PAN, KYC norms for securities’ holders eased
The move, aimed at simplifying the rule, will come into force with immediate effect, capital market regulator Sebi said in a circular.
NEW DELHI: The Securities and Exchange Board of India (Sebi) on Friday did away with the provision of requiring the freezing of folios without PAN (permanent account number), KYC (know your customer) details and nomination for all holders of physical securities.
The move, aimed at simplifying the rule, will come into force with immediate effect, capital market regulator Sebi said in a circular. The decision was taken after the regulator received feedback from the Registrars’ Association of India and investors.
According to the existing rule, it is mandatory for all holders of physical securities in listed companies to furnish PAN, nomination, contact details, bank account details and specimen signature for their corresponding folio numbers.
The folios wherein any one of such documents are not available on or after October 1, 2023, is required to be frozen by the Registrars to an Issue and Share Transfer Agents (RTA), Sebi said in May.