Common and simplified norms for processing investor’s service requests by RTA’s and norms for furnishing PAN, KYC details and Nomination

SEBI had vide its circular dt: November 3, 2021 and December 14, 2021 had prescribed the common and simplified norms for processing investor’s service requests by RTA’s and norms for furnishing PAN, KYC details and Nomination.


SEBI has issued revised circular in this regard.  This revised circular dt: March 16, 2023 [‘SEBI Circular 2023’] shall supersede SEBI Circular November 3, 2021 and December 14, 2021 issued by SEBI earlier. This circular shall come into effect from April 1, 2023.

Few important provisions of this SEBI Circular 2023 are as follows:

  • SEBI has reiterated that folios in which PANs are not linked with Aadhar numbers as on March 31, 2023 or any other date as may be specified by CBDT shall also be frozen w.e.f. April 1, 2023. In this regard SEBI has also referred to its press release dt: March 8, 2023 which was on linking of PAN with Aadhar number. MMJC had vide its insight dt: March 15, 2023 had highlighted this point. (Click Here)

SEBI has now stated that the requirement of existing investors to link their PAN with their Aadhaar number is not applicable for Non-Resident Indians (NRI), Overseas Citizens of India (OCI) unless the same is specifically mandated by Central Board of Direct Taxes (CBDT), Ministry of Finance / any other Competent Government authority.

  • Date for freezing of folios in case the mandatory KYC documents [i.e. PAN, nomination, contact details, bank account and specimen signature] are not furnished is October 1, 2023. Security holders whose folios are frozen would be eligible to lodge grievance or avail any service requests from RTA only after submitting requisite documents. Also payment of dividend, interest or redemption amount in respect of frozen folios shall be with effect from April 1, 2024. So question that arises is that with effect from October 1, 2023 even if folios are freezed payment to security holders would be freezed from April 1, 2024?
  • Indemnity is now required for processing of transmission and request for issue of duplicate security certificate.
  • Listed companies shall also directly intimate its security holders about folios which are incomplete with regard to details as specified in this circular [i.e. updated PAN, nomination, contact details, bank account and specimen signature] on an annual basis within 6 months from the end of the financial year. However, for the Financial Year 2022-23, intimation shall be sent by the listed companies on or before May 31, 2023.
  • RTAs shall provide a certificate of compliance from a practicing Company Secretary, within 30 days from the date of this circular coming into effect, certifying the changes carried out, systems put in place / new operating procedures implemented etc. to comply with the provisions of this circular.

Listed Companies/RTAs shall submit a report to SEBI by May 31, 2023, on the steps taken by them towards sensitizing their security holders regarding mandatory furnishing of PAN, KYC and nomination details as detailed in para 4 of this circular.

SEBI Circular 2023 can be accessed at below mentioned link: Click Here

Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement