Sebi Simplifies Share Transfer Process for Deceased Investors
MUMBAI: The Securities and Exchange Board of India (Sebi) has approved measures to simplify the transfer of securities held by deceased investors to their legal heirs. The board’s decision, announced on Friday, standardizes the process and introduces a new category for claimants with securities valued at up to Rs 10,000 for physical shares and Rs 30,000 for demat shares. Additionally, the small-value claim limit has been increased to Rs 10 lakh for physical shares and Rs 30 lakh for demat shares.
Sebi also reintroduced the open market share buyback process using the stock exchange mechanism, which had been previously withdrawn due to taxation issues. The board’s actions aim to enhance liquidity for fund houses by allowing intra-day borrowing to address liquidity mismatches.
To improve transparency, Sebi approved a new Code of Conduct for its employees and made amendments to the Sebi (Employees’ Service) Regulations, 2001. The board’s measures include reducing procedural requirements for the transmission of securities. Notably, the requirement for a PAN submission has been eliminated, as the transmission will occur into a demat account that already requires a PAN. The necessity for probate of a will has also been removed, aligning with recent changes in succession laws.
Furthermore, the process will now require a combined affidavit-cum-no objection certificate (NOC) instead of separate documents. Death certificates with QR codes will also be accepted, alongside original or attested copies. Sebi’s review of the buy-back processes follows revisions in the taxation framework and stakeholder feedback, aiming to enhance flexibility and investor protection.
Sebi chairman Tuhin Kanta Pandey confirmed that there are no plans to allow self-listing, meaning stock exchanges or their group companies will not be permitted to list on their own platforms. Currently, the Bombay Stock Exchange (BSE) is listed and traded only on the National Stock Exchange (NSE).
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
