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SEBI Relaxes Compliance Norms For Stock Brokers

By Staff

The Securities and Exchange Board of India (SEBI) on Thursday relaxed compliance requirements for brokers on submission of reports pertaining to client funding and system audit due to COVID-19 lockdown.


"In view of the situation arising due to the COVID-19 pandemic and extended lockdown period, based on representations received from stock exchanges, it has been decided to extend the due date for...regulatory filings and compliance requirements by their trading and clearing members," SEBI said in a circular on Thursday.

SEBI Relaxes Compliance Norms For Stock Brokers

They have been permitted time until 31 May for submitting reports on client funding, artificial intelligence and machine learning applications. The due date for submission of the report on risk-based supervision and compliance certificate for margin trading has been extended to 30 June.

The market regulator said internal audit reports for the second half-year ending 31 March 2020, net worth certificate in margin trading, and net worth certificates for members, can be given by 30 June. A one-month extension is also been given to submit the system audit report.

Time until 17 May has also been provided for not imposing penalty for non-collection or short collection of upfront margins in the cash segment.


"However...reporting of non- collection or short collection of margins in the cash segment shall continue," SEBI said.

The relaxation in compliance requirement for maintaining call recordings of instructions received from clients will continue until 17 May for trading members working from designated alternative locations.

Read more about: sebi stock brokers
Story first published: Friday, April 17, 2020, 10:47 [IST]
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