SEBI circular dated 1st October, 2020 giving more time upto 31st October, 2020 to trading member/ clearing members to submit indemnity bond cum undertaking to the stock exchanges. Also stock exchanges have been given leeway to modify the draft of the undertaking wherever required. Gist of the circular follows
- In terms of clause 9 of SEBI circular SEBI/ HO/ MIRSD/ DPIEA/ CIR/ P/ 2020/115 dated July 01, 2020 on the captioned subject, TMs / CMs are required to provide a list of all their bank accounts to the Stock Exchanges (SEs) / Clearing Corporations (CCs) and the SEs / CCs shall obtain an Undertaking cum Indemnity bond from the TM within 90 days from the date of the said SEBI circular.
- In view of the prevailing situation due to Covid-19 pandemic and representation received from the Stock Exchanges, it has been decided to extend the timeline for submission of the Undertaking cum Indemnity bond by the TM / CM for all the bank accounts by a period of one month i.e. till October 31, 2020.
- It has also been decided to provide flexibility to the SEs / CCs for modifying the Undertaking cum Indemnity bond they need to take from TMs / CMs and suitably modify the draft undertaking wherever required.
- Stock Exchanges and Clearing Corporations are directed to bring the provisions of this circular to the notice of their members and also disseminate the same on their websites.