MUMBAI – The Securities and Exchange Board of India (SEBI) has relaxed the rules with regards to adding a nomination for the trading accounts by making it a voluntary requirement.
Earlier, the regulator said all trading accounts and dematerialised accounts, which do not have ‘choice of nomination’ by September 30, will be frozen.
However, the regulator relaxed the rule as a step towards ease of doing business, following representations from the exchanges, depositories, and brokers’ associations.
Further, with respect to demat accounts, SEBI has extended the last date for submission of ‘choice of nomination’ to December 31, according to its circular.
This is the second time the regulator has extended the deadline. Earlier, the deadline to update the nomination on demat accounts was postponed to September 30 from March 31.
For those holding physical shares also, the timeline for submission of PAN, nomination, contact details, bank account details etc have been extended to December 31.
The regulator has asked stock exchanges, depositories, and listed companies to take the necessary steps to implement the revised rules.
In July 2021, the capital market regulator mandated providing a choice of nomination details for investors opening new trading or demat accounts on/after October 1, 2021, and for all existing eligible trading and demat account holders latest by March 31, 2022. Failure to do so would invite freezing the trading accounts for debits, the then circular said.
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