NSDL amends its Business Rules with respect to Creation of new RTA ID and Withdrawal/Closure of existing RTA ID

The National Securities Depository Limited (“NSDL”) has inserted new rules with respect to Creation of new RTA ID and Withdrawal/Closure of existing RTA ID.
 
Key Highlights: 

1. Any person desiring to establish direct electronic connectivity with NSDL shall file an application, in the format and fees specified by NSDL.
2. The Depository may approve or reject any application, as deemed fit, after 30 days of receipt of application.
3. The Depository may, before rejecting any application, give to the applicant an opportunity to remove the objection indicated by the Depository.
4. In case of Withdrawal /surrender/termination of electronic connectivity and closure of existing Registrar and Transfer Agent (RTA) ID, the RTA shall intimate all its clients that, it intends to close its depository operations, within a period of 7 days from:
   • the date of receipt of notice of surrender/closure/termination, or
   • from the date incorporated in the notice of surrender/closure/termination; or
   • from the effective date of the order of cancellation of RTA registration passed by SEBI; or
   • from the date of the receipt of the order of cancellation of RTA registration passed by SEBI; whichever is later.
5. The RTA must ensure shifting of connectivity of all its clients.
6. The circular and the annexure are attached herewith, for your ease of reference.

Source: National Securities Depository Limited