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- SEBI Board Eases Share Transfer For Deceased Investors | Claims Limit Raised
Mumbai21 minutes ago
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The SEBI Board, in its meeting held on Friday, has decided to simplify the process of transferring securities like shares and bonds held in the name of deceased investors to their legal heirs and claimants.
Along with this, the regulator has also created new categories for claimants holding securities in physical and demat form.
New category created for small claimants
SEBI has created a new category for claimants where the value of securities in physical form does not exceed Rs 10,000 per share.
Whereas for securities held in demat form, this limit has been fixed at Rs 30,000 per share.
Small-value claim amount doubled
The regulatory authority has doubled the amount for small-value claims. Now this limit has increased to Rs 10 lakh per share for physical shares and Rs 30 lakh per share for demat shares.
Apart from this, the Board has approved many such measures which will reduce the paper formalities i.e. procedural requirements and make the transmission process easier.
PAN card and will requirement removed
SEBI has clarified that since the transmission of securities will be done in the demat account, for which it is already necessary to provide PAN at the time of opening the account. Therefore, now there will be no need to submit PAN separately at the time of transmission.
Along with this, in view of the recent changes in succession laws, the mandatory condition of obtaining probate of will has also been abolished.
Now only one NOC instead of different documents
Simplifying the rules, the market regulator said that now investors will not need to give separate affidavits and NOC. Instead, now only a combined affidavit-cum-no objection certificate (NOC) will be valid.
Apart from this, the use of Death Certificates (DCs) with QR code along with original or attested copies has also been approved for this entire process.
Resumption of open market share buyback
The SEBI board has given permission to restart the open market share buyback process using the stock exchange mechanism. According to SEBI officials, this arrangement was withdrawn a few years ago due to taxation issues.
This process has been reviewed after amendments in the tax framework and suggestions received from stakeholders, so that buyback can be more flexible, the complexity of the process can be reduced and the protection of investors’ interests can be strengthened.
Approval for intra-day borrowing to fund houses
SEBI Board has eased the facility of intra-day borrowing (loan for the same day) for mutual fund houses to overcome liquidity mismatch (shortage of cash).
Additionally, the Board has approved a new Code of Conduct for SEBI Members and amendments to the SEBI (Employees’ Service) Regulations, 2001 to enhance transparency among SEBI employees. Chairman Tuhin Kant Pandey gave this information.
Self-listing not allowed: Chairman
- Chairman Tuhin Kant Pandey clarified that the regulator is not currently considering any proposal to allow ‘self-listing’.
- Self-listing means allowing a stock exchange or its group company to be listed on its own exchange.
- In India, it is listed on BSE, but it is traded only on NSE.
What is probate?
The court certified copy of the will is called probate, which proves that the will is correct. SEBI has now removed it from the mandatory list.
What is open market buyback?
When a company buys back its own shares directly from common investors through the stock exchange, it is called open market buyback.
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