The SEBI circular states that after the finalization of eligibility, only the approved number of shares will be removed from the demat accounts of the shareholders and the rights mark for the rejected shares will be removed.
The Securities and Exchange Board of India (Sebi) has decided to put a right mark on the shares in the demat accounts of the shareholders participating in the open offer, buyback offer and tender offer for delisting securities from the stock exchanges. The SEBI circular states that after the finalization of eligibility, only the approved number of shares will be removed from the demat accounts of the shareholders and the entitlement mentioned for the rejected shares will be removed.
The regulator said that this measure will reduce any systemic risk during the transfer of securities from the demat account of the shareholder to the clearing corporation. This will make the process more investor friendly. SEBI said that in the process as of now, transfer involves more risk, time and cost. Along with this, the capital market regulator has asked the depositories to develop a monitoring platform as per the rules.
SEBI made big changes regarding demat account
Market regulator SEBI has made some changes in the rules for those opening new trading and demat accounts. Under this, a nomination form has to be filled before opening the account. Through which the investor can make someone a nominee. If they do not want this, they will have to fill a declaration form instead. This rule will come into effect from 1 October.
From October 1, new trading and demat account openers will get the option of nomination and declaration form. At the same time, existing demat account holders are required to fill the nomination form by 31 March 2022. If the nomination or declaration form is not filled by anyone, then the account may be frozen.
Name can be updated
Demat and trading account holders can give the name of the nominee at the time of account opening or get it updated later. With this, after the death of the account holder, the shares will be given to the nominee. If two or more nominees have been appointed, the account holders will have to decide the share of all the nominees. After his death, he will get shares in the same proportion.
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