Thirty-seven-year-old Manish Sharma (name and professional details changed), an IT professional in Mumbai, lost his father nearly eight years ago due to a disease. When Sharma started going through his investments he realised that the process was not just tedious but there were hurdles galore. The added burden: His father had not named any nominee.
“The documentation process was cumbersome as it required original documents and with my father passing away in a different city, it was difficult,” he said.
The issues regarding address proof, extracting the original share certificates, allotment letters, and even legal documentation proved to be burdensome. In the absence of any nomination, he had to file a petition in the court at the city of demise to obtain a succession certificate. He then had to approach each company individually where the physical shares were held and submit these documents to get the shares transferred under his, his mother and sister’s name.
RBI to launch Unified Lending Interface to plug credit gap in MSME, agri, other sectors Tax clearance certificate for foreign travel ‘not for all’: CBDT Bollywood star wives leading multi-crore business empires – Suniel Shetty’s wife Mana to Shah Rukh Khan’s wife Gauri GAIL shoots up 5% to 52-week highs; Brokerages maintain Buy
Also Read
Global Markets: Stocks pick up, oil steadies in cautious markets
For people like Sharma, the Securities and Exchange Board of India’s recent guidelines that introduced a centralised mechanism of reporting the demise of investors has come as a boon. These guidelines will make life much easier for legal heirs to claim their rightful inheritance. This mechanism will be put into effect from January 1, 2024.
“This circular spells out the operational norms including the obligations of regulated entities, including registered intermediaries that have interface with ‘investors’ / ‘account holders’ (used interchangeably) who are natural persons,” states the Sebi circular, adding that listed companies that want to offer their investors, holding physical shares, the beneficial access to such a centralized mechanism are eligible to establish connectivity with KRA (KYC Registration Agency) through their Registrar and Transfer Agents (RTAs).
Sebi’s centralised system will ensure synchronicity between intermediaries and KRAs and it will become much easier to pass on the information of an unfortunate demise to all the parties, said Ashish Pyasi, Independent Counsel. “The responsibility to ensure the rightful dissemination of information will be shared and partially shift from individuals to the intermediaries and the KRAs in this process.” This simplified process will reduce the time to claim inheritance by at least a few months if not years, he added.
Also Read
HDFC Securities’ momentum pick; IRB Infrastructure, EID Parry
However, the legal process of getting the succession certificate is an independent exercise, Pyasi pointed out. Sebi released a circular dated July 23, 2021, mandating the need for securing nominations for mutual funds and demat accounts.
Vikram Dalal, Director of Synergee Capital, said that if the nomination exists, it cannot be misused in any way. “Without nominations, the accounts would get frozen necessitating the requirement of a probate.” Also, without a nominee, the case could fall into a family dispute thus increasing the woes, Dalal added. The moment an individual expires, and their certificate is produced at the bank, the lender is supposed to freeze all accounts, he said.
But even with nominations in place, the process takes time and leads to inconvenience. According to a study by ICICI Bank Group Counsel Pramod Rao and Association of Registered Investment Advisors (ARIA), the family of the deceased person has to deal separately with the norms and procedures of individual entities where investments are held. Despite nominees acquiring control of assets within a reasonable time frame, the transmission needs to be validated through an overburdened court or legal process, the study said.
Also Read
Top bets for Jefferies this week- HDFC Life, DMart, Dalmia
Sharma strongly feels that the legal documentation process should be streamlined and digitalised.” All the processes where we could potentially get stuck, like in case of whom to approach or how to approach, it should clearly be mentioned in the websites,” said Sharma.
Pyasi pointed out that the only loopholes in this mechanism could be the failure of intermediaries to follow protocol or timely compliance. “Just to ensure that there is no delay in compliance, the regulator could have suggested some measures like penalty,” he said.
