The Capital markets regulator Securities and Exchange Board of India (SEBI) notified the simplified norms for processing investor’s service requests by the registrar and share transfer agents (RTAs) to push ease of doing business.
As an ongoing measure to enhance the ease of doing business for investors in the securities market, the various norms, with respect to the captioned matter, shall be applicable namely Common and simplified norms for processing any service request from the holder, pertaining to the captioned items, by the RTAs, Electronic interface for processing investor’s queries, complaints and service request, Mandatory furnishing of PAN, KYC details and Nomination by holders of physical securities, and Freezing of folios without valid PAN, KYC details and Nomination.
In case of a minor mismatch in the signature of the securities holder as available in the folio of the RTA and the present signature, the RTA, while processing the service request, shall intimate the holder by Speed post about the minor mismatch in signature, providing a timeline of 15 days for raising an objection, if any. In the absence of any objection, the service request shall be processed.
If the letter returns undelivered or if there is an objection, as aforesaid, the RTA shall obtain signature verification by the banker before proceeding with the service request.
“In case of major mismatch in the signature of the holder is available in the folio of the RTA and the present signature or if the same is not available with the RTA, then the holder/claimant shall furnish original canceled cheque and banker’s attestation of the signature as per Form ISR-2,” the SEBI Circular read.
PAN is mandatory for all transactions in the securities market as per the circular dated April 27, 2007, and it is also one of the documents for proof of identity. Accordingly, it is reiterated that it is mandatory for all holders and claimants of physical securities to furnish PAN and it is mandatory for RTAs to verify PAN details through the facility as may be provided by the Income Tax Department (ITD). In this regard, SEBI registered RTAs have been authorized as an eligible entity by the ITD to verify PANs through its ‘Online PAN Bulk Verification’ (PBV) facility.
Additionally, the ‘Exemptions/clarifications to PAN’, as provided in clause D to ‘Instructions/Check List for Filing KYC Forms’ in Annexure – 1 to SEBI circular No. MIRSD/SE/Cir-21/2011 dated October 05, 2011, on Uniform Know Your Client (KYC) Requirements for the Securities Market, shall also be applicable for the holder(s) / claimant(s) of securities held in physical mode.
This circular shall come into effect from January 01, 2022, and its provisions shall supersede provisions of previous circulars of SEBI in this regard.
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