SEBI notifies simplified norms for processing investor’s service requests by RTAs and norms for furnishing PAN, KYC details and nomination - (17 Nov 2023)
Capital Market
The Securities and Exchange Board of India (SEBI) vide its Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2023/181 dated November, 17, 2023, has simplified the norms for processing investor’s service requests by RTAs and norms for furnishing PAN, KYC details and nomination.
Previously, vide its circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/37dated March 16, 2023 (now rescinded due to issuance of Master Circular for Registrars to an Issue and Share Transfer Agents dated May 17, 2023) had simplified norms for processing investor’s service request by RTAs and for furnishing PAN, KYC details and Nomination.
Now, based on representations received from the Registrars’ Association of India, feedback from investors, and to mitigate unintended challenges on account of freezing of folios and referring frozen folios to the administering authority under the Benami Transactions (Prohibitions) Act, 1988 and/or Prevention of Money Laundering Act, 2002, it has been decided to do away with the above provisions.
Accordingly, para 19.2 of the Master Circular for Registrars to an Issue and Share Transfer Agents dated May 17, 2023 has been amended as follows:
2.1. Reference to the term ‘freezing/ frozen’ has been deleted.
2.2. Referral of folios by the RTA/listed company to the administering authority under the Benami Transactions (Prohibitions) Act, 1988 and/or Prevention of Money Laundering Act, 2002, has been done away with.
Stock Exchanges, Depositories, RTAs and listed companies are advised to:
3.1. comply with the conditions laid down in this circular;
3.2.make necessary amendments to the relevant bye-laws, rules and regulations, operational instructions, as the case may be, for the implementation of the above circular; and
3.3. bring the provisions of this circular to the notice of their constituents and also disseminate the same on the website.
3.4. communicate and create awareness amongst stakeholders.
This circular shall come into force with immediate effect.
Tags : SEBI REGISTRARS’ ASSOCIATION OF INDIA BENAMI TRANSACTIONS (PROHIBITIONS) ACT 1988 PREVENTION OF MONEY LAUNDERING ACT 2002
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