Dispatch of Consolidated Account Statement (CAS) for all securities assets
Summary
This circular mandates email as the default mode for dispatching Consolidated Account Statements (CAS) and holding statements by depositories, AMCs, MF-RTAs, and DPs. It modifies specific paragraphs in the SEBI Master Circular on Depositories to establish monthly or half-yearly electronic reporting frequencies based on transaction activity. The directive requires entities to amend bye-laws, implement system changes, and provide investors with an option to receive physical statements if they opt out of email communication.
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it has been decided to revisit the regulatory provisions and provide for email as default mode of dispatch for Consolidated Account Statement (CAS) by Depositories, Mutual Fund – Registrar and Transfer Agents (MF-RTAs) and holding statement by Depository Participant (DP).
para 1.24.6, para 1.24.12, para 1.8.5, para 1.8.6 and Para 14 & 15 under the head ‘Statement of Account’ in Annexure 3 of SEBI Master Circular on Depositories dated October 06, 2023 stands modified as given in Annexure-A.
The circular shall be effective from August 01, 2024
make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision, as may be applicable/necessary;
to carry out system changes, if any, to implement the above;
disseminate the provisions of this circular on their website;
communicate to SEBI, the status of implementation of the provisions of this circular in their Monthly Development Report.
The CAS shall be dispatched by email to all the investors whose email addresses are registered with the Depositories and AMCs/MF-RTAs. However, where an investor does not wish to receive CAS through email, option shall be given to the investor to receive the CAS in physical form at the address registered with the Depositories and the AMCs/MF-RTAs. The depositories shall also intimate the investor on quarterly basis through the SMS mode specifying the email id on which the CAS is being sent.
If there is any transaction in any of the demat accounts of the investor or in any of his mutual fund folios, then CAS shall be sent to that investor through email on monthly basis. In case there is no transaction in any of the mutual fund and demat accounts then CAS with holding details shall be sent to the investors by email on half yearly basis. However, where an investor does not wish to receive CAS through email, option shall be given to the investor to receive the CAS in physical form at the address registered with the Depositories and the AMCs/MF-RTAs.
DP shall send at least one annual statement of holding through email in respect of accounts with no transaction and nil balance even after the account has remained in such state for one year. However, where an investor does not wish to receive the holding statement through email, option shall be given to the investor to receive the same in physical form at the registered address. One annual statement of holding shall be sent in respect of remaining accounts through email unless specifically opted by the investor to receive the same in physical form.
Accounts with zero balance and nil transactions during the year: DP shall send at least one annual statement of holding through email in respect of accounts with no transaction and nil balance even after the account has remained in such state for one year.
Accounts which become zero balance during the year: For such accounts, no transaction statement may be sent for the duration when the balance remains nil. However, an annual statement of holding shall be sent to the BO through email.
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Source: SecMarx — Dispatch of Consolidated Account Statement (CAS) for all securities assets. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.