Now , No PAN is required for transfer of equity shares of listed entities executed by non-residents to their Immediate Relaxation

Now , No PAN is required for transfer of equity shares of listed entities executed by non-residents to their Immediate Relaxation

SEBI has issued Circular vide SEBI/HO/MIRSD/DOS3/CIR//2019/30, dated February 11, 2019, to allow non-residents to transfer of equity shares of listed entities to their immediate relatives without furnishing of PAN as per the requirement of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

 
To Whom the Above Circular is Applicable:

Aforesaid circular shall be applicable for Transfer of equity shares by: 

1.       Non- Resident Indians (NRIs), 

2.       Overseas Citizens of India (OCIs), 

3.       Persons of Indian Origin (PIOs) and 

4.       Foreign National.

APPLICABLE TO TRANSFER TO CLOSE RELATIVE ONLY

5.        

Permission is granted only in respect of transfer equity shares held by  non-residents in listed entities to their immediate relatives subject to the following conditions:

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

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

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

4.        

Meaning of Immediate Relative

Regulation 2(1)(l) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the term Immediate Relative means any spouse of a person, and includes parent, brother, sister or child of such person or of the spouse;

Requirement of furnishing of PAN as per SEBI (LODR), Schedule VII

 
(1) For registration of transfer of securities, 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.

NOW ,RELAXATION TO SUBMIT THE PAN BY TRANSFEROR OR TRANSFEREE IS GIVEN IF THE TRANSFER IS MADE TO A CLOSE RELATIVE IN A LISTED COMPANIES.