PAN made mandatory for share transfer

The Securities and Exchange Board of India (Sebi) on Thursday announced that it is mandatory to provide the permanent account number (PAN) in transposition of shares where there is a change in the order of names in which physical shares are held jointly by two or more shareholders.

The market regulator also made furnishing of PAN details mandatory in cases of deletion of name of the deceased shareholder, where the shares are held by two or more shareholders.

PAN details will also be required in transmission of shares to the legal heir, where deceased shareholder was the sole holder of shares.

In April 2007, Sebi had made PAN mandatory for all securities market transactions. Last year, the regulator clarified that for security market transactions and off-market and private transactions - involving transfer of shares in physical form of listed companies - it would be mandatory for the transferee to furnish copy of PAN card to the company, registrar and transfer agents (RTAs) for registration of such transfers.

In case of mismatch in PAN card details, or difference in maiden name and current name of the investors (in case of married women), the RTAs can collect the PAN card.

However, Sebi said this would be subject to the RTAs verifying the veracity of such claims by transferee.