In a major move by SEBI, NRIs, PIOs and foreign nationals can easily transfer equity shares to immediate relatives without the need to furnish PAN card. However, the relaxations are subject to certain conditions, market regulator SEBI said in a circular. Immediate relative means a spouse of a person, and includes parent, brother, sister or child of such person.
The transferee as well as transferor has to furnish a copy of their PAN card to the listed entity for registration of transfer of the securities under LODR (Listing Obligation and Disclosure Requirements) provisions of SEBI.
“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…,” the SEBI said in a circular.
The relaxation would only be available for transfers executed after January 1, 2016. “The relaxation shall only be available to non-commercial transactions, i.e. transfer by way of gift among immediate relatives,” the circular also noted.
A copy of an alternate valid document so as to ascertain identity as well as the non-resident status of the non-resident shall have to be provided, the circular also said.