SEBI Asks RTAs To Transmit Securities in Favour of Surviving Joint-holder
Moneylife Digital Team 18 October 2021
Market regulator Securities & Exchange Board of India (SEBI) has asked registrars to issue and share transfer agents (RTAs) to transmit securities in favour of surviving joint-holder(s) in the event of the demise of one or more joint holder(s). 
  
In a circular, SEBI says, "...RTAs are hereby advised to comply with the provisions of the Companies Act 2013 and  transmit securities in favour of surviving joint-holder(s), in the event of the demise of one or more joint holder(s), provided that there is nothing contrary to the same in the article of association (AA) of the company."
 
"It has been observed in some cases that due to counterclaim or dispute from the legal representative of one of the deceased holder,  the RTAs have not effected transmission to the surviving joint-holder(s)," SEBI points out.
 
According to the market regulator, the norms about the transmission of securities to joint-holders(s) are provided in clause 23 of Table F in schedule 1 read with Section 56 (2)  & 56(4)(c) of the Companies Act 2013.

 

Comments
SDI
1 month ago
RTA's should be taken to task by SEBI for creating unwarranted hurdles for surviving shareholder/s when they approach the RTA for deletion of the name of deceased member .
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