SEBI makes PAN mandatory for transferring of shares to heir

SEBI vide circular SEBI/MRD/DoP/SE/RTA/Cir-03/2010 dated January 07, 2010 has clarified that it will be mandatory to furnish a copy of PAN in the following cases.

• Transmission of shares to the legal heir(s), where deceased shareholder was the sole holder of shares.
• Deletion of name of the deceased shareholder(s), where the shares are held in the name of two or more shareholders.
• 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.

Earlier in April, 2007 SEBI had made PAN mandatory for all securities market transactions. Thereafter in May, 2009 SEBI had clarified that for off-market/ private transactions involving transfer of shares in physical form of listed companies, it will be mandatory for the transferee(s) to furnish copy of PAN card to the company/ RTAs for registration of such transfer of shares.

A copy of the circular is available here.