SEBI eases compliance norms for brokers, depository participants

Markets regulator Sebi on Tuesday relaxed compliance necessities for brokers and depository members with reference to submission of experiences pertaining to inside in addition to system audit within the wake of the coronavirus pandemic.

The choice comes after receiving illustration from inventory exchanges and depositories, the Securities and Exchange Board of India (Sebi) stated in a round.

The capital markets watchdog has given time until December 31 to brokers to submit half-yearly internet price certificates (as on September 30), experiences on inside audit as properly a system audit for half yr ended on September 30, 2020.

Also, brokers have been give time until January 31 to submit report on cybersecurity and cyber resilience audit for half yr ended on September 30.

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In view of the prevailing scenario because of Covid-19 pandemic and representations obtained from the inventory exchanges and depositories, it has been determined to increase the timelines for compliance with the regulatory necessities by the buying and selling or clearing members and depository members, Sebi stated.

With regard to depository members, Sebi stated they will submit an inside audit report for the half yr ended on September 30 and techniques audit for the monetary yr ended March 31 until December 31.

Besides, Sebi has eased guidelines with regard to submission of KYC (Know Your Client) utility.

Under the norms, KYC utility type and supporting paperwork of the shopper must be uploaded on system of KRA (KYC registration company) inside 10 days.

For this, Sebi stated interval of exclusion shall be from March 23, 2020, until December 31, 2020.

Further, a 15-day time interval after December 31 has been allowed to depository or depository members to clear the backlog.