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Issuance of Securities in dematerialized form in case of Investor Service Requests

The Securities and Exchange Board of India (SEBI) vide its Notification no. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8, dated 25th January 2022 has directed the listed entities to issue the securities in dematerialised form only while processing the service request from investors in order to enhance the ease of dealing in securities market.

These service requests from investors include:

  • Issue of duplicate securities certificate;
  • Claim from unclaimed suspense account;
  • Renewal/exchange of securities certificate;
  • Endorsement;
  • Splitting of securities certificate;
  • Consolidation of securities certificates or folios;
  • Transmission;
  • Transposition.

Process for Issuance of Securities in Demat form:

  • Securities holder/claimant shall submit the request in duly filled up Form ISR-4. For the above item nos. iii to viii, the RTA/Issuer Companies shall obtain the original securities certificate(s) for processing of service requests.
  • The RTA / Issuer Companies shall verify and process the service requests and thereafter issue a ‘Letter of confirmation’ in lieu of physical securities certificate(s), to the securities holder/claimant within 30 days of its receipt of such request after removing objections, if any.
  • The ‘Letter of Confirmation’ shall be valid for a period of 120 days from the date of its issuance, within which the securities holder/claimant shall make a request to the Depository Participant for dematerializing the said securities.
  • The RTA / Issuer Companiesshall issue a reminder after the end of 45 days and 90 days from the date of issuance of Letter of Confirmation, informing the securities holder/claimant to submit the demat request as above, in case no such request has been received by the RTA / Issuer Company.
  • In case the securities holder/claimant fails to submit the demat request within the aforesaid period, RTA / Issuer Companies shall credit the securities to the Suspense Escrow Demat Account of the Company.

The Circular shall come into force with immediate effect.

Varsha Laur, Audit Associate, SW India

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