SEBI enables direct e-voting facility for demat account holders
December 10, 2020
Regulation 44 of the LODR Regulations, 2015 requires listed entities to provide remote e-voting facility to its shareholders in respect of all shareholders’ resolutions. However, due to the multiplicity of e-voting service providers (ESPs),the registration and maintenance of several login credentials being a cumbersome and insecure process, SEBI has decided to enable e-voting to all demat account holders by way of a single login credential directly, either through their demat accounts or through the websites of Depositories/Depository Participants. The new system will be implemented in two phases over a period of 18 months.
In the first phase of implementation i.e. within 6 months from the date of this circular, shareholders will be able to access the e-voting page of various ESPs through their Demat account (they would be routed to the depositories who will enable such access) or through the website of the depositories (by registering with them), without further authentication by ESPs. The authentication will happen at the depository level. The listed entity will provide details of the upcoming AGMs to the depository, who will send SMS/email alerts to the dmat account holders at least 2 days prior to the date of commencement of e-voting.
In the second phase (the following 12 month period) the depository will validate the demat account holder through a two factor authentication process, namely (i) direct registration with Depositories through registered Mobile number/ E-mail based OTP verification, as an alternate to login through username and password; and (ii) use of a Mobile / E-mail based OTP before the demat account holders can access the websites of the Depositories through their demat accounts.
The new facility will be available to all individual shareholders holding securities in demat mode. ESPs may continue to provide the facility of e-voting as per the existing process to all physical shareholders and shareholders other than individuals, namely, institutions/corporate shareholders.
To refer to the circular dated 9 December 2020, click here.
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