Under Schedule VII of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”), SEBI has mandated both transferee(s) as well as transferor(s) to furnish a copy of their PAN card to the listed entity for registration of transfer of securities.
However, non-residents such as Non- Resident Indians (NRIs), Overseas Citizens of India (OCIs), Persons of Indian Origin (PIOs) and foreign nationals were facing difficulties in transferring shares held by them since many of them do not possess PAN card.
Hence, SEBI grant relaxation to non-residents from the requirement to furnish PAN and permit them to transfer equity shares held by them in listed entities to their immediate relatives. Further, SEBI states that “ immediate relative” would have same meaning defined in Regulation 2(1)(l) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Further, SEBI clarifies the below conditions about the relaxations :-
(1) The above mentioned relaxation would be available for transfers executed after January 01, 2016.
(2) The relaxation would be only available for non-commercial transactions, i.e. transfer by way of gift among immediate relatives.
(3) The non-resident is required to provide copy of an alternate valid document to ascertain identity as well as the non-resident status.
SEBI allows non-residents not to provide PAN for the transfer of equity shares of listed entities