SEBI Circular on : Nomination for Eligible Trading and Demat Accounts – Extension of timelines and relaxations for existing account holders
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24-02-2022 |
SEBI |
KYC |
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Highlights of SEBI Circular dated February 24, 2022 Nomination for Eligible Trading and Demat Accounts – Extension of timelines and relaxations for existing account holders SEBI, vide circular no. SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23, 2021 had mandated submission of nomination details/declaration for opting out of nomination for investors opening new trading and or demat account(s) on or after October 01, 2021. The circular also prescribed mandatory furnishing of the aforesaid information for all existing eligible trading and demat account holders
SEBI has now, vide its circular no. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/23 dated February 24, 2022, has extended certain timelines and has also provided clarifications on certain points. The details of the same are as under:
1. Para 2 of the above mentioned SEBI circular reads as follows: “Investors opening new trading and or demat account(s) on or after October 01, 2021, shall have the choice of providing nomination or opting out nomination, as follows; a. The format for nomination form is given in Annexure –A to this circular b. Opt out of nomination through ‘Declaration Form’, as provided in Annexure –B to this circular”
2. Further, para 7 of the said circular reads as follows:
“Further, all existing eligible trading and demat account holders shall provide choice of nomination as per the option given in paragraph 2 above, on or before March 31, 2022, failing which the trading accounts shall be frozen for trading and demat account shall be frozen for debits.”
3. In this regard, on the basis of representations received from various stakeholders, SEBI has now decided that: a. provisions mentioned at Para 7 of the said circular w.r.t. freezing of accounts shall come into force with effect from March 31, 2023 instead of March 31, 2022. b. requirement mentioned at para 2 read with para 7 w.r.t. re-submission of nomination details shall be optional for the existing investors who have already provided the nomination details prior to issuance of the aforesaid circular. c. existing investors who have not submitted nomination details till date and intend to submit their nomination or opt out of nomination (not to nominate any one) may also be allowed to do so by way of two factor authentication (2FA) login on the internet trading platform for Stock Brokers/Depository Participants providing such services. 4. The details previously required in the form at Annexure A of the circular viz. mobile number, e-mail ID and identification details of the nominee(s)/ guardian(s) of the minor nominee(s) have been made optional.
5. The revised format of the nomination form is given in Annexure –A to this circular.
6. All other provisions mentioned in the circular SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23, 2021 shall remain unchanged.
SEBI Circular no. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/23 dated February 24, 2022 is enclosed herewith for your ready reference.
In case of any clarification or assistance required in implementation of this circular you may contact VANDANA VANIA (SecMark Consultancy Ltd.)– van...@secmark.in / 9223303460 SHARDUL SHAH - shard...@secmark.in/ 9869265949 / 9653415968 |
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