Sebi extends deadline to Sept 30 for RTAs to collect PAN, bank details

The regulator, in April, had said that issuer companies through their RTAs would have to take special efforts to collect copy of PAN and bank details of all securities holders

Markets regulator Sebi on Monday has extended the deadline till September-end for registrar and share transfer agents (RTAs) to seek PAN as well as bank details of shareholders holding securities in physical form.

The last date has been extended after taking into consideration, representations from various quarters, the Securities and Exchange Board of India (Sebi) said in a circular.

The regulator, in April, had said that issuer companies through their RTAs would have to take special efforts to collect copy of PAN (Permanent Account Number) and bank account details of all securities holders holding securities in physical form.

While collecting details, RTAs were required to ensure that they send a letter under registered/speed post seeking a copy of the PAN card and bank details within 90 days and two reminders thereof after the gap of 30 days.

In a circular issued on Monday, Sebi said, "the timeline for sending the initial letter by registered or speed post to physical shareholders has been extended to September 30, 2018, to enable companies to send the initial letter along with annual with annual reports or notice of AGM (annual general meeting)". 

Subsequently, two reminders can be sent by other modes, including ordinary post or courier, it added.

The regulator had came out with detailed guidelines in April to streamline and strengthen procedures with regard to handling and maintenance of records, transfer of securities, and payment of dividend by registrar and share transfer agents, issuer companies and bankers to an issue.

The guidelines broadly dealt with areas like payment of dividend, interest and redemption; correction of errors; and compulsory internal audit of RTAs.