Holders of a basic services demat accounts will not receive a physical statement from their depository participant (DP) if they have not transacted for over a year and have zero balance in the account. The DPs have to inform the holders that the dispatch of physical statement would be discontinued if they do not pay annual maintenance charges for zero balance accounts even after a year, said SEBI.
However, DPs have to send at least one physical statement of holding to a beneficial owner with no transaction and nil balance even after the account has remained in such state for one year.
Further, dispatch of e-mail statements to holders is still mandatory besides providing them a physical statement on demand.
Securities suspended for trading would not be considered for determining the eligibility of a demat account.
Depositories have been directed to amend their bylaws, communicate the changes to their DPs and report the implementation status in their monthly report to SEBI.
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