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

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

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

The regulator has eased compliance requirements with regard to the processing of the demat request form by the issuer or registrar of share transfer agent (RTA) and depository participants.

Under the norms, processing of the demat request form by the 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 23 March till 17 May shall be excluded for computing the existing timelines for compliance, SEBI noted.

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