The demat account holders are requested to inform and update their bank's MICR code numbers by forwarding a copy of the cheque leaf of the bank account mentioned in their demat account.
SEBI has informed vide its SEBI/MRD/DEP/Cir-3/06 dated Feb 21, 2006 that applicants residing in 15 centers where clearing houses are managed by Reserve Bank of India (RBI) would get refunds for public issues only through Electronic Clearing System.
For this purpose, the bank details of such applicants will be taken directly from the database of the depositories in respect of issues made completely in dematerialised form.
Therefore, it is necessary that the MICR code maintained at the database of the depositories have to be updated on a real time basis. This will ensure that the refunds through ECS are made in a smooth manner and that there are no failed/wrong credits.
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