The regulator has increased the simplified document limit for securities held in physical mode from ₹2 lakh at present to ₹5 lakh per listed issuer
The regulator has increased the simplified document limit for securities held in physical mode from ₹2 lakh at present to ₹5 lakh per listed issuer
With a view to simplify the process of transmission of securities, SEBI has revised the existing threshold limit for simplified documents from ₹ 2 lakh to ₹ 5 lakh per listed issuer at present for securities held in physical mode.
Also, the limit for securities held in dematerialized mode has been increased from the existing Rs 5 lakh to Rs 15 lakh for each beneficiary account in this regard.
In a notification issued on Tuesday, the regulator said a legal succession certificate or its equivalent certificate issued by a competent government authority would be an acceptable document for transmission of securities.
The objective is to ensure that the same procedures are followed by the Registrars for an issue and Share Transfer Agents (RTAs)/listed companies, which will further ease the transmission process for the investors.
To give effect to this, the capital markets regulator has amended SEBI’s Listing Obligations and Disclosure Requirements or LODR Regulations.
The move comes after the board of SEBI approved a proposal in this regard in its meeting in late March.
The regulator in its notification has also listed the documentation requirements in case of transfer of securities.
In case of transmission of securities, where the securities are held in the same name along with the nomination, SEBI said transmission request form by the nominee, the original death certificate or copy of the death certificate attested by the nominee and the Permanent Account Number Documents like copy of (PAN). ) Nominee’s card has to be submitted.
In case of transfer of securities, where securities are held in the same name without nomination, documents including notarized affidavits from all legal heirs made on non-judicial stamp paper of fair value, effect of identification and claim of legal ownership Is. securities, required to be submitted.
SEBI said that if the succession certificate or the probate of the will contains the names of the legal heirs, then the legal succession certificate or its equivalent certificate can be submitted.