Market regulator the Securities and Exchange Board of India (Sebi) today said Permanent Account Number (PAN) is mandatory for transfer of shares to the heir in case the deceased shareholder was the sole owner of shares.
"It is hereby clarified that it shall be mandatory to furnish a copy of PAN (on) transmission of shares to the legal heir(s), where the deceased shareholder was the sole holder of shares," a Sebi circular today.
It further said PAN would be mandatory for deletion of the name of the deceased shareholder where the shares were held in the name of two or more shareholders.
The regulator asked all stock exchanges to implement it by making necessary amendments to the bye-laws and listing agreements.
In April 2007, the Sebi made PAN mandatory for all securities market transactions. In May 2008, the Sebi said: "For securities market transactions and off-market or private transactions involving transfer of shares in physical form of listed companies, it shall be mandatory for the transferee(s) to furnish copy of PAN card."