Relaxation in adherence to prescribed timelines issued by SEBI due to Covid 19

In the wake of current scenario of lockdown in country, SEBI has issued directions for Registrars to an Issue and Share Transfer Agents / Issuer Companies, holding SEBI registration under Category 1 or Category 2 of RTI/STA and felt to extend timelines for processing various investor requests  pertaining  to  physical  securities  and Compliance and disclosures to be made under SEBI Regulations and various SEBI circulars.

SEBI Extends Due Date in Depositories Regulations & Other Regulations Compliance Norms

Major relaxation is given under:

• Certificate Received from Registrar under Regulation 74(5) of the SEBI (D & P) Regulations, 2018
• Reconciliation of Shares and Capital Audit: under Regulation 76 of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018

SEBI issued relaxations vide Circular No. SEBI/HO/MIRSD/RTAMB/CIR/P/2020/59 dated April 13, 2020 which states:

1. In wake of the current nationwide lock down of 21 days as directed by Government of India due to issue of Covid-19, a need has been felt to extend the timelines for processing  of  various  investor  requests  pertaining  to  physical  securities  and Compliance and disclosures to be made under SEBI Regulations and various SEBI circulars. The directions are being issued for Registrars to an Issue and Share Transfer Agents / Issuer Companies, holding SEBI registration under Category 1 or Category 2 of RTI/STA.

Relaxation in timelines issued by SEBI for RTA/STA due to Covid 19

2. Considering the nationwide lock down and marginal / skeleton staff strength of RTAs / Issuer companies, “relaxation is hereby being given to intermediaries / market participants for equivalent period of lock down declared by Government of India i.e. 21 days, over and above the prescribed time limits, respectively, for activities / investor requests / compliance as per the annexure.

3. In  the  event  of  further  extension  in  the  lock  down  period  as  directed  by Government of India / State Governments, additional relaxation in  prescribed timelines for equal number of extended days in lock down is also being given to intermediaries / market participants.

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DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.

THE AUTHOR – CS DEEPAK SETH (ASSOCIATE PARTNER HELPINGHANDS PROFESSIONALS LLP) AND CAN BE REACHED AT [email protected] OR 9910248911.