SEBI is changing the rules to simplify the process of transferring securities

The regulator is changing the threshold for simplified documents from the current £2 lakh to £5 lact for securities held physically, per listed issuer

The regulator is changing the threshold for simplified documents from the current £2 lakh to £5 lact for securities held physically, per listed issuer

Aiming to simplify the process for transferring securities, SEBI has revised the existing simplified document threshold limit from the current 2 lakh to ₹5,000 for securities held in physical form per listed issuer.

In addition, the relevant threshold for securities held in dematerialized form for each beneficiary account has been raised from the current 5 lakh to 15 lakh.

The Legal Heirship Certificate, or an equivalent certificate issued by the relevant government agency, will be an acceptable document for the transfer of securities, the regulator said in a notice issued on Tuesday.

The aim is to ensure that consistent processes are followed by the registrars of an Issuance and Share Transfer Agency (RTAs) / listed company, which would further simplify the submission process for investors.

To achieve this, the Capital Markets Authority amended SEBI’s Listing Obligations and Disclosure Requirements or LODR Regulations.

The move comes after SEBI’s Board of Directors approved a proposal to that effect at its meeting in late March.

In its notification, the supervisory authority also listed documentation requirements for the transfer of securities.

In the case of securities transfers where the securities are held in a single named, named form, SEBI said that documents such as the nominee’s transfer application form, the original death certificate or a copy of the death certificate certified by the nominee, and a copy of the Permanent Account Number (PAN ) card of the nominee to be presented.

In the case of a transfer of securities where the securities are held in an individual name without attribution, documents, including a notarized affidavit of all legal heirs made on extrajudicial stamped paper of reasonable value, in order to identify and claim legal ownership to effect the securities, must be filed.

If the legal heirs are named in the certificate of inheritance or proof of will, the certificate of legal inheritance or equivalent can be filed, SEBI said.

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