Capital markets regulator SEBI on Monday granted relaxation to non-residents from furnishing PAN card details to transfer equity shares to their immediate relatives subject to conditions.
According to the SEBI, many non-residents such as Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Persons of Indian Origin (PIOs) and foreign nationals have been facing difficulties in transferring shares held by them since many of them do not have PAN card.
“In order to address the difficulties faced by such investors, it has been decided to grant relaxation to non-residents (such as NRIs, PIOs, OCIs and foreign nationals) from the requirement to furnish PAN and permit them to transfer equity shares held by them in listed entities to their immediate relatives…,” the SEBI said in a circular.
Accordingly, the relaxation shall only be available for transfers executed after January 1, 2016.
“The relaxation shall only be available to non-commercial transactions, i.e. transfer by way of gift among immediate relatives,” the circular said.
“The non-resident shall provide copy of an alternate valid document to ascertain identity as well as the non-resident status.”