SEBI modifies the rules to simplify the procedure for the transmission of titles


SEBI has revised the existing threshold limit for simplified documents to ₹5 lakh from ₹2 lakh currently for securities held in physical mode by listed issuer

SEBI has revised the existing threshold limit for simplified documents to ₹5 lakh from ₹2 lakh currently for securities held in physical mode by listed issuer

In a bid to simplify the procedure for transmission of securities, the Securities and Exchange Board of India (SEBI) has revised the existing limit threshold for simplified documents to ₹5 lakh from ₹2 lakh currently for securities held in physical mode by issuer quoted.

Further, the threshold in this respect for securities held in dematerialized mode for each beneficiary account has been raised to ₹15 lakh from the current level of ₹5 lakh.

“The legal certificate of inheritance or its equivalent certificate issued by the relevant government authority will be an acceptable document for conveyance of title,” the regulator said in a notice released Tuesday. The aim is to ensure that uniform processes are followed by an issue’s Registrar Agents and Share Transfer Agents (RTAs)/listed companies, which would further facilitate the transmission process for investors.

To do so, the capital markets regulator amended SEBI’s registration requirements and disclosure requirements or LODR regulations. The move comes after SEBI’s board of directors approved a proposal in this regard at its meeting in late March. In its notification, the regulator also listed the documentation requirements in case of transmission of securities.

In the event of transfer of securities, when the securities are held in a single name with nomination, SEBI declares the documents such as the transfer request form by the nominee, the original of the death certificate or the copy of the death certificate attested by the nominee and the copy of the permanent account number (PAN) the nominee’s card must be submitted.

“In the event of transmission of titles, when the titles are held in a single name without designation, documents, including a notarized certificate of all the legal heirs made on non-judicial stamped paper of appropriate value, for the purpose of the identification and claim of legal ownership to the titles, must be submitted.

“In the event that legal heirs are named in the Certificate of Inheritance or Probate of Will, the Certificate of Legal Inheritance or its equivalent certificate may be submitted,” SEBI said.

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