Stock market investors: Can family members operate their demat accounts using a single mobile number? Here’s what SEBI says
Securities Exchange Board of India (SEBI) recently clarified that under exceptional circumstances, a stock broker can upload the same mobile number or email address for more than one client if the clients belong to the same family.
A retail investor can use his number or email ID to operate his family members’ demat accounts under certain conditions. Family for this purpose would mean self, spouse, dependent children and dependent parents. SEBI said that this is possible only under certain circumstances and on the client's written request. This rule will come into force with immediate effect.
According to a SEBI circular on December 3, 2024, “Master circular states the following regarding uploading of mobile number and e-mail by stock brokers: Stock Brokers shall ensure that separate mobile number/email address is uploaded for each client. However, under exceptional circumstances, the stock broker may, at the specific written request of a client, upload the same mobile number / email address for more than one client provided such clients belong to one family. Family for this purpose would mean self, spouse, dependent children and dependent parents.”
Based on feedback from the Brokers' Industry Standards Forum (ISF), SEBI said, “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/Email address for more than one client provided such client belong to one family (in case of individual clients) or such client is
