SEBI amends rules to simplify procedure for transmission of securities

Published
28th Apr, 2022

Context

SEBI has revised the existing threshold limit for simplified documents to Rs 5 lakh from Rs 2 lakh currently for securities held in physical mode per listed issuer.

About

Implications of the amendments:

It aims to simplify the procedure for transmission of securities.
Also, the threshold in this regard for securities held in the dematerialised mode for each beneficiary account has been increased to Rs 15 lakh from the present level of Rs 5 lakh.
Legal heirship certificate or its equivalent certificate issued by competent government authority will be an acceptable document for transmission of securities.
The objective is to ensure that uniform processes are followed by the Registrars to an Issue and Share Transfer Agents (RTAs) / listed companies, which would further ease the transmission process for investors.
To effect this, the capital markets regulator has amended SEBI's Listing Obligations and Disclosure Requirements or LODR Regulations.

Securities and Exchange Board of India (SEBI)

SEBI is a statutory regulatory body entrusted with the responsibility to regulate the Indian capital markets.
It monitors and regulates the securities market and protects the interests of the investors by enforcing certain rules and regulations.
SEBI was founded on April 12, 1992, under the SEBI Act, 1992.
Headquartered in Mumbai, India, SEBI has regional offices in New Delhi, Chennai, Kolkata and Ahmedabad along with other local regional offices across prominent cities in India.