Explore SEBI’s move to digitize investor service requests and complaints processing, covering Phase I requirements for RTAs, online mechanisms, and compliance certifications. Stay informed on the proposed two-phase approach for enhanced efficiency.
SEBI has proposed to digitize process relating to submission of various documents to RTA by holders of physical securities. Holders of physical security certificates are required to submit various documents to the RTAs with respect to various service requests/ complaints including but not limited to: a) Intimation of / updation of / change in Permanent Account Number, Nominee, Bank details, Contact details, Signature, Name etc.; b) Processing of investor requests (Duplicate security certificates, folio consolidation, transmission, transposition etc.); c) Services through depository participants such as dematerialization, rematerialization etc.
This process of digitization is proposed in two phases:
Phase I:
1. All RTAs servicing listed companies shall have a functional website. Such website shall mandatorily display the following information, in addition to all such information, which have been mandated by SEBI from time to time:
a) Basic details of the RTA such as registration number, registered address of Head Office and branches, if any.
b) Names and contact details such as email ids etc. of key managerial personnel (KMPs) including compliance officer in the format provided at Annexure A.
c) Step-by-step procedures for various service requests, Frequently Asked Questions (FAQs), procedure for filing a complaint and finding out the status of the complaint, etc.
2. All RTAs shall also set up a user-friendly online mechanism or portal for service requests/ complaints with certain minimum features as prescribed by SEBI in its circular.
3. Features of this circular.
One stop data: The online system should provide an option for the investors to directly apply for login credentials in the portal of the RTA after appropriate authentication/validation mechanism including One Time Passwords (OTPs) on mobile. Upon successful registration on the portal, the investor would be able to view his/her holdings, lodge service requests/ complaints for the respective companies and track the status of service requests/complaints so lodged.
Generation of unique reference number (URN): On uploading of the documents required for processing of investor’s service requests/ complaints on the portal, a URN shall be generated and displayed on the portal. The same shall also be sent to the investor by way of email and SMS to the email id and mobile number respectively registered with RTA. RTAs shall also advise the investor to indicate the URN while sending physical documents in respect of requests/ complaints already lodged on the portal.
Resolving investor complaints linked to SMS and email: At every stage of processing the service requests/ complaints, the investor shall receive an alert about the status through SMS and / or email till the matter is concluded. The system shall have provision for seeking clarifications by the RTAs and submission by the investors in response to the same including option of uploading additional documents.
Other actionable on the part of RTA:
QRTA shall have functional website as referred for the purpose of this circular from January 01, 2024 and by all other registered RTAs dealing with listed companies from June 01, 2024.[‘QRTAs are those RTAs who handle more than 2 crore folios’]
The aforesaid online mechanism should be scalable with robust cyber security protocols. Further, RTAs shall ensure that the online mechanism complies with the existing guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) specified by SEBI.
RTAs shall provide a certificate of compliance from a practicing Company Secretary, within 30 days from the date of implementation of Phase I as provided in para 5 above, certifying the changes carried out, systems put in place/ new operating procedures implemented etc. to comply with the provisions of this circular. The RTAs shall send an electronic intimation to all the investors whose e-mail address and/or mobile number is available about the availability of the aforesaid online mechanism. Additionally, listed companies and RTAs shall also disseminate the availability of this mechanism on their respective websites.
A common website shall be made and operated by QRTAs from July 01, 2024 through which investors shall be redirected to individual web-based portal/website of the concerned RTA for further resolution by putting the name of the listed company. This website shall have the functionality of adding companies/RTAs to its search list as and when required. This circular is applicable to the RTAs which deal in folios of listed companies. Also, while transferring the business from one RTA to another, the listed company shall ensure that the new RTA is in compliance with the provisions of this circular.
Copy of circular can be accessed at below link: https://taxguru.in/sebi/online-processing-investor-service-requests-complaints-rtas.html
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Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement.
(Republished with Amendments)
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