Unclaimed Funds and Securities: The Securities and Exchange Board of India (SEBI) has extended the time limit for publicly giving suggestions on the new guidelines related to the settlement of such funds and securities.
These funds are lying with the brokers without any claim. A consultation paper was issued by SEBI on 11 February 2025 in this regard. Also, suggestions were sought from the people on this till 4 March 2025. Now this time limit has been extended by SEBI to 31 March 2025. The purpose of increasing the time limit is that more and more people can give their opinion on it.
Securities lying for more than 30 days can be called unclaimed
SEBI’s consultation paper said that if a customer’s money or securities are not deposited in his bank or demat account, or the customer is not contactable, then his account will be kept in ‘enquiry status’. In this situation, the funds with the customer will be considered unclaimed funds. If any securities remain with the trading member for more than 30 days, they will be called ‘unclaimed securities’.
Steps to be taken to find the customer
SEBI has directed that the trading member should make efforts to contact the customer. For this, letters, e-mails, phone calls or other available means will be used. The broker will have to send these funds to the Clearing Corporations. If the customer cannot be traced, SEBI has said that the broker should contact the following people:
- Introducer of the client
- Nominee of the client
- Employer of the client
- Any other relevant person whose information is available with the broker
However, the broker will have to ensure that he does not share the customer’s financial or investment related information with anyone.
The main purpose of the new rules
is to ensure that unclaimed funds and securities are not misused and that they are delivered to the right customers. SEBI believes that this step will increase transparency in the market and safety of investors.
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