SEBI Circular

Streamlining of Regulatory Reporting by Designated Depository Participants (DDPs) and Custodians

egulatory Reporting by Designated Depository Participants (DDPs) and Custodians

The SEBI Circular Dated 25th January 2024:

The Securities and Exchange Board of India (SEBI) issued a circular to all Designated Depository Participants (DDPs) and Custodians to streamline regulatory reporting for compliance standards and ease of reporting.

The key points of the SEBI circular are highlighted below-

Standardized Compliance:

The SEBI reviewed the reports duly submitted by all Designated Depository Participants (DDPs) and custodians to formulate standardized compliance so as to streamline the entire regulatory reporting.

Rule Amendments:

Under Rules 31(4) of SEBI (Foreign Portfolio Investors Regulations, 2019, and Rules 20 of Custodian SEBI Regulations, 1996, along with the SEBI Master Circular laid down for Custodians, made necessary for the submission of specified reporting by DDPs and Custodians.

Digital Submission:

Following the review of reports duly submitted, the SEBI (Securities and Exchange Board of India) decided and mandated that certain necessary reports, including the annual audits reports, annual review reports, AI/ML, custodian quarterly reports, along with others specified reports will be now submitted on the concerned SEBI Intermediary Portal (SI Portal).

Reporting Format Standardization:

The SEBI specified the reporting format with the consultation from pilot custodians and other designated depository participants’ standard setting forum (CDSSF), which will be shared through the CDSSF to all DDPs and custodians.

Timely Monthly Reporting:

Reporting made by DDP under clause 14(iii) of the Master Circular for FPIs and DDPs will be followed to report on a monthly basis on the SEBI intermediary Portal (SI Portal). Moreover, the DDPs may continue to submit reports with delays with a proper intimation to SEBI in terms of specific material changes within a period of 2 working days via email.

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Periodic Reporting Schedule:

SEBI mandates that the reports need to be submitted to the specified SEBI Intermediary Portal (SI Portal) on a monthly, quarterly, half-yearly, and annual basis as prescribed by the concerned authority. The Reports that are submitted on a monthly and quarterly basis must be uploaded within the 15th day of the calendar from the end of every month and quarter, respectively.

Modifications to Provisions:

The SEBI circular modifies the mode and periodicity of provisions, which is mentioned in Paragraph 2.

Effective Date:

The said provisions under the SEBI Circular shall be effective from the ending month of February 2024.

Legal Authority:

Moreover, the Circular was issued using the powers conferred under section 11(1) of the SEBI Act (the Securities and Exchange Board of India Act, 1992) to safeguard the interest of potential investors and to regulate the securities market.

Availability:

This Circular is available on the SEBI official website mentioned under the category “Legal Framework- Circulars’ and Information for Foreign Portfolio Investors”.

SubjectStreamline the  Regulatory Reporting by DDPs and Custodians
Regulations ReferencedRegulation 31(4) of SEBI (Foreign Portfolio Investors) Regulations, 2019; Regulation 20 of SEBI (Custodian) Regulations, 1996; Master Circular for Custodians (April 27, 2023)
Reports to be Submitted on the SI PortalReports including Annual audit reports, annual review reports, AI/ML reports, custodian quarterly reports, and others (Refer to Table 1 for detailed reporting requirements)
Reporting FormatsFinalized in consultation with the pilot Custodians and Designated Depository Participants Standard Setting Forum (CDSSF) and will be shared accordingly.
Reporting by DDPs (Clause 14(iii))On a monthly basis on the SI portal; certain material changes are submitted via email within two working days
Submission TimelinesMonthly and quarterly reports within 15 calendar days from the end of each month and quarter, respectively; other reports as per Master Circular timelines
Modification of Mode and PeriodicityProvisions modified as specified in the Circular
Effective DateFrom the month ending February 2024 onwards
AuthorityIssued under the powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992
Circular AvailabilitySEBI website under “Legal Framework – Circulars” and “Info for Foreign Portfolio Investors”
SEBI-Reporting-Simplified-for-DDPs-and-Custodians-1
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