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Coronavirus outbreak: SEBI eases Compliance by Trading Members or Clearing Members

regulatory requirements - SEBI - compliance - Taxscan

Given the situation arising due to the COVID-19 pandemic and extended lockdown period, the Security Exchange Board of India (SEBI) on Thursday issued Relaxation in timelines for compliance with regulatory requirements by or clearing members.

The Security and Exchange Board of India (SEBI) empowered under Section 11(1) of the Securities and Exchange Board of India Act, 1992 issues the circular addressing all Recognised Stock Exchanges and Clearing Corporations (including those in International Financial Services Centres).

The due date for Client Funding reporting was April 8, 2020 which was extended to May 31, 2020.

The due date for reporting for Artificial Intelligence (AI) and Machine Learning (ML) applications was April 15, 2020 which was extended to May 31, 2020.

The due date for compliance certificate for Margin Trading for CM Segment was April 30, 2020 which was extended to June 30, 2020.

The due date for risk-based supervision was May 31, 2020 which was extended to June 30, 2020.

The due date for the Internal Audit Report for the half-year ending (HYE) March 31, 2020 was May 31, 2020 which was extended to June 30, 2020.

The due date for the System Audit Report (Algo) was June 30, 2020 which was extended to July 31, 2020.

The due date for the System Audit Report was June 30, 2020 which was extended to July 31, 2020.

The due date for the Net worth certificate in Margin Trading for CM Segment for HYE April  30, 2020 was June 30, 2020 which was extended to June 31, 2020.

The due date for the Net worth certificate for all members for HYE March 2020 was May 31, 2020 which was extended to June 30, 2020.

“The relaxation in compliance requirements at S. Nos. I – IX will be effective from their due date till the extended date as mentioned in the above table. Provision regarding the imposition of penalty at S. No. X above was effective from April 01, 2020. The relaxation in this regard shall be till May 17, 2020. However, in terms of the said circular reporting of non-collection/short collection of margins in the cash segment shall continue. The relaxation in compliance requirements at S. No. XI will be effective from March 23, 2020 till May 17, 2020 concerning 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,” the circular said.

The circular further said, “For trading members/clearing members in International Financial Services Centres, relaxations in compliance requirements at S. Nos. II, V, VI, VII and IX in the above table, will be effective from their due date till the extended date as mentioned in the above table.”

Given the situation arising due to the COVID-19 pandemic and extended lockdown period, the Security and Exchange Board of India (SEBI) on Thursday issued Relaxation in timelines for compliance with regulatory requirements by trading members or clearing members.

The Security and Exchange Board of India (SEBI) empowered under Section 11(1) of the Securities and Exchange Board of India Act, 1992 issues the circular addressing all Recognised Stock Exchanges and Clearing Corporations (including those in International Financial Services Centres).

The due date for Client Funding reporting was April 8, 2020 which was extended to May 31, 2020.

The due date for reporting for Artificial Intelligence (AI) and Machine Learning (ML) applications was April 15, 2020 which was extended to May 31, 2020.

The due date for compliance certificate for Margin Trading for CM Segment was April 30, 2020 which was extended to June 30, 2020.

The due date for risk-based supervision was May 31, 2020 which was extended to June 30, 2020.

The due date for the Internal Audit Report for the half-year ending (HYE) March 31, 2020 was May 31, 2020 which was extended to June 30, 2020.

The due date for the System Audit Report (Algo) was June 30, 2020 which was extended to July 31, 2020.

The due date for the System Audit Report was June 30, 2020 which was extended to July 31, 2020.

The due date for the Net worth certificate in Margin Trading for CM Segment for HYE April  30, 2020 was June 30, 2020 which was extended to June 31, 2020.

The due date for the Net worth certificate for all members for HYE March 2020 was May 31, 2020 which was extended to June 30, 2020.

“The relaxation in compliance requirements at S. Nos. I – IX will be effective from their due date till the extended date as mentioned in the above table. Provision regarding the imposition of penalty at S. No. X above was effective from April 01, 2020. The relaxation in this regard shall be till May 17, 2020. However, in terms of the said circular reporting of non-collection/short collection of margins in the cash segment shall continue. The relaxation in compliance requirements at S. No. XI will be effective from March 23, 2020 till May 17, 2020 concerning 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,” the circular said.

The circular further said, “For trading members/clearing members in International Financial Services Centres, relaxations in compliance requirements at S. Nos. II, V, VI, VII and IX in the above table, will be effective from their due date till the extended date as mentioned in the above table.”

To Read the full text of the Circular CLICK HERE
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