Market regulator SEBI and insurance regulator IRDAI have relaxed certain rules to provide relief to market participants, insurance companies and policy holders, reeling under the impact of Coronavirus-triggered chaos.

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Amongst the relaxations announced by SEBI, penalty for non-collection or short collection of margins by brokers will now be effective from April 30. Earlier, this was to become effective from April 1. SEBI has said that reporting of such margins in cash and derivatives segments would continue to be done by the brokers.

SEBI also said brokers working from alternate locations will be exempted from penal provisions for not maintaining call recordings of orders or instructions received from clients till March 31, 2020.

Also, trading members will now be placed in risk reduction mode upon utilisation of 90 percent of the capital towards margins. The threshold earlier was 85 percent.

The implementation of SEBI’s circular on risk management framework for liquid schemes of mutual funds has been extended by one month.

Also, the effective date of SEBI’s guidelines on valuation of money market and debt securities based on mark-to-market valuation has been extended by one month to May

Insurance regulator, IRDAI has asked all insurance companies to give an additional grace period of 30 days to their customers, for payment of renewal premium. This additional grace period would be provided for all three segments- life, health and general insurance policies.

The insurance regulator has also given an extended period of 15 days for insurance companies to submit monthly returns. Also the regulator has given an extended period of 30 days for insurance companies to submit quarterly returns.

Further the IRDAI has also allowed insurance companies to conduct their board meetings through audio/video conferencing.

First Published:Mar 24, 2020 1:14 PM IST