SEBI had said that it is necessary to stop issue registration and ‘Share Transfer Agents’ (RTAs) in ‘folios’ in which any of such documents will not be available on or after October 1, 2023.
The Securities and Exchange Board of India (SEBI), the body that regulates the stock market, has simplified the rules for those holding securities in paper form. Under this, the provision of banning securities without PAN, KYC (Know Your Customer) details and ‘nomination’ has been removed.
SEBI said in a circular that the purpose of this initiative is to simplify the rules. This step will come into effect with immediate effect. This decision has been taken after receiving suggestions from Registrar Association of India and investors.
Signature was mandatory
Under the rules, it was mandatory for all those holding securities in physical form in listed companies to provide signature for PAN, nomination, contact details, bank account details and the respective ‘folio’ number.
SEBI had in May said that ‘folios’ in which any of such documents will not be available on or after October 1, 2023, are required to stop issue registration and ‘share transfer agents’ (RTAs). While amending the circular issued by the regulator in May, SEBI said that the word ‘freeze’ has been removed.
What did SEBI say
SEBI said, “On the basis of the report received from the Registrar Association of India, suggestions received from investors and ban on shares under the Benami Transactions (Prohibition) Act, 1988 and or Anti-Money Laundering Act and related matters.” …to reduce administrative challenges, it has been decided to abolish the above provision.
