Securities and Exchange Board of India (SEBI) clarification on investor service requirements standards
Sebi has issued a clear explanation of the guidelines regarding the handling of investor service requests.
New Delhi:
Capital Markets Authority Sebi on Tuesday issued a clear explanation of guidelines regarding the handling of investor service requests from the Registry for Issuance and Transfer Agents. share transfer (RTA) and standards to provide detailed information and nominate PAN, KYC.
This comes after the Securities and Exchange Commission of India (Sebi) received representation from the Registrar of India Association. “As of January 1, 2022, the RTA will not process any service requests or complaints received from the owner(s) / requester(s), until the documents are received. / details on PAN, KYC and nomination,” Sebi said in a circular.
As for the nomination of holders of physical securities, Sebi said that nominations will be sent to securities holders’ accounts in two stages. In the first phase, this form will be available to single account holders from January 1 onwards and joint account holders from April 1 onwards. The RTA will provide a soft copy of the form on its website.
In the event of a slight mismatch between the security holder’s signature as contained in the RTA’s certificate and the existing signature, Sebi said service request processing will begin after the notification period. notice is 15 days.
If the letter returned by the RTA is not delivered, it will notify the investor to have the signature verified by the bank staff to process the request. In the event of an objection, the RTA, after removing the objection, advises the investor to provide verification of the banker’s signature along with any documents – Aadhaar, driver’s license valid passport, PAN card – among other documents.
For major mismatches in signatures or if signature cards are unavailable, Sebi said the owner or claimant will have to provide an original canceled check with the security owner’s name printed on it. or bank passbook or bank statement authenticated by the bank and the bank owner.
In the event of a name mismatch, Sebi said a driver’s license in the form of a smart card or a digital copy will be accepted. “For all service requests, except transmission, copies of documents submitted in hard copy will be processed by the RTA if such copies are self-attested by the owner. RTA will does not require affidavits or authentication/notarization of documents,” said Sebi.
Regarding KYC details on all holders’ accounts, which are maintained by the RTA, the regulator said the RTA will update holders’ accounts with information on current addresses, expenses, and details. Bank details, e-mail ID and mobile number from details are available in Customer Master List (CML), if owner or claimant provide CML.
Furthermore, the details already available with the RTA will be overwritten according to the specific request received from the investor. During the normal process, only those details that are not available for physical foos in the RTA database, will be updated from the demo account details.
Sebi added that securities in the form of frozen Folio will only be eligible for any payment including dividends, interest or return payments electronically. Listed companies will have to ensure that details are sent to owners that such payment is due and will be done electronically when certain requirements are complied with.
RTAs will have to provide a certificate of compliance from the practicing company secretary within 90 days of January 1 to confirm changes are made, systems are in place to comply with the framework. Previously, the timeline was 45 days.
