1. SEBI has taken variety of steps in the recent past to alter the Account gap and KYC method in the securities markets. In continuation of the efforts in the same direction, it’s currently been decided in consultation with both the Depositories and Associations of stock brokers and repository Participants to more alter and rationalize the demat account gap method.
2. the existing useful Owner-Depository Participant Agreements shall get replaced with a standard document “Rights and Obligations of the useful Owner and repository Participant”. The document annexed herewith shall be necessary and binding on all the existing and new shoppers and repository participants. this will harmonize the account gap method for commercialism as well as demat account. this will additionally rationalise the quantity of signatures by the capitalist, which he’s required to affix at the present on variety of pages.
3. The repository Participant shall provide a copy of Rights associate degreed Obligations Document to the useful owner and shall take an acknowledgement of identical. They shall ensure that any clause in any voluntary document neither dilutes the responsibility of the repository participant nor it shall be in conflict with any of the clauses in this Document, Rules, Bye-laws, laws, Notices, pointers and Circulars issued by SEBI and the Depositories from time to time. Any such clause introduced in the existing as well as new documents shall stand null and void.
4. The Depositories area unit directed to:i. Bring the provisions of this circular to the notice of the repository Participants and additionally pass around identical on their websites. They shall take necessary steps to implement this circular instantly and guarantee its full compliance in respect of all new shoppers inside three months from the date of this circular.ii. Advise the repository participants to intimate their shoppers the modified provisions of the Rights and Obligations Document, exchange the existing BO-DP agreements.iii. create necessary amendments to the relevant bye-laws, rules and laws for the implementation of the on top of call in co-ordination with every another to achieve uniformity in approach.iv. Communicate to SEBI, the standing of the implementation of the
Provisions of this circular in their Monthly Development Reports.
5. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of and to regulate the securities markets.
6. This circular is available on SEBI website (www.sebi.gov.in) under the categories “Legal Framework” and “Circulars”.
Deputy General Manager