Sebi suspends fresh MAPIN registrations

If continued, it would require major modifications to meet the objectives and still not be able to address concerns of the investors, Sebi said in a release here today.

Moreover, if the exemptions approach is continued, the present system will end up covering only a small part of the total investors which would defeat the objective of creating an inventory of all investors.

Hence, the committee recommended that a new system be introduced which would be able to create a database of all investors utilising the existing information resources and infrastructure, including the data already captured by the Mapin system, in cost-efficient and investor-friendly way, it said.

This could also incorporate some new critical features, including information on associates.

The new system should also be designed to ensure that this is the last time a capital market ID shall be issued, it said.

The committee said Sebi should select a firm for developing the software for generation of unique IDs and this software should be handed over to the implementing agency to be appointed by Sebi.

The agency was to undertake the exercise of combining the databases and then generating the new unique IDs to the existing investors.

The agency was entrusted with the task of assigning unique IDs to new investors and for maintaining and updating the database, it said.

A technical group may be formed by Sebi to examine the implementation feasibility, cost, logistics and schedule involved in creating the suggested database, the committee added.