Transmission of Securities to joint Holder(s)
Summary
This circular advises Registrars to an Issue and Share Transfer Agents (RTAs) to transmit securities to surviving joint holders upon the demise of one or more joint holders. It mandates compliance with Section 56(2) and 56(4)(c) of the Companies Act, 2013, overriding previous delays caused by disputes among legal representatives. This directive applies provided there is no contrary provision in the company's Articles of Association.
Text
The norms pertaining to transmission of securities to joint holders(s) are provided in clause 23 of Table F in schedule 1 read with section 56(2) & 56(4)(c) of the Companies Act 2013.
RTAs are hereby advised to comply with the aforesaid provisions of the Companies Act 2013 and transmit securities in favour of surviving Joint holder(s), in the event of demise of one or more joint holder(s), provided that there is nothing contrary to the same in the Article of Association of the company.
This circular is being 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 market read with Regulation 101 of SEBI (Listing Obligations and Disclosure Requirements), 2015.
Source: SecMarx — Transmission of Securities to joint Holder(s). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.