November 06, 2019
Summary of Circular in SEBI (LODR), 2015 issued on 5/11/2019 is listed below:
1. SEBI Circular on Enhanced Due Diligence for Dematerialization of Physical Securities
SEBI vide this circular has directed the Depositories and the listed companies / RTAs to implement the following enhanced due diligence process in order to augment the integrity of dematerialization requests:
1. All Listed companies or their RTAs shall provide data of their members holding shares in physical mode as on March 31, 2019, to the Depositories by December 31, 2019.
2. Depositories shall capture the relevant details from the static database and put in place systems to validate dematerialization requests received after December 31, 2019.
3. In case of mismatch of any details like name on the share certificate, name of the beneficial owner of demat account, the depository system shall generate an alert. For such instances of mismatch, additional documents shall be sought, namely:
i. Copy of Passport
ii. Copy of legally recognized marriage certificate
iii.Copy of gazette notification regarding change in name
iv. Copy of Aadhar Card
4. For instances of complete mismatch of the details, the applicant may approach the Issuer company / RTA for establishing his ownership.
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