Suchin (na) 26 January 2010

Legal right to sell physical shares

For all the people who bought Shares a long time ago, when there was no requirement for PAN card. Surely all these people have a legal right to sell the shares without a PAN card. On the Grounds that they were not told at the time of purchase that they will require a PAN card to sell the shares.

They can force the new buyers and new sellers to have a PAN card to make sure that all shares are regulated under the PAN system.

Surely SEBI have to make provision for old share holders and give them one chance to sell without pan card.

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V. VASUDEVAN (LEGAL COUNSEL) 26 January 2010

The shareholders' right of sale in physical form is NOT AT ALL affected. The objective of SEBI mandating PAN requirement (which is already a requirement for demat mode sale) is in the overall interest of the shareholders. This is to protect the shareholders from unscrupulous elements mis-using the shares of dormant accounts (shareholders who have long ceased to deal in their shares, who had expired long time back and the transmission of shares are pending etc.) Getting a PAN card is made simple and quite a lot of agencies are authorised to issue the same for example UTI and Karvy who have got their offices almost all places in India. Hence a genuine shareholder should appreciate this investor protection measure.