Investors with inactive a/cs to get statements upon request: SEBI

India Infoline News Service | Mumbai |

SEBI further said that the DPs have to inform the holders that the dispatch of physical statement would be discontinued

The SEBI on Tuesday has said that holders of a basic services demat accounts will not receive a physical statement from their depository participant (DP) if they have not transacted for over a year and have zero balance in the account. 
SEBI further said that the DPs have to inform the holders that the dispatch of physical statement would be discontinued if they do not pay annual maintenance charges for zero balance accounts even after a year.
However, DPs have to send at least one physical statement of holding to a beneficial owner with no transaction and nil balance even after the account has remained in such state for one year.
Further, dispatch of e-mail statements to holders is still mandatory besides providing them a physical statement on demand.
SEBI in August 2012 had introduced the facility of Basic services Demat Account (BSDA) wherein inter alia it was mandated that one annual physical statement of holding shall be sent to the Beneficial Owners(BOs) having zero balance and Nil transaction.
Based on the representations from the Depositories and Depository Participants, SEBI said, “DP shall send atleast one annual physical statement of holding to the stated address of the BO in respect of accounts with no transaction and nil balance even after the account has remained in such state for one year. The DP shall inform the BO that the dispatch of the physical statement may be discontinued if the account continues to remain zero balance even after one year.”
DP shall send atleast one annual physical statement of holding to the stated address of the BO in respect of accounts with no transaction and nil balance even after the account has remained in such state for one year. The DP shall inform the BO that if no Annual Maintenance Charge (AMC) is received by the DP, the dispatch of the physical statement may be discontinued for the account which continues to remain zero balance even after one year.
However, DPs shall send electronic statement of holding to all the BOs whose email ids are registered with them. Also, if a BO requests for a physical statement, the DPs shall provide the same.
The value of suspended securities may not be considered for the purpose of determining eligibility of demat account as BSDA.




 

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