On Friday, SEBI extended the deadline for brokers to submit reports on client funding and daily margin till July 31 due to the ongoing coronavirus (Covid-19) crisis.
In addition, the market regulator SEBI has given overtime for submitting compliance certificate on margin trading, internal audit report also as net worth certificates of brokers, and risk-based supervision, for the half-year ended March 31, 2020.
This is the third time when SEBI has extended the deadline for compliance.
The decision is an outcome of representation of stock exchanges, the market regulator, SEBI said in a circular.
The Securities and Exchange Board of India (SEBI) has given the due time till July 31 to the brokers for submitting the report on client funding for the months of April, May, and June and also for March quarter report on Artificial Intelligence (AI) and Machine Learning (ML) applications.
The due date for submitting the reports at the first instance was extended till 31st of May and then for the second time it was extended till June 30 and finally for the third time till July 31.
In view of the coronavirus induced situation followed by stringent lockdowns, representations received from stock exchanges, the market regulator said it has decided to extend the due date for the regulatory filings and compliance requirements by their trading and clearing members.
SEBI has also extended the time for not imposing penalties for non-collection or a short collection of upfront margins.
The imposition of penalty was effective from April 1 and therefore the relaxation during this regard was given till June 30. However, reporting of non- collection/short collection of margins in the cash segment shall continue, the circular added.
Moreover, the relaxation in compliance requirements for maintaining call recordings of instructions received from clients will continue until July 31.
Additionally, the market regulator, SEBI has eased the rules regarding the submission of the KYC application.