Deceased investors’ shares, bonds to be easily transferred to heirs:SEBI simplifies transfer process, no PAN required

The SEBI board, in a meeting held on Friday, has decided to simplify the process of transferring securities such as shares and bonds held in the name of deceased investors to their legal heirs and claimants. Along with this, the regulator has also created new categories for claimants holding securities in physical and demat form. New Category Created for Small Claimants SEBI has created a new category for those claimants where the value of securities in physical form does not exceed Rs 10,000 per share. Meanwhile, for securities held in demat form, this limit has been set at Rs 30,000 per share. Small-Value Claim Amount Doubled The regulatory authority has doubled the amount for small-value claims. Now this limit has increased to Rs 10 lakh per share for physical shares and Rs 30 lakh per share for demat shares. Additionally, the board has approved several measures that will reduce paperwork formalities, i.e., procedural requirements, and make the transmission process easier. Mandatory requirement of PAN card and will removed SEBI has clarified that since the transmission of securities will be done in a demat account, for which providing PAN is already mandatory at the time of opening the account, there will no longer be a need to submit PAN separately at the time of transmission. Along with this, in view of recent changes in succession laws, the mandatory requirement of obtaining probate of will has also been removed. Now just one NOC instead of different documents The market regulator has simplified the rules by stating that investors will no longer need to provide separate affidavits and NOCs. Instead, a combined affidavit-cum-no objection certificate (NOC) will now be valid. Additionally, permission has been granted to use Death Certificates (DCs) with QR codes along with original or attested copies for this entire process. Resumption of Open Market Share Buyback The SEBI board has allowed the resumption of the open market share buyback process using the stock exchange mechanism. According to SEBI officials, this arrangement was withdrawn a few years ago due to taxation-related issues. After amendments in the tax framework and suggestions received from stakeholders, this process has been reviewed to bring more flexibility in buybacks, reduce process complexity, and strengthen the protection of investors’ interests. Intra-Day Borrowing Permitted for Fund Houses The SEBI board has simplified the facility of intra-day borrowing (borrowing for the same day) for mutual fund houses to address liquidity mismatch (cash shortage). Along with this, to increase transparency among SEBI employees, the board has approved a new Code of Conduct for SEBI Members and amendments to the SEBI (Employee Service) Regulations, 2001. This information was given by Chairman Tuhin Kanta Pandey. Self-listing not allowed: Chairman What is Probate? A certified copy of a will by the court is called probate, which proves that the will is genuine. SEBI has now removed it from the mandatory list. What is Open Market Buyback? When a company directly buys back its own shares from common investors through the stock exchange, it is called an open market buyback.