SEBI has issued a Circular dated 18th August 2020 to all depositories informing them of amendments made to Master Circular for Depositories dated 25th October 2019 and SEBI Circular dated 9th December 2009. The changes were initiated to protect the interests of investors in the securities market and to promote the development of and to regulate the securities market.
The change was made to align provisions relating to the minimum time period for which Depositories and Depository Participants must preserve records and documents.
It may be recalled that the SEBI Circular dated December 9, 2009, required Depositories and Depository Participants to preserve records and documents for a minimum period of five years. However, in terms of the provisions of the SEBI (Depositories and Participants) Regulations, 2018, Depositories and Depository Participants are required to preserve the records and documents for a minimum period of eight years.
In order to rectify the anomaly, changes have been made both, to the Master Circular for Depositories dated 25th October 2019 and SEBI Circular dated 9th December 2009. These changes now elucidate explicitly that Depositories and Depository Participants must maintain records and documents for a minimum period of eight years.
Therefore, this change is evidenced in Master Circular for Depositories under the heading ‘Preservation of Records’ and both the SEBI Circular dated 9th December 2009 and Regulations 54 and 66 of the SEBI (Depositories and Participants) Regulations, 2018 have been referenced in this regard.
Likewise, in the SEBI Circular dated 9th December 2009 makes the change in its paragraph to while referencing and Regulations 54 and 66 of the SEBI (Depositories and Participants) Regulations, 2018.
In both, the Master Circular on Depositories as well as the said SEBI Circular all other provisions remained unchanged.
