Sebi Grants Leeway To GTB ECS Facility Account Holders

Mumbai, July 30 | Updated: Jul 31 2004, 06:12am hrs
The Securit-ies and Exc-hange Board of India (Sebi) on Friday provided some relief to the account holders of Global Trust Bank by asking companies not to print the account details on the divid-ends/interest warrants in case of investors, who have opted for electronics clearing system (ECS) facility through GTB.

The Centre on July 24 placed GTB under moratorium for a three-month period, while on July 26, the RBI announced the amalgamation of GTB with OBC.

The issuer companies, registrars and share transfer agents should pay dividend, interest and other cash benefits through warrants (payment instruments) without printing the bank account details of GTB, the market regulator in a notification said. This is a temporary exemption from the applicability of certain regulations only for those investors, who have furnished details of their GTB accounts for ECS facility, the notification added.

In instances, where investors have provided details of alternate bank account, these should be printed on the payment instruments, it added.