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    Dec 15, 2010

    SEBI CIRCULAR ABOUT THIRD PARTY ADDRESS AS CORRESPONDENCE ADDRESS

    CIR/MRD/DP/ 37 /2010                December 14, 2010 
    To, 
    All Depositories 
    Dear Sir / Madam, 
    Sub: Acceptance of third party address as correspondence address 
    1. SEBI has received representations  from Market Intermediaries seeking 
    guidance and clarifications whether to accept and capture the address of 
    some person (hereinafter referred to as “third party”) other than  the beneficial 
    owner(BO) as a correspondence address in the details of the demat account 
    of the BO.

    2. In this regard, it is stated that SEBI has no objection to a BO authorizing the 
    capture of an address of a 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 ensure that 
    customer due diligence norms as specified in Rule 9 of Prevention of Money 
    Laundering Rules, 2005 are complied with in respect of the third party.  
    3.  The depository participant should further ensure that the statement of 
    transactions and holding are sent to  the BO’s permanent address at least 
    once in a year. 
    4. However, the above provision shall  not apply in case of PMS (Portfolio 
    Management Services) clients as informed earlier vide letter no.  IMD/ MT/ 
    165502/ 2009 dated  June 05, 2009. 
    5. The Depositories are advised to: 
    5.1. make necessary amendments, if required, to the relevant byelaws/ rules 
    and regulations/circulars for the implementation of the above decision 
    immediately.

    5.2. bring the provisions  of this circular to the  notice of all the Depository 
    Participants and same may also be disseminated on the website. 
    6.  This circular shall come into force from the date of its issue. 
    7. This circular is being issued in exercise of powers conferred under Section 11 
    (1) of the Securities and Exchange Board of India Act, 1992 read with Section 
    19 of the Depositories Act,  1996 to protect the interests of investors in 
    securities and to promote the development of, and to regulate the securities 
    market. 
              This circular is available on SEBI website

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