On August 18, 2020, the Securities and Exchange Board of India (“SEBI”) issued circular no. SEBI/HO/MRD2/DDAP/CIR/P/2020/15 to align the Master Circular for Depositories dated October 25, 2019 (“Master Circular”) with the SEBI (Depositories and Participants) Regulations, 2018 (“D&P Regulations 2018”).
SEBI referred to its circular MRD/DoP/DEP/Cir-20/2009 on preservation of records dated December 9, 2009, wherein it was mentioned that depositories and depository participants are required to preserve the records and documents for a minimum period of 5 (five) years in terms of regulations 38 and 49 of the SEBI (Depositories and Participants) Regulations, 1996.
However, in terms of regulations 54 and 66 of the D&P Regulations 2018 notified on October 03, 2018, depositories and depository participants are required to preserve the records and documents for a minimum period of 8 (eight) years.
In order to align the provisions of the D&P Regulations 2018 with the Master Circular, Section 4.6(i)-Preservation of Records of the Master Circular was replaced with the following: “Depositories and Depository Participants are required to preserve the records and documents for a minimum period of 8 years”.
A similar change was also carried out in SEBI circular MRD/DoP/DEP/Cir-20/2009 dated December 9, 2009.
In view of the above changes, the depositories are advised to:
Please find a copy of the circular dated August 18, 2020 here.
This update has been contributed by Adity Chaudhury (Partner) and Kshitija Naik (Associate).
7A, 7th Floor, Tower C, Max House,
Okhla Industrial Area, Phase 3,
New Delhi – 110020
The rules of the Bar Council of India do not permit advocates to solicit work or advertise in any manner. This website has been created only for informational purposes and is not intended to constitute solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work in any manner. By clicking on 'Agree' below, you acknowledge and confirm the following:
a) there has been no solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work through this website;
b) you are desirous of obtaining further information about us on your own accord and for your use;
c) no information or material provided on this website is to be construed as a legal opinion and use of this website will not create any lawyer-client relationship;
d) while reasonable care has been taken in ensuring the accuracy of the contents of the website, Argus Partners shall not be responsible for the results of any actions taken on the basis of information provided in this website or for any error or omission in the website; and
e) in cases where the user has any legal issues, the user must seek independent legal advice.