Sebi updates CAS timelines, extends PAN data deadline to 5 days
New Delhi, Feb 17, 2025
The regulator's new circular mandates AMCs and MF-RTAs to submit common PAN data to depositories within five days of month-end, instead of the previous three-day deadline
In a bid to enhance compliance ease, the Securities and Exchange Board of India (Sebi) has revised the timelines for the issuance of Consolidated Account Statements (CAS) by depositories. The revised timelines will come into effect starting May 14, as per the circular.
As per the new circular issued on Friday, the capital markets regulator has extended the deadline for asset management companies (AMCs) and mutual fund registrar and transfer agents (MF-RTAs) to provide common PAN data to depositories. The new timeline stipulates that this data should be submitted within five days from the end of the month, up from the previous deadline of three days.
Following the receipt of the PAN data, depositories are required to consolidate the information and dispatch the CAS to investors. Those who have opted for electronic delivery (e-CAS) will receive the statements by the 12th day of the month, while investors preferring physical copies will get them by the 15th day from the month-end.
For half-yearly CAS, Sebi has mandated that AMCs/MF-RTAs must provide the data related to common PANs to depositories on or before the 8th day of April and October each year. Subsequently, the depositories must dispatch the CAS to investors who have opted for e-CAS by the 18th day of April and October, and to those who have selected physical delivery by the 21st day of the same month.
The circular also addresses the issuance of CAS in the event of no transactions. If there is activity in an investor’s demat account or mutual fund folios, the CAS will continue to be sent on a monthly basis via email. However, in cases where there are no transactions in the demat or mutual fund accounts, CAS withholding details will be sent to the investors via email on a half-yearly basis.
Sebi has emphasised that investors can choose to receive their CAS via email or physical form. Those who do not wish to receive the CAS electronically can opt for physical delivery at the address registered with the depositories and AMCs/MF-RTAs.
“This amendment would relieve the compliance burden placed on participants in the market, while investors would still be able to receive accurate and timely statements with regard to their investments. The additional couple of days for amending and reconciling data shall improve accuracy in data and further improve the experience for the investor. In addition, the decision demonstrates Sebi’s willingness to collaborate with the industry and contribute towards achieving a balance between regulation and innovation in the financial industry,” said Siddartha Karnani, partner, King Stubb & Kasiva, Advocates and Attorneys.
[The Business Standard]
