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Standardisation and Simplification of Procedures for Transmission of Securities

CIRCULAR

CIR/MIRSD/10/2013

October 28, 2013

To
All recognized Stock Exchanges
All Registrars to an Issue and Share Transfer Agents registered with SEBI
All Depositories,

Sir / Madam,

Sub: Standardisation and Simplification of Procedures for Transmission of Securities

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 ` 1,00,000 (Rupees One lakh only) per beneficiary owner account has now been revised to ` 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 ` 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.

Yours faithfully,

Ruchi Chojer
General Manager
Tel.No: 022-26449310
E-mail id: ruchic@sebi.gov.in

Tags: AnnexationIndiaIssuerSEBISecurities & Exchange Board of IndiaSecurities and Exchange Board of India Act 1992Security (finance)Stock exchange

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