Financial Daily from THE HINDU group of publications
Wednesday, Sep 08, 2004
Regulatory Bodies & Rulings
Corporate - Regulatory Bodies & Rulings
Markets - Regulatory Bodies & Rulings
Unique ID number extended to corporates
Mumbai , Sept. 7
THE unique identification exercise of Securities and Exchange Board of India (SEBI) is now being extended to corporate investors in the securities market as well.
Corporate investors, including their promoters and directors are mandated to get their unique identification number (UIN) from National Securities Depository Ltd (NSDL) by December 31.
UIN is mandatory not just for corporates dealing in the secondary market but also for those investing in mutual funds, collective investment schemes and in securities that are proposed to be listed in any recognised stock exchange.
Trading by these entities after January 1, 2005 would not be allowed without quoting the UIN.
NSDL on its part, would make the process of obtaining the UIN easier for corporate promoters and directors by despatching the points of service to the offices of these corporates, provided the corporates initiate the exercise early enough.
"We would, as far as possible, try to send our teams with the biometric and scanning equipment to the offices of the corporates in order to make the process trouble-free for them. Corporates are advised not to wait till the last moment to obtain their UIN so that our facilities are also not stretched during the last fortnight of December," said Mr V.R. Narasimhan, Senior Vice-President, NSDL.
The exercise would now bring over 60,000 corporate investors under SEBI's Central Database of Market Participants Regulation.
"All self-regulated organisations, stock exchanges, as well as industry associations have been asked to sensitise their members to this mandate in order to avoid any last minute confusions.
NSDL is also trying to directly contact corporates in order to make this regulatory requirement known well in time," said Mr Narasimhan.
The system would also soon be made accessible to the general public through Internet. This implies that based on the UIN, investors would be able to access basic information about their brokers and sub-brokers, including SEBI debarment orders against them, if any.
While the original guideline stated that spouse, parents, brothers, sisters and children of promoters were expected to obtain the UIN, the new notification published by the regulator has amended this.
Also, sub-brokers have now been brought under the definition of `specified intermediaries' and are expected to have obtained their UIN by August 31.
The August 31 deadline is also applicable for all investors availing of the margin trading facility, according to the notification.
Over 50,000 identification numbers have been generated since the launch of the exercise. SEBI's integrated surveillance system is also expected to tie in to the UIN.
After much bellyaching, involving court cases and extensions of deadlines, the first round of the exercise was completed for market intermediaries by June 30.
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