In a move aimed at simplifying procedures, India’s capital market regulator, SEBI, has streamlined rules for individuals holding securities in physical (paper) form.
The recent decision eliminates restrictions on securities lacking PAN, KYC details, and ‘Nomination.’
Immediate Effect
This regulatory change, effective immediately, follows recommendations from the Registrar Association of India and investors, aligning with SEBI’s commitment to simplifying processes.
Previous Requirements
Previously, individuals holding shares in listed companies in physical form were required to provide specimen signatures for PAN, nomination, contact details, bank account details, and the respective folio number.
An earlier SEBI announcement in May mandated issue and share transfer agents (RTAs) to detain ‘folios’ lacking these documents after October 1, 2023.
Notable Amendment
A notable amendment in the recent circular is the removal of the term ‘freeze.’ SEBI clarified that this modification, based on suggestions from the Registrar Association of India
and investors, aims to ease administrative challenges linked to the Benami Transactions (Prohibition) Act, 1988,
and/or Anti-Money Laundering Act. The decision reflects SEBI’s commitment to practical and streamlined regulations.
