If you are a retail investor and your phone number is linked to your demat account then you must be aware that no one else is permitted to use the same mobile number and email ID. And understandably so!
This is essentially meant to maintain privacy and confidentiality of investment made by individual investors.
However, as they say, exceptions are always there! In this doctrine of different mobile numbers for different Demat accounts, there is one exception according to which two or more persons are authorised to use the same contact details such as Email ID or phone number when they are part of the same family.
Sebi, via its circular dated Dec 3, directed that a broker can upload the same mobile number/ email id address for more than one client so long as such clients belong to one family. The family for this purpose would mean self, spouse, dependent children and dependent parents.
This was decided after representation received from Brokers’ Industry Standards Forum (ISF) following which it was clarified that under exceptional circumstances, the stock broker may, at the specific written request of a client, upload the same mobile number/email address of more than one client provided such clients belong to one family (in case of individual clients) or such client is the authorized person of an HUF, corporate, partnership or Trust (in case of non-individual clients), reads the Sebi’s latest circular mentioned above.
Family includes the following:
I. In case of individuals, family includes self, spouse, dependent children and dependent parents.
II. In case of Hindu Undivided Family, Karta or any of the Co-parceners as per prior approval of Karta, can be the authorised person.
III. In the case of a Partnership firm, any of the partners as per prior approval of all / authorised partners can be nominated as the authorised person.
IV. In case of a Trust, any of the trustees or beneficiaries as per resolution passed by the Trust can be named as an authorized person.
V. In case of companies, the authorised person operating the trading account as per the Board Resolution passed by the Corporate.
Accordingly, SEBI Circular no. CIR/MIRSD/15/2011 dated August 02, 2011 and Clause 33 of Master Circular for Stock Brokers dated August 09, 2024 stand amended. The provisions of this circular will come into force with immediate effect.
The capital markets regulator further stated that the stock exchanges will bring the provisions of this circular to the notice of their members and disseminate the same on their portals.
The exchanges are also supposed to make necessary amendments to the recent bye-laws, rules and regulations for the implementation of the direction, the circular explains.
