SEBI simplifies procedure for transmission of securities

New Delhi: To enhance the ease of dealing in securities markets, the regulator SEBI on Wednesday simplified the procedures and came out with standardised formats of documents for transmission of securities.

This comes after the regulator reviewed the process being followed by the Registrars to an Issue and Share Transfer Agents (RTAs) and the depositories/ issuer companies for effecting the transmission of securities.

For ease of reference, a ready reckoner listing out the documents required for transmission of securities, in case of demise of the sole holder, has been provided by the regulator, according to a circular.

In addition, Sebi has put in place operational guidelines for processing an investor's service request the purpose of transmission of securities. It has come out with a format of the form to be filed by nominee/claimant/legal heir while requesting transmission of securities.

In case of transmission of securities held in single name with the nomination, Sebi said documents like the transmission request form by the nominee, original death certificate or copy of death certificate attested by the nominee and copy of Permanent Account Number (PAN) card of the nominee need to be submitted.

For transmission of securities held in single name without nomination, documents including a notarised affidavit from all legal heirs made on non-judicial stamp paper of appropriate value, to the effect of identification and claim of legal ownership to the securities need to be submitted.

In case the legal heirs are named in the succession certificate or Probate of Will, then the Legal Heirship Certificate or its equivalent certificate can be submitted, Sebi said.

Legal Heirship Certificate or its equivalent certificate issued by competent government authority will be an acceptable document for transmission of securities.

Last month, the capital markets regulator amended the Listing Obligations and Disclosure Requirements or LODR Regulations, whereby it revised the existing threshold limit for simplified documents to Rs 5 lakh from Rs 2 lakh currently for securities held in physical mode per listed issuer.

Also, the threshold in this regard for securities held in the dematerialised mode for each beneficiary account has been increased to Rs 15 lakh from the present level of Rs 5 lakh.

(With agency inputs)

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