The Bombay Stock Exchange (BSE) on April 26, 2023, issued the Framework for automated deactivation of trading and demat accounts in cases of inadequate KYCs.
The following has been stated namely: -
• SEBI instructed MIIs to serve any Show Cause Notice (“SCN”) or order issued by SEBI, the MIIs shall arrange to physically deliver the same to the entity.
• Earlier, The MIIs forwarded the signed acknowledgment of its receipt by the concerned addressee or its authorized representative to SEBI within a period of 30 working days from the date of receipt of such instructions from SEBI.
• Now, the SEBI communication, the period of 30 working days is being revised to 15 working days from the date of instructions from SEBI.
• In case, the show-cause notice/order is not delivered within 15 days, the client will be deactivated from trading, based on the Permanent Account Number (PAN) within 5 working days from the last unsuccessful delivery report submitted by the Trading Member/s.
[Notification No. 20230426-52]
