Sebi eases compliance rules for processing of demat request, KYC application

Markets regulator Sebi on Thursday relaxed compliance norms for depository participants, stock brokers and share transfer agents with regard to processing of demat request and KYC application amid the coronavirus pandemic.

The relaxation has been given till May 3, the Securities and Exchange Board of India (Sebi) said in a circular.

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.

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 within seven days.

Besides, it has relaxed guidelines for KYC (Know Your Client) application form and supporting documents of the client that need to be uploaded on the system of KRA (KYC registration agency) within 10 working days.

The period from March 23 till May 17 shall be excluded for computing the existing timelines for compliance, Sebi noted.

Further, a 15-day time period after May 17 has been allowed to registered intermediary, to clear the backlog.

The decision has been taken in view of the situation arising due to COVID-19 pandemic and extended lockdown period as well as based on representations received from the depositories, it added.