Related Posts
By admin • October 8, 2024 • มิเกล อังเคล โซรีโอ หนึ่งในผู้ต่อต้าน ปีเตอร์ ลิม มาตลอดเปิดเผยกับ เรเลโบ เมื่อวันศุกร์ที่ผ่านมาว่ากลุ่มทุน Meriton Holding และ ลิม ซึ่งเป็นผู้ถือหุ้นใหญ่ของสโมสร บาเลนเซีย กำลังถูกสอบสวนในข้อหาฟอกเงิน, การบริหารงานที่ไม่ซื่อสัตย์และการปลอมแปลงเอกสาร
โซรีโอ เผยว่า Meriton Holding ได้รับเงินประมาณ 23 ล้านยูโรระหว่างปี 2022-2023 โดยไม่มีหลักฐานของแหล่งที่มาของเงินชัดเจ…
By admin • October 8, 2024 • เอเมอร์สัน เปไรร่า หัวหน้าผู้ฝึกสอน ทีมชาติไทย U20 ให้สัมภาษณ์ หลังการแข่งขันฟุตบอลชิงแชมป์เอเชีย รุ่นอายุไม่เกิน 20 ปี รอบคัดเลือก กลุ่มเอช นัดแรก
สำหรับ เกมดังกล่าว ทีมชาติไทย U20 เอาชนะ ฟิลิปปินส์ ไป 5-0 จากการยิงของ เคแลน ไรอัน คนเดียวสามประตูและที่เหลือจาก ธนกฤต โชติเมืองปัก และ ธนาวุฒิ โพธิ์ชัย
“ครึ่งแรกผมคิดว่าเราเล่นได้ดี แต่การเล่นในครึ่งหลังผม�…
By admin • October 8, 2024 • A man has been arrested in Japan’s Miyagi prefecture on suspicion of violating copyright laws after he posted a video containing gameplay from the popular visual novel STEINS;GATE Hiyoku Renri no Darin (via Automaton). The Content Overseas Distribution Agency (CODA) announced the arrest and said the man had uploaded the video, which included the ending of the game, without permission from the rights holder Nitroplus, on top of which he had monetised the video and received ad revenue.
The same man is alleged to have uploaded other videos containing copyrighted content such as the anime version of STEINS;GATE and Spy×Family. CODA describes these videos as “fast content”, part of a popular genre in Japan that condense down a given work, anything from games to TV shows to movies, often including captions and / or narration that summarise what’s going on for the viewer. Netabare is its own category within this of videos that show and detail endings or plot twists.
<…
By admin • October 7, 2024 • Star Citizen has had a massive problem with cheaters exploiting systems to get \more in-game currency for months now, but developer Cloud Imperium Games (CIG) has finally addressed the issue and suspended over 600 accounts.
Previously players could get more alpha United Earth Credits (aUEC) through several exploits, the most prevalent being simply duplicating ships to collect more items and aUEC which they could then sell for real money on eBay or elsewhere on the internet. To make matters worse some cheaters didn’t actually need to do much on their end thanks to a bug which basically enables players to sell cargo more than once.
“What’s particularly annoying is that it almost takes more work to not use the dupe,” one player says in a Reddit thread. “It’s super frustrating to have to keep storing the C2 at one place and then claim it from another just to try to clear out the “phantom” duped inventory so you can pick up the cargo for the next leg of your trave…
By admin • October 7, 2024 • Mojang has just announced that the long-awaited and much-delayed archeology feature is finally coming to Minecraft. A new tool, type of sand, and several different types of items to unearth are all coming in the Minecraft 1.20 update this year.
If you’d been paying close attention to the Minecraft rumor mill, this will likely confirm some of your suspicions started by hints from developers. Mojang originally announced the archeology feature in 2020 and then postponed it for several major update versions. It’s back at last though, as Mojang has confirmed today in an announcement post.
“With this feature, players will find a new type of sand—suspicious sand—near desert temples,” Mojang says. “Using a newly introduced tool, the brush, players can brush away the suspicious sand blocks to reveal hidden tools, bones, sniffer eggs, and pottery shards. The new pottery shards contain partial patterns, and four shards can be put together to make a …
By admin • September 30, 2024 • You already know most of this, to be fair, but it’s all official now: the RTX 4060 Ti is going to be on shelf on May 24 with a retail price of $399. Yes, it’s taken five iterations of the new Ada architecture to finally get down to a new GPU priced at the same level as the graphics card it’s replacing.
And then the sixth tier card, the RTX 4060, is going to be on sale for less than the RTX 3060 launched at. Ah, graphics cards in 2023. They’re a treasure, aren’t they?
The RTX 3060 Ti launched at the same $399 sticker price back in 2020, and next week will see the launch of the RTX 4060 Ti with roughly 17% higher gaming performance. That’s the straight raster performance boost the Ada architecture is delivering in this new generation of mid-range GPU, though there is the extra speed bump you get from the Ada-only magic of Frame Generation.
In games that support it you’re then looking at a 70% performance boost and that’s a lot more tantalising an upgrade tha…