SEBI has issued a nomination for eligible trading and Demat accounts

Jul 29, 2021 | by Avantis RegTech Legal Research Team

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Industry Specific Compliance

The Securities and Exchange Board of India (SEBI) has issued a circular for the nomination for eligible trading and Demat accounts.

In this regard, Trading Members and Depository Participants (hereinafter, intermediaries), shall activate new Trading and Demat accounts from October 01, 2021, only upon receipt of above formats.

The nomination and Declaration form shall be signed under wet signature of the account holder(s) and witness shall not be required. However, if the account holder(s) affixes thumb impression (instead of wet signature), then witness signature shall be required in the forms.

The on-line nomination and Declaration form may also be signed using e-Sign facility and in that case witness will not be required.

Intermediaries shall ensure that adequate systems are in place including for providing for eSign facility and also take all necessary steps to maintain confidentiality and safety of client records.

Further, all existing eligible trading and demat account holders shall provide choice of nomination as per the option given in paragraph 2 above, on or before March 31, 2022, failing which the trading accounts shall be frozen for trading and demat account shall be frozen for debits.

[Circular No. SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601]


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