SEBI clarifies on norms for processing service requests of investors by RTAs

This comes after SEBI received a representation from the Registrar’s Association of India.

SEBI in a circular said, “With effect from January 1, 2022, any service request or complaint received from RTA holder(s)/claimants will not be processed until PAN, KYC and enrollment documents/details are received. “

With regard to nomination by holders of physical securities, SEBI stated that the nomination form will be sent to the accounts of the holder of the security in two phases.

In the first phase, such a form will be available for single account holders from January 1 and for joint account holders from April 1.

The RTA will make the soft copy of the form available on its website.

In case of minor mismatch in the signature of the security holder available in the folio of the RTA and the present signature, SEBI stated that the time-limit for processing the service request would commence after a notice period of 15 days.

In case the letter sent by RTA is not delivered, it will advise the investor to obtain signature verification by the banker so that the request can be processed.

In case of objection, the RTA, after clearing the objection, will advise the investor to submit signature verification by the banker along with any of the documents – Aadhaar, valid passport, driving license, PAN card – among others.

In respect of major discrepancy in signature or if the signature card is not available, SEBI said that the holder or the claimant shall produce the original canceled check or bank passbook or bank statement attested by the bank and the banker with the name of the security holder printed on it . Signature verification.

In case of name mismatch, SEBI said the copy of driving license, or digital form, in smart card form will be accepted.

“For all service requests, except transmission, the copies of documents submitted in hard copy shall be processed by the RTA if the same are self-attested by the holder(s). RTA shall not insist on verification/notarization of the affidavit or documents. ,” SEBI said.

On the KYC details in all the folios of the holder maintained by the RTA, the regulator said that the RTA will update the folios of the holder from the details available with the current address, bank details, e-mail id and mobile number information. Client Master List (CML), if the holder or claimant provides the CML.

Further, the details which are already available with RTA are to be overwritten on specific request received from the investor.

In general, only those details which are not available in the RTA database for the physical folio will be updated from the Demat account details.

SEBI further said that the securities in the frozen folio shall be eligible for any payment including dividend, interest or redemption payment through electronic mode only.

Listed companies shall ensure that information is sent to the holder that such payment is due and shall be made electronically subject to compliance with certain requirements.

The RTA will have to provide a Certificate of Compliance from a Practicing Company Secretary within 90 days from January 1, certifying the changes made, systems in place to comply with the framework. Earlier its time limit was 45 days. PTI SP ABM ABM