The Securities Exchange Board of India vide Circular dated October 18, 2021 has issued clarification regarding transmission of Securities to Joint Holder(s). SEBI has observed, in some cases that due to counterclaim / dispute from the legal representative of one of the deceased holder, the Registrars to an Issue & Share Transfer Agents (RTAs) have not effected transmission to the surviving Joint Holder(s).
RTAs are advised to comply with provisions of the Companies Act 2013 and transmit securities in favour of surviving Joint holder(s), in the event of demise of one or more Joint Holder(s), provided that there is nothing contrary to the same in the Article of Association of the company.
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