Sebi has simplified the process to notify the name change on securities held in physical form. According to the markets regulator, the move would help in simplifying the “procedure of change of name in individual Beneficial Owner’s (BO) account”.
There are multiple reasons why people change their name. Major examples are due to marriage, astrological beliefs, due to divorce, etc. Whatever the reason, it is recommended to update the new name on all the important documents such as PAN, Aadhaar, voter id, passport, shares and securities, insurance, etc.
Recently, Securities and Exchange Board of India (Sebi) simplified the process to notify the name change on securities held in physical form. According to the markets regulator, the move would help in simplifying the “procedure of change of name in individual Beneficial Owner’s (BO) account”. The depository participants (DPs) shall collect the self-attested copies of above documents and maintain the same in their records after verifying with the original document, the circular said.
The depositories are directed to implement the above provisions in three months. Further, depositories should have the system to keep the audit trail of the name change in the BO account similar to that of the address change or any other change of coordinates. Sebi has also asked depositories to make amendments to the relevant “bye-laws, business rules and DP operating instructions for the implementation of the above decision, as may be applicable or necessary”. According to Sebi, the circular is being issued in the interests of investors in securities and to promote the development of securities market.
Change of name in physical share certificates
Any shareholder who is desirous of changing/updating his/her name in the share certificates possessed by him/her will have to make application to the company/RTA along with following documents:
1. Request letter mentioning the reason for the name change
3. Attested copies of marriage certificate or Gazette notification
4. Self attested copy PAN card duly notarised
5. Self attested copy of address proof duly notarised. (E.g. Aadhaar/voter id/driving licence/bank statement, etc.)
6. Original share certificate.
How to obtain Gazette notification
1. Prepare an affidavit on Rs 50 stamp paper and get it notarised by local notary public of state mentioning the reason behind the name change.
2. Publish an ad for change in name in two newspapers, one English, and one vernacular language.
3. Visit Department of Publication of your state with self attested copy of PAN card, address proof, and two passport-sized photos.
4. The department will print the change of your name in the Gazette. The amount charged for Gazette notifications varies state to state. (Approximately Rs 1000)
Name change procedure on physical share certificates: The company/RTA may raise any queries or demand any other documents as per their policies.
By- Deepika Jain.
Source: Tax Guru