Acceptance of third party address as correspondence address.

Changes relating to Company
Law for the period 15th Dcember, 2010 to 15th January, 2011.

SEBI vide Circular No. CIR/MRD/DP/37/2010,
dated 14-12-2010 based on representations received from intermediaries seeking
guidance and clarifications whether to accept and capture the address of some
person (third party) other than the beneficial owner (BO) as a correspondence
address in the details of the demat account of the BO. SEBI has clarified that
it has no objection to a BO authorising the captureto : of an address of the
third party as a correspondence address, provided that the Depository
Participant (DP) ensures that all prescribed ‘Know Your Client’ norms are
fulfilled for the third party also. The DP shall obtain proof of identity and
proof of address for the third party. The DP shall also ensures that the
customer due diligence norms as specified in the Rule 9 of Prevention of Money
Laundering Rules, 2005 are complied with in respect of the third party. SEBI has
also stated that the depository participant should further ensure that the
statement of transaction and holding are sent to the BO’s permanent address at
least once in a year. It is clarified that the above provision shall not apply
in case of PMS (Portfolio Management Service) clients.