SEBI allows common contact details for multiple investor accounts of HUFs, corporates, trusts

Until now, the same contact details could only be shared between multiple accounts of family members.

The same email ID and mobile number may be given for more than one investor client if the contact details are of the authorised person of a Hindu Undivided Family, corporate, partnership or a trust, said SEBI on Tuesday.

These contact details are used by stock exchanges to send information to investors through SMS-es and e-email alerts.

In a circular issued on December 3, the Securities and Exchange Board of India (SEBI) said that the sharing of contact details was permitted if the clients belonged to the same family. Family for this purpose would mean self, spouse, dependent children and dependent parents.

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Now, after receiving representation from brokers' industry standard forum, SEBI has allowed that the contact details of an authorised person be allowed to be used for non-individual clients.

The circular listed family and authorised person for this purpose:
1.In case of individuals, self, spouse, dependent children and dependent parents.

2.In case of HUF, Karta or any of the Co-parceners as per prior approval of Karta.

3.In case of Partnership firm, any of the partners as per prior approval of all / authorised partners.

4.In case of a Trust, any of the trustees or beneficiaries as per resolution passed by the Trust.

5.In case of Corporates, the Authorised person operating the trading account as per the Board Resolution passed by the Corporate.

The regulator said that the directions in the circular comes into immediate effect.

Stock exchanges have been asked to bring the provisions of the circular to the notice of their members and also disseminate the same on their websites. They have also been asked to make the necessary amendments to the relevant bye-laws, rules and regulations for the implementation of this direction.