Mumbai
SEBI has issued new guidelines regarding the ownership pattern of shares. In fact, now transfer of shares among close relatives will not be considered as change of ownership or management controlling authority. Close relatives include siblings, parents or spouse and children. Transferring these will not be considered as change of ownership.
In fact, there is no need to give separate information to SEBI about transfer of inheritance or shares to these close relatives. Along with this, there will be no need to give separate information to SEBI due to change in management or transfer of ownership.
Guidelines issued by SEBI regarding share transfer
Actually, guidelines were issued by SEBI regarding share transfer to middleman firms, but there was confusion in this guideline. The question was raised whether transfer of shares to close relatives would also be considered as ownership change. But now it has been made clear by SEBI that close relatives including wife, parents, children and siblings will not be considered as change of ownership. But other than them, transfer of shares to relatives will be considered as ownership change. With this, now investor advisors, research analysts or companies providing related services will have to give information about share transfer to SEBI.
Applicable to all types of firms
In fact, these companies giving information to SEBI will be categorized as intermediary or middleman firms. Actually, this guideline has been clarified by SEBI to protect the interest of investors. According to experts, the legal nature of the relationship between investment advisor and research analysis firm and the company has also been decided. To understand in simple language, if the father dies and his son takes over the management, then it will not be considered as ownership change. It is applicable to all types of firms including Proprietary Partnership and Corporate.
