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TMI BlogCommon and simplified norms for processing investor’s service requests by RTAs and norms for furnishing PAN, KYC details and NominationX X X X Extracts X X X X X X X X Extracts X X X X ..... ed by them with regard to certain procedural aspects of the provisions and varied interpretations with regard to the documentation required for processing investor service requests. 3. Based on the investor feedback and consultation with Registrars Association of India (RAIN), the norms/procedural requirements for processing service requests of investors are specified in the subsequent paragraphs. 4. Mandatory furnishing of PAN, KYC details and Nomination by holders of physical securities. It shall be mandatory for all holders of physical securities in listed companies to furnish PAN, Nomination, Contact details, Bank A/c details and Specimen signature for their corresponding folio numbers. The detailed requirements are as per Annexure - A. 5. Freezing of Folios without PAN, KYC details and Nomination. 5.1. The folios wherein any one of the cited document/details as in para - 4 above are not available on or after October 01, 2023, shall be frozen by the RTA. 5.2. The security holder(s) whose folio(s) have been frozen shall be eligible: 5.2.1. to lodge grievance or avail any service request from the RTA only after furnishing the complete documents / details as mentioned in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 2013 or the Rules issued thereunder or in SEBI Regulations or Circulars issued thereunder. 11. KYC details across all folios of the holder, maintained by the RTA 11.1. RTAs shall update the PAN and KYC details across all the folios of the holder managed by it and details which are already available with the RTA are to be overwritten, upon specific authorization for the same from the holder, as provided in Form ISR-1. 11.2. RTA shall update the folio(s) of the holder with the information on 1) present address, 2) bank details, 3) E-mail address and 4) mobile number from the details available in the Client Master List (CML) duly signed by the Depository Participant with stamp, if the holder / claimant provides the CML along with duly completed and signed Form ISR-1. 11.3. Details which are not available for the physical folio in RTA database as provided in CML along with Form ISR-1 as per 11.2 above, shall be updated from the CML. 12. Timelines for registering of / updation of / change in PAN, KYC and nomination 12.1. RTAs shall process any of the aforesaid requests from the holder, within timelines as mentioned in the circular no. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/ 2021/670 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anies shall also directly intimate its security holders about folios which are incomplete with regard to details required under para 4 of this circular on an annual basis within 6 months from the end of the financial year. However, for the Financial Year 2022-23, intimation shall be sent by the listed companies on or before May 31, 2023. 17. RTAs shall provide a certificate of compliance from a practicing Company Secretary, within 30 days from the date of this circular coming into effect, certifying the changes carried out, systems put in place / new operating procedures implemented etc. to comply with the provisions of this circular. 18. Listed Companies/RTAs shall submit a report to SEBI by May 31, 2023, on the steps taken by them towards sensitizing their security holders regarding mandatory furnishing of PAN, KYC and nomination details as detailed in para 4 of this circular. 19. Applicability This circular shall come into force with effect from April 01, 2023 in supersession of the following circulars issued by SEBI: 19.1. Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 3, 2021; 19.2. Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/687 dated Decembe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions/Check List for Filing KYC Forms' in Annexure - 1 to SEBI circular No. MIRSD/SE/Cir-21/2011 dated October 05, 2011 on Uniform Know Your Client (KYC) Requirements for the Securities Market, shall also applicable for holder(s) / claimant(s) of securities held in physical mode. 1.6. Compulsory linking of PAN and Aadhaar by all holders of physical securities in listed companies a) The Central Board of Direct Taxes (CBDT), vide Circular No. 7 of 2022 (Notification F.No.370142/14/2022-TPL) dated March 30, 2022, has extended the date for linking PAN with Aadhaar number to March 31, 2023. b) In this regard, SEBI has issued a Press Release dated March 08, 2023 advising all investors to ensure linking of their PAN with Aadhaar number prior to March 31, 2023, for continual and smooth transactions in securities market and to avoid consequences of non-compliance with the said CBDT circular, as such accounts would be considered non-KYC compliant, and there could be restrictions on securities and other transactions until the PAN and Aadhaar are linked. c) Accordingly, from April 01, 2023 or any other date as may be specified by the CBDT, RTAs shall accept only operative PAN (i.e., linked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companies shall register the specimen signature for their corresponding folio numbers. To register/update the specimen signature, the security holder may refer to para - 1.2 of Annexure - C. 6. RTAs shall not process any service requests or complaints received from the security holder(s) / claimant(s), till PAN, KYC and nomination documents/details as stated above are received. 7. However, the RTA shall furnish required information as sought by investors with respect to procedure related to investor service requests. Annexure - B Mode for providing documents/details by investors for service requests The RTA shall enable the holder/claimant to provide the documents/details by any one of the following mode; unless otherwise prescribed in the Companies Act, 2013 or the Rules issued thereunder or in SEBI Regulations or Circulars issued thereunder: 1. Through 'In Person Verification' (IPV): The authorized person of the RTA shall verify the original documents furnished by the investor and retain copy (ies) with IPV stamping with date and initials. 2. Through Post: Hard copies of self-attested documents. 3. Through electronic mode with e-sign: The holder(s)/ claimant(s) may furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity holder for no-objection or if there is an objection, the RTA shall follow the procedure as prescribed for major mismatch in signature as laid down at para 1.2 (b) of this Annexure. 1.2. Major mismatch in signature or updation/non-availability of specimen signature a) In case of major mismatch in the signature of the security holder as available in the folio of the RTA and the present signature, or in case of updation/non-availability of the specimen signature with the RTA, the RTA, while processing the service request, shall intimate the security holder about such mismatch/updation in signature, through all the following modes: i. By speed post - on the address available in RTA's records, and ii. By sending e-mail - on the registered e-mail id as available in the RTA's records, and iii. By SMS - on the registered mobile number as available in the RTA's records. b) In such cases, the security holder can register/update the specimen signature through form ISR-1 and shall complete either of the two processes: Option A i. Security holder shall provide the following documents: (a) Original cancelled cheque with name of the security holder printed on it; or (b) Self-attes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rriage - Publication of name change in official gazette, and any document evidencing the old name as per Annexure E. 3. Updation of Bank details 3.1. In cases where Bank account details of the security holder are not available with RTA or there is a change in such details, RTA shall obtain Bank account details along with any one of the following documents to update the security holder's Bank details: a) Original cancelled cheque bearing the name of the security holder; OR b) Bank passbook/ statement attested by the Bank; 3.2. The RTA shall proceed with the updation of bank details based on the documents provided by the first holder only, in case of joint holding. 4. Documents for Proof of Address 4.1. The RTA shall obtain any one of the documents mentioned in Annexure - F, from the security holder / claimant, if the address is not available in the folio or for processing the request for its change. Annexure - D Forms for availing various Investor services Investors holding securities in physical mode interface with the RTAs, inter-alia, for registering/updating the KYC details and for the processing of various service requests. RTA shall process all investor service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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