Sebi Proposes New Guidelines for Non-Individual Client Contact Details

On Monday, Sebi proposed changes to allow non-individual clients such as HUFs, partnerships, and trusts to use shared contact details under exceptional circumstances, expanding the current rule that applies only to individual clients within a family.

In a move set to simplify the compliance process, the Securities and Exchange Board of India (Sebi) has proposed new guidelines allowing non-individual clients to share contact information. This initiative aims to extend the existing rule, which currently permits only individual clients from the same family to utilize the same mobile number or email address under specific conditions.

The change would encompass Hindu Undivided Families (HUFs), partnerships, trusts, and corporates, enabling them to use shared contact details under exceptional circumstances, provided a written request is submitted. This proposal follows feedback from the Brokers' Industry Standards Forum.

Sebi has opened the floor to public commentary on the proposal until November 18. If approved, the new guidelines are anticipated to streamline compliance processes, offering significant flexibility to non-individual entities operating within the stock market.

(With inputs from agencies.)