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SEBI Amends Rules To Make The Process Of Transferring Securities Easier

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SEBI

Market watchdog Securities and Exchange Board of India, SEBI has raised the current streamlined documentation threshold level for securities kept in interfaces that enable per listed entity from Rs 2 lakh to Rs 5 lakh, which is a welcome move. The change is intended to make the process of transferring securities easier.

In addition, the threshold for assets kept in the dematerialized method for each beneficiary account has indeed been raised to Rs 15 lakh against Rs 5 lakh previously. Sucheta Dalal, the editor in chief of Moneylife, has regularly written in her article on the need to streamline the process of securities transference.

SEBI’s Statements

In a statement released Tuesday night, SEBI stated that a legal inheritance certification or its equivalent certificate issued by the appropriate government organization will be an appropriate document for the conveyance of shares.

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The goal is to ensure that Applicants to an Offering and Defined As transferring Agents (RTAs) / listed businesses follow standard processes, making the transfer process easier for investors.

SEBI’s Listing Duties and Transparency Requirements, or LODR Guidelines, have been revised to accomplish this. SEBI’s executive board adopted a recommendation in this respect at its session in early March. The commission has also highlighted reporting requirements in case of commodities communication in its announcement.

SEBI

The Procedure

When securities are owned in several names with a recommendation, SEBI requires papers such as a transference request form signed by the claimant, an authentic death certificate or a duplicate of a coroner’s report confirmed by the candidate, and a photocopy of the nominee’s Permanent Account Number card.

Documents, along with a notarized sworn statement from all personal representatives made in the non-judicial prescribed format of optimum value, to the impact of recognition and claim of rightful possession to the equities, must be required to submit in the case of equities transfer of data where the financial assets are held in a single title without candidacy.

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The legitimate heirship document or its equivalent certificate could be provided if the legitimate heirs are mentioned in the inheritance certificate or ‘Probate of Will,’ according to SEBI.

Subhashree Panda: A proficient content writer, editor, and researcher. With 4 years of experience and an MBA in finance, she crafts compelling narratives on global events. Her passion for diverse journalism genres resonates widely, fostering broad audience connections.

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