On Jun. 2, IND NSD required report of notice to beneficial owner BO.
IND NSD issued circular on facility for submission to capture date of notice sent to beneficial owners (BOs) regarding freezing data fetched from eDPM through E-PASS.
Document dated Jun. 2, 2025, received from IND NSD Jun. 3, summarized Jun. 5.
Background and IND NSD Facility
According to annexure K of the IND NSD Business rule, if a BO has failed to make the payment, the depository participant (referred to as a DP) after giving two days’ notice to the BO, shall have the right to stop processing of instructions of the BO.
IND NSD has developed a facility for capturing the date of notice sent to BO for the demat accounts that are frozen under reason code 11 on the IND NSD e-PASS.
The details of the client account frozen under the reason code 11 during the month, fetched from the eDPM, will be available on e-PASS on 7th of the subsequent month.
Actions by Participants
Participants shall fill in the date of notice sent to BO by 20th of the month.
IND NSD said that if short notice (i.e. less than two days) is sent post freezing, reason for the same is also required to be entered into the e-PASS by participants.
Participants are requested to take note that first such data shall be made available for the month of May 2025 and the details need to be submitted by Jun. 20, 2025.
The procedure for capturing the date of notice and salient features is in annexure A.
Effectiveness
The first batch of data shall be submitted by Jun. 20, 2025.
