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TMI BlogCentralized mechanism for reporting the demise of an investor through KRAsX X X X Extracts X X X X X X X X Extracts X X X X ..... ecognized Stock Exchanges and 14. Recognized Depositories 15. Listed companies through Recognized Stock Exchanges Dear Sir / Madam, Sub: Centralized mechanism for reporting the demise of an investor through KRAs 1. It has been decided to introduce a centralized mechanism for reporting and verification in case of the demise of an investor and thereby smoothen the process of transmission in securities market. This circular spells out the operational norms including the obligations of regulated entities, including registered intermediaries that have interface with 'investors' / 'account holders' (used interchangeably) who are natural persons. 2. Listed companies wanting to provide the beneficial access to such a centralized mechanism to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... steps; a. Intimate5 the investor, notifier(s), or the nominee(s) that the KYC status of the investor has been flagged off as "On Hold" and require them to furnish the death certificate of the concerned investor. b. Upon receipt of the death certificate, the intermediary shall follow the steps as per paragraph 3 above. Obligation of intermediary - Updation of records in the KRA system by the Intermediary 5. After verification of the death certificate, the concerned intermediary shall (on the same day of verification): a. Submit a 'KYC modification request' to the KRA that "information on death of investor received; death certificate verified" and also upload the relevant documents6 b. Block7 all debit transactions in the account / ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sues with the modification request as aforesaid, it shall consult with the concerned intermediary and share details of its observations and accordingly update the KYC status to "Modification Rejected and Clear i.e. Validated" or "Blocked Permanently", as the case may be, by the next working day. e. The KRAs shall put in place systems, protocols and procedures to operationalize this circular and the same shall be uniform across all KRAs. Intimation on Transmission of assets of the deceased investor 8. Upon receipt of notification from KRA as "Blocked Permanently", all intermediaries shall: a. Immediately block all debit transactions in the account / folios of the deceased investor as per paragraph 5 b. above and b. Intimate the notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all submit the data w.r.t. intimation of transmission as per paragraph 8 b. above, and its outcome thereof, to SEBI, in the format as may be prescribed. 13. In order to have uniformity for operationalizing this circular, Stock Exchanges, Depositories and industry associations like Association of Mutual Funds in India (AMFI), Registrars Association of India (RAIN) etc. in consultation with stakeholders including KRAs, may put in place common Standard Operating Procedure (SOP). The SOP shall be made available on their websites as well as that of the intermediaries. 14. This circular shall come into effect from January 01, 2024. 15. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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