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Mumbai, Aug. 14 A SEBI-appointed group studying the issues relating to difficulties faced by investors while dealing with transmissions of securities in physical and dematerialised mode has recommended a threshold limit up to which the listed companies would require only an Affidavit, Deed of Indemnity and No Objection Certificate from other legal heirs.

Standard format of these documents have also been recommended.

The threshold limit should be fixed at holding of 200 shares or Rs 1 lakh in value, whichever is higher.

Also, the prescribed threshold limit shall be the basic minimum limit to be adhered to by all the listed companies. The companies having higher threshold shall continue to do so, and also can set liberal threshold.

In order to carry out the same, the group has recommended amending Clause 7 of the listing agreement.

The Group headed by Mr R.K. Nair, Executive Director, SEBI, has recommended that companies, depositories, recognised investors’ associations and SEBI shall urge shareholders to utilise nomination facility.

Depository Beneficial Owner Accounts opened on or after October 1 shall mandate nomination at the account opening stage itself.

In relation to Beneficiary Owner Account in joint names, the Group has recommended that on the death of one of the account holders, a new account shall be opened automatically, subject to updation wherever applicable, based on existing documents.

For the purposes of attestation of the documents required by the companies and depositories, the attestation of a Gazetted Officer, under its seal shall also suffice.

While analysing the information, the group observed that hardships of legal representatives of the deceased are mainly ambiguity about procedures, cumbersome documentation and lack of uniformity in the procedures.

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