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Big Relief for Investors: SEBI Eases Securities Transmission Process After Account Holder's Death
SEBI has significantly simplified and expedited the process of transferring securities following an investor's death. Measures include reducing paperwork and doubling the threshold for simplified claims. Additionally, a new code of conduct has been implemented for board members to enhance internal transparency. Here is how things have become easier for you...
SEBI, the regulator of the stock market, has taken a step that will greatly benefit the investors. From now on, it will be easy for the legal heir or nominee of a deceased investor to transfer the securities to his/her name. This will facilitate the process of filing a claim and there would be no requirement of running here and there. In addition, SEBI has also framed a Code of Conduct for its board members.
In the SEBI meeting, a new category named Quick Transmission Processing (QTP) has been added to handle small claims. According to QTP, claims below ₹10,000 on physical securities and below ₹30,000 on dematerialized securities will be handled easily.
Moreover, SEBI has raised the limits for transfer with simplified documentation. In physical form, it has been increased from ₹5 lakh to ₹10 lakh while in dematerialized form, the limit has been raised from ₹15 lakh to ₹30 lakh per beneficial owner account per listed company.
The regulator has introduced several significant changes to streamline the process. The mandatory requirement to submit a PAN card at the time of making a claim has been eliminated. SEBI holds the view that PAN details are already available from the time the Demat account was opened. In light of recent changes to succession laws, the mandatory requirement to obtain probate of a will has been waived.
