Sebi allows depositories to issue account statements

Market regulator Sebi on Monday amended the norms governing the depositories and depository participants to enable issuance of single consolidated account statements to the demat account holders for all their dematerialised assets.

Besides, the depositories, which act as custodians for the demat shares and other securities, have also been asked to conduct inspection of the records of the issuers of the securities or their agents to ensure that the records of dematerialised securities are reconciled with all the securities issued by them. As per the amendment, the depositories would have to report to the Sebi if there is any failure by the issuers or their agents in such reconciliation of records.

The amendments also empower the regulator to take action against the issuers or their agents, if they fail to furnish any information relating to their activities, give false or misleading details, do not co-operate in an inspection, investigation or enquiry conducted by Sebi, or fail to comply with any regulatory order issued under the Depositories Act.

Sebi also said that the depository participants would have to pay the registration fees for a period of further five years, three months prior to the expiry of their initial permanent registration tenure of five years. Depository is an organisation where the securities of a shareholder are held in dematerialised form and Depository Participant is an investor's representative in the depository system who maintains securities account balances.

As per the notification, the depository would have to enter in agreements with the investors seeking consolidated account statement of their demat assets.