SEBI Simplifies Transmission of Securities, Introduces Fast-Track Process For Low-Value Claims

The Securities and Exchange Board of India (SEBI) on Thursday introduced a simplified and standardised framework for the transmission of securities, bringing in a faster process for low-value claims, easing documentation requirements and prescribing uniform procedures for processing transmission requests.

The revised framework will apply to listed companies, Registrars and Transfer Agents (RTAs), depositories, depository participants and Asset Management Companies (AMCs). It is aimed at making the transmission process more efficient and investor-friendly.

Among the key changes is the introduction of a harmonized, standardised and risk-based framework for transmission of securities. SEBI has also created a new Quick Transmission Processing (QTP) category for low-value claims and revised the claim thresholds under the simplified documentation framework.

Under the QTP category, the claim threshold has been fixed at ₹10,000 for securities held in physical mode and ₹30,000 for securities held in dematerialised mode.

For claims processed under the simplified documentation framework, the thresholds have been fixed at ₹10 lakh for physical securities and ₹30 lakh for dematerialised securities. Listed entities may enhance the ₹10 lakh threshold for physical securities at their discretion.

SEBI has also standardised the documentation and procedure for transmission. The framework removes the mandatory requirement of probate of a Will, replaces separate affidavit and No Objection Certificate (NOC) with a combined affidavit-cum-NOC, recognises death certificates carrying QR codes as valid documents for verification, and allows additional modes for verifying death certificates issued in foreign jurisdictions.

The framework also prescribes uniform procedures for submitting claims, acknowledging documents, processing transmission requests and determining the documentation required in different transmission scenarios. It provides that transmission requests should ordinarily be processed within 21 calendar days of receipt of all required documents.

The revised framework will come into force 30 days from the date of the circular. SEBI has, however, asked processing entities to endeavour to extend the benefit of the simplified framework even to transmission requests received before its commencement and not seek re-submission of documents that investors have already furnished.