Amending the round issued in May, Sebi mentioned that reference to the time period ‘freezing/ frozen’ has been deleted.
Sebi decides to get rid of the supply of requiring the freezing of folios with out PAN, KYC particulars and nomination for all holders of bodily securities
The Securities and Exchange Board of India (Sebi) on Friday determined to get rid of the supply of requiring the freezing of folios with out PAN, KYC particulars and nomination for all holders of bodily securities. The rule has come into power with speedy impact, the capital markets regulator Sebi mentioned in a round.
The determination has been taken after receiving suggestions from the Registrars’ Association of India and buyers. Under the rule, it was necessary for all holders of bodily securities in listed firms to furnish PAN, nomination, contact particulars, checking account particulars and specimen signature for his or her corresponding folio numbers.
The folios whereby anybody of such paperwork should not obtainable on or after October 1, 2023, is required to be frozen by the Registrars to an Issue and Share Transfer Agents (RTA), Sebi mentioned in May.
Amending the round issued in May, Sebi mentioned that reference to the time period ‘freezing/ frozen’ has been deleted.
“Based on representations received from the Registrars’ Association of India, feedback from investors, and to mitigate unintended challenges on account of freezing of folios and referring frozen folios to the administering authority under the Benami Transactions (Prohibitions) Act, 1988 and/or Prevention of Money Laundering Act, 2002, it has been decided to do away with the above provisions,” Sebi mentioned.
Further, frozen folios have been required to be referred by the RTA or listed firm to the administering authority underneath the Benami Transactions (Prohibitions) Act, 1988, and/or Prevention of Money Laundering Act, 2002, in the event that they proceed to stay frozen as on December 31, 2025.
In March, Sebi made it necessary for all demat account holders to both furnish nomination declarations or decide out of nominations by September 30.
In a round on March 28 this yr, the Securities and Exchange Board of India (Sebi) mentioned, “Based on representations received from the market participants, it has been decided that the provision mentioned at para 4 of SEBI circular dated June 15, 2022, with regard to freezing of folios, shall come into force with effect from September 30, 2023, instead of March 31, 2023.”
According to this, failing to appoint could consequence within the freezing of your mutual fund folio.
(With PTI Inputs)
