Trading, Demat Account Nomination Deadline Extended by SEBI, Check Details

The Securities and Exchange Board of India (Sebi) on Tuesday extended the deadline for current trading and demat account holders to offer their choice of nomination or opt out of nomination until September 30.

In July 2021, the Sebi requested that all current qualified trading and demat account holders offer their choice of nomination on or by March 31, 2022, or their accounts would be blocked for debits. This was later extended by one year, until March 31, 2023.

Based on an assessment of trading and demat accounts in which the choice of nomination details have not been updated, and on representations received from stakeholders, Sebi has decided that the provisions regarding account freezing will take effect on September 30, 2023, rather than March 31, 2023, according to a circular.

In addition, the Sebi has encouraged stock brokers and depository participants to encourage their clients to update their choice of nomination by sending a notice to all such UCCs/demat accounts where the option of nomination is not documented on a biweekly basis via emails and SMS.

Meanwhile, the Sebi streamlined the procedures for onboarding Foreign Portfolio Investors (FPIs) on Monday in an effort to enhance ease of doing business and minimise the time required for their registration. According to a circular, the regulator authorised designated depository participants (DDPs) to award FPI registration based on scanned copies of application forms and accompanying papers.

Registration on the basis of scanned copies has been permitted, but trade cannot be initiated until the actual papers have been verified, according to the statement. Applicants must now deliver scanned copies as well as physical papers of application forms and supporting documentation to DDPs in order to get FPI registration. Furthermore, the Sebi has authorised DDPs to accept digital signatures from FPIs for the execution of registration-related documents.