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SEBI Clarification: Raising Industry standards for RTAs, Issuer Companies

SEBI Circular No. SEBI/HO/MIRSD/DOS3/CIR/P/2018/115 dated 16th July 2018, reads as follows:

1. SEBI, vide circular No. SEBI/HO/MIRSD/DOP1/CIR/P/2018/73 dated April 20, 2018, inter-alia, mandated RTAs to send a letter under Registered / Speed post seeking PAN and bank details within 90 days of the said circular and two reminders thereof after the gap of 30 days.

2. In this regard SEBI has received several representations to extend the timelines of first letter so as to bunch it up with annual reports/notices of AGM. Further, clarifications have been sought to send the reminders by way of modes other than Registered / Speed post, citing huge cost involved and the efficacy of sending reminders by way of other modes; especially in cases where first letter sent by Registered / Speed Post returned undelivered.

3. Accordingly, in respect of para II (12)(ii) of Annexure to the aforementioned circular, it is clarified that:

 a. The timeline for sending the initial letter by Registered / Speed Post to physical shareholders has been extended to September 30, 2018 to enable companies to send the initial letter along with Annual Reports/notice of AGM.

 b. Subsequently, two reminders may be sent by other modes including ordinary post / courier.

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