Beneficial Owner name change: Sebi eases norms for K’taka, Punjab residents

Team Udayavani, Dec 28, 2018, 3:16 PM IST

New Delhi/Bengaluru: Markets regulator Sebi on Thursday, December 27 came out with simplified rules for investors from Karnataka and Punjab regarding the procedure for a name change in beneficial owner’s (BO) account.

BO is a person who ultimately owns or controls a foreign portfolio investment.

According to Sebi, one of the documents required for change of name in BO’s account with depositories for reasons other than marriage is a document related to the publication of name change in the official gazette.

However, depositories said for residents of Karnataka and Punjab, the name change is published by respective state governments in the official gazette only for government employees and not in the case of private persons.

“Accordingly, it has been decided that in case of change of name of an individual in these states for reasons other than marriage, the same may be allowed for the individual in the BO account”, subject to the submission of necessary documents, Sebi said in a circular.

The necessary documents include request letter for change of name, affidavit executed before notary and publishing in one local and a national newspaper regarding change in name, among others, Sebi said.

Besides, Securities and Exchange Board of India (Sebi) directed depositories to implement the new framework within three months and keep an audit trail of the name change in the BO account similar to that of address change or any other change of coordinates.