The Securities and Exchange Board of India (SEBI) announced on Monday that the deadline for filing nomination details has been extended to September 30, 2023, following representations from stakeholders.
What Happened? A circular issued by SEBI states that after evaluating trading and demat accounts where the choice of nomination details have not been updated, and taking into account the feedback received from stakeholders, the deadline for enforcement has been revised to September 30, 2023.
The market regulator’s original circular, issued in July 2021, mandated that investors opening new trading or demat accounts on or after October 1, 2021, and all eligible existing account holders must provide a choice of nomination details by March 31, 2022. Failure to comply would result in the freezing of trading accounts for debits.
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However, SEBI, in a subsequent circular on February 24, 2023, extended the deadline for existing trading and demat accounts to March 31, 2023. This deadline has now been revised again, similar to the Aadhaar-PAN linkage deadline.
The regulatory body has also directed stock brokers and depository participants to encourage their clients to update their choice of nomination by sending fortnightly email and SMS reminders to those accounts where the nomination details are not captured. These communications will guide how clients can update their nomination details.
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