Safeguards to address the concerns of the investors on transfer of securities in dematerialized mode

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..... 1.12 of SEBI Master circular for Depositories dated October 06, 2023 prescribed guidelines to address the concerns arising out of transfer of securities from the Beneficial Owner (BO) Accounts without proper authorization by the concerned investor. 2. To harmonize the classification of inactive/dormant accounts across Stock Exchanges & Depositories and to strengthen the measures to prevent fraud .....

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..... umns from the BO(s). 1.12.3. If the DIS booklet is lost / stolen / not traceable by the BO, the same must be intimated to the DP immediately by the BO in writing. On receipt of such intimation, the DP shall cancel the unused DIS of the said booklet. 1.12.4. The DP shall also ensure that a new DIS booklet is issued only on the strength of the DIS instruction request slip (contained in the previ .....

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..... subscribing to rights issues/ systematic investment plans (SIPs) of mutual funds, etc.) may be considered as a transaction for assessing the dormancy. However, any credit due to involuntary corporate action (such as bonus, split, etc.) may not be considered as transaction for assessing the dormancy. 1.12.5. The DPs shall not issue more than 10 loose DIS to one account holder in a financial year .....

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..... nated senior official of the DP. The authorized official of the DP verifying such transactions with the BO, shall record the details of the process, date, time, etc., of the verification on the instruction slip under his/her signature. However, in case of active accounts, such verification may be made mandatory only if the BO account has 5 or more International Securities Identification Number ( .....

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..... provisions of this circular to the notice of the DPs of the Depository and to disseminate the same on their website as well as monitor compliance by DPs. c. communicate to SEBI the status of implementation of the provisions of this circular in the Monthly Development Report. 6. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Boa .....

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