Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
In the ever-evolving landscape of the Indian securities market, regulatory frameworks are not just guiding posts but also the sentinels of investor confidence. The Securities and Exchange Board of India (SEBI) stands at the forefront of this dynamic environment, continually refining its policies to balance robust regulation with investor facilitation. The latest circular, SEBI/HO/MIRSD/POD-1/P/CIR/2023/181, dated November 17, 2023, signifies a crucial shift in the regulatory roadmap. Specifically addressing the processing of investor service requests by Registrars to an Issue and Share Transfer Agents (RTAs), it delves into PAN, KYC, and nomination details.
The circular, dated March 16, 2023, encapsulated in the Master Circular of May 17, 2023, reflects SEBI’s response to ground realities. This response is voiced by the Registrars’ Association of India and the investor community. It has reevaluated erstwhile norms.Designed to streamline operations, these norms inadvertently introduced complexities, including the freezing of folios and the referral of frozen folios under stringent acts like the Benami Transactions (Prohibition) Act, 1988, and the Prevention of Money Laundering Act, 2002..
The crux of the current circular lies in its two pivotal amendments:
These modifications stem from a pragmatic approach to regulation, wherein the imperatives of investor protection and market fluidity are deftly aligned.
Stakeholders, including stock exchanges, depositories, RTAs, and listed companies, are now tasked with integrating these revisions into their operational fabric.This involves:
The implications of SEBI’s circular are manifold. For one, the removal of the freezing directive could inject agility into investor services, potentially increasing transaction velocity and investor engagement. On the flip side, the regulatory relaxation must not be misconstrued as a dilution of vigilance against financial malpractices.
Consider a mid-sized RTA that once grappled with the administrative labyrinth of unfreezing investor folios, frequently facing investor ire and reputational damage. The new norms could streamline their operations, enabling them to reallocate resources towards enhancing investor relations and technological upgrades.
The financial landscape is replete with cautionary tales where lax regulations have paved the way for financial misdemeanors. While the circular eases certain protocols, the onus of maintaining vigilant oversight on transactions remains unabated.
SEBI’s latest circular reflects its adaptive regulatory philosophy, responsive to industry feedback and investor sentiment. By recalibrating RTA norms and streamlining services, SEBI underscores commitment to investor protection and market fluidity. The overarching objective: bolster market integrity, simplify the investor experience. In this dynamic interplay of regulation and facilitation, SEBI continues to sculpt a resilient and responsive securities ecosystem.
The insurance industry is on the edge of a transformative era. As we enter 2024, technological...
The Indian Cybercrime Coordination Centre reported a rise in digital financial fraud, which has...
During its 203rd meeting on 25th November 2023, the Securities and Exchange Board of India (SEB...
If you want to expand your portfolio beyond standard stocks and bonds, Alternative Investment F...
NBFCs in India encounter significant challenges related to the compounded effects of outstandin...
Are you human?: 5 + 8 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The Securities and Exchange Board of India (SEBI) issued a circular (CIRCULAR SEBI/HO/DDHS/DDHS-PoD/P/CIR/2024/10)...
30 Mar, 2024
The Securities and Exchange Board of India has recently, on 21st March 2024, vide circular no SEBI/HO/MRD/MRD-PoD-3...