In a move aimed at maximizing efficiency and consistency, capital markets regulator SEBI has revised time limits for release of Consolidated Account Statement (CAS) by depositories. The changes, specified in a circular released last Friday, tighten time limits by which mutual fund registrar and transfer agencies (MF-RTAs) and asset management firms (AMCs) have to submit investor information.
Key Changes in Timelines
Previously, AMCs and MF-RTAs had just three days from the end of every month to file mutual PAN data with depositories. Now, this period has been raised by two days by SEBI, giving these entities some breathing time to compile and file the data.
Once the depository receives the data, it shall send out the CAS as per the choice of the investor. Investors, if electing electronic CAS (e-CAS), shall receive it by the 12th day of the subsequent month, while those opting for paper form shall receive it by the 15th.
Half-Yearly CAS Updates
SEBI has also simplified the way of providing half-yearly CAS. In the new system, depositories must obtain relevant data relating to PAN from AMCs and MF-RTAs by April 8th and October 8th. Subsequently, depositories shall aggregate data and distribute e-CAS by April 18th and October 18th. Physical statements, if desired, shall be dispatched by April 21st and October 21st.
What Happens If Transactions Don't Happen?
SEBI has also clarified treatment of CAS if there are no transactions. If there are transactions in an investor’s mutual fund folios or demat account, the CAS shall continue month by month by way of email. But if there are no transactions, there shall be sent a CAS giving details of holdings every half-year.
Flexibility in CAS Delivery
The regulator also clarified that it is the preference of an investor whether it wishes to obtain the CAS by mail or by hard copy. If an investor does not wish an e-CAS, it has the option not to, and it shall obtain the hard copy by mail sent to it at the address it has registered with depositories and AMCs/MF-RTAs.
Implementation Date
These revised CAS issuance timelines are set to take effect from May 14, giving all stakeholders time to adjust to the new process.
SEBI’s latest announcement aims to facilitate the issuance of CAS while retaining the convenience and timeliness of statement deliveries to the investors.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It does not constitute legal, financial, or professional advice.
