On January 25, 2022, the Securities and Exchange Board of India (SEBI) has issued circular on Issuance of Securities in dematerialized form in case of Investor Service Requests. This shall come into force on January 25, 2022.
Key features:
- Listed companies shall issue the securities in dematerialized form only.
- Securities holder/claimant shall submit duly filled up Form ISR-4. the RTA/Issuer Companies shall obtain the original securities certificate(s) for processing of service requests.
- 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.
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- ‘Letter of Confirmation’ shall be valid for a period of 120 days from the date of its issuance.
- RTA/Issuer Companies shall 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.
- 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.
- Operational guidelines are detailed in the Annexure–A.