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sebi notifies rules on uniform standards for nomination facilities in securities market


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SEBI has notified rules laying down uniform standards for 'nomination' facilities. This would allow people named in the account to act on behalf of investors who are unable to make informed financial decisions. Under the notified rules, it will be mandatory to provide every participant the option to nominate a person as a beneficiary.

New Delhi. The Securities and Exchange Board of India (SEBI) has notified rules laying down uniform standards for 'nomination' facilities. This would allow people named in the account to act on behalf of investors who are unable to make informed financial decisions. Additionally, under the notified rules, it will be mandatory to provide to every participant the option to nominate a person as a beneficiary to whom his securities will be transferred after his death.

“Each participant will be provided the option to nominate a person in respect of the beneficiary,” SEBI said in the notification. This advisor will be authorized to transact on his behalf in case of non-investing investors.'' The new rules are aimed at making things easier for investors and introducing uniform standards for 'nomination' facilities in the Indian securities market. Is.

In case of joint ownership, the owners can collectively nominate a person who will be entitled to the securities after the death of all the joint participants. Further, the Depository and the Participants will not be held liable for any action taken on the basis of 'Nomination' provided by the concerned person. SEBI has amended the 'Depositories and Participants' Regulations to this effect. It has become effective from November 28.

Disclaimer: Prabhasakshi has not edited this news. This news has been published from PTI-language feed.



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