Common and Simplified Norms for processing investor’s service request by RTAs and norms for furnishing PAN, KYC details and Nomination
Summary
This circular establishes common and simplified norms for Registrars to an Issue and Share Transfer Agents (RTAs) to process investor service requests. It mandates the furnishing of PAN, KYC details, and nomination by holders of physical securities and outlines procedures for handling signature and name mismatches. The document further specifies requirements for proof of address, self-attestation of documents, and the use of standardized forms like ISR-1. This section mandates the furnishing of PAN, KYC, and nomination details by holders of physical securities in listed companies. It establishes a freeze on folios lacking these details from April 1, 2023, with specific conditions for unfreezing and payment restrictions. The circular also requires compulsory linking of PAN and Aadhaar, effective March 31, 2022, and outlines compliance and dissemination obligations for RTAs, depositories, and stock exchanges.
Text
The following norms, with respect to the captioned matter, shall be applicable as an on-going measure to enhance the ease of doing business for investors in the securities market.
In case of minor mismatch in the signature... the RTA... shall intimate the holder by Speed post about the minor mis-match in signature, providing timeline of 15 days for raising objection, if any. In the absence of any objection, the service request shall be processed.
If the letter returns undelivered or if there is an objection... the RTA shall obtain signature verification by the banker before proceeding the service request.
In case of major mismatch in the signature... or if the same is not available with the RTA, then the holder / claimant shall furnish original cancelled cheque and banker’s attestation of the signature as per Form ISR-2.
For minor mismatch in name... the RTA shall additionally obtain any one of the following documents, explaining the difference in names; [list includes UID/Aadhaar, Passport, Driving license, PAN card with photograph, etc.]
It is mandatory for all holders and claimants of physical securities to furnish PAN and it is mandatory for RTAs to verify PAN details through the facility as may be provided by the Income Tax Department (ITD).
The RTA shall obtain any one of the following documents from the holder / claimant, if the address is not available in the folio or for processing the request for its change; [list includes Valid Passport, Utility bills, Govt ID, etc.]
RTAs shall forthwith send intimation about the request for change in address to the holder at both the old and new addresses by Speed post, providing, timeline of 15 days for raising objection, if any.
For all service request, except transmission, copies of documents that are summited in hard copy shall be processed by the RTA only if the same is self-attested by the holder(s), with date. It is clarified that the RTA shall not insist on affidavits or attestation / notarization of documents.
RTA shall not insist on indemnity for any service request, unless the same is specially provided in the Companies Act, 2013 or the Rules issued thereunder or in SEBI Regulations or circulars issued thereunder.
RTA shall process all investor service request by accepting the duly filled up request Form ISR-1(pdf) (word file) to this circular. Listed companies and RTAs shall make this form available in their websites.
RTAs shall update the PAN and KYC details across all the folios of the holder managed by it, upon specific authorization for the same from the holder, as provided in Form ISR-1.
You have read the preview. Create a free account to read the full document and see every order that applied it.
Free accounts include 10 searches/day with full text access.
Source: SecMarx — Common and Simplified Norms for processing investor’s service request by RTAs and norms for furnishing PAN, KYC details and Nomination. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.