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Sebi Again Eases Compliance Norms for Brokers in Wake of Covid-19

Sebi office.

Sebi office.

The decision comes after receiving a representation from stock exchanges, the Securities and Exchange Board of India (Sebi) said in a circular.

  • PTI New Delhi
  • Last Updated: June 19, 2020, 5:59 PM IST
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Sebi on Friday extended the deadline for brokers to submit reports on client funding and daily margin till July 31, in the wake of the COVID-19 crisis.

Besides, the markets regulator has given more time for submitting compliance certificate on margin trading, risk-based supervision, internal audit report as well as net worth certificates of brokers for half year ended March 31, 2020.

This is the third instance when the regulator has extended the deadline for compliance.

The decision comes after receiving a representation from stock exchanges, the Securities and Exchange Board of India (Sebi) said in a circular.

The regulator has given time till July 31 to brokers for submitting report on client funding for April, May and June as well as March quarter report on Artificial Intelligence (AI) and Machine Learning (ML) applications.

The due date for submitting the reports was first extended till May 31 and then again it was extended till June 30.

In view of the situation arising due to COVID-19 and the lockdown, based on representations received from stock exchanges, Sebi said it has decided to extend the due date for the regulatory filings and compliance requirements by their trading and clearing members.

Further, the regulator has again extended time for not imposing penalty for non-collection or short collection of upfront margins in cash segment.

The imposition of penalty was effective from April 1 and the relaxation in this regard was given till June 30.

“However... reporting of non- collection/short collection of margins in the cash segment shall continue,” it added.

The relaxation in compliance requirement for maintaining call recordings of instructions received from clients will also continue till July 31 with respect to trading members working from designated alternate locations.

However, the trading member and the stock exchanges shall send a confirmation on the registered mobile number of the client immediately after execution of the order.

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

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 July 31, 2020”.

Further, the regulator has given time till July 31 to brokers for submission of reports on daily margin, weekly and monthly basis on client funds and balance.

Besides, Sebi said the deadline for updation of PAN of key managerial personnel or directors and issuance of annual global statement has been extended by three months from the due dates

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