SEBI has provided relaxation to non-residents from requirement to furnish a copy of PAN for transfer of equity shares of listed entities to their immediate relatives , by a circular dated 11th February, 2019. “Immediate relative” shall have the same meaning as defined in SEBI SAST Regulations,2011- “Immediate relative means any spouse of a person, and includes parent, brother, sister or child of such person or of the spouse”
As per Schedule VII of SEBI LODR, 2015, it is mandatory for the transferee and transferor to furnish a copy of their PAN card to the listed entity for registration of physical transfer of securities. Implementation of this requirement has been difficult as many non-residents do not possess PAN card.
In order to address the issue, relaxation has been granted subject to the following conditions:
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.
Click here for the circular.
