A security guard wears a mask as a precaution against the new coronavirus at the Bombay Stock Exchange (BSE) building in Mumbai, in Mumbai, India, Monday, March 16, 2020. For most people, the new coronavirus causes only mild or moderate symptoms. For some, it can cause more severe illness, especially in older adults and people with existing health problems. (AP Photo/Rafiq Maqbool) (AP)
A security guard wears a mask as a precaution against the new coronavirus at the Bombay Stock Exchange (BSE) building in Mumbai, in Mumbai, India, Monday, March 16, 2020. For most people, the new coronavirus causes only mild or moderate symptoms. For some, it can cause more severe illness, especially in older adults and people with existing health problems. (AP Photo/Rafiq Maqbool) (AP)

Sebi eases compliance burden for traders, MFs amid lockdown

  • Sebi and exchanges have already allowed trading members to trade from home and other terminals
  • Shortfall in margin collection would have started attracting penalties from 1 April but this deadline has been extended to 30 April

The Securities and Exchange Board of India (Sebi) on Monday further eased compliance burden for mutual funds (MFs) and equity traders amid the Covid-19 pandemic.

The stock markets, though active, have been facing issues relating to reporting and compliance requirements because of lockdowns imposed by authorities in various parts of the country.

Sebi and exchanges have already allowed trading members to trade from home and other terminals. On Monday, the market regulator did away with penal provisions for not maintaining call recordings of orders/instructions received from clients till 31 March.

“However, the trading member and the Stock Exchange shall send a confirmation on the registered mobile number of the client immediately after execution of the order," said Sebi in a statement.

Traders also have time to submit compliance reports till 30 April.

Shortfall in margin collection would have started attracting penalties from 1 April but this deadline has now been extended to 30 April. However, brokers would need to report any shortfall of margin collection.

The deadline for liquid funds to implement a risk management by 1 April has now been extended to 1 May. Even the requirement for adopting a mark-to-market-based valuation methodology for liquid funds will now be implemented from 1 May.

The reporting requirement of half-yearly unaudited financial results has been extended to end-May. Disclosure of commissions paid to distributors can be done till 10 May.

Sebi’s relaxation for asset management companies comes after industry body Association of Mutual Funds in India (Amfi) wrote to the regulator on 20 March. Mint reported on 22 March that Amfi has asked Sebi to view MFs’ inability to comply with regulatory circulars and timelines leniently in view of the exceptional circumstances.

It had asked the regulator to extend timelines for filing various regulatory reports, conducting board and audit committee meetings, and updates to Scheme Information Documents and Key Information Memorandums among other relaxations.

Close
×
My Reads Logout