The Securities and Exchange Board of India (SEBI) on March 27, 2023, issued a circular regarding the Extension of timelines for existing account holders’ Nomination for Eligible Trading and Demat Accounts
This has a reference to the SEBI, vide circular no. SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23, 2021, related to the Nomination for Eligible Trading and Demat Accounts
Further reference to SEBI circular SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/23 dated February 24, 2022, the timeline for mandatory submission of 'choice of nomination' was extended to March 31, 2023
The following has been stated namely: -
• It states that the provisions mentioned in para 7 of the SEBI circular dated July 23, 2021, read with para 3 (a) of the 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
• The Stock Brokers and Depository Participants shall encourage their clients to update ‘choice of nomination’ by sending a communication on a fortnightly basis by way of emails and SMS to all such UCCs/demat accounts wherein the ‘choice of nomination’ is not captured. The communication shall provide guidance through which the client can provide his/her ‘choice of nomination’
• Stock Exchanges and Depositories are advised to:
(i) 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.
(ii) bring the provisions of this circular to the notice of their constituents and also disseminate the same on the website.
(iii) monitor the efforts made by trading members and depository participants for updation of ‘choice of nomination’ by their clients and submit a report to this effect on a monthly basis within the next seven days from the end of the month. The first such report shall be submitted by May 07, 2023, for the month of April 2023
• 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.
• This circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework -> Circulars”
[Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/42]
