The Securities and Exchange Board of India (SEBI) has announced an extension to the deadline for public comments regarding proposed guidelines on the treatment of unclaimed funds and securities held by brokers. The new deadline is now March 31, 2025.

This extension provides stakeholders with additional time to review and provide feedback on SEBI’s consultation paper, which addresses the handling of unclaimed client assets.

Key Points:

  • Consultation Paper:
    • SEBI released a consultation paper on February 11, 2025, outlining proposed guidelines for dealing with unclaimed funds and securities held by trading members.
    • The initial deadline for public comments was set for March 4, 2025.
  • Extension Rationale:
    • SEBI has decided to extend the deadline to March 31, 2025, to allow for more comprehensive feedback from interested parties.
  • Focus on Unclaimed Assets:
    • The proposed guidelines aim to establish a clear framework for handling funds and securities that cannot be returned to clients due to reasons such as outdated contact information or other logistical challenges.
    • The guidelines include defining when funds and securities are considered unclaimed, and what steps trading members must take to attempt to return those assets to the rightful owners.
  • “Enquiry Status”

This extension underscores SEBI’s commitment to ensuring thorough and inclusive regulatory processes. By allowing more time for public input, SEBI aims to create robust and effective guidelines that protect investor interests.

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