PAN requirement for transmission of shares in physical form
Summary
This circular clarifies that furnishing a copy of the PAN card is mandatory for specific types of physical share transmissions, including transmission to legal heirs and transposition of joint holdings. It outlines procedures for Registrars to an Issue and Share Transfer Agents (RTAs) to handle mismatches in PAN details or name changes by verifying documentary evidence. Stock Exchanges are instructed to amend bye-laws and ensure listed companies comply with these requirements.
Text
it shall be mandatory to furnish a copy of PAN in the following cases
Deletion of name of the deceased shareholder(s), where the shares are held in the name of two or more shareholders.
Transmission of shares to the legal heir(s), where deceased shareholder was the sole holder of shares.
Transposition of shares – when there is a change in the order of names in which physical shares are held jointly in the names of two or more shareholders.
The RTAs can collect the PAN card as submitted by the transferee(s). However, this would be subject to the RTAs verifying the veracity of the claim of such transferee(s) by collecting sufficient documentary evidence in support of the identity of the transferee(s)
implement the above by making necessary amendments to the bye-laws and Listing Agreement, as applicable
bring the provisions of this circular to the notice of the listed companies for necessary compliance and also to put the same on their website for easy access to the investors
communicate to SEBI the status of the implementation of the provisions of this circular and the action taken in this regard in the Monthly Development Report.
take necessary steps to implement the above decision.
disseminate the provisions of this circular on their website.
This circular is issued in exercise of powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992, read with section 55A of Companies Act to protect interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — PAN requirement for transmission of shares in physical form. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.