Simplification of Account Opening Kit
Summary
This circular simplifies the account opening kit by allowing stock brokers and depository participants to provide standard documents in either electronic or physical form based on client preference. It mandates that entities maintain logs if documents are provided electronically and continue to host these documents on their websites for public access. The directive requires implementation for all new clients from August 1, 2016, and modifies three prior SEBI circulars to align with these changes.
Text
Presently, a stock broker/ depository participant is required... to provide a copy of the following standard documents... Rights & Obligations... Uniform Risk Disclosure Documents... Guidance Note...
stock broker/ depository participant shall make available these standard documents to the clients, either in electronic or physical form, depending upon the preference of the client as part of account opening kit. The preference of the client shall be sought as part of the account opening form. In case the documents are made availablein electronic form, stock broker/ depository participant shall maintain logs of the same.
stock exchanges / depositories / stock brokers/ depository participantsshall continue to make the aforesaid documents available on their website and keep the clients informed about the same.
Necessary steps shall be taken to implement this circular and ensure its full compliance in respect of all new clients from August01, 2016.
The following SEBI circulars shall stand modified to the extent of the above changes: No. MIRSD/ SE /Cir-19/2009 dated December 3, 2009; No. CIR/MIRSD/16/2011 dated August 22, 2011; and No. CIR/MIRSD/12/2013 dated December 04, 2013.
bring the provisions of this circular to the notice of their stock brokers/ depository participants and also disseminate the same on their websites;
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in coordination with one anotherto achieve uniformity in approach;
monitor the compliance of this circular through half-yearly internal audit and inspections of stock brokers/ depository participants.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Source: SecMarx — Simplification of Account Opening Kit. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.