New Delhi: Market regulator SEBI has done away with the requirement of freezing physical shares without PAN, KYC details and nomination. The Securities and Exchange Board of India (SEBI) has issued a circular in this regard. According to this circular, this step has been taken with the aim of simplifying the rules and it will be effective immediately.

This decision has been taken after feedback received from Registrar Association of India and investors. Under the rules, all holders of physical shares of listed companies were required to submit PAN, nomination, contact details, bank account details and specimen signatures for their respective folio numbers.

Sebi had said in May that after October 1, 2023, folios whose details are not available will be frozen by the Registrar of Issues and Share Transfer Agents (RTAs). Amending the circular issued in May, SEBI said that the reference to the word freeze has been removed.

Why did SEBI change the rules?

SEBI said that they have taken this decision to make share trading easier. After the change in this rule, the challenges faced by investors will be reduced to a great extent. Investors faced many problems when the folios were frozen. SEBI has taken this decision after suggestions from investors.

SEBI had issued a circular in May this year. In this circular they removed the reference to ‘freezing/frozen’. This decision has been taken after consultation and feedback from Registrar Association of India and investors.

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