SEBI permits demat of Fixed / Post OfficeDeposits, Insurance Policies e

SEBI permits demat of Fixed / Post OfficeDeposits, Insurance Policies etc.


PR No. 88/2012
SEBI Board Meeting

The SEBI Board met today and took the following important decisions:

IV.          Expansion of asset classes which can be held in demat form

(i)  There have been demands for dematerialization of assets/records other than securities, such as, Warehouse receipts, Fixed Deposits with banks and corporates, Insurance Policies, Investment products of Post Office, etc.

(ii) Under Regulation 7(c) of SEBI (Depositories & Participants) Regulations, depositories are permitted to take up activities assigned by the Central Government or by a regulator in the financial sector, through the establishment of a Strategic Business Unit (SBU). The Board approved proposal to amend the SEBI (Depositories & Participants) Regulations to enable depository to share the necessary information / data with its SBU with respect to the assets/ instruments held by them for the purpose of generation of consolidated statement. This will enable the investor to view the details of his holdings and transactions across all asset classes through a single consolidated statement.


VII.          Providing powers to Depositories to take action over Issuers

(i) The SEBI (Depositories and Participants) Regulations, 1996 (D&P Regulations) lay down various obligations on the part of Issuers or their agents such as entering into agreement with the Depositories, carrying out reconciliation of share capital, carrying out timely dematerialization of shares, maintaining proper records etc. It has been seen in the past that there are instances of non compliance such as lack of reconciliation of issued or listed capital and actual share capital by the Issuer company and its appointed RTA.

(ii) In order to enable appropriate action by SEBI in such cases (currently possible under the Depositories Act), the Board approved proposal to suitably amend the D&P Regulations to enable SEBI to take appropriate action against non-compliant issuers or their agents under the D&P Regulations and to empower Depositories to take appropriate action against such issuer or agent as per their Bye-laws.

Mumbai
October 06, 2012

Source- SEBI