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Date: 30-Nov-2024 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act,

Issued by Securities and Exchange Board of India · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • This gazette notification introduces the Securities and Exchange Board of India (Depositories and Participants) (Third Amendment) Regulations, 2024. It amends the existing 2018 regulations by adding a new regulation 60A related to nomination facilities for beneficial owners of securities held with depositories.

Key Changes

  • A new regulation 60A is added to Chapter VII of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018.
  • Regulation 60A mandates that every participant (depository participant) must provide beneficial owners with the option to nominate a person to whom their securities will be transferred upon their death.
  • Participants must also provide an option for beneficial owners to nominate a person who can conduct transactions on their behalf in case of incapacitation.
  • For joint account holders, all beneficial owners can jointly nominate a person to whom the securities will be transferred upon the death of all joint holders.
  • The depository and participant are not liable for any actions taken based on the nomination made by the beneficial owner.
  • The regulations come into effect from the date of their publication in the Official Gazette which is November 30, 2024.

Impact Analysis

Beneficial Owners

  • This provides greater control and security over their securities holdings.

Depository Participants

  • Participants will need to educate their customers about the new nomination process.

Depositories

  • Depositories will need to ensure that the nomination process is implemented correctly by the participants.

Action Items

  • Internal training should be conducted for staff to understand the new process.

