DEPUTY GENERAL MANAGER
Market Regulation Department Division of Policy
Email: harinib@sebi.gov.in
SEBI/MRD/DoP/SE/RTA/Cir-03/2010
January 07, 2010
1. The Executive Directors/ Managing Directors
     of all Stock Exchanges

2. Registrars to an Issue and Share Transfer Agents

Dear Sir/Madam,

Sub: PAN requirement for transmission of shares in physical form

 
  • The Securities and  Exchange  Board of  India (SEBI) vide circular  ref. no . MRD / DoP/ Cir-05/2007
    dated  April 27, 2007 made PAN mandatory for all  securities market  transactions. Thereafter,  vide  
    circular  no.  MRD/DoP/ Cir- 05/2009 dated May 20, 2009 it was  clarified that  for securities market 
    transactions  and off-market/ private  transactions  involving  transfer  of shares   in  physical  form of 
    listed companies, it   shall  be  mandatory  for  the  transferee(s) to furnish copy of PAN   card  to  the
    Company / RTAs for  registration of  such transfer of shares.
  • Based   on  representations  /   clarifications   sought   by  market  participants   and in  continuation 
    to  the  aforesaid circulars, it is hereby clarified that it shall be  mandatory to furnish a copy of PAN in
    the  following  cases
  • Deletion of  name   of the  deceased  shareholder(s), where the shares   are held in  the name of
    two or more share holders.

  • Transmission of shares  to  the  legal  heir(s),  where  deceased  shareholder was the sole holder
      of shares.

  • Transposition of shares when there is a change   in  the   order   of   names  in  which  physical
    shares  are held jointly in the names of two or  more shareholders.
  • Incase of mismatch in PAN card details as well as difference in maiden name and current name ( in  case of married women) of the investors -
  • he RTAs   can  collect   the   PAN   card   as   submitted   by   the   transferee(s). However , this
    ould   be    subject    to  the  RTAs verifying the veracity of the claim  of  such  transferee(s)   by 
    collecting sufficient documentary evidence in   support   of   the   identity of the  transferee(s)  as
    provided   for at para. 2 in the SEBI circular no. MRD/DoP/Dep/Cir-29/2004  dated  August 24, 
    2004  read  with  SEBI      circular
  • All Stock Exchanges are advised to:-
  • implement    the   above by   making   necessary   amendments   to   the   byelaws   and  Listing   
    Agreement,  as  applicable;
  • bring   the   provisions   of   this   circular   to the notice of the listed  companies   for   necessary 
    compliance  and also to put the same on their website for easy access to the investors; and

  • communicate to SEBI  the status of the implementation of the provisions of this circular and  the
    action   taken in this regard in the Monthly Development Report.
  • All Registrars to an Issue and Share Transfer Agents are advised to:-
 
  • take necessary steps to implement the above decision.
  • disseminate the provisions of this circular on their website.
  • This   circular   is   issued   in   exercise   of   powers   conferred    under    section  11(1)   of   the 
    Securities  and Exchange Board  of India Act, 1992, read with section 55A of Companies Act   to 
    protect interests of   investors in securities and to promote the development of, and to regulate the
    securities   market.


Yours faithfully,
HARINI BALAJI