SEBI has vide its circular dated 11th February, 2019 relaxed the mandatory requirement of providing Permanent Account Number (PAN) in respect of transfer of equity shares in listed entities. Hitherto it was a mandatory requirement for all transferees to provide PAN in respect of physical transfer of shares. Now it has been relaxed for Non Resident Indians (NRIs), Overseas Citizens of India (OCIs), Persons of Indian Origin (PIOs) and foreign nationals, subject to some conditions.
The conditions are:
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.
d. The transfer of shares is to their immediate relatives only.
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.
A copy of this circular can be found here
The conditions are:
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.
d. The transfer of shares is to their immediate relatives only.
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.
A copy of this circular can be found here
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