SEBI Eases Compliance Norms For Brokers, Depository Participants
A stock broker trades in Mumbai. (Photographer: Kuni Takahashi/Bloomberg)

SEBI Eases Compliance Norms For Brokers, Depository Participants


The Securities and Exchange Board of India on Tuesday relaxed compliance requirements for brokers and depository participants with regards to submission of reports pertaining to internal as well as system audit in the wake of the coronavirus pandemic.

The decision comes after receiving representation from stock exchanges and depositories, the SEBI said in a circular.

The capital markets watchdog has given time till Dec. 31 to brokers to submit half-yearly networth certificate (as on Sept. 30), reports on internal audit as well a system audit for half year ended on Sept. 30, 2020.

Also, brokers have been given time till Jan. 31 to submit a report on cybersecurity and cyber resilience audit for the half year ended on Sept. 30.

Also read: SEBI Proposes To Relax Rules For Re-Classification Of Promoter As Public Shareholder

In view of the prevailing situation due to Covid-19 pandemic and representations received from the stock exchanges and depositories, it has been decided to extend the timelines for compliance with the regulatory requirements by the trading or clearing members and depository participants, SEBI said.

With regard to depository participants, SEBI said they can submit an internal audit report for the half-year ended on Sept. 30 and systems audit for the financial year ended March 31 till Dec. 31.

Besides, SEBI has eased rules with regard to submission of KYC application.

Also read: After Eight Months, SEBI Eases Certain Surveillance Measures In Place To Curb Pandemic-Induced Volatility

Under the norms, KYC application form and supporting documents of the client need to be uploaded on system of KRA (KYC registration agency) within 10 days.

For this, SEBI said period of exclusion will be from March 23, 2020, till Dec. 31, 2020.

Further, a 15-day time period after Dec. 31 has been allowed to depository or depository participants to clear the backlog.

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