SEBI issues circular on simplification of procedure and standardization of formats of documents for transmission of securities

SEBI
On May 18, 2022, SEBI has issued a circular on simplification of procedure and standardization of formats of documents for transmission of securities pursuant to the LODR Amendment Regulations which has enhanced the monetary limits for simplified documentation for transmission of securities, allowed ‘Legal Heirship Certificate or equivalent certificate’ as one of the acceptable documents for transmission and provided clarification regarding acceptability of Will as one of the valid documents for transmission of securities.
For ease of reference, a ready reckoner listing out the documents required for transmission of securities, in case of demise of the sole holder, is provided in Annexure–A to this Circular. The Operational Guidelines for processing investor’s service request for the purpose of transmission of securities are provided in Annexure – B to this Circular.
Revised documentation requirements in case of transmission of securities are specified below :
  • Where the securities are held in a single name with a nomination, nominee shall be informed about the procedure to be followed for the claim on the receipt of the intimation of death of the security holder.
  • Where the securities are held in single name with a nomination, the following documents shall be submitted:
    1. duly signed transmission request form by the nominee;
    2. original death certificate or copy of death certificate attested by the nominee subject to verification with the original or copy of death certificate duly attested by a notary public or by a gazetted officer;
    3. self – attested copy of the Permanent Account Number card of the nominee, issued by the Income Tax Department.
  • Where the securities are held in single name without nomination, the following documents shall be submitted:
    1. duly signed transmission request form by the legal heir(s)/claimant(s);
    2. original death certificate or copy of death certificate attested by the legal heir(s)/claimant(s) subject to verification with the original or copy of death certificate duly attested by a notary public or by a gazetted officer;
    3. self-attested copy of the Permanent Account Number card of the legal heir(s)/claimant(s), issued by the Income Tax Department;
    4. a notarized affidavit from all legal heir(s) made on non – judicial stamp paper of appropriate value, to the effect of identification and claim of legal ownership to the securities. However, in case the legal heir(s)/claimant(s) are named in any of the documents for transmission of securities as mentioned in serial number 7 in Annexure–A to this Circular, an affidavit from such legal heir(s)/claimant(s) alone sh all be sufficient;
    5. a copy of other requisite documents for transmission of securities as may be applicable, attested by the legal heir(s)/claimant(s) subject to verification with the original or duly attested by a notary public or by a gazetted officer:
  • In cases where a copy of Will is submitted as may be applicable in terms of Indian Succession Act,1925 (39 of 1925) the same shall be accompanied with a notarized indemnity bond from the claimant (appropriate beneficiary of the Will) to whom the securities are transmitted.
  • In cases where a copy of Legal Heirship Certificate or its equivalent certificate issued by a competent Government Authority is submitted, the same shall be accompanied with:
    1. a notarized indemnity bond from the legal heir(s) /claimant(s) to whom the securities are transmitted;
    2. No Objection from all non-claimants (remaining legal heirs), stating that they have relinquished their rights to the claim for transmission of securities, duly attested by a notary public or by a gazetted officer.
  • For value of securities up to rupees five lakhs per listed entity in case of securities held in physical mode, and up to rupees fifteen lakhs per beneficial owner in case of securities held in dematerialized mode, as on date of application by the claimant, and where the documents mentioned in serial number 9 in Annexure–A, are not available, the legal heir(s) /claimant(s) may submit the following documents:
    1. a notarized indemnity bond made on non-judicial stamp paper of appropriate value in the format provided in Annexure – E to this Circular, indemnifying the Share Transfer Agent/ listed entity:
    2. no objection certificate from all legal heir(s) stating that they do not object to such transmission or copy of family settlement deed executed by all the legal heirs, duly attested by a notary public or by a gazetted officer; and

The listed entity may, at its discretion, enhance the value of securities from the threshold limit of rupees five lakhs, in case of securities held in physical mode.

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