October 19, 2021
Summary of the Circular issued by SEBI on 18/10/2021
SEBI advises Registrar and Share Transfer Agents (RTAs) of Listed Companies to transmit securities to joint holders on demise of one or more joint holder(s)
SEBI observed that due to counterclaim / dispute from the legal representative of one of the deceased holder, the RTAs of Listed Companies have not effected transmission to the surviving joint holder(s).
It therefore advises RTAs to transmit securities in favour of surviving Joint holder(s), in the event of demise of one or more joint holder(s), as per provisions of Section 56 (1) and (4) of the Companies Act, 2013 and provided that there is nothing contrary to the same in the Article of Association of the company.
This circular is integrated in our free-to-use website ca2013.com for your ready reference