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Lockdown: Sebi writes state govts to allow mkt personnel to reach offices

Press Trust of India  |  New Delhi 

Regulator Sebi on Wednesday asked all the states and Union Territories to allow stock brokers and other market entities personnel to reach their offices for smooth functioning of capital markets.

The development comes as the market entities personnel faced difficulties in commuting to their workplaces due to 21-day nationwide lockdown announced by Prime Minister Narendra Modi on Tuesday as part of efforts to curb spreading of coronavirus infections.

However, the Home Ministry has said that capital market and debt market entities notified by Sebi will be exempted from such closure.

"Today, Sebi has written to Chief Secretaries/ Administrators of all States/ UTs, requesting them to facilitate the functioning and movement of personnel of entities notified by Sebi for the smooth operation of the capital markets a Sebi spokesperson told PTI.

Besides, the regulator has asked to facilitate functioning and movement of officials of its staff, as per the letter.

In the letter, Sebi has referred to an order issued by Ministry of Home Affairs, which said "the order... provides that commercial and private establishment shall be closed down but that the capital and debt market service as notified by the Securities and Exchange Board of India shall be exempted from such closures".

This empowers Sebi tonotify capital and debt market services from the applicability of this order and guidelines with respect to the functioning of commercial and private establishments, the letter noted.

Accordingly, the regulator notified the entities exempted from the nationwide closure are -- stock exchanges, clearing corporations, depositories, custodians, mutual funds, asset management companies, stock brokers, trading members, clearing members, depositories participants, registrar and share transfer agents.

Besides, credit rating agencies, debenture trustees, foreign portfolio investors, portfolio managers, alternative investment funds, investment advisers and other Sebi registered entities and activities shall also remain operational, the regulator noted.

Earlier this week, stock brokers grouping Anmi and Commodity Market Participants of India (CPAI)asked Sebi to include brokers and depository participants under essential services as brokers and other staffs were facing problem in reaching their offices because of lockdown announced by several state governments.

The Association of National Exchanges Members of India (Anmi) has around 900 stock brokers as members.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 25 2020. 18:12 IST
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