Last Updated: March 18, 2023, 10:09 IST
The new framework would come into pressure from April 1, the Securities and Exchange Board of India (Sebi) mentioned in a round.
In addition, the regulator has issued framework for furnishing PAN, KYC (Know Your Client) particulars and nomination by holders of bodily securities.
Capital markets regulator Sebi on Friday got here out with simplified procedural necessities for processing traders’ service requests by registrar and share switch brokers (RTAs) to push ease of doing enterprise.
In addition, the regulator has issued framework for furnishing PAN, KYC (Know Your Client) particulars and nomination by holders of bodily securities.
This got here after Sebi obtained representations from traders relating to difficulties being confronted by them with regard to sure procedural facets of tips and various interpretations pertaining to the documentation required for processing investor service requests.
The new framework would come into pressure from April 1, the Securities and Exchange Board of India (Sebi) mentioned in a round.
The regulator has made it obligatory 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 or investor accounts whereby any one in every of such paperwork aren’t accessible by October 1 can be frozen by the RTA.
The safety holder, whose folio has been frozen, can lodge grievances or avail any service request from the RTA solely after furnishing the entire paperwork.
“The safety holder(s) whose folio(s) have been frozen shall be eligible for any cost, together with dividend, curiosity or redemption cost in respect of such frozen folios, solely via digital mode with impact from April 1, 2024. An intimation shall be despatched by the listed firm to the safety holder that such cost is due and shall be made electronically solely upon complying with the necessities,” Sebi said.
The investor may provide the documents to the RTAs for various service requests by way of in-person verification or electronic mode with e-sign.
Sebi said that self-attested copies of documents will be accepted by the RTA for processing of service requests and for any service request except transmission and request for issuance for duplicate security certificates, indemnity would not be required.
RTAs have been asked to update the PAN as well as KYC details across all the folios of the holder managed by it and details, which are already available with the RTA are to be overwritten, upon specific authorisation for the same from the holder, in a specified form.
Listed companies, RTAs and stock exchanges will have to disseminate the requirements to be complied with by holders of physical securities of all listed companies on their respective websites.
Further, listed companies will also directly intimate its security holders about folios, which are incomplete with regard to details required on an annual basis within 6 months from the end of the financial year. However, for the financial year 2022-23, intimation would be sent by May 31, 2023.
While processing service requests and related complaints, the RTAs will have to raise all objections in one instance only. The additional information may be sought only in case of any discrepancy in the documents furnished by the security holder.
In addition to responding to queries and complaints through hard copies, the RTA would also process the same received through e-mails.
RTAs will have to provide their complete contact details — postal address, phone numbers and e-mail address on their respective websites. The same will also be provided on the websites of the listed companies and the stock exchanges on which such company is listed. RTA shall arrange to update the same as and when there is a change.
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(This story has not been edited by News18 employees and is printed from a syndicated information company feed)
