The Securities and Exchange Board of India (SEBI) on March 20, 2024, issued a circular regarding the amendment to para .12 of the Master Circular for depositories regarding Safeguards to address the concerns of the investors on the transfer of securities in a dematerialized mode
This has a reference to Para 1.12 of SEBI Master circular for Depositories dated October 06, 2023, that has prescribed guidelines to address the concerns arising out of the transfer of securities from the Beneficial Owner Accounts without proper authorization by the concerned investor.
This shall come into force on April 01, 2024
The following has been stated namely: -
• The amended para .12 of the Master Circular for depositories regarding Safeguards to address the concerns of the investors on the transfer of securities in a dematerialized mode has been attached for reference.
• The depositories are accordingly advised to perform the following functions namely: -
a. make necessary amendments to the relevant bylaws, rules, and regulations for the implementation of the above decision immediately, as may be necessary/applicable.
b. bring the provisions of this circular to the notice of the DPs of the Depository and disseminate the same on their website as well as monitor compliance by DPs.
c. communicate to SEBI the status of implementation of the provisions of this circular in the Monthly Development Report.
[Notification No. SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/18]
