SEBI amends rules to simplify procedure for transmission of securities

SEBI has revised the existing threshold limit for simplified documents to ₹5 lakh from ₹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 ₹15 lakh from the present level of ₹5 lakh.

“Legal Heirship Certificate or its equivalent certificate issued by competent government authority will be an acceptable document for transmission of securities,” the regulator said in a notification issued on Tuesday.

The objective is to ensure that uniform processes are followed by the Registrars to an Issue and Share Transfer Agents (RTAs)/listed companies, which would further ease the transmission process for investors.

In case of transmission of securities, where the securities are 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.

Team- Intellex Strategic Consulting Pvt Ltd,,,

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