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SEBI

Relaxation from requirement to furnish a copy of PAN for transfer of equity shares of listed entities executed by non-residents

1.Para  (A)(1)  of  Schedule  VII of  SEBI  (Listing  Obligations  and  Disclosure Requirements) Regulations, 2015(“LODR”)specifies that the transferee(s) as well as transferor(s) shall furnish a copy of their PAN card to the listed entity for registration of transfer of securities.

2.It has been brought to the notice of SEBI that many non-residents such as Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Persons of Indian Origin (PIOs) and foreign nationals have been facing difficulties in transferring shares held by them since many of them do not possess PAN card.

3.In order to address the difficulties faced by such investors, it has been decided to grant  relaxation  to non-residents (such  as NRIs,  PIOs,  OCIs  and  foreign nationals) from  the  requirement  to furnish  PAN  and  permit  them to  transfer equity shares held by them in listed entities to their immediate relatives subject to the following conditions:

a.The relaxation shall only be available for transfers executed after January 01, 2016.

b.The relaxation shall only be available to non-commercial transactions, i.e. transfer by way of gift among immediate relatives.

c.The non-resident  shall  provide  copy  of an  alternate  valid  document to ascertain identity as well as the non-resident status.

For the purpose of Para 3(b) above, the term “immediate relative” shall shave the  same  meaning  as  defined  in  Regulation  2(1)(l)  of  SEBI  (Substantial   Acquisition of Shares and Takeovers) Regulations, 2011.

Sebi relaxes norms for non-residents to transfer shares to relatives 

Markets regulator Sebi Monday granted relaxation to non-residents such as NRI, PIOs, and foreign nationals from furnishing a copy of PAN card and allowed them to transfer equity shares held by them to their immediate relatives. 

However, the relaxations are subject to certain conditions, Sebi said in a circular. 

Under Sebi's LODR (Listing Obligation and Disclosure Requirements) provisions, transferee as well as transferor is required to furnish a copy of their PAN (Permanent Account Number) card to the listed entity for registration of transfer of the securities.