Simplification of procedure and standardization of formats of documents for transmission of securities
Summary
This circular simplifies the procedure and standardizes formats for the transmission of securities following the LODR Amendment Regulations, 2022. It specifies distinct documentation requirements for nominees in single-name holdings with nomination versus legal heirs in holdings without nomination. The document also outlines special provisions for low-value transmissions, joint holder survivals, and mandates strict adherence to prescribed formats by intermediaries. This section lists seven annexures detailing formats and guidelines for the transmission of securities. Annexure A provides a ready reckoner specifying documents required based on whether a nomination is registered. Annexure B establishes operational guidelines for RTAs and Issuer Companies to process investor service requests for transmission. This section provides Annexure C, a formal request form for the transmission of securities by a nominee or legal heir following the death of a sole holder. It requires detailed claimant information, including KYC data, bank details, and specific declarations regarding nomination status and tax residency. Additionally, it includes Annexure D, which mandates individual affidavits fr
Text
Pursuant to the notification of the LODR Amendment Regulations, this Circular is being issued to specify the formats of various documents which are required to be furnished for the processing of transmission of securities.
Where the securities are held in a single name with a nomination, nominee shall be informed about the procedure to be followed for the claim on the receipt of the intimation of death of the security holder.
Where the securities are held in single name with a nomination, the following documents shall be submitted: (a) duly signed transmission request form by the nominee; (b) original death certificate or copy attested by nominee/notary/gazetted officer; (c) self-attested copy of PAN card of the nominee.
Where the securities are held in single name without nomination, the following documents shall be submitted: (a) transmission request form; (b) death certificate; (c) PAN card; (d) notarized affidavit from all legal heirs identifying ownership; (e) other requisite documents as per Annexure A.
In cases where a copy of Will is submitted, the same shall be accompanied with a notarized indemnity bond from the claimant (appropriate beneficiary of the Will) in the format provided in Annexure – E.
In cases where a copy of Legal Heirship Certificate or its equivalent certificate issued by a competent Government Authority is submitted, the same shall be accompanied with: i. a notarized indemnity bond; ii. No Objection from all non-claimants.
For value of securities up to rupees five lakhs per listed entity (physical mode) and up to rupees fifteen lakhs per beneficial owner (dematerialized mode), if specific documents are unavailable, claimants may submit a notarized indemnity bond and no objection certificate/family settlement deed.
For transmission of securities to the surviving joint holder(s), RTAs shall comply with clause 23 of Table F in Schedule 1 read with Section 56(2) & 56(4)(c) of the Companies Act, 2013... provided that there is nothing contrary in the Articles of Association of the company.
The common norms stipulated in SEBI Circular SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 03, 2021 and SEBI Circular SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/687 dated December 14, 2021 shall be applicable for transmission service requests.
In case the securities were held by the deceased holder in a single name and in physical mode, then after verifying and processing the documents... the RTAs/ Issuer companies shall intimate the claimant(s) about its execution... within 30 days of the receipt of such request.
The provisions of this Circular shall come into force with immediate effect in supersession of the following circulars: a) Circular No. CIR/MIRSD/10/2013..., b) Circular No. .../2016/0000000085..., c) Circular No. .../2019/05..., and d) Circular No. .../2021/644...
Stock Exchanges and Depositories are advised to: a) make necessary amendments to the relevant bye-laws, rules and regulations... for implementation; and b) to bring the provisions of this Circular to the notice of their constituents and also disseminate the same on their websites.
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Source: SecMarx — Simplification of procedure and standardization of formats of documents for transmission of securities. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.