SEBI simplifies framework for transmission of securities
SEBI issued a circular simplifying and standardising the framework for transmission of securities to ease investment and doing business.
SEBI has standardised the process for transmission of securities to legal heirs and nominees. The move reduces documentation friction and harmonises intermediary practices across depositories, RTAs, and listed issuers.
Impacts operations at depositories, RTAs, brokers, and issuers handling investor claims; affects investor servicing SLAs and compliance controls.
Action Required
Review and align internal transmission processes, KYC, and nominee handling procedures with SEBI's new standardised framework.
Framework change affects all market intermediaries handling securities transmission, requiring process and system updates.
Operational risk exposure from securities transmission is expected to decline. Update SOPs, staff training, and system workflows to reflect SEBI's standardised requirements; monitor investor grievance metrics post-implementation.
“SEBI circular: Ease of Doing Investment and Ease of Doing Business – Simplification and standardisation of the framework for transmission of securities.”