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TMI BlogCentralized mechanism for reporting the demise of an investor through KRAsX X X X Extracts X X X X X X X X Extracts X X X X ..... eal Estate Investment Trusts (REITs) 13. Recognized Stock Exchanges and 14. Recognized Depositories 15. Listed companies through Recognized Stock Exchanges Dear Sir / Madam, Sub: Centralized mechanism for reporting the demise of an investor through KRAs 1. It has been decided to introduce a centralized mechanism for reporting and verification in case of the demise of an investor and thereby smoothen the process of transmission in securities market. This circular spells out the operational norms including the obligations of regulated entities, including registered intermediaries that have interface with investors / account holders (used interchangeably) who are natural persons. 2. Listed companies wanting to provide the ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position to obtain the death certificate, then it shall carry out the following steps; a. Intimate 5 the investor, notifier(s), or the nominee(s) that the KYC status of the investor has been flagged off as On Hold and require them to furnish the death certificate of the concerned investor. b. Upon receipt of the death certificate, the intermediary shall follow the steps as per paragraph 3 above. Obligation of intermediary - Updation of records in the KRA system by the Intermediary 5. After verification of the death certificate, the concerned intermediary shall (on the same day of verification): a. Submit a KYC modification request to the KRA that information on death of investor received; death certificate verified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C of the investor as On Hold , and update this status to all linked intermediaries. d. If KRA finds some errors / issues with the modification request as aforesaid, it shall consult with the concerned intermediary and share details of its observations and accordingly update the KYC status to Modification Rejected and Clear i.e. Validated or Blocked Permanently , as the case may be, by the next working day. e. The KRAs shall put in place systems, protocols and procedures to operationalize this circular and the same shall be uniform across all KRAs. Intimation on Transmission of assets of the deceased investor 8. Upon receipt of notification from KRA as Blocked Permanently , all intermediaries shall: a. Immediately block ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igation of Intermediaries 12. All intermediaries who have account or folios of investors whose status has been updated as deceased by the KRA, shall submit the data w.r.t. intimation of transmission as per paragraph 8 b. above, and its outcome thereof, to SEBI, in the format as may be prescribed. 13. In order to have uniformity for operationalizing this circular, Stock Exchanges, Depositories and industry associations like Association of Mutual Funds in India (AMFI), Registrars Association of India (RAIN) etc. in consultation with stakeholders including KRAs, may put in place common Standard Operating Procedure (SOP). The SOP shall be made available on their websites as well as that of the intermediaries. 14. This circular shall c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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