SEBI allows common mobile number, email ID for multiple investors under certain conditions

Market regulator SEBI on Tuesday revised guidelines on the use of a single mobile number and email ID for multiple clients by stock brokers to enhance operational convenience.

In a circular issued to all recognised stock exchanges, SEBI permitted stock brokers to upload the same mobile number or email address for multiple clients, provided the clients belong to a single family or represent non-individual entities.

The regulator clarified that the provisions apply only under exceptional circumstances and at the specific written request of the client.

“Based on the representation received from Brokers’ Industry Standards Forum (ISF), it is further clarified that, under exceptional circumstances, the stock broker may, at the specific written request of a client, upload the same mobile number/E-mail address for more than one client provided such client belong to one family (in case of individual clients) or such client is the authorised person of an HUF, Corporate, Partnership or Trust(in case of non-individual clients),” the circular read.

According to the revised guidelines, “family” for individual clients includes self, spouse, dependent children, and dependent parents. For non-individual clients, such as Hindu Undivided Families (HUFs), partnerships, trusts, and corporate entities, the authorised person associated with the trading account can share contact details under defined conditions.

In the case of HUFs, the Karta or co-parceners, with prior approval of the Karta, can use the same contact details. For partnerships, any partner with approval from all other partners is eligible. Similarly, trusts may designate trustees or beneficiaries, while corporate entities may assign authorised personnel as per board resolutions.

For partnerships, any partner with approval from all other partners is eligible. Similarly, trusts may designate trustees or beneficiaries, while corporate entities may assign authorised personnel as per board resolutions.

The updated framework modifies Sebi's earlier circulars issued in 2011 and August 2024, addressing long-standing concerns raised by stakeholders, including the Brokers' Industry Standards Forum (ISF).

Sebi directed the stock exchanges to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of this directions and notify members of the changes.