The Securities and Exchange Board of India vide its notification dated 1st October 2020 has extended the deadline for submission of undertaking-cum-indemnity bond by trading and clearing members for their bank accounts by a period of one month i.e till 31st October 2020.
Further SEBI has 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.
As per the standard operating procedures (SOPs) issued by Sebi, trading and clearing members are required to provide a list of all their bank accounts to the stock exchanges and clearing corporations (CC), and the exchanges and CCs were supposed to obtain an undertaking-cum-indemnity bond from the trading members within 90 days from the date of Sebi’s circular issued on July 1.
However 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 such submission.
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