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Sebi to introduce mechanism for verification in case of demise of investors
Capital markets regulator Sebi on Tuesday announced a centralised mechanism for reporting and verification through the KYC Registration Agency in case of the demise of an investor.
Also, the regulator has put in place operational norms, including the obligations of regulated entities and registered intermediaries that have interfaces with investors or account holders who are natural persons.
The new framework will come into effect from January 1, 2024, the Securities and Exchange Board of India (Sebi) said in a circular.
Sebi said that listed companies wishing to provide beneficial access to such a centralized mechanism to their investors holding securities in physical form can establish connectivity with KRA through their RTAs.
After receiving intimation about the demise of an investor, the concerned intermediary will have to obtain the death certificate along with the PAN from the notifier or nominee and verify the death certificate through online or offline mode.
If the concern