SARAL Account Opening Form for resident individuals
Summary
SEBI issued a circular on March 4, 2015, to simplify the account opening process for resident individual investors in the securities market. The directive permits these investors to use a simplified 'SARAL AOF' form to open trading and demat accounts with limited facilities. Additionally, the requirement for proof of address is relaxed, allowing submission of only one document along with a declaration for correspondence.
Text
It is gathered that a majority of new investors in the securities market begin with participation in the cash segment without obtaining various other facilities such as internet trading, margin trading, derivative trading and use of power of attorney.
such individual investors can open a trading account and demat account by filling up a simplified Account Opening Form ('AOF') termed as 'SARAL AOF' given at Annexure A.
This form will be separately available with the intermediaries and can also be downloaded from the Exchanges' and Depositories' website.
The investors who open account through SARAL AOF will also have the option to obtain other facilities, whenever they require, on furnishing of additional information as per prescribed regulations/circulars.
The standard set of documents viz. Rights and Obligations document, Uniform Risk Disclosure Document and Guidance Note and documentary proof related to identity and address as specified in SEBI Circulars dated August 22, 2011 and October 5, 2011 shall continue to remain applicable.
the provisions laid down under the PML Act, PML Rules, SEBI Master Circular on AML dated December 31, 2010 and SEBI Circular on AML dated March 12, 2014 shall also continue to remain applicable for set of individual investors mentioned in paragraph 2 above.
Henceforth, individual investor may submit only one documentary proof of address (either residence/correspondence or permanent) while opening a trading account and / or demat account or while undergoing updation.
In case the proof of address furnished by the said investor is not the address where the investor is currently residing, the intermediary may take a declaration of the residence/correspondence address on which all correspondence will be made by the intermediary with the investor.
No proof is required to be submitted for such correspondence/residence address.
In the event of change in this address due to relocation or any other reason, investor may intimate the new address for correspondence to the intermediary within two weeks of such a change.
The residence/ correspondence address and any such change thereof may be verified by the intermediary through ‘positive confirmation’ such as (i) acknowledgment of receipt Welcome Kit/ dispatch of contract notes / any periodical statement, etc. (ii) telephonic conversation; (iii) visits, etc.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992.
Source: SecMarx — SARAL Account Opening Form for resident individuals. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.