SEBI Prescribes Simplified Norms for Investor Service Requests

SEBI has recently issued a circular detailing simplified norms for processing investor service requests, PAN, KYC details, and nomination. The guidelines were updated following feedback from investors and consultation with the Registrars Association of India (RAIN). Here’s a breakdown of the key points and mandatory requirements for investors:

Mandatory Furnishing of PAN, KYC Details, and Nomination

Holders of physical securities in listed companies must provide PAN, Nomination, Contact details, Bank A/c details, and Specimen signature for their corresponding folio numbers. Failure to provide these documents and details may result in the freezing of folios by the RTA.

SEBI Prescribes Simplified Norms for Investor Service Requests

Standardized and Simplified Norms for Processing Investor Service Requests

SEBI has provided operational guidelines for processing various service requests, including mismatch in signature, mismatch in name, change in name, updation of bank details, and contact details. This is designed to provide a streamlined process for investors to access services.

KYC Details Across All Folios of the Holder, Maintained by the RTA

RTAs shall update the PAN and KYC details across all the folios of the holder managed by it and overwrite details that are already available with the RTA upon specific authorization from the holder. This ensures that investors’ information is up to date and accurate.

Electronic Interface for Processing Queries and Complaints

RTAs shall process queries and complaints received through e-mails or online portals, using appropriate credentials for login and password. This allows investors to easily make inquiries or file complaints.

Intimation to Security Holders

Listed companies shall directly intimate its security holders about folios that are incomplete with regard to details required under the circular on an annual basis within six months from the end of the financial year. This helps ensure that investors are aware of the requirements and can take appropriate action.

SEBI’s Investor Service Request Circular: Key Takeaways

The SEBI circular aim to make it easier for investors to do business in the securities market, with clear guidelines and timelines for processing various service requests and furnishing PAN, KYC details, and Nomination. It is important for holders of physical securities in listed companies to comply with these requirements to avoid freezing of folios and other consequences.

Compliance Requirements

RTAs, listed companies, stock exchanges, and depositories are advised to comply with the conditions laid down in this circular and make necessary amendments to the relevant bye-laws, rules, and regulations for the implementation of the above circular. Failure to comply may result in penalties or other consequences.

SEBI’s circular provide a comprehensive guide to the mandatory requirements for investors and the standardized and simplified norms for processing service requests. Investors and companies should ensure compliance with these guidelines to avoid any negative consequences.

SEBI Circular dated 16/03/2023: Common and simplified norms for processing investor’s service requests by RTAs and norms for furnishing PAN, KYC details and Nomination

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