SEBI extends compliance timelines for depositories, brokers

Mumbai, July 29 The Securities and Exchange Board of India (SEBI) on Wednesday extended the timelines of several regulatory compliance norms for brokers, depositories and share transfer agents till September 30 in view of the pandemic.

Now depository participants can submit their yearly internal audit report (IAR) for half year ended March 31, 2020 by the end of September.

SEBI has eased the compliance requirement with regard to processing of demat request forms by issuer or registrar of share transfer agents (RTA) and depository participants (DP).

In general, processing of demat request forms by issuer or RTA needs to be done within 15 days, while the same for depository participants is within seven days. Now, with the latest decision, the period from March 23 till September 30 shall be excluded for computing the existing timelines for compliance.

Further, among other relaxations and extensions, the timeline for systems audit on an annual basis for the financial year ended March 31 has also been extended till September 30.

Sonam Chandwani, Managing Partner at KS Legal & Associates said: "With businesses taking a massive blow on account of the pandemic, adhering to regulatory filing and disclosure compliance norms in a timely manner poses a grave challenge."

She was of the view that the timeline extensions are likely to accord much-needed relief to companies and their stakeholders.

Further, the securities market regulator has also extended the timeline for submission of financial results for the quarter ended June, till September 15.

As per the norms, the original deadline for submitting the financial results for the period ending June was August 14.

Welcoming the relief for listed companies, Chandwani said: "The host of complications that the ongoing situation has roped in has made furnishing of financial results in the short period post the closure of this quarter a task arduous enough to be achieved by most listed entities despite the necessity under law."

( With inputs from IANS )