SEBI on 3rd Oct 2023 issued a circular regarding the Centralized mechanism for reporting the demise of an investor through KRAs.
This circular lays down the operational norms, obligations of regulated entities including registered intermediaries that have interface with investor /accounts holders.
The following has been stated namely –
It has been decided to introduce a centralised mechanism for reporting and verification in case of the demise of an investor and thereby smoothen the process of transmission in the securities market.
It states that listed companies wanting to provide the beneficial access to such a centralized mechanism to their investors holding securities in physical form, are eligible to establish connectivity with KRA through their RTAs.
It further state that in order to have uniformity for operationalizing this circular, Stock Exchanges, Depositories and industry associations like Association of Mutual Funds in India (AMFI), Registrars Association of India (RAIN) etc. in consultation with stakeholders including KRAs, may put in place common Standard Operating Procedure (SOP). The SOP shall be made available on their websites as well as that of the intermediaries.
This circular shall come into effect from January 01, 2024
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