MANU/SMIS/0022/2024

Ministry : Securities and Exchange Board of India

Department/Board : Market Intermediaries Regulation and Supervision Department

Circular No. : SEBI/HO/MIRSD/POD-1/P/CIR/2024/81

Date : 10.06.2024

Notification/ Circulars Referred : Circular no. SEBI/HO/MIRSD/POD-1/CIR/2023/193 dated December 27, 2023 MANU/SSMD/0052/2023;Master Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 dated May 07, 2024 MANU/SSMD/0015/2024

Subject: Capital Market

Industry: Trading

Citing Reference:
Circular no. SEBI/HO/MIRSD/POD-1/CIR/2023/193 dated December 27, 2023 MANU/SSMD/0052/2023  Referred

Master Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 dated May 07, 2024 MANU/SSMD/0015/2024  Referred

To

All Recognized Stock Exchanges
All Recognized Depositories
All Mutual Funds
All Asset Management Companies (AMCs)
All Trustee Companies/Board of Trustees of Mutual Funds
Stock Brokers (Trading Members) through Recognized Stock Exchanges
Depository Participants through Depositories
All Registrars to an Issue and Share Transfer Agents (RTAs)
All Listed Companies through Recognized Stock Exchanges
Association of Mutual Funds in India (AMFI)

Dear Sir/Madam,

Subjects:

(a) Ease of Doing Investments- Non-submission of 'Choice of Nomination'

(i) Doing away with freezing of Demat Accounts and Mutual Fund Folios for existing investors;

(ii) To remove freeze on payment of corporate benefits and service of physical folios;

(b) Only 3 fields to be provided mandatorily for updating Nomination Details

Circular regarding submission of 'choice of nomination' for demat accounts

1. SEBI, vide circular no. SEBI/HO/MIRSD/POD-1/CIR/2023/193 dated December 27, 2023 extended the last date for submission of 'choice of nomination' for demat accounts and mutual fund folios to June 30, 2024 failing which demat accounts/folios shall be frozen for debits.

2. Further, as provided in Master Circular for RTAs dated May 07, 2024, the security holders holding securities in physical form whose folio(s) do not have PAN, Choice of Nomination, Contact Details, Bank Account Details and Specimen Signature updated, shall be eligible:

2.1. to lodge grievance or avail any service request from the RTA only after furnishing PAN, KYC details and Nomination.

2.2. for any payment including dividend, interest or redemption payment in respect of such folios, only through electronic mode with effect from April 01, 2024. An intimation shall be sent by the Listed Company to the security holder that such payment is due and shall be made electronically only upon complying with the above requirements.

3. Based on representations received from the market participants, for ease of compliance and investor convenience, the followin........