Nominee rule changed for trading accounts; demat account nomination deadline extended
Sep 26, 2023
Synopsis
SEBI on September 26 extended the deadline for existing demat account holders to provide choice of nomination by another three months to December 31, 2023. Further, the regulator has also changed the nomination rule for trading accounts. All you need to know
Securities and Exchange Board of India (SEBI) on September 26 extended the deadline for existing demat account holders to provide a choice of nomination by another three months to December 31, 2023. Earlier, the deadline for existing eligible trading and demat account holders to provide a choice of nomination was on or before September 30. "With respect to demat accounts, it has been decided to extend the last date for submission of ‘choice of nomination’ to December 31, 2023," said SEBI in its circular on Tuesday.
This is the second time the regulator has extended the deadline.
The submission of 'choice of nomination' for trading accounts has also been made voluntary by the regulator as a step towards ease of doing business, the regulator mentioned.
For those holding physical shares, SEBI earlier said that the folios will be frozen if PAN, nomination, contact details, bank a/c details and specimen signature are not submitted by the holders by September 30, 2023. Now, the timeline for submission of PAN, nomination, contact details, bank account details etc. have been extended to December 31.
"Based on the representations received from investors, Registrars Association of India, and various other stakeholders, it has been decided to extend the last date for submission of PAN, nomination, contact details, bank A/c details, and specimen signature for their corresponding folio numbers to December 31, 2023," said SEBI in its circular on Tuesday.
The regulator has asked stock exchanges, depositories, and listed companies to take the necessary steps to implement the revised rules. SEBI asked stock exchanges, depositories, RTAs, and listed companies to a) take necessary steps to implement the provisions of this circular, including making a necessary amendment to the relevant bye-laws/business rules/regulations/operational instructions, as the case may be; b) bring the provisions of this circular to the notice of their respective constituents and also disseminate this circular on their websites; c) communicate to SEBI, the status of the implementation of the provisions of this circular; and d)monitor the compliance of this circular.
"This circular shall come into effect immediately in supersession of relevant provisions contained in various circulars issued by SEBI including Master Circulars issued for Stock Brokers and Registrars to an Issue and Share Transfer Agents dated May 17, 2023," the regulator added.
[The Economic Times]
