Intimation-shareholders

INFORMATION TO SHAREHOLDERS

COMMON AND SIMPLIFIED NORMS FOR PROCESSING INVESTOR’S SERVICE REQUESTS BY RTAS AND NORMS FOR FURNISHING PAN, KYC DETAILS AND NOMINATION.

Securities and Exchange Board of India ("SEBI") vide its circular - SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/37, dated March 16, 2023, has mandated the furnishing of PAN, Nomination, Contact Details, Bank Account details and Specimen Signature ("mandatory KYC") by the shareholders holding shares in physical.The SEBI circular - SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/37 dated March 16, 2023 stipulates that the shareholders holding shares in physical mode do not update the PAN, KYC and Nomination details or these details are not made available to the Company/their Registrar and Share Transfer Agents (RTA) on or after 1st October, 2023, then such folios shall be frozen by RTA as per the directive issued by SEBI. The Frozen folios shall be referred by the RTA / listed company to the administering authority under the Benami Transactions (Prohibitions) Act, 1988 and/or Prevention of Money Laundering Act, 2002, if they continue to remain frozen as on December 31, 2025.

Thereafter the SEBI came up with its circular- SEBI/HO/MIRSD/POD-1/P/CIR/2023/181, dated November 17, 2023 wherein the process of freezing of folio's and referral of folios by the RTA/listed company to the administering authority under the Benami Transactions Prohibitions) Act, 1988 and/or Prevention of Money Laundering Act, 2002, has been done away with / deleted.

For detailed information on the changes, please refer to the attached SEBI circular- SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/181 dated November 17, 2023.

Further, SEBI Vide its circular SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 dated June 10, 2024 has decided for existing investors/ unitholders that Non-submission of ‘choice of nomination’ shall not result in freezing of Demat Accounts as well as Mutual Fund Folios and Security holders holding securities in physical form shall be eligible for receipt of any payment including dividend, interest or redemption payment as well as to lodge grievance or avail any service request from the RTA even if 'choice of nomination' is not submitted by these security holders. Furthermore, all existing investors/ unitholders are encouraged, in their own interest, to provide ‘choice of nomination’ for ensuring smooth transmission of securities held by them as well as to prevent accumulation of unclaimed assets in securities market. The formats for providing Nomination and Opting-out of Nomination both in case of Demat Account and MF Folios are provided Below as Annexure A and Annexure B.