SEBI mandates email as default mode for dispatching Consolidated Account Statements; check details

Markets regulator Securities and Exchange Board of India (SEBI) on Tuesday directed that depositories and Mutual Fund–Registrar and Transfer Agents (MF-RTAs) to dispatch Consolidated Account Statements (CAS) via email as the default mode.

A CAS is an investor's single or combined account statement that reflects monthly financial transactions across all mutual funds and dematerialised (demat) modes.

The new framework will be effective from August 1, 2024, SEBI said in an official circular.

If PANs are common across depositories and RTAs, the NSDL or CDSL dispatches CAS consisting of all financial transactions in depository accounts and mutual fund folios.

In the case of mutual fund folios, If there is no common PAN between the depositories and the RTAs, the CAS is shared by mutual funds.

In a statement, SEBI said, "Considering the increasing reach of digital technology, electronic mode now being the preferred mode of communication and as a green initiative measure and to streamline the regulatory guidelines on the mode of dispatch of account statements, it has been decided to revisit the regulatory provisions and provide for email as the default mode of dispatch for CAS by depositories, MF-RTAs and holding statement by DPs".

SEBI added that CAS will be dispatched by email to all investors whose email addresses are registered with the depositories and AMCs or MF-RTAs. However, where an investor does not wish to receive CAS through email, an option will be given to the investor to receive it in physical form.

If there is a transaction in the investor's demat or mutual fund folios, CAS will be sent to that investor via email monthly. If there is no transaction in any of the mutual fund and demat accounts, CAS with holding details will be sent to the investors by email every six months.