The Security Exchange Board of India (SEBI) on Thursday issued the circular while providing relaxation in time period for activities carried out by depository participants, Registrar and Transfer Agents (RTA) or issuers, KYC Registration Agency (KRA) and stock Brokers.
In view of the situation arising due to COVID-19 pandemic and extended lockdown period the Security Exchange Board of India (SEBI) empowered under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act issued the circular addressing all the Stock Brokers through Stock Exchanges, Depository Participants (DPs) through Depositories, Registrars to an Issue & Share Transfer Agents (RTA), KYC Registration Agencies (KRAs).
The move aims at protecting the interests of investors in securities and to promote the development of, and to regulate the securities markets, the SEBI said in the circular.
The stock market regulator received the representation from the Depositories regarding relaxation in compliance with the time period for the following activities carried out by the depository participants, stock Brokers, share transfer agent or issuer, it has been decided to provide the relaxation.
Instead of 15 days for processing of the Demat request form by Issuer or RTA, 7 days for processing of the Demat request form by the Participants; 10 days for the KYC application form and supporting documents of the clients to be uploaded on the system of KRA within 10 working days from the period of exclusion March 23, Regulation 2020 till May 17, (Depositories 2020.
“The period beginning from March 23, 2020, till May 17, 2020, shall be excluded for computing the existing timelines specified in Regulation 74 (4) and 74 (5) of SEBI (Depositories & Participants) Regulations, 1996 and the aforementioned circular dated December 23, 2011. Further, a 15-day time period after May 17, 2020, is allowed to the SEBI registered intermediary, to clear the backlog,” the circular said.Subscribe Taxscan AdFree to view the Judgment