Acceptance of third party address as correspondence address.

Part D : company law

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

62 Acceptance of third party address as correspondence address.

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.