Securities and Exchange Board of India has issued a circular regarding relaxation in timelines for compliance with regulatory requirements on 30th July 2021[1] to all recognize stock exchanges and clearing corporations, trading members, clearing members through stock exchanges, clearing corporations, and KYC registration agencies. the relaxation in timelines has been given because of the situation arising due to the COVID-19 pandemic. Securities and Exchange Board of India taking notice of the dog down imposed by the government and representations received from stock exchanges has earlier provided relaxation in timelines for compliance with various regulatory requirements by depository participants, clearing members, and trading members through a circular dated April 16, 2020[2], circular dated April 21, 2020[3], and circular dated April 24, 2020[4]. Later Other circulars were issued regarding timelines and periods of exclusions which provided for further extension for certain compliance requirements latest circular was dated June 30th, 2021[5].

The circular states that due to the prevailing situation of pandemics and representation received from stock exchanges The timelines for compliance with some regulatory requirements by KYC registration agencies, clearing members, and trading members will be extended.

1. Submission of KYC application form and supporting documents of the clients to be uploaded on the system of KRA within 10 working days – The timeline provided was 31st July 2021 where the documents were to be uploaded on the system of KRA within 15 working days and 30 days is provided to Securities and Exchange Board of India registered intermediary after July 31st, 2021 to clear the backlog. The extended timeline that has been provided is still September 30th, 2021 where the documents need to be uploaded on the system of KRA within 15 working days, and a period of30 days is given to the Securities and Exchange Board of India registered intermediary after September 30th, 2021 to clear the backlog.
2. It has been provided in the circular that submission of the internal audit report of half-year ended March- 2021 has been extended to September 30th, 2021.
3. Cyber audit, system audit report, type three members for Ended March 31st, 2021 has timeline extended to September 30th, 2021.
4. Submission of the system audit report for the period of ended March 2021 has a timeline extended to 30th September 2021.
5. Submission of cyber Brazilians audit report and cybersecurity report for the period ended March 2021 has the timeline extended to September 30th, 2021.
6. Compliance regarding reporting of risk-based supervision has a timeline extended to September 30th, 2021.
7. Compliance regarding maintaining the call recordings of instructions and orders received from clients has a timeline extended to September 30th, 2021.
8. Compliance regarding operation off trading terminals from the designated alternate location that has the previous timeline of July 31st, 2021 has timeline extended to December 31st, 2021.

S. No. 7 Is compliance that has been provided to trading members working from designated alternate locations and after execution of the order, the trading members and the Stock Exchange shall send a confirmation on the registered mobile number of the client immediately.

Section 11 (1) of SEBI Act, 1992 provides power to issue a circular to protect the interest of investors in Securities, regulate securities markets and promote development.

[1] Circular No.: SEBI/HO/MIRSD/DOP/P/CIR/2021/607

[2] Circular  No.:  SEBI/HO/MIRSD/DOP/CIR/P/2020/61

[3] Circular  No.: SEBI/HO/MIRSD/DOP/CIR/P/20

[4] Circular  No.: SEBI/HO/MIRSD/DOP/CIR/P/2020/72

[5] Circular No.: SEBI/HO/MIRSD/DOP/P/CIR/2021/58

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