key Management Personnel/ Directors.	SEBI/HO/MIRSD/MIRSD2/ CIR/P/2016/95 dated September 26, 2016.
V.	Issue of Annual Global Statement to clients.	SEBI letter no. SEBI/HO/MIRSD1/RKD/ OW/P/2017/29513/1 dated November 27, 2017.

2. The delay in submission of the reports specified at S. Nos. I – III shall not attract penal provisions till May 17, 2020. The date for compliance requirements at S. Nos. IV-V is extended by one month from the due date.

3. Stock Exchanges and Clearing Corporations are directed to bring the provisions of this circular to the notice of their members and also disseminate the same on their websites.

4. 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

Yours faithfully

D Rajesh Kumar
General Manager
Market Intermediaries
Regulation and Supervision Department

FAQ :

The timelines have been extended due to the situation arising from the COVID-19 pandemic and the extended lockdown period.

The extended compliance requirements include weekly monitoring of client funds, monthly reporting of clients' and fund balance, daily margin trading reporting, updating Income Tax PAN of Key Management Personnel/Directors, and issuing Annual Global Statements to clients.

The delay in submission of reports specified in S. Nos. I-III will not attract penal provisions until May 17, 2020.

The date for compliance requirements for updating Income Tax Permanent Account Number of Key Management Personnel/Directors and issuing Annual Global Statements to clients has been extended by one month from the original due date.

Stock Exchanges and Clearing Corporations are directed to bring the provisions of this circular to the notice of their members and disseminate it on their websites.