Sebi Extends Nomination Deadline for Existing Trading, Demat Account Holders Till Sep 30

Capital markets regulator Sebi on Tuesday prolonged the deadline until September-end for present buying and selling and demat account holders to offer alternative of nomination or decide out of nomination.

Earlier the deadline was March 31, 2023.

In July 2021, the Securities and Exchange Board of India (Sebi) requested all present eligible buying and selling and demat account holders to offer alternative of nomination on or earlier than March 31, 2022, failing which the buying and selling and demat accounts would have been frozen for debits.

Later, this was prolonged by yet one more 12 months until March 31, 2023.

“Based on the evaluation of the buying and selling in addition to demat accounts wherein alternative of nomination particulars (furnishing of nomination or declaration for opting out of nomination) has not been up to date and on the idea of representations obtained from the stakeholders, it has been determined that the provisions… with regard to freezing of accounts shall come into power with impact from September 30, 2023 as a substitute of March 31, 2023,” Sebi stated in a round.

Also, Sebi has asked stock brokers and depository participants to encourage their clients to update ‘choice of nomination’ by sending a communication on fortnightly basis by way of emails and SMS to all such UCCs/demat accounts wherein the ‘choice of nomination’ is not captured.

The communication would provide guidance through which the client can provide his/her ‘choice of nomination’.

Investors who are opening new trading and demat accounts from October 1, 2021, have the choice of providing nomination or opting out of nomination through a declaration form.

Read all the Latest Business News here

(This story has not been edited by News18 workers and is revealed from a syndicated information company feed)