IND SEBI Master Depositaries Circular


On Feb. 5, IND SEBI issued a new master circular for depositaries.


  • IND SEBI issued a master circular for depositories, which is a compilation of all of the circulars issued to Oct. 31, 2020, to replace previous master circular of Oct. 25, 2019.
  • Overview of Master Circular
  • IND SEBI issues circulars/directions to depositories and to enable users to have access to all of the applicable circulars/directions in one place a master circular was prepared.
  • This circular is a compilation of the relevant circulars/communications for depositories and references to statutes/regulations which have been repealed, have been updated.
  • Consists of four sections i.e. beneficial owner (BO) accounts, depository participants (DP) related, issuer related and depositories related, with provisions relevant to each.
  • Feb. 17, 2022 Demat Undivided Families
  • On Feb. 17, 2022, IND SEBI announced that in event of death of head (Karta) of Hindu Undivided Family (HUF), the name in beneficial owner (BO) account shall be replaced.
  • Replaced by the new Karta appointed by the member of the HUF, who in such a case shall be senior most member of the family; depositories should make the changes.
  • Feb. 28, 2022 Opening HUF Demat
  • On Feb. 28, 2022, IND NSD partially modified subsection 1.2(a) of section 1.4.
  • In the event of death of Karta of HUF, the name of the deceased Karta in the BO account shall be replaced by the new Karta appointed by a member of the HUF.
  • In this case, the member of the HUF should be the most senior member of the family.
  • Aug. 2022 Corrigendum
  • On Aug. 26, 2022, IND SEBI issued a corrigendum to the circular dated Feb. 5, 2022.
  • In the event of death of Karta of HUF, the name of the deceased Karta in the BO account shall be replaced by the new Karta appointed by a member of the HUF.
  • In such a case it shall be eldest coparcener in the HUF or a coparcener who is appointed as Karta by an agreement reached amongst all the coparceners of the HUF.
  • Depositories are advised to make amendments to relevant bye-laws, rules and regulations, and to carry out system changes, if any, to implement these changes.
  • Jan. 2023 Policy Amendments
  • On Jan. 18, 2023, IND NSD issued circular on amendments to bye laws and business rules in respect of corrigendum to master circular for depositories and annexes.
  • The circular amends bye law 9.10.2.1 transmission of securities, rule 12.6.4 on securities held by HUF in the depositary and form 40 - request for change of name.
  • Apr. 2023 Amended Instructions
  • On Apr. 27, 2023, IND CDSL advised DPs that amendments have been incorporated in IND CDSL's operating instructions in chapter 2- account opening, sub clause 2.3.4.2.
  • In the event of the death of the Karta of HUF, the name of the deceased Karta in the beneficial owner (BO) account shall be replaced by the new Karta of the HUF.
  • This is who in such a case shall be eldest coparcener in the HUF or a coparcener who is appointed as Karta by an agreement reached amongst all the coparceners of the HUF.
  • Oct. 2023 New Master Circular
  • On Oct. 6, 2023, IND SEBI issued master circular; a compilation of relevant circulars to enable users access to all applicable circulars/directions re depositaries in one place.
  • Covers relevant circulars/communications issued by IND SEBI up to Aug. 31, 2023.
  • The master circular consists of four sections i.e., beneficial owner (BO) accounts, depository participants (DP) related, issuer related and depositories related.
  • References to statutes and regulations which stand repealed have been updated.
  • Rescinds circulars/communications listed in Schedule A; in force with immediate effect.
  • In Mar. 2024, IND SEBI amended master circular re safeguards for transfer, #205542.
  • In Jun. 2024, IND SEBI issued revision re submitting choice of nomination, #215323.
  • In Jun. 2024, IND SEBI issued circular on ensuring effective oversight, see #217082.
  • Jul. 2024 Amendments
  • On Jul. 1, 2024, IND SEBI amended master circular re dispatch of account statements.
  • Consolidated account statements (CAS) will be sent via email by default to investors with registered email addresses; physical statements are available upon request.
  • Monthly CAS for accounts with transactions; half-yearly for those without transactions; annual holding statements for dormant accounts; can opt for physical statements.
  • Demat account statements will be provided electronically with digital signatures.
  • These changes will come into effect from Aug. 1, 2024.

Regulators IND CDSL; IND NSD; IND SEBI
Entity Types B/D; Depo; Exch
Reference Cir SEBI/HO/MRD-PoD2/CIR/P/2024/93, 7/1/2024; MCir SEBI/HO/MRD/MRD-PoD-2/P/CIR/2023/166, 10/6/2023; Comm CDSL/OPS/DP/POLCY/2023/259, 4/27/2023; Cir NSDL/POLICY/2023/0005, 1/18/2023; Cir SEBI/HO/MRD/MRD-POD-2/P/CIR/2022/114, 8/26/2022; Cir NSDL/POLICY/2022/026, 2/28/2022; Cir SEBI/HO/MRD2/DDAP/CIR/P/2022/20, 2/17/2022; Cir SEBI/HO/MRD2/DDAP/CIR/P/2021/18, 2/5/2021
Functions Compliance; Financial; Legal; Operations; Reporting; Settlement; Trade Reporting
Countries India
Category
State
Products Securities; Short Sale; Stock Lending
Regions AP
Rule Type Final
Rule Date 2/5/2021
Effective Date 8/1/2024
Rule Id 97698
Linked to Rule :215323
Reg. Last Update 7/1/2024
Report Section International

Last substantive update on 07/05/2024