9911796707
TMI BlogFramework for automated deactivation of trading and demat accounts in cases of inadequate KYCsX X X X Extracts X X X X X X X X Extracts X X X X ..... with KYC procedure has to be accurate. An intermediary has to update the address from time to time. However, it has been observed that in some cases accurate/updated addresses of clients are not maintained. This is borne out of the fact that when SEBI issues any notices, etc. during the course of any enforcement proceedings on such addresses, the same remain unserved. 2. To ensure that the client furnishes accurate/updated details of address and to ensure that KYC details are correct, the following framework involving stock exchanges (except Commodity Derivatives Exchanges) and depositories (hereinafter collectively referred to as the MIIs ) is proposed: 2.1 Where SEBI instructs MIIs to serve any Show Cause Notice ( SCN ) or order i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions may be permitted to be settled, squared off or closed out, as the case may be, while enforcing the deactivation of trading/demat accounts of such entities. 2.3 MIIs shall ensure that they communicate the details of the deactivation along with reasons thereof to the respective registered intermediary. They shall also ensure that the reasons for the deactivation are displayed in a clear and unambiguous manner, when the entity attempts to transact using his trading/demat account. 2.4 Subject to the above, the MIIs shall ensure that the deactivated accounts are not used for dealing in securities market in any manner whatsoever. 2.5 The concerned entity may place a request to the registered intermediaries with which the entity ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int accounts, MIIs shall endeavor to contact the entity through the co-holders for delivery of SCN / order simultaneously by following the same process outlined above. 2.10 The MIIs may deviate from the provisions of this Circular in appropriate cases, where the compliance with the framework is hampered due to factors beyond the control of the entity. In such cases, the MIIs shall record the reasons for deviating from the mandate of the framework and communicate the same to SEBI within 2 working days of such deviation. 2.11 MIIs shall have a mechanism for exchange of information and coordination amongst themselves for the purpose of implementing the framework described in this Circular. MIIs shall submit a consolidated report indicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BSE NSE NSDL CDSL Physical delivery of SCN BSE makes multiple attempts on different addresses from August 1, 2022 to August 25, 2022 and the delivery at all locations becomes unsuccessful. NSE attempts the service on August 15, 2022 and the delivery becomes unsuccessful. NSDL attempts the service on August 16, 2022 and the delivery becomes unsuccessful. CDSL attempts the service on August 16, 2022 and the delivery becomes unsuccessful. Sharing of information on delivery status The details of unsuccessful delivery shall be shared with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mat and trading accounts (within 5 working days from the date of request by the entity) BSE shall re-activate the accounts and inform all the other MIIs within October 06, 2022 as the date of submission of request by the entity was October 01, 2022. All the demat and trading accounts shall be re-activated within October 06, 2022. Forwarding of signed acknowledgement to MII within 2 working days from date of receipt by the intermediary Signed acknowledgement shall be forwarded to BSE by the registered intermediary within October 03, 2022 as the date of receipt of signed acknowledgement by the intermediary was October 01, 2022. NA ..... X X X X Extracts X X X X X X X X Extracts X X X X
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