Sebi recommends threshold limit for transmission of shares

Mumbai, Aug 14 (UNI) Securities and Exchange Board of India (Sebi) Group on 'Transmission of Shares,' has recommended the threshhold limit of 200 shares or Rs one lakh in value in the case of transmission of securities in physical and dematerialised form.

The Sebi Group, headed by Sebi Executive Director R K Nair on the 'Transmission of Shares', in a series of recommendations, has said the prescribed threshold limit shall be the basic minimum limit to be adhered to by all the listed companies.

However, it said the companies having higher threshold shall continue the same and can also set libeal threshold.

The companies would require an Affidavit, Deed of Indemnity and No Objection Certificate from other legal heirs, while following the new threshold limit.

Among other recommendations, the Group suggested that the Companies, Depositories, Recognised Investors' Associations and SEBI to embark on a special drive to urge shareholders to utilise nomination facility.

The Group has also recommended compulsory nominations for the depository beneficial owner accounts opened on or after October 1, at the account opening stage itself.

In relation to beneficiary owner account in joint names, the Group has recommended that, on the death of one of the account holders, a new account shall be opened automatically, subject to updation wherever applicable, based on existing documents.

UNI