As part of strengthening the due diligence for Dematerialization of Physical Securities, the market regulator Securities and Exchange Board of India (SEBI) on November 5 asked listed companies to compile and submit data about shareholders holding shares in physical form to depositories by December 31, 2019
Companies or their RTA (Registrar & Transfer Agent) to provide a static database of their members to depositories:
All listed companies or their RTAs shall provide the following data (static database) of their members holding shares in a physical mode as on 31st March 2019 in a format which will be jointly decided by NSDL and CDSL
The deadline set by SEBI to provide the above information is December 31, 2019
Due Diligence process to be adopted by Depositories :
Depository system to generate flag/alert in case of any normal mismatch in Physical certificate:
In case of complete mismatch the applicant to approach issuer company or RTA :
If there is a complete mismatch the applicant can approach the issuer company or the RTA for establishing his or her ownership.
This welcome move by SEBI will ensure full-proof ownership of shares to the legal owner of those physical shares.