Master Circular for Depositories

SEBI/HO/MRD/DP/CIR/P/118 · 2019-10-25 · Securities and Exchange Board of India

Summary

This section introduces the SEBI Master Circular for Depositories, consolidating various circulars and directions issued up to March 31, 2019. It establishes that the Master Circular comes into force on the date of its issue and supersedes previous master circulars dated December 15, 2016. The text clarifies that in case of inconsistency, the content of the relevant specific circular shall prevail over this compilation. This section mandates Permanent Account Number (PAN) as the sole identification number for all securities market transactions. It lists specific documents admissible as Proof of Identity and Proof of Address for opening Beneficial Owner accounts. The text also clarifies the voluntary adoption of Aadhaar-based e-KYC processes for client verification by intermediaries. The document mandates additional due diligence for KYC discrepancies and requires intermediaries to maintain records per SEBI regulations. It introduces the SARAL AOF to simplify account opening for retail investors while retaining standard risk disclosures and AML compliance. Clarifications are provided for foreign investors regarding authorized signatories, proof of identity, and in-person verificatio

Text

Master Circular for Depositories has been prepared to enable the users to have an access to all the applicable circulars/directions at one place.

This Master Circular is a compilation of the relevant circulars/communications issued by SEBI up to March 31, 2019 and shall come into force from the date of its issue.

In case of any inconsistency between the Master Circular and the applicable circulars, the content of the relevant circular shall prevail.

This Master Circular shall supersede previous Master Circular SEBI/HO/MRD/DP/CIR/P/2016/134 dated December 15, 2016.

Permanent Account Number (PAN) to be the sole identification number for all transactions in the securities market

Put necessary systems in place so that the databases of the clients and their transactions are linked to the PAN details of the client

Build necessary infrastructure to enable accessibility and query based on PAN thereby enabling retrieval of all the details of the clients

Collect copies of PAN cards issued to the existing as well as new clients by the Income Tax Department and maintain the same in their record after verifying with the original

Cross-check the aforesaid details collected from their clients with the details on the website of the Income Tax Department

the intermediaries may verify the PAN of their clients online at the Income Tax website without insisting on the original PAN card, provided that the client has presented a document for Proof of Identity other than the PAN card

List of documents admissible as Proof of Address including Passport, Voter ID, Utility bills, Bank statements, and Self-declaration by judges

For FII/sub account, Power of Attorney given by FII/sub-account to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address should be taken

Source: SecMarx — Master Circular for Depositories. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.