 "Sebi mandates email as default mode for dispatching CAS by depositories")
Markets regulator Sebi on Tuesday mandated email as a default mode of dispatch of 'Consolidated Account Statement', which provides an account of securities traded by an investor, by depositories and Mutual FundRegistrar and Transfer Agents (MF-RTAs).
The new framework will come into force from April 1, the Securities and Exchange Board of India (Sebi) said in a circular.
A Consolidated Account Statement (CAS) is a single or combined account statement which shows the details of financial transactions made by an investor during a month across all mutual funds and also other securities held in dematerialised (demat) mode.
The CAS is dispatched to the investors by the depositories (NSDL or CDSL), providing the details of financial transactions in both mutual fund folios and depository accounts if PANs are common across the RTAs and the depositories.
In respect of mutual fund folios, where there is no common PAN between the RTAs and the depositories, the CAS is sent by mutual funds containing only the mutual fund transactions.
"Considering the increasing reach of digital technology, electronic mode now being the preferred mode of communication and as a green initiative measure and to streamline the regulatory guidelines on the mode of dispatch of account statements, it has been decided to revisit the regulatory provisions and provide for email as the default mode of dispatch for CAS by depositories, MF-RTAs and holding statement by DPs," Sebi said.
In its circular, Sebi said that CAS will be dispatched by email to all the investors whose email addresses are registered with the depositories and AMCs or MF-RTAs. However, where an investor does not wish to receive CAS through email, an option would be given to the investor to receive the same in physical form.
If there is any transaction in any of the demat accounts of the investor or in any of his mutual fund folios, then CAS will be sent to that investor through email on a monthly basis. If there is no transaction in any of the mutual fund and demat accounts then CAS with holding details will be sent to the investors by email on a half yearly basis.