PAN card is no more a compulsory document during the transfer of equity shares for Non Residents

Feb 12, 2019 | by Avantis RegTech Legal Research Team

Securities and Exchange Board of India (SEBI) on February 12, 2019, has published a Circular granting relaxation to non residents such as Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Persons of Indian Origin (PIOs) and Foreign Nationals from the requirement to furnish PAN card and permit them to transfer equity shares held by them in the listed entities.

Previously SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 specifies that transferees as well as transferors to furnish a copy of their PAN card to listed entities for the registration of transfer of securities. But it had been found that many non-residents are facing difficulties in transferring shares as they did not possess PAN card.

To address the difficulties faced by the investors, SEBI decided to grant relaxation to the non-residents of India subject to following conditions:

·         The relaxation will only be available for transfers executed after January 01, 2016.

·         The relaxation will only be available to non-commercial transactions.

·         The non-resident should provide a copy of an alternative valid document to ascertain identity as well as the non-resident status.

[Circular No.: SEBI/HO/MIRSD/DOS3/CIR/P/2019/30]




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