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TMI BlogCommon and simplified norms for processing investor’s service requests by RTAs and norms for furnishing PAN, KYC details and NominationX X X X Extracts X X X X X X X X Extracts X X X X ..... sentations from investors regarding difficulties being faced by them with regard to certain procedural aspects of the provisions and varied interpretations with regard to the documentation required for processing investor service requests. 3. Based on the investor feedback and consultation with Registrars Association of India (RAIN), the norms/procedural requirements for processing service requests of investors are specified in the subsequent paragraphs. 4. Mandatory furnishing of PAN, KYC details and Nomination by holders of physical securities. It shall be mandatory for all holders of physical securities in listed companies to furnish PAN, Nomination, Contact details, Bank A/c details and Specimen signature for their corresponding folio numbers. The detailed requirements are as per Annexure A . 5. Freezing of Folios without PAN, KYC details and Nomination. 5.1. The folios wherein any one of the cited document/details as in para 4 above are not available on or after October 01, 2023, shall be frozen by the RTA. 5.2. The security holder(s) whose folio(s) have been frozen shall be eligible: 5.2.1. to lodge grievance or avail any service request from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duplicate security certificates, indemnity shall not be required unless the same is specifically provided in the Companies Act, 2013 or the Rules issued thereunder or in SEBI Regulations or Circulars issued thereunder. 11. KYC details across all folios of the holder, maintained by the RTA 11.1. RTAs shall update the PAN and KYC details across all the folios of the holder managed by it and details which are already available with the RTA are to be overwritten, upon specific authorization for the same from the holder, as provided in Form ISR-1. 11.2. RTA shall update the folio(s) of the holder with the information on 1) present address, 2) bank details, 3) E-mail address and 4) mobile number from the details available in the Client Master List (CML) duly signed by the Depository Participant with stamp, if the holder / claimant provides the CML along with duly completed and signed Form ISR-1. 11.3. Details which are not available for the physical folio in RTA database as provided in CML along with Form ISR-1 as per 11.2 above, shall be updated from the CML. 12. Timelines for registering of / updation of / change in PAN, KYC and nomination 12.1. RTAs shall proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Stock Exchanges shall disseminate the requirements to be complied with by holders of physical securities of all listed companies on their respective websites. Listed companies shall also directly intimate its security holders about folios which are incomplete with regard to details required under para 4 of this circular on an annual basis within 6 months from the end of the financial year. However, for the Financial Year 2022-23, intimation shall be sent by the listed companies on or before May 31, 2023. 17. RTAs shall provide a certificate of compliance from a practicing Company Secretary, within 30 days from the date of this circular coming into effect, certifying the changes carried out, systems put in place / new operating procedures implemented etc. to comply with the provisions of this circular. 18. Listed Companies/RTAs shall submit a report to SEBI by May 31, 2023, on the steps taken by them towards sensitizing their security holders regarding mandatory furnishing of PAN, KYC and nomination details as detailed in para 4 of this circular. 19. Applicability This circular shall come into force with effect from April 01, 2023 in supersession of the following cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is regard, SEBI registered RTAs have been authorized as an eligible entity by the ITD to verify PANs through its Online PAN Bulk Verification ( PBV ) facility. 1.5. Additionally, the Exemptions/clarifications to PAN , as provided in clause D to Instructions/Check List for Filing KYC Forms in Annexure 1 to SEBI circular No. MIRSD/SE/Cir-21/2011 dated October 05, 2011 on Uniform Know Your Client (KYC) Requirements for the Securities Market, shall also applicable for holder(s) / claimant(s) of securities held in physical mode. 1.6. Compulsory linking of PAN and Aadhaar by all holders of physical securities in listed companies a) The Central Board of Direct Taxes ( CBDT) , vide Circular No. 7 of 2022 (Notification F.No.370142/14/2022-TPL) dated March 30, 2022, has extended the date for linking PAN with Aadhaar number to March 31, 2023. b) In this regard, SEBI has issued a Press Release dated March 08, 2023 advising all investors to ensure linking of their PAN with Aadhaar number prior to March 31, 2023, for continual and smooth transactions in securities market and to avoid consequences of non-compliance with the said CBDT circular, as such accounts would be consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of request for registration/updation of bank details through Form ISR 1, the RTA shall, suo-moto , generate request to the company s bankers to pay electronically, all the moneys of / payments to the holder that were previously unclaimed / unsuccessful. 5. Specimen signature All holders of physical securities in listed companies shall register the specimen signature for their corresponding folio numbers. To register/update the specimen signature, the security holder may refer to para 1.2 of Annexure C . 6. RTAs shall not process any service requests or complaints received from the security holder(s) / claimant(s), till PAN, KYC and nomination documents/details as stated above are received. 7. However, the RTA shall furnish required information as sought by investors with respect to procedure related to investor service requests. Annexure B Mode for providing documents/details by investors for service requests The RTA shall enable the holder/claimant to provide the documents/details by any one of the following mode; unless otherwise prescribed in the Companies Act, 2013 or the Rules issued thereunder or in SEBI Regulations or Circulars issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the letter sent through speed post is returned undelivered but there is confirmation by the security holder for no-objection via return e-mail registered with the RTA, the service request shall be processed. The timeline for the RTA to process the service request shall commence from the day of receipt of no-objection. d) If the letter is returned undelivered and there is no confirmation by the security holder for no-objection or if there is an objection, the RTA shall follow the procedure as prescribed for major mismatch in signature as laid down at para 1.2 (b) of this Annexure. 1.2. Major mismatch in signature or updation/non-availability of specimen signature a) In case of major mismatch in the signature of the security holder as available in the folio of the RTA and the present signature, or in case of updation/non-availability of the specimen signature with the RTA, the RTA, while processing the service request, shall intimate the security holder about such mismatch/updation in signature, through all the following modes: i. By speed post on the address available in RTA s records, and ii. By sending e-mail on the registered e-mail id as available in the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lder/claimant may be allowed to change his / her name, subject to the submission of following documents at the time of change of name of the security holder/claimant: (a) In case of change in name on account of marriage - Marriage Certificate or copy of valid Passport showing husband s name or publication of name change in official gazette, and any document evidencing the old name as per Annexure E. (b) In case of change in name on account of reasons other than marriage - Publication of name change in official gazette, and any document evidencing the old name as per Annexure E. 3. Updation of Bank details 3.1. In cases where Bank account details of the security holder are not available with RTA or there is a change in such details, RTA shall obtain Bank account details along with any one of the following documents to update the security holder s Bank details: a) Original cancelled cheque bearing the name of the security holder; OR b) Bank passbook/ statement attested by the Bank; 3.2. The RTA shall proceed with the updation of bank details based on the documents provided by the first holder only, in case of joint holding. 4. Documents for Proof of Add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NA 9. Claim from Unclaimed Suspense Account Suspense Escrow Demat Account ISR 4 10. Transposition ISR 4 11. Transmission ISR 5 Annexure E Documents for Proof of Identity 1. Unique Identification Number (UID) (Aadhaar) 2. Valid Passport 3. Driving license in Smart Card form, Book form or copy of digital form 4. Identity card / document with applicant s Photo, issued by any of the following: Central / State Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions duly attested by their employer with date and organization stamp. 5. PAN card with photograph 6. Marriage certificate 7. Divorce decree Annexure F Documents for Proof of Address 1. Unique Identification Number (UID) (Aadhaar) 2. Valid Passport / Registered Lease or Sale Agreement of Residence / Driving License. 3. Flat Maintenance bill accompanied with additional self-attested copy of Identi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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