CIRCULAR, CIR/MIRSD/10/2013, dated October 28, 2013
To
All
recognized Stock Exchanges
All
Registrars to an Issue and Share Transfer Agents registered with SEBI
All
Depositories,
1. SEBI has reviewed the process
being followed by the Share Transfer Agents (STAs) and the Depositories /
Issuer companies (in-house STAs) for effecting transmission of securities held
in physical as well as dematerialized mode.
2. With a view to make the
transmission process more efficient and investor friendly, it has been decided
in consultation with Registrars Association of India (RAIN) and the
depositories, that STAs/ issuer companies and the depositories shall adhere to
the following guidelines, as applicable to them:
I. In case of transmission of
securities in dematerialized mode, where the securities are held in a single
name without a nominee, the existing threshold limit of Rs. 1,00,000 (Rupees
One lakh only) per beneficiary owner account has now been revised to Rs. 5,00,000
(Rupees Five lakh only), for the purpose of following simplified documentation,
as already prescribed by the depositories vide bye-laws / operating
instructions.
II. In case of transmission of
securities held in physical mode:
a. where the securities are held in
single name with a nominee, STAs/issuer companies shall follow the standardized
documentary requirement as given in Annexure A.
b. where the securities are held in
single name without a nominee, the STAs/issuer companies shall follow, in the
normal course, the simplified documentation as given in Annexure A, for a
threshold limit of Rs. 2,00,000 (Rupees Two lakh only) per issuer company.
However, the Issuer companies, at their discretion, may enhance the value of
such securities.
III. The timeline for processing the
transmission requests for securities held in dematerialized mode and physical
mode shall be 7 days and 21 days respectively, after receipt of the prescribed
documents.
3. To improve the awareness of
nomination facility, all Registrars to an Issue and Share Transfer Agents shall
publicize nomination as an additional right available to investors, while
sending communications to the investors.
4. All the stock exchanges are
directed to make necessary amendments, wherever applicable, to the listing
agreements for listing of various securities.
5. The depositories are directed to
make necessary amendments, wherever applicable, to the relevant byelaws/ rules
and regulations/circulars in this regard.
6. The circular is issued in
exercise of powers conferred under Section 11(1) of the Securities and Exchange
Board of India Act, 1992, to protect the interests of investors in securities
and to promote the development of, and to regulate the securities markets and
shall be complied with at the earliest and not later than 45 days from the date
of issue of the circular.
7. This circular is available on
SEBI website (www.sebi.gov.in) under the
categories “Legal Framework” and “Circulars”.
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