Relaxation from requirement to furnish a copy of PAN for transfer of equity shares of listed entities executed by non-residents

Relaxation from requirement to furnish a copy of PAN for transfer of equity shares of listed entities executed by non-residents  

The Securities and Exchange Board of India (SEBI) has issued circular SEBI/HO/MIRSD/DOS3/CIR/P/2019/30 dated 11.02.2019 for Relaxation from requirement to furnish a copy of PAN for transfer of equity shares of listed entities executed by non-residents. 

The circular states that the provisions of Para (A) (1) of Schedule VII of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 specifies that the transferee(s) as well as transferor(s) shall furnish a copy of their PAN card to the listed entity for registration of transfer of securities. 

However, many non-residents such as Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Persons of Indian Origin (PIOs) and foreign nationals have been facing difficulties in transferring shares held by them since many of them do not possess PAN card.

In order to address the difficulties faced by such investors, it has been decided to grant relaxation to non-residents (such as NRIs, PIOs, OCIs and foreign nationals) from the requirement to furnish PAN and permit them to transfer equity shares held by them in listed entities to their immediate relatives subject to the certain conditions. 

The relaxation shall only be available for transfers executed after 1^st January, 2016 and the relaxation shall only be available to non-commercial transactions, i.e. transfer by way of gift among immediate relatives.