Regulatory Alerts2025-09-19
SEBI Circular on Smooth Transmission of Securities from Nominee to Legal Heir
The Securities and Exchange Board of India (SEBI) has mandated the use of the standard reason code 'TLH' by reporting entities when transmitting securities from a nominee to a legal heir. This directive aims to prevent the inappropriate assessment of capital gains tax on such transmissions, which are exempt under the Income Tax Act, 1961. Registrars, listed issuers, depositories, and depository participants must implement these system changes by January 1, 2026.
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