Sebi extends deadline till Mar 31 to submit comments on unclaimed funds
Markets regulator Sebi on Friday extended the deadline till March-end to submit public comments on the proposed guidelines on the treatment of unclaimed funds and securities lying with brokers.
The regulator, on February 11, floated the consultation paper regarding the proposal and sought public comments on the same by March 4, 2025.
Mar 7, 2025, 23:18 IST
Now, it has been decided to extend the timeline to submit public comments on the consultation paper till March 31, 2025, the Securities and Exchange Board of India (Sebi) said in a report.
In its consultation paper, Sebi stated that if the funds or securities could not be credited to the client's bank account or demat account in the normal course of business, or the client is not reachable, such client accounts shall immediately be put under 'enquiry status'.
The Securities and Exchange Board of India (SEBI) has extended the deadline for public comments on its proposed guidelines concerning unclaimed funds and securities held by brokers. Initially, SEBI released a consultation paper on February 11, 2025, seeking feedback by March 4, 2025. However, this deadline has now been extended to March 31, 2025, to allow stakeholders more time to provide their input.
The consultation paper addresses scenarios where funds or securities cannot be credited to a client's bank or demat account, or when the client is unreachable. In such cases, SEBI proposes that these client accounts be placed under 'enquiry status.' Trading members (TMs) are advised to contact these clients through various means, including letters, emails, or phone calls. If the clients remain unreachable, the unclaimed funds should be transferred to clearing corporations as per existing guidelines.
SEBI defines 'unclaimed funds' as client funds with TMs under 'enquiry status.' Similarly, 'unclaimed securities' refer to client securities under 'enquiry status' or those lying with the TM for more than 30 days. These definitions aim to standardize the treatment of unclaimed assets within the securities market.
Stakeholders are encouraged to review the consultation paper and submit their comments by the new deadline to ensure comprehensive feedback on the proposed guidelines.