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Sebi eases rule for physical securities’ holders without PAN, KYC details
Capital markets regulator Sebi on Friday decided to do away with the provision of requiring the freezing of folios without PAN, KYC details and nomination for all holders of physical securities.
The move, aimed at simplifying the rule, will come into force with immediate effect, the Securities and Exchange Board of India (Sebi) said in a circular.
The decision has been taken after receiving feedback from the Registrars' Association of India and investors.
Under the rule, it was 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.
Amending the circular issued in May, Sebi said that reference to the term 'freezing/ frozen' has been deleted.
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