Sometimes one needs to change the name in demat account. This may be because of changing the name or after marriage, the name changed. So it's hard to maintain account with the old name. But there was a complex procedure earlier for change the name of beneficial account. SEBI simplifies the procedure for change the name in beneficial account with a circular no. 27/2012 dated 01-11-2012. Full circular is as under.
CHANGE OF NAME IN THE BENEFICIAL OWNER (BO) ACCOUNT
CIRCULAR NO. MRD/DP/27/2012, DATED 1-11-2012
1. In order to simplify the procedure of change of name in individual Beneficial Owner's (BO) account, it has been decided that an individual BO may be allowed to change his/ her name, subject to the submission of following documents at the time of change of name of the individual in the BO account.
i. In case of change in name on account of marriage following documents shall be submitted:
a. Marriage Certificate or copy of Passport showing husband's name or publication of name change in official gazette.
ii. In case of change in name on account of reasons other than marriage
a. Publication of name change in official gazette.
iii. In case of change in father's name
a. Publication of name change in official gazette.
2. The Depository Participants (DPs) shall collect the self attested copies of above documents and maintain the same in their records after verifying with the original document.
3. The Depositories are directed to-
i. implement the above provisions within three months from the date of issue of this circular.
ii. ensure that they will have the system to keep audit trail of the name change in the BO account similar to that of address change or any other change of co-ordinates;
iii. make amendments to the relevant Bye-Laws, Business Rules and DP Operating Instructions for the implementation of the above decision, as may be applicable or necessary;
iv. bring the provisions of this circular to the notice of the DPs and also to disseminate the same on their website.
4. 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 in the interests of investors in securities and to promote the development of, and to regulate the securities market.
Best Regards
Prakash Nair
Prakash@yourownadviser.com
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