Mumbai, Aug. 13 -- In a draft circular issued recently, the Securities and Exchange Board of India (SEBI) has recommended changes to regulations pertaining to transmission of securities from nominees to legal heirs.

The aim of these changes is to make the securities transmission process easier and smoother, while avoiding unnecessary tax-related complications.

SEBI stated that a nominee who acts as a trustee of the securities of the original holder may be assessed for tax when transmitting these securities to the legal heir, despite provisions under the Income Tax Act that do not consider such transmission a "transfer."

The market regulator said that the payment of capital gains tax by the nominee in such cases may not be appropriate, ...