Nomination for Eligible Trading and Demat Accounts – Extension of timelines for existing account holders
Summary
SEBI extends the deadline for existing trading and demat account holders to update their nomination choice from March 31, 2023, to September 30, 2023. Stock Brokers and Depository Participants are mandated to encourage clients to update this information through fortnightly communications via email and SMS. Stock Exchanges and Depositories must amend relevant regulations and submit monthly monitoring reports regarding client updation efforts.
Text
SEBI had mandated providing choice of nomination details... for all existing eligible trading and demat account holders latest by March 31, 2022 failing which the trading accounts shall be frozen...
the timeline for mandatory submission of 'choice of nomination' for existing trading and demat accounts was extended to March 31, 2023.
it has been decided that the provisions mentioned at para 7 of SEBI circular dated July 23, 2021 read with para 3 (a) of SEBI circular dated February 24, 2022 with regard to freezing of accounts shall come into force with effect from September 30, 2023 instead of March 31, 2023.
Stock Brokers and Depository Participants shall encourage their clients to update ‘choice of nomination’ by sending a communication on fortnightly basis by way of emails and SMS to all such UCCs/demat accounts wherein the ‘choice of nomination’ is not captured.
All other provisions mentioned in the circulars SEBI/HO/MIRSD/RTAMB/CIR /P/2021/601 dated July 23, 2021 and SEBI/HO/MIRSD/MIRSD_RTAMB/P /CIR/2022/23 dated February 24, 2022 shall remain unchanged.
Stock Exchanges and Depositories are advised to: make necessary amendments to the relevant bye-laws... bring the provisions of this circular to the notice of their constituents... monitor the efforts made by trading members and depository participants... and submit a report to this effect on monthly basis...
This circular is issued in exercise of powers conferred by 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 market.
Source: SecMarx — Nomination for Eligible Trading and Demat Accounts – Extension of timelines for existing account holders. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.