The Securities and Exchange Board of India (Sebi) committee set up to re-examine the issues relating to market participants and investor database (Mapin) has suggested a new software to assign a unique ID to each participant without using any biometric details. | |
| According to the report, put up on the Sebi website, the existing Mapin database and system will be integrated into the new system. |
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| Those investors, who have already been holding Mapin Ids, will now have to provide further information to meet the additional parameters of the proposed database. They will, however, retain the same ID number and be able to use the existing card for identification. |
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| A new deadline shall be prescribed for investors to return the newly designed form, duly completed. Investors, who do not obtain the unique identification number (UIN) before this deadline, will not be allowed to trade. |
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| Existing investors, who miss the deadline, will be levied a penalty. All new investors will have to fill in the new form at the time of opening a depository account or a trading account. |
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| The new Mapin will seek for disclosures on relatives, as the committee feels that many manipulative trade are done through relatives or associates. |
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| Information will also be sought regarding the individual's link corporate entities. It will also seek disclosures of all single and joint bank accounts used for capital market operations, including for ECS. |
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| The database on mutual fund investors will be developed by combining existing electronic records of investors and merging it with the unique file created under the depository system. Joint mutual funds will not be assigned a unique ID and the individual UIN of the joint holders are required to be quoted in the transactions. |
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| The committee has also proposed a mandatory six-month updation of the database, failing which trading will be blocked. Photographs in the ID card are to be updated every ten years. The new system proposes to use the existing infrastructure of DPs for interfacing with investors for filling up the new forms. |
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