Ease of Doing Investment and Ease of Doing Business – Simplification and standardisation of the framework for transmission of securities
Summary
SEBI issues a circular to simplify and standardize the framework for transmission of securities to enhance ease of doing business. The revised framework introduces Quick Transmission Processing (QTP) for low-value claims and updates documentation requirements, such as removing mandatory probate. These provisions apply to listed companies, RTAs, depositories, DPs, and AMCs, with an effective date set 30 days from issuance. This section details the documentation and procedures for transmitting securities upon the death of a holder, distinguishing between cases with and without nominations. It outlines specific requirements for Qualified Transmission Process (QTP), simplified documentation categories, and claims exceeding those thresholds. Additionally, it establishes standard operating procedures for claim submission, acknowledgment, and dematerialization by regulated entities. This section outlines specific requirements for proving death when an investor dies outside India, including acceptable certification modes. It establishes a 21-day time limit for processing transmission claims and mandates written communication for any delays or rejections. The text further details the Rule o
Text
SEBI has reviewed the process being followed by processing entities for effecting transmission of securities to make it more efficient and investor friendly.
It has been decided to specify the revised transmission framework for securities as prescribed in Annexure to this Circular under Regulation 40(7) of LODR Regulations.
Introduction of a harmonised, standardised and risk-based process for transmission of securities.
New category for low value claims, namely, Quick Transmission Processing (“QTP”) and revision of monetary threshold limits for transmission of securities under the simplified documentation framework.
Removal of mandatory requirement of Probate of Will; Combined affidavit-cum-NOC; acceptance of death certificate with QR Code; permitting additional modes for verification of foreign death certificates.
The provisions of this circular and the revised transmission framework shall come into force with effect from 30 days from the date of issuance of this circular.
Processing entities shall strive to process transmission requests received before the said date in terms of the revised framework and shall not seek re-submission of documents already submitted.
Processing entities shall provide monthly reports regarding processing of transmission requests under revised transmission framework for a period of 6 months to SEBI.
This circular is issued in exercise of powers conferred under Section 11(1) of SEBI Act, section 19 of Depositories Act, and relevant regulations to protect investors and regulate markets.
The framework shall apply to transmission of listed securities and units issued by AMCs consequent to demise of sole holder/ all joint holders of securities.
The framework shall not apply where there is any dispute or contesting/competing claims; claimants must resolve through judicial or legal proceedings.
Apostille refers to a certificate that authenticates the origin of a public document issued in one country party to The Hague Apostille Convention for use in another.
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Source: SecMarx — Ease of Doing Investment and Ease of Doing Business – Simplification and standardisation of the framework for transmission of securities. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.