‘All investments to have 1 statement’
Individuals would soon be able to receive a consolidated statement for their investments with banks, corporate, insurance policies, post office deposits among others. The board of Securities and Exchange Board of India (Sebi), which met here in Mumbai on the eve of Union finance minister’s visit, decided to amend the Sebi (Depositories & Participants) Regulations, which will enable an investor to view the details of his holdings and transactions across all asset classes through a single consolidated statement.
Under the plan the physical certificates held by individuals for their various transactions would be dematerialised and converted into electronic form by depositories. These data would then be shared with strategic business unit (SBU) for the purpose of generation of consolidated statement.
The SEBI move will enable individuals to get rid of maintaining physical records for their various transactions and also minimise the losses on account of damage and theft.
The regulator noted that there have been demands for dematerialisation of assets or records other than shares such as warehouse receipts, fixed deposits with banks and corporate, insurance policies and investment products of post office among others.
Holding physical certificates in electronic forms have already been successfully implemented in the equity market. India’s leading depositories, the National Securities Depository Ltd (NSDL) and Central Depository Services (CDSL) are now in the process of experimenting the same in the insurance sector.
In a bid to rationalise portfolio investment coming into the country, the capital market regulator also decided to prepare a draft guideline so that uniform procedures are made for various categories of investors.
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