It's not with retrospective effect.
Nomination mandate - SEBI guidelines - clarification regarding date of effect
Good Evening, As per SEBI FAQ's it is mandatory to register a nomination or a declaration not to register nomination (as per my knowledge this guidelines came into effect from Jan 2009) as per CDSL Infoline (magazine) March 2009, all BO (demat account holders) should either update with nomination details or a declaration for not nominating and it should be done before April 30 2009 ( which means it is applicable to accounts opened before 2009) even NSDL Circular no. NSDL/POLICY/2009/0002 dated January 3, 2009 says the same. My question is the SEBI Mandate applicable to the accounts opened before 2009 (my case we opened the account in 2005). Let me know if you want me to send the guidelines and circulars. My email id [deleted]
Asked 4 years ago in Business Law
12 Answers
Dear Sir,
-Can you share the brief details of your case along with all the notification to help you better.
Regards
Vivek Arya
Could you please reiterate the terms of the circular, if possible so as to enable me to advise you.
you can send the circular issued
even if account is opened before 2009 you must register nomination for your demat accounts or submit declaration for not submitting nomination
If you have not nominated anybody then either nominate someone or give a declaration that you will nominate anybody. Bank or other authority can insist you for fulfilling the nomination process since it is now made mandatory.
Yes, it's clearly mentioned you nominate or give declaration that not to nominate.
Your broker did not ask you to sign any one if the form.
1. Filing Nomination details is Mandatory, in new /old Dmat accounts, irrespective of the cut off date of April 30 2009.
2. In case of demise of account holder and in case of absence of Nomination details, the Dmat balances would be transferred to the contingency account and would remain claimable only by filing legal heir proceedings.
This is a new clause must be added in account opening form. And same may not be there before 2009, hence applies for old accounts only to separately declare as such. Nomination service is initiated but optional.
Yes SEBI mandate is applicable to all the accounts opened before or after issuing of the notification.
Dear Sir,
SEBI Guidelines for Issue of Securities:
SEBI has issued detailed guidelines in respect of issue of securities to public. The guidelines were first issued on 11th June, 1992 and were amended subsequently from time to time. SEBI issued consolidated guidelines as SEBI (Disclosure and Investor Protection) Guidelines, 2000 vide its circular No. 1 dated 19-1-2000.
These guidelines were applicable to all public issues by listed and unlisted companies, all offers for sale and rights issues by listed companies whose equity share capital is listed, except in case of rights issues where the aggregate value of securities offered does not exceed Rs. 50 lacs.
Broadly, there are three methods for issuing securities to the public:
(a) Conventional mode of receiving applications through bankers,
(b) Book building, and
(c) On line system of stock exchange (e-IPO).
Other Measures Taken By SEBI:
The Securities and Exchange Board of India, in addition to the above mentioned guidelines ‘for disclosure and investor protection’, has taken a number of other measures for healthy development and regulation of the capital market.
i. Guidelines for Merchant Bankers.
ii. Guidelines for EURO Issues.
iii. Guidelines for Mutual Funds and Asset Management Companies.
iv. Guidelines for Foreign Institutional Investors.
v. Guidelines to Development Financial Institutions for Disclosure and Investor Protection.
vi. Guidelines for Book Building, Employees Stock Option Scheme (ESOS) and Employee Stock Purchase Scheme (ESPS).
vii. Guidelines for Preferential Issues.
viii. Guidelines for OTCEI Issues.
ix. Guidelines on External Commercial Borrowings.
x. Regulatory measures for Stock Brokers and Sub-brokers, Underwriters, Portfolio Managers, Registrars to an Issue and Share Transfer Agents, Insider Trading, Bankers to an Issue, Depositories and Participants, Venture Capital Funds, etc.
If you have not made the nomination, then it is advisable that you nominate someone to receive the amount in your place in any future event.
The question is not about the rules, but it is a beneficial scheme to the investors hence if you have not yet nominated anyone, you may do it at once.
You have yourself mentioned that it is applicable for the cases before the year 2009 also, hence it is applicable for your own case which was in the year 2005.
The notification came in 2009. Those who registered after or in 2009 come within the ambit. Those who had accounts prior to 2009 would also have to submit papers.
Regards
