The Securities and Exchange Board of India (Sebi) has revised the timelines for the issuance of the Consolidated Account Statement (CAS) by the depositories.
The market regulator has extended the deadline for the issuance of the Consolidated Account Statement for depositories, providing them extra time for compliance.
The Securities and Exchange Board of India (Sebi) has revised the timelines for the issuance of the Consolidated Account Statement (CAS) by the depositories.
In a circular dated February 14, Sebi said that Asset Management Companies (AMCs) and Mutual Fund Registrar and Transfer Agents (MF-RTAs) are now required to submit common PAN data to depositories within five days from the month-end, extending the previous three-day deadline.
Once the data is received, depositories must consolidate and dispatch CAS to investors opting for electronic statements (e-CAS) by the twelfth day from the month-end. Depositories need to consolidate and dispatch the statement for investors who have opted for physical CAS by the fifteenth day from the month-end, the regulator said. Earlier, depositories were required to consolidate and dispatch the CAS within ten days from the month end.
For half-yearly CAS, Sebi mandated that AMCs and MF-RTAs must submit data by the eighth (8th) day of April and October every year. The depositories will then be required to dispatch e-CAS to investors that have opted for e-CAS by the eighteenth day of April and October and to investors that have opted for delivery via physical mode by the twenty-first day of April and October.
The regulator also mandated, “If there is any transaction in any of the demat accounts of the investor or in any of his mutual fund folios, then CAS shall be sent to that investor through email on monthly basis.”
In case there is no transaction in any of the mutual fund and demat accounts, then the CAS with holding details shall be sent to the investors by email on half yearly basis, as per Sebi’s circular.
The regulator also noted that if an investor does not wish to receive CAS through email, he/she will be given an option to receive the CAS in physical form at the address registered with the depositories and the AMCs and MF-RTAs.
Sebi directed the depositories to make amendments to the relevant bye-laws, rules and regulations for the implementation of the extended deadlines.
The regulator also directed the depositories to carry out system changes, if any, to implement the same; disseminate the provisions of this circular on their website; communicate to SEBI, the status of implementation of the provisions of this circular in their Monthly Development Report.
CAS is a single and 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.
In respect of the PANs that are common across the RTAs and the depositories, the CAS is generated and dispatched to the investors by the depositories - NSDL or CDSL, providing the details of financial transactions in both mutual fund folios and depository accounts.
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.