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.

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 trading member (TM) should contact the clients through letters, e-mails, telephonically or any other means as feasible. TMs should upstream such funds to clearing corporations as per upstreaming guidelines.

The client funds with TMs which are put under enquiry status' should be termed as unclaimed funds'. Further, the client securities which are put under enquiry status' or lying with the TM for more than 30 days should be termed as unclaimed securities'.

Sebi stated that measures need to be taken to trace such clients.

In case the whereabouts of the clients are not traceable, the introducer of the client, nominee of the client, employer of the client or any other related person whose details are available with the trading member should be contacted by the broker to trace the whereabouts of the client without disclosing any financial or holding details of the client, it added.