BSE : Clarification on Nomination for Eligible Trading and Demat Accounts

To All Members,<_o3a_p>

This is with reference to SEBI circular No. SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23, 2021 and SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/23 dated February 24, 2022 & Exchange notice no. 20210724-1 dated July 23, 2021 and 20220225-59 dated February 25, 2022 on the captioned matter, wherein it was stated that all trading and demat account holders would be required to provide choice of nomination by March 31, 2023.<_o3a_p>

In this regard, para 7 of SEBI's circular dated July 23, 2021, as updated by SEBI's circular dated February 24, 2022 reads as follows:<_o3a_p>

"Further, all existing eligible trading and demat account holders shall provide choice of nomination as per the option given in paragraph 2 above, on or before March 31, 2023, failing which the trading accounts shall be frozen for trading and demat account shall be frozen for debits."<_o3a_p>

It has come to the notice, that market participants are updating the nomination field on their own and marking the same as opting out of nomination in case the investor has not updated/submitted the choice of nomination. It may be noted that updating the 'choice of nomination' without the explicit consent of the investor is against the intention of the circulars and the same has been viewed seriously. Also, this requirement emanates from regulatory requirement and hence no fee may be charged for the same.<_o3a_p>

Members are hereby requested that 'choice of nomination' is required to be updated either by the investors or by obtaining their explicit consent. In any other case, the field of 'choice of nomination' shall not be updated by the trading members on their own.<_o3a_p>

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For and on behalf of BSE Ltd.<_o3a_p>

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Hiteshkumar Desai Jyoti Thukral <_o3a_p>

General Manager Senior Manager <_o3a_p>

Brokers' Supervision Brokers' Supervision <_o3a_p>