The National Stock Exchange of India has finally put an end to confusions and ambiguities regarding reporting and supervision of compliances related to Structured Digital Database by entities listed under it. The NSE has issued Standard Operating Procedure on October 28, 2022 for ensuring compliance with Structured Digital Database (SDD) requirements.
Companies are mandated to submit a quarterly compliance certificate certified either by the compliance officer or a Practicing Company Secretary (PCS). The companies are required to submit the SDD compliance certificate as per the below schedule:
1. For quarter ended September 2022 – Latest by November 18, 2022
2. For quarter ended December 2022 – Latest by January 21, 2023
This certificate has to be emailed on the following email id of the Exchange: email@example.com. NSE has also provided the format for the compliance certificate.
This NSE reporting requirements are temporary and a separate circular shall be issued by the Exchanges for handling of compliance certificate for quarter ending March 2023 onwards.
NSE shall inspect the SDD system maintained by the company after providing 1 working day notice. On inspection if the Exchanges observe that the company is non-compliant with respect to SDD, appropriate action shall be initiated by the Exchanges.
In addition to the Standard Operating Procedure, NSE has also issued an FAQ to provide further clarifications regarding the SDD related compliances. This is in addition to and in light of the clarifications provided by SEBI on the subject.
The FAQ has clarified that every company in a group shall maintain an independent SDD to comply with these prerequisites as prescribed by the PIT Regulations.
Also, companies under Corporate Insolvency Resolution Process (CIRP) are also required to maintain SDD.
Alby Stephan. K, Legal Executive at Legality Simplified