CIRCULAR
CIR/MIRSD/1/2015 March 04, 2015
1.
All recognised Stock Exchanges
2.
Stock Brokers through Recognised Stock Exchanges
3.
Depository Participants through Depositories
4.
KYC registration Agencies (KRAs)
Dear Sir/ Madam
Sub: SARAL Account Opening Form
for resident individuals
- It is gathered that
a majority of new investors in the securities market begin with
participation in the cash segment without obtaining various other
facilities such as internet trading, margin trading, derivative trading
and use of power of attorney.
- The account opening
process can be simplified for such individual investors. With a view to
encourage their participation, it is, therefore, decided that such
individual investors can open a trading account and demat account by
filling up a simplified Account Opening Form (‘AOF’) termed as ‘SARAL AOF’
given at Annexure A. This form will be separately available with the
intermediaries and can also be downloaded from the Exchanges’ and
Depositories’ website. The investors who open account through SARAL AOF will
also have the option to obtain other facilities, whenever they require, on
furnishing of additional information as per prescribed
regulations/circulars.
- The standard set of
documents viz. Rights and Obligations document, Uniform Risk Disclosure
Document and Guidance Note and documentary proof related to identity and
address as specified in SEBI Circulars dated August 22, 2011 and October
5, 2011 shall continue to remain applicable. It is further clarified that
the provisions laid down under the PML Act, PML Rules, SEBI Master
Circular on AML dated December 31, 2010 and SEBI Circular on AML dated
March 12, 2014 shall also continue to remain applicable for set of
individual investors mentioned in paragraph 2 above.
- For these set of
individual investors, it has been decided to simplify the requirement of
submission of ‘proof of address’. The matter has been examined in the
light of amendment to the PML Rules, 2005 and accordingly, the requirement
of submission of ‘proof of address’ is as follows:
a.
Henceforth, individual investor may
submit only one documentary proof of address (either residence/correspondence
or permanent) while opening a trading account and / or demat account or while
undergoing updation.
b.
In case the proof of address furnished by
the said investor is not the address where the investor is currently residing,
the intermediary may take a declaration of the residence/correspondence address
on which all correspondence will be made by the intermediary with the investor.
No proof is required to be submitted for such correspondence/residence address.
In the event of change in this address due to relocation or any other reason,
investor may intimate the new address for correspondence to the intermediary
within two weeks of such a change. The residence/ correspondence address and
any such change thereof may be verified by the intermediary through ‘positive
confirmation’ such as (i) acknowledgment of receipt Welcome Kit/ dispatch of
contract notes / any periodical statement, etc. (ii) telephonic conversation;
(iii) visits, etc.
5.
This circular is issued in exercise of
powers conferred under Section 11(1) of the Securities and Exchange Board of
India Act, 1992.
Yours faithfully,
A.S.Mithwani
Deputy General Manager
022-26449613
aliasgarm@sebi.gov.in
Encl: Annexure A – SARAL AOF
