Sebi junks rule to freeze Demat a/cs, MF folio rule for non-submission of nomination
The regulator said dividend, interest or redemption payment withheld presently by listed companies and registrar and transfer agents for want of nomination should be processed accordingly.
The Securities and Exchange Board of India () on Monday said it would not freeze Demat accounts and mutual fund folios of investors if they didn’t submit nomination.The decision for existing investors has been taken based on representation from the market participants as it would ease compliance and investor confidence. Investors holding securities in physical form would be eligible for receipt of dividend, interest or redemption payment as well as to lodge grievances even if they didn’t provide nomination, Sebi said in a circular.
The regulator said dividend, interest or redemption payment withheld presently by listed companies and registrar and transfer agents for want of nomination should be processed accordingly.
However, all new investors would be required to mandatorily provide nomination for demat accounts and mutual fund folios.
“All existing investors/ unitholders are encouraged, in their own interest, to provide ‘choice of nomination’ for ensuring smooth transmission of securities held by them as well as to prevent accumulation of unclaimed assets in securities market,” Sebi said.
Source: Stocks-Markets-Economic Times
