(First Published in The Hindu Business Line: https://www.thehindubusinessline.com/markets/sebi-may-tweak-norms-for-trust-transfer-exemptions/article68232888.ece)
My take on compulsory requirement by SEBI on registration of family trusts to house listed shares, as published by the Hindu Business Line:
“If the registration requirement is made mandatory, there could be risks to privacy, given that the sensitive clauses of trust deeds (which are not available in public domain) could be accessed by anyone,” said Binoy Parikh, Executive Director at Katalyst Advisors.
Despite reputational risks, families may still consider going ahead with family trusts if there are wider social and commercial considerations in terms of a seamless inter-generational succession of governance and wealth, according to Parikh.
The requirement for quarterly personal affidavits by promoters and third-party certification could be alternative ways to verify the trust deeds without compromising the regulator’s approval process, he said.