MANU/SSMD/0040/2023

Ministry : Securities and Exchange Board of India

Department/Board : Office of Investor Assistance and Education

Circular No. : SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/0000000163

Date : 03.10.2023

To,

1. KYC Registration Agencies (KRAs),

2. Stock Brokers through Recognized Stock Exchanges,

3. Depository Participants (DPs) through Depositories,

4. Asset Management Companies (AMCs) of Mutual Funds (MFs)

5. Portfolio Managers (PMs)

6. Collective Investment Schemes (CIS)

7. Investment advisors

8. Registrars to an issue and share Transfer Agents (RTAs)

9. Custodians

10. Alternate Investment Funds (AIFs)

11. Infrastructure Investment Trusts (InvITs)

12. Real Estate Investment Trusts (REITs)

13. Recognized Stock Exchanges and

14. Recognized Depositories

15. Listed companies through Recognized Stock Exchanges

Dear Sir / Madam,

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 beneficial access to such a centralized mechanism to their investors holding securities in physical form, are eligible to establish connectivity with KRA through their RTAs.

Obligation of Intermediary - verification of the death certificate

3. Upon receipt of intimation about the demise of an investor from a joint account holder(s) or nominee(s) or legal representative or family member (hereinafter, collectively referred to as 'notifier(s)', the 'concerned intermediary' shall obtain the death certificate along with the PAN from the notifier and carry out the following steps;

a. Verify the death certificate (to be completed by the next working day of its receipt)

i. Online viz. the website of the issuing Government authority, or

ii. Offline: OSV ('Original Seen and Verified') process by intermediary

The intermediary shall treat the OSV of the death certificate accompanied with the PAN of deceased investor, received electronically along with the credentials of the notifier (including his / her PAN) and the validation report from an Investor Service Centre (ISC) of the Stock Exchange or Depository (MII), to be on par with its own OSV.

b. Record and retain self-certified copy of proof of identity, relationship with deceased and contact details of the notifier.

4. If the concerned intermediary, after receiving information about the demise of the investor from the notifier or after inferring the same, does not have access to or is not in a position to obtain the death certificate, then it shall carry out the following steps;

a. Intimate the investor, notifier(s), or the nominee(s) that the KYC status of the investor has been flagge........