Decision taken on the basis of assessment of accounts where it has not been updated yet, says Sebi
Mumbai, NFAPost: The Securities and Exchange Board of India (Sebi) has extended the deadline for updating ‘choice of nomination’ by existing investors holding trading and demat accounts to September 30 from March 31.
The markets regulator said that the decision has been taken based on the representations received from the stakeholders and the assessment of the trading and demat accounts in which nomination has not been updated.
With the extension, investors now have 6 more months to comply. The accounts with no update on nomination will be frozen for trading and debits after September 30. Investors also have the option to opt-out of the nomination.
Stock brokers have been asked to send a communication to their clients to update the choice of nomination on a fortnightly basis through emails and messages.
Further, the stock exchanges and depositories have been asked to submit a report on the same on a monthly basis. The first such report has to be submitted by May 7 and within 7 days for the end of each month.
Earlier on Monday, National Securities Depository Limited warned stock brokers who were opting out from nomination on behalf of their clients without their consent. It said that such acts by market participants were being viewed seriously.
