The Security and Exchange Board of India (SEBI) on Tuesday issued the Corrigendum to Master Circular for Depositories dated October 25, 2019, on the preservation of records.
The Board issued the SEBI circular MRD/DoP/DEP/Cir- 20/2009 dated December 9, 2009, on the preservation of records wherein it is inter-alia mentioned that Depositories and Depository Participants are required to preserve the records and documents for a minimum period of five years in terms of regulations 38 and 49 of the SEBI (Depositories and Participants) Regulations, 1996.
In terms of Regulations 54 and 66 of the SEBI (Depositories and Participants) Regulations, 2018 (D&P Regulations) notified on October 03, 2018, Depositories and Depository Participants are required to preserve the records and documents for a minimum period of eight years.
In order to align the provisions of the D&P Regulations, 2018 with that of Master Circular for Depositories dated October 25, 2019, Section 4.6 (i), “Preservation of Records” shall be replaced with the “Depositories and Depository Participants are required to preserve the records and documents for a minimum period of 8 years”.
Paragraph 2 of SEBI circular MRD/DoP/DEP/Cir- 20/2009 dated December 9, 2009, stands partially modified as under “in terms of Regulations 54 and 66 of the SEBI (Depositories and Participants) Regulations, 2018 (herein referred to as D&P Regulations, 2018) notified on October 03, 2018, Depositories and Depository Participants are required to preserve the records and documents for a minimum period of eight years”.
The Board advised the Depositories to make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision, as may be applicable/ necessary; to carry out system changes, if any, to implement the above; disseminate the provisions of this circular on their website; and communicate to SEBI, the status of implementation of the provisions of this circular in their Monthly Development Report.
“It may be noted that the other provisions of the Master Circular for Depositories SEBI/HO/MRD/DP/CIR/P/118 dated October 25, 2019, shall remain unchanged,” the circular said.
Subscribe Taxscan Premium to view the Judgment