Key Entities Referenced

Securities and Exchange Board of India (SEBI): The regulatory body that issued the notification and is responsible for regulating the securities market in India. Depositories Act, 1996: The act that provides the legal framework for the functioning of depositories in India. Securities and Exchange Board of India Act, 1992: The act that established SEBI and defines its powers and functions. Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018: The original regulations that are being amended by this notification. These regulations govern the operations of depositories and participants. Depository: An organization that holds securities in electronic form. Participant: A Depository Participant or a member of the Depository through whom a beneficial owner can avail of the services provided by the Depository. Beneficial Owner: The person who owns the securities held in a depository account.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-एम.एच.-अ.-02122024-259089 xxxGIDHxxx CG-MH-E-02122024-259089 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार से प्रकाजित PUBLISHED BY AUTHORITY सं. 959] िई ददल्ली, िजििार, ििम् बर 30, 2024/अग्रहायण 9, 1946 No. 959] NEW DELHI, SATURDAY, NOVEMBER 30, 2024/AGRAHAYANA 9, 1946 भारतीय प्रजतभूजत और जिजिमय बोडड अजधसूचिा म ंबई, 28 ििम् बर, 2024 भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (तीसरा संिोधि) जिजियम, 2024 फा. सं. सबे ी/एलएडी-एिआरओ/िीएि/2024/213.—बोडड, जिक्षेपागार अजधजियम, 1996 (1996 का 22) की धारा 25 के साथ पठित भारतीय प्रजतभूजत और जिजिमय बोडड अजधजियम, 1992 (1992 का 15) की धारा 30 द्वारा प्रदाि की गई िजियों का प्रयोग करते हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) जिजियम, 2018 का और संिोधि करिे के जलए जिम्नजलजखत जिजियम बिाता ह,ै अथाडत्,- 1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (तीसरा संिोधि) जिजियम, 2024 कहा िा सकेगा । 2. ये जिजियम रािपत्र में इिके प्रकाजित होिे की तारीख से लागू होंगे । 3. भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) जिजियम, 2018 म,ें- 7770 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] I) अध्याय VII में, जिजियम 60 के बाद, एक िया जिजियम 60क िोडा िाएगा, अथाडत्: “िामांकि 60क. (1) प्रत्येक सहभागी (पार्टडजसपेंट) बेजिदफजियल ओिर (जहताजधकारी स्ट्िामी) को ऐसे दकसी व्यजि को, उसी प्रकार िैसा बताया िाए, िाजमत करिे का जिकल्प प्रदाि करेगा, जिसे बेजिदफजियल ओिर की मृत्य हो िािे की दिा में बेजिदफजियल ओिर के पास पडी प्रजतभूजतयााँ (जसक्यूठरटीज़) जमल िाएंगी । (2) प्रत्येक सहभागी बेजिदफजियल ओिर (जहताजधकारी स्ट्िामी) को ऐसे दकसी व्यजि को, उसी प्रकार िैसा बताया िाए, िाजमत करिे का जिकल्प प्रदाि करेगा, िो बेजिदफजियल ओिर के अक्षम हो िािे की दिा में बेजिदफजियल ओिर की ओर से लेिदेि (रांिैक्िि) करिे के जलए अजधकृत होगा । (3) िहााँ खाता एक से अजधक व्यजियों के िाम पर संय ि रूप से खोला गया हो, िहााँ बेजिदफजियल ओिर एकसाथ जमलकर ऐसे दकसी व्यजि को, उसी प्रकार िैसा बताया िाए, िाजमत कर सकेंगे, जिसे सभी बेजिदफजियल ओिर की मृत्य हो िािे की दिा में उिके पास पडी प्रजतभूजतयााँ (जसक्यूठरटीज़) जमल िाएंगी । (4) बेजिदफजियल ओिर द्वारा दकए गए िामांकि के आधार पर यदद क छ दकया िाता है, तो उसके जलए जिक्षेपागार (जडपॉजज़टरी) और सहभागी जिम्मेदार िहीं होंगे ।” बबीता राय डू, कायडपालक जिदेिक [जिज्ञापि-III/4/असा./724/2024-25] पाद ठटप्पण : 1. भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) जिजियम, 2018, सं. सेबी/एल.ए.डी.- एि.आर.ओ./िी.एि./2018/40, 3 अिूबर, 2018 को भारत के रािपत्र में प्रकाजित हुए थ े। 2. भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) जिजियम, 2018 तत्पश्चात्,– क. 4 िूि 2019 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (संिोधि) जिजियम, 2019, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2019/20, द्वारा ख. 21 फरिरी, 2020 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (संिोधि) जिजियम, 2020, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2020/04, द्वारा ग. 17 अप्रैल, 2020 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेग्यूलेटरी सैंडबॉक्स) (संिोधि) जिजियम, 2020, सं. सेबी/एल.ए.डी.-एिआरओ/िीएि/2020/10, द्वारा घ. 5 मई, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (फीस का भ गताि और भ गताि का माध्यम) (संिोधि) जिजियम, 2021, स.ं सेबी/एलएडी-एिआरओ/िीएि/2021/23, द्वारा ङ. 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेग्यूलेटरी सैंडबॉक्स) (संिोधि) जिजियम, 2021, सं. सेबी/एलएडी-एिआरओ/िीएि/2021/30, द्वारा[भाग III—खण्ड 4] भारत का रािपत्र : असाधारण 3 च. 13 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (संिोधि) जिजियम, 2021, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2021/43, द्वारा छ. 26 अिूबर, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (दूसरा संिोधि) जिजियम, 2021, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2021/53, द्वारा ि. 23 फरिरी, 2022 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (संिोधि) जिजियम, 2022, स.ं सेबी/एलएडी-एिआरओ/िीएि/2022/74, द्वारा झ. 2 माचड, 2023 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (संिोधि) जिजियम, 2023, स.ं सेबी/एलएडी-एिआरओ/िीएि/2023/125, द्वारा ञ. 22 अगस्ट्त, 2023 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (दूसरा संिोधि) जिजियम, 2023, स.ं सेबी/एलएडी-एिआरओ/िीएि/2023/147, द्वारा ट. 10 मई, 2024 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (संिोधि) जिजियम, 2024, स.ं सेबी/एलएडी-एिआरओ/िीएि/2024/173, द्वारा ि. 26 अगस्ट्त, 2024 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिक्षेपागार और सहभागी) (दूसरा संिोधि) जिजियम, 2024, स.ं सेबी/एलएडी-एिआरओ/िीएि/2024/200, द्वारा संिोजधत हुए थे । SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 28th November, 2024 SECURITIES AND EXCHANGE BOARD OF INDIA (DEPOSITORIES AND PARTICIPANTS) (THIRD AMENDMENT) REGULATIONS, 2024 F. No. SEBI/LAD-NRO/GN/2024/213.—In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with section 25 of the Depositories Act, 1996 (22 of 1996), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 namely, — 1. These regulations may be called the Securities and Exchange Board of India (Depositories and Participants) (Third Amendment) Regulations, 2024. 2. They shall come into force on the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018, — I) In Chapter VII after regulation 60 a new regulation 60A shall be inserted, namely: “Nomination 60A. (1) Every participant shall provide an option to the beneficial owner to nominate, in the manner as may be specified, a person to whom the securities held by him shall vest in the event of his death. (2) Every participant shall provide an option to the beneficial owner to nominate, in the manner as may be specified, a person who shall be authorized to conduct transactions on behalf of the beneficial owner in the event of the incapacitation of the beneficial owner.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] (3) Where the account is held in the name of more than one person jointly, the joint beneficial owners may together nominate, in the manner specified, a person upon whom the securities held by them shall vest, in the event of the death of all the joint beneficial owners. (4) The depository and participant shall not be liable for any action taken on the basis of nomination made by the beneficial owner.” BABITHA RAYUDU, Executive Director [ADVT.-III/4/Exty./724/2024-25] Footnote: 1. The Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 were published in the Gazette of India on October 3, 2018 vide No. No. SEBI/LAD-NRO/GN/2018/40.2. 2. The Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 were subsequently amended on, – a. 4th June, 2019 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2019 vide No. SEBI/LAD-NRO/GN/2019/20. b. 21st February, 2020 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/04. c. 17th April, 2020, by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020, vide No. SEBI/LAD-NRO/GN/2020/10. d. 5th May, 2021, by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations 2021, vide No. SEBI/LAD-NRO/GN/2021/23. e. 3rd August, 2021, by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021, vide No. SEBI/LAD-NRO/GN/2021/30. f. 13th August, 2021 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2021vide No. SEBI/LAD-NRO/GN/2021/43. g. 26th October 2021 by the Securities and Exchange Board of India (Depositories and Participants) (Second Amendment) Regulations, 2021 vide No. SEBI/LAD- NRO/GN/2021/53. h. 23rd February 2022 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2022 vide No. SEBI/LAD-NRO/GN/2022/74. i. 2nd March 2023 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/125. j. 22nd August, 2023 by the Securities and Exchange Board of India (Depositories and Participants) (Second Amendment) Regulations, 2023 vide No. SEBI/LAD- NRO/GN/2023/147. k. 10th May, 2024 by the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2024 vide No. SEBI/LAD-NRO/GN/2024/173. l. 26th August, 2024 by the Securities and Exchange Board of India (Depositories and Participants) (Second Amendment) Regulations, 2024 vide No. SEBI/LAD- NRO/GN/2024/200. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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