Sebi simplifies norms for processing investor service request

By: |
November 03, 2021 7:18 PM

In addition, the regulator has put in place a framework for furnishing PAN, KYC (Know Your Client) details and nomination by holders of physical securities.

sebiThe new framework will come into effect from January 1, 2022, the Securities and Exchange Board of India (Sebi) said in a circular

Capital markets regulator Sebi on Wednesday came out with simplified norms for processing investor’s service requests by registrar and share transfer agent (RTAs) to push ease of doing business. In addition, the regulator has put in place a framework for furnishing PAN, KYC (Know Your Client) details and nomination by holders of physical securities.

The move is part of Sebi’s ongoing measure to enhance the ease of doing business for investors in the securities market. The new framework will come into effect from January 1, 2022, the Securities and Exchange Board of India (Sebi) said in a circular.

The regulator said that norms for processing investor service requests have been standardised, simplified and made common across all service requests. These requests include change in or updation of PAN, nominee, signature, contact as well as bank details; issue of duplicate securities certificate, consolidation of securities certificate, change in status from minor to major and resident to NRI and vice versa and services through depository participants for demat.

In addition to responding to queries, complaints and service requests through hard copies, Sebi said that RTA will also process the same received through e-mails, provided that it is received from the e-mail address of the holder, which is already registered with the RTA.

Additionally, in the case of service requests, the documents furnished will have an e-sign of the holder(s) or claimant.
The regulator said that it will be mandatory for all holders of physical securities in a listed company to furnish details of PAN, nomination (for all eligible folios), contact details, bank account details and specimen signature.

The folios wherein any one of the documents or details are not available on or after April 1, 2023, will be frozen by the RTA. The RTA will revert the frozen folios to normal status upon receipt of all the documents.

Further, the regulator said it will be compulsory for investors to link PAN with Aadhaar by March 31, 2022.

From March 31, 2022, RTAs will accept only valid PANs and also verify that the PAN in the existing folios are valid i.e. whether it is linked to the Aadhaar number of the holder.

Sebi said listed companies, RTAs and stock exchanges will disseminate the requirement of the holders of physical securities of all listed companies to furnish valid PAN, KYC details and Nomination, on their respective websites. Also, listed companies will directly intimate their securities holders about folios, which are incomplete.

RTAs will have to provide a certificate of compliance from a practising Company Secretary within 45 days of this circular, certifying the changes carried out, systems put in place or new operating procedures implemented etc. to comply with the provisions of this circular, the regulator said.

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