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Sebi lays framework for transfer of securities in physical mode

New Delhi: Markets regulator Sebi Tuesday put in place a standard framework for transfer of securiti..

By admin , in Markets , at November 6, 2018

New Delhi: Markets regulator Sebi Tuesday put in place a standard framework for transfer of securities in physical mode, in a bid to address the difficulties faced by investors in transmission of such shares.

The regulator has noted that registrars to an issue and share transfer agents (RTAs) are seeking various documents for effecting transfer of securities and the documents sought vary across such RTAs.

Besides, the Sebi has also received representations, highlighting difficulties faced by transferees in providing these documents. In this regard, the regulator had meetings with Registrars Association of India (RAIN) and depositories and pursuant to such meetings, RAIN submitted a standardised procedure for transfer of securities in physical mode.

Accordingly, the Securities and Exchange Board of India (Sebi) has issued standardised norms for transfer of securities in physical mode.

The regulator has allowed transfer deeds executed prior to December 1, 2015 to be registered with or without the PAN of the transferor after it noticed that many transfer deeds executed prior to December 1, 2015 have not been registered due to non-availability of PAN of the transferor.

In the case of mismatch of name in PAN card vis-a-vis name on share certificate or transfer deed, Sebi said transfer will be registered on submission of any of these four documents– passport, marriage certificate, Aadhar card and copy of gazette notification regarding change in name — explaining the difference in names.

With respect to non-availability or major mismatch in transferor's signature, Sebi said that the transferor is required to update his signature by submitting bank attested signature along with an affidavit and cancelled cheque to the RTA/company.

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