Transmit securities in favour of surviving joint holder in case of death of joint holder: Sebi to RTAs
Markets regulator Sebi has asked RTAs (registrars to an issue and share transfer agents) to transmit securities in favour of surviving joint holder in case of demise of a joint holder.
It has been observed in some cases that due to counterclaim or dispute from the legal representative of a deceased holder, RTAs have not effected transmission to the surviving joint holders, Sebi noted.
Accordingly, Sebi in a circular asked RTAs to comply with the provisions of the Companies Act 2013 and transmit securities in favour of surviving joint holder(s) in the event of demise of one or more joint holder(s).
This will be done provided that there is nothing contrary to the same in the Article of Association of the company, it added.
Under the norms, in case of joint holdings, on the death of any one or more of the joint holders, the surviving joint holder can get the name of the deceased deleted from the physical certificate and get the securities dematerialised by following the prescribed procedure.
Earlier in December 2020, Sebi came out with operational guidelines to credit physical shares in demat account of investors following re-lodged transfer request.
The regulator had fixed March 31, 2021 as the cut-off date for re-lodgement of share transfer requests.
Transfer of securities held in physical mode was discontinued with effect from April 1, 2019, but investors were not barred from holding shares in physical form.
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