Capital markets regulator Sebi on Friday decided to remove the provision of requiring the freezing of sheets without details of PAN, KYC and nomination for all holders of physical securities. The move, aimed at simplifying the rule, will come into effect with immediate effect, the Securities and Exchange Board of India (Sebi) said in a circular.
The decision was taken after receiving feedback from the Association of Registrars of India and investors.
Under the rule, it was mandatory for all holders of physical securities in listed companies to provide PAN, nomination, contact details, bank account details and specimen signature for their corresponding sheet numbers.
Sebi said in May, the sheets in which any of such documents are not available on or after October 1, 2023, must be frozen by the Registrars to Issue and Share Transfer Agents (RTAs).
Amending the circular issued in May, Sebi said reference to the term “freezing/freezing” has been deleted.
“Based on representations received from the Association of Registrars of India, feedback from investors, and to mitigate unintended challenges due to freezing of sheets and forwarding of frozen sheets to the administrative authority under the Benami Transactions (Prohibitions) Act, 1988 and/or Prevention. of Money Laundering Act, 2002, it has been decided to do away with the above provisions,” Sebi said.
Further, frozen sheets were required to be forwarded by the RTA or a listed company to the administrative authority under the Benami Transactions (Prohibitions) Act, 1988, and/or Prevention of Money Laundering Act, 2002, if they still remain frozen as on December . 31, 2025.