Simplification & Standardisation of Procedures for Transmission of shares

SEBI has issued a new circular no. CIR/MIRSD/10/2013 dated October 28, 2013 wherein they have further simplified and standardised the procedure for transmission of shares in case of listed companies: 

.

1) In case of transmission of securities in dematerialized mode, where the securities are held in a single name without a nominee, the existing threshold limit of Rs.1,00,000 (Rupees One lakh only) per beneficiary owner account has now been revised to Rs.5,00,000 (Rupees Five lakh only), for the purpose of following simplified documentation, as already prescribed by the depositories vide bye-laws / operating instructions.

2) In case of transmission of securities in physical mode, where the securities are held in single name without a nominee, the STAs/issuer companies shall follow, in the normal course, the simplified documentation for a threshold limit of ` Rs.2,00,000 (Rupees Two lakh only) per issuer company. However, the Issuer companies, at their discretion, may enhance the value of such securities.

3) The timeline for processing the transmission requests for securities held in dematerialized mode and physical mode shall be 7 days and 21 days respectively, after receipt of the prescribed documents.

Documentary requirement for securities held in physical mode
1. For securities held in single name with a nominee:
i. Duly signed transmission request form by the nominee.
ii. Original or Copy of death certificate duly attested by a Notary Public or by a Gazetted Officer.
iii. Self attested copy of PAN card of the nominee. (Copy of PAN card may be substituted with ID proof in case of residents of Sikkim after collecting address proof)

2. For securities held in single name without a nominee, following additional documents may be sought:
a) Affidavit made on appropriate non judicial stamp paper – to the effect of identification and claim of legal ownership to the securities

b) For value of securities upto ` 2,00,000 (Rupees Two lakh only) per issuer company as on date of application, one or more of the following documents:
i. No objection certificate [NOC] from all legal heir(s) who do not object to such transmission (or) copy of Family Settlement Deed duly notarized or attested by a Gazetted Officer and executed by all the legal heirs of the deceased holder.

ii. Indemnity made on appropriate non judicial stamp paper – indemnifying the STA/Issuer Company.

c) For value of securities more than ` 2,00,000 (Rupees Two lakh only) per issuer company as on date of application:
i. Succession certificate (or) Probate of will (or) Letter of Administration (or) Court decree.

The full circular is available at 

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1382951356969.pdf

 

Leave a comment

Filed under company law

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s