Clarifications with respect to Circular dated November 03, 2021, on ‘Common and simplified norms for processing investor’s service request by RTAs and norms for furnishing PAN, KYC details and Nomination’
Summary
This circular provides clarifications on the November 3, 2021 SEBI circular regarding investor service requests and KYC norms based on representations from RAIN. It details phased implementation for nomination forms, specific procedures for handling signature and name mismatches, and amendments to document attestation requirements. Additionally, it mandates that RTAs cease processing requests without PAN/KYC/Nomination details from January 1, 2022, and requires a compliance certificate within 90 days.
Text
Form SH13 (nomination form) / ISR 3 (opting out) shall be sent out to the target security holder accounts in the following phases: Phase 1: January 1, 2022 onwards – Single account holders; Phase II: April 1, 2022 onwards – Joint account holders. The RTA shall make available the soft copy of Form SH13/ISR3 on its website. The form should be in a downloadable and fillable format.
The timeline to process the service request shall commence after the notice period of 15 days. If the letter sent by the RTA returns undelivered, RTA shall advise the investor to obtain the signature verification by the Banker so as to process the request. In case of an objection, the RTA, after removing the objection, shall advise the Investor to furnish signature verification by the Banker along with any of the documents as detailed in Para 2.3 a) of the Circular.
The holder / claimant shall furnish original cancelled cheque with name of the security holder printed on it / Bank Passbook / Bank Statement attested by the Bank, and Banker’s attestation of the signature as per Form ISR-2.
Driving license in Smart Card form, Book form or copy of digital form shall be accepted
in case the following documents are submitted for any service request i.e. a) Flat maintenance bill, b) Proof of address in the name of spouse, additional self-attested copy of Identity Proof of the holder/claimant may be obtained to process the request.
the 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. In case the signature matches with the record available with the RTA, the request for change in address can be processed without keeping it on hold for 15 days as mentioned in the Circular. In case where the letter is undelivered at the old address, RTA shall not insist for any proof of the old address provided the current address proof is in the form of an address proof issued by a Government Authority.
For all service requests, except transmission, copies of documents that are summited in hard copy shall be processed by the RTA if the same is self-attested by the holder(s). RTA shall not insist on affidavits or attestation / notarization of documents.
RTA shall update the folio(s) of the holder with the information on 1) present address, 2) bank details, 3) E-mail id and 4) mobile number from the details available in the Client Master List (CML), if the holder / claimant provides the CML. Details which are already available with the RTA are to be overwritten on specific request received from the investor as per the authorization clause given in Form ISR-1 (pdf) (Word File). In the normal course, only details which are not available for the physical folio in RTA database, shall be updated from the demat account details.
E-Sign is an integrated service which facilitates issuing a Digital Signature Certificate and performing signing of requested data by eSign user. The holder/claimant may approach any of the empanelled eSign Service Provider, details of which are available on the website of Controller of Certifying Authorities (CCA), Ministry of Communications and Information Technology (https://cca.gov.in/) for the purpose of obtaining an e-sign.
The word ‘Postal address’ shall be read as ‘address available with the RTA’ in Para 4.1.c of the Circular.
For data validation, it shall be mandatory to provide corresponding folio numbers along with mobile number and e-mail ID by the holder.
From January 1, 2022, the RTAs shall not process any service requests or complaints received from the holder(s) / claimant(s), till PAN, KYC and Nomination documents/details are received.
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Source: SecMarx — Clarifications with respect to Circular dated November 03, 2021, on ‘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.