Securities Exchange Board of India (“SEBI”) has modified SEBI Master Circular on Depositories dated October 06,2023 as provided below:
- Depository participants (“DPs”) must send one annual statement of holding through email unless the investor specifically opts to receive it in physical form. Previously, one annual statement of holding was to be sent in either physical or electronic form as opted for by the Beneficial Owner (“BO”).
- For accounts with zero balance and nil transactions during the year: Now, DPs are required to send at least one annual physical statement of holding to the stated address of the BO and inform the BO that if no Annual Maintenance Charge (AMC) is received, the dispatch of the physical statement may be discontinued for accounts that continue to have zero balance even after one year.
- For accounts which become zero balance during the year: DPs are now not required to send transaction statement for the duration when the balance remains nil. An annual statement of holding is required to be sent to the BO.
- For accounts with credit balance: DPs are required to send a half-yearly statement of holding is required to be sent to the BO.
- There has been a shift from physical to email delivery for accounts with nil balance and in addition, a half-yearly statement be sent to the BO through email.
- Now, the DP must provide the services of issuing the statement of demat accounts in an electronic mode only.
A Copy of the Notification is linked below, for your ease of reference.
Source: Securities Exchange Board of India
