The Stock Exchange Board India (SEBI) on June 20, 2022, SEBI vide circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016, had mandated uniform nomenclature to be followed by stock brokers for Naming/Tagging of Bank and Demat Accounts to reflect the purpose for which those bank/Demat accounts are being maintained and the reporting of such accounts to the Stock Exchanges/Depositories.
In consultation with Stock Exchanges and Depositories, it has been decided that all Demat accounts maintained by stockbrokers should be appropriately tagged.
Further, it is prescribed that:
•All Demat accounts of stockbrokers which are untagged need to be appropriately tagged by June 30, 2022.
•Credit of securities shall not be allowed in any Demat account left untagged from July 01, 2022, onwards. Credits on account of corporate actions shall be permitted.
•Debit of securities shall also not be allowed in any Demat account left untagged from August 01, 2022.
•Stockbroker shall obtain permission from Stock Exchanges to allow tagging of such Demat accounts from August 01, 2022, onwards. Stock Exchange shall grant such approval within two working days after imposing the penalty as per their internal policy.
This circular shall not be applicable for the Demat accounts which are used exclusively for banking activities by stockbrokers which are also banks.
Stock Exchanges and Depositories shall coordinate and ensure compliance with this circular by the stockbrokers and submit a compliance report to SEBI on July 01, 2022, and August 01, 2022.
[SEBI/HO/MIRSD/MIRSD_DPIEA/P/CIR/2022/83]
