The National Stock Exchnage (NSE) on August 24, 2023, issued a notification regarding the Nomination for Eligible Trading and Demat Accounts
This has a reference to the SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/42 dated March 27, 2023, Exchange circular NSE/ISC/56153 dated March 28, 2023, NSE/ISC/56728 dated May 16, 2023, NSE/ISC/57234 dated June 22, 2023, and NSE/ISC/57760 July 31, 2023, wherein it has been stated that the provisions mentioned in para 7 of SEBI circular dated July 23, 2021, read along with para 3 (a) of SEBI circular dated February 24, 2022, with regard to freezing of accounts shall come into force with effect from September 30, 2023.
The following has been stated namely: -
• It states that the Trading Members are required to encourage their clients to update ‘choice of nomination’ (opt-in/opt-out) by sending a communication on a fortnightly basis by way of emails and SMS to all such UCCs / Demat accounts where the ‘choice of nomination’ is not updated.
• It states that The communication shall provide guidance through which the client can provide his/her ‘choice of nomination’. Where the trading members interact with their clients through the call & and trade facility they shall encourage the clients to provide a ‘choice of nomination’ in their trading and demat accounts in line with SEBI’s master circular dated May 17, 2023.
• It is requested to ensure that the choice of Nomination is updated for all their clients and the same is updated in the UCC database of the Exchange on or before September 30, 2023, failing which such UCCs shall neither be Permitted to Trade on the Exchange nor will they be able to square up their open positions.
[Circular No. NSE/ISC/ 58079]
