The Securities Exchange Board of India (“SEBI”) in a circular dated 11th February, 2019 has done away with the requirement of furnishing a copy of PAN card to listed entities for registration of transfer of securities by transferors and transferees. This is however applicable to Non- Resident Indians (“NRIs”), Overseas Citizens of India (“OCIs”), Persons of Indian Origin (“PIOs”) and foreign nationals only.
According to Para (A)(1) of Schedule VII of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”), the transferees as well as transferors have to furnish a copy of their PAN card to the listed entity for registration of transfer of securities.
Investors who are non-residents such as NRIs, PIOs, OCIs and foreign nationals have been facing difficulties in transferring shares held by them since many of them do not a possess PAN card. In order to address the difficulties faced by such investors, SEBI has decided to grant relaxation to non-residents such as NRIs, PIOs, OCIs and foreign nationals from the requirement of furnishing PAN and permit them to transfer equity shares held by them in listed entities to their immediate relatives subject certain conditions listed below:
- The relaxation will only be available for transfers executed after January 01, 2016.
- The relaxation will only be available to non-commercial transactions, i.e. transfer by way of gift among immediate relatives.
- The non-resident will have to provide a copy of an alternate valid document to ascertain identity as well as the non-resident status.
Source: Security Exchange Board of India
