Sebi again eases compliance rules for processing of demat request

New Delhi: Markets regulator Sebi on Tuesday relaxed compliance norms for depository participants and share transfer agents with regard to processing of demat request amid the prevailing situation in view of the coronavirus pandemic.

The relaxation has been extended till July 31, the Securities and Exchange Board of India (Sebi) said in a circular.

Before this, the regulator had eased compliance requirement in this regard in April.

" In view of the prevailing situation due to COVID-19 pandemic and representation received from the depositories, it has been decided to further extend the timelines for compliance with the regulatory requirements by DPs / RTAs," it added.

The regulator has eased compliance requirement with regard to processing of the demat request form by issuer or registrar of share transfer agent (RTA) and depository participants (DP).

Under the norms, processing of the demat request form by issuer or RTA needs to be done within 15 days, while the same for depository participants is within seven days.

The period from March 23 till July 31 shall be excluded for computing the existing timelines for compliance, Sebi noted.

Further, a 15-day period after July 31 has been allowed to registered depository participant to clear the backlog.

Sebi has given time till July 31 to depository participants for submitting internal audit report for half year ended March 31.

In addition, it relaxed compliance requirement pertaining to redressal of investor grievances, transmission of securities and closure of demat account.

Also, the timeline for reporting of artificial intelligence and machine learning by trading as well as clearing members has been extended till July 31 for June quarter.

Earlier this month, the regulator provided time till July 31 for reporting of artificial intelligence and machine learning for March quarter.