PR No. 50/2015 Dated-04.03.2015

SARAL Account Opening Form (AOF) for Individual Investors

It is gathered that a majority of new investors in the securities market begin with participation in the cash segment without obtaining various other facilities such as internet trading, margin trading, derivative trading and use of power of attorney.

With a view to facilitate the entry of these new investors and encourage them to participate in the cash market including the disinvestment of PSUs through OFS process, SEBI, vide circular dated March 04, 2015, has prescribed that individual investors can open a trading as well as  demat account by filling up a simplified one page Account Opening Form termed as ‘SARAL AOF’. There will not be any requirement of separate form for opening demat account.

This simplified form will be separately available with the intermediaries and can also be downloaded from the Exchanges’ and Depositories’ website. It is clarified that individual investors who open account through SARAL AOF will also have the option to obtain other facilities, whenever they require, on furnishing of additional information as per regulations.

The full text of the circular is as follows :-

CIRCULAR

CIR/MIRSD/1/2015, Dated-March 04, 2015

1.   All recognised Stock Exchanges

2.   Stock Brokers through Recognised Stock Exchanges

3.    Depository Participants through Depositories

4.    KYC registration Agencies (KRAs)

Dear Sir/ Madam

Sub: SARAL Account Opening Form for resident individuals

1.        It is gathered that a majority of new investors in the securities market begin with participation in the cash segment without obtaining various other facilities such as internet trading, margin trading, derivative trading and use of power of attorney.

2.      The account opening process can be simplified for such individual investors. With a view to encourage their participation, it is, therefore, decided that such individual investors can open a trading account and demat account by filling up a simplified Account Opening Form (‘AOF’) termed as ‘SARAL AOF’ given at Annexure A. This form will be separately available with the intermediaries and can also be downloaded from the Exchanges’ and Depositories’ website. The investors who open account through SARAL AOF will also have the option to obtain other facilities, whenever they require, on furnishing of additional information as per prescribed regulations/circulars.

3.      The standard set of documents viz. Rights and Obligations document, Uniform Risk Disclosure Document and Guidance Note and documentary proof related to identity and address as specified in SEBI Circulars dated August 22, 2011 and October 5, 2011 shall continue to remain applicable. It is further clarified that the provisions laid down under the PML Act, PML Rules, SEBI Master Circular on AML dated December 31, 2010 and SEBI Circular on AML dated March 12, 2014 shall also continue to remain applicable for set of individual investors mentioned in paragraph 2 above.

4.      For these set of individual investors, it has been decided to simplify the requirement of submission of ‘proof of address’. The matter has been examined in the light of amendment to the PML Rules, 2005 and accordingly, the requirement of submission of ‘proof of address’ is as follows:

a. Henceforth, individual investor may submit only one documentary proof of address (either residence/correspondence or permanent) while opening a trading account and / or demat account or while undergoing updation.

b. In case the proof of address furnished by the said investor is not the address where the investor is currently residing, the intermediary may take a declaration of the residence/correspondence address on which all correspondence will be made by the intermediary with the investor. No proof is required to be submitted for such correspondence/residence address. In the event of change in this address due to relocation or any other reason, investor may intimate the new address for correspondence to the intermediary within two weeks of such a change. The residence/ correspondence address and any such change thereof may be verified by the intermediary through ‘positive confirmation’ such as (i) acknowledgment of receipt Welcome Kit/ dispatch of contract notes / any periodical statement, etc. (ii) telephonic conversation; (iii) visits, etc.

5. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992.

Yours faithfully,

A.S.Mithwani
Deputy General Manager
022-26449613
aliasgarm@sebi.gov.in

Encl: Annexure A – SARAL AOF

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