The Securities and Exchange Board of India (SEBI) has announced an extension of various timelines related to nomination in eligible demat accounts, as well as the submission of PAN, nomination, and KYC details by physical security holders. This extension comes as a response to representations received from Exchanges, Depositories, Brokers’ Associations, and other stakeholders. SEBI’s recent circular, dated September 26, 2023, outlines the new deadlines for these updates.
New Deadlines
- Voluntary Choice of Nomination for Trading Accounts: SEBI has made the submission of the “choice of nomination” for trading accounts voluntary. This decision aims to enhance the ease of doing business.
- Demat Account: The deadline for submitting the “choice of nomination” for demat accounts has been extended to December 31, 2023.
- Physical Security Holders: Initially, SEBI mandated that PAN, Nomination, Contact details, Bank Account details, and Specimen signatures for physical security holders must be submitted by September 30, 2023, or their folios would be frozen. However, this deadline has now been extended to December 31, 2023.
Guidance for Entities
SEBI has provided guidance to Stock Exchanges, Depositories, RTAs (Registrars and Transfer Agents), and Listed Companies to ensure the implementation of these circular provisions. They are advised to make necessary amendments to relevant bye-laws, business rules, regulations, and operational instructions as required. Additionally, these entities should inform their respective constituents about these changes and publish the circular on their websites.
This extension allows stakeholders more time to comply with the updated requirements, aiming to streamline the process and enhance the ease of doing business in the Indian securities market.
