Simplified norms for processing investor’s service requests by RTAs and norms for furnishing PAN, KYC details and Nomination
Summary
SEBI rescinds simplified norms for processing investor service requests and furnishing PAN, KYC, and Nomination details. The regulator amends the Master Circular for Registrars to an Issue and Share Transfer Agents by deleting references to 'freezing' folios and removing the requirement to refer frozen folios to administering authorities under specific acts. Stock Exchanges, Depositories, RTAs, and listed companies are advised to comply with these changes and update their internal regulations.
Text
Based on representations received from the Registrars’ Association of India, feedback from investors, and to mitigate unintended challenges on account of freezing of folios and referring frozen folios to the administering authority under the Benami Transactions (Prohibitions) Act, 1988 and/or Prevention of Money Laundering Act, 2002, it has been decided to do away with the above provisions.
Reference to the term ‘freezing/ frozen’ has been deleted.
Referral of folios by the RTA/listed company to the administering authority under the Benami Transactions (Prohibitions) Act, 1988 and/or Prevention of Money Laundering Act, 2002, has been done away with.
Stock Exchanges, Depositories, RTAs and listed companies are advised to: 3.1. comply with the conditions laid down in this circular; 3.2. make necessary amendments to the relevant bye-laws, rules and regulations, operational instructions, as the case may be, for the implementation of the above circular; and 3.3. bring the provisions of this circular to the notice of their constituents and also disseminate the same on the website. 3.4. communicate and create awareness amongst stakeholders.
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 — Simplified norms for processing investor’s service requests 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.