Nomination for Eligible Trading and Demat Accounts - SEBI - SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601

CIRCULAR SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 July 23, 2021 Too All Recognized Stock Exchanges All Recognized Depositories Stock Brokers (Trading Members) through Recognized Stock Exchanges Depository Participants through Depositories Sir / Madam, 1. Section 73 of Companies Act, 2013 provides for nomination by a holder of securities. 2. Investors opening new trading and or demat account(s) on or after October 01, 2021, shall have the choice of providing nomination or opting out nomination, as follows; a. The format for nomination form is given in Annexure - A to this circular b. Opt out of nomination through Declaration Form , as provided in Annexure - B to this circular These forms at Annexure A or B, would also be applicable for any subsequent change / withdrawal of nomination. 3. 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. 4. 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. 5. The on-line nomination and Declaration form may also be signed using e-Sign facility and in that case witness will not be required. 6. 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. 7. 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. 8. The Stock Exchanges, Depositories and intermediaries are directed to: a. take necessary steps to implement the provisions of this circular, including making necessary amendment to the relevant bye-laws / business rules / regulations / operational instructions, as the case may be b. bring the provisions of this circular to the notice of their respective constituents and also disseminate this circular on their websites c. communicate to SEBI, the status of the implementation of the provisions of this circular in Monthly Development Report of the following month; and d. monitor the compliance of this circular 9. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 , read with the provisions of SEBI (Stock Broker) Regulations, 1992 and SEBI (Depositories and Participants) Regulations, 2018 , to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets. 10. This circular is available on SEBoite at www.sebi.gov.in. Yours faithfully, Deepak Trivedi Chief General Manager Tel. no: 022-26449753 Email id: [email protected]