Ease of Doing Investment – Special Window for Transfer and Dematerialisation of Physical Securities

Vide this circular, Securities and Exchange Board of India (SEBI) has introduced a special one-time window to facilitate transfer and dematerialisation of physical securities that were sold/purchased prior to April 01, 2019, with the objective of ensuring ease of investing and protection of investor rights.

The special window shall remain open from February 05, 2026 to February 04, 2027.

Key highlights of the Circular: –

1.  This window shall be applicable for:

• Fresh lodgement of transfer requests where transfer deeds were executed prior to April 01, 2019
• Transfer requests earlier rejected / returned / not attended due to procedural or documentation deficiencies

2.  Securities transferred under this window shall be credited only in dematerialised form.

3. Such securities shall be subject to a lock-in period of one year from the date of registration of transfer.

4. The transferee shall be required to submit original security certificates, duly executed transfer deed (prior to April 01, 2019), KYC documents, demat account details (CML), proof of purchase (as available) and an undertaking-cum-indemnity.

5.  Transfer requests ineligible under this window:

• Cases involving disputes between the transferor and transferee, which may be settled through court/NCLT process.
• Securities transferred to the Investor Education and Protection Fund (IEPF).

6.  Obligations on Listed Companies/RTAs/Depositories

• Verification of identity, PAN, address and signatures of the transferor and transferee
• In case of non-traceability of the transferor or non-availability of documents, transfer may be effected after issuance of a newspaper advertisement and completion of a 30-day waiting period
• In case of death of the transferee as per the executed transfer deed, legal heir(s) may claim the securities in accordance with the prescribed transmission procedure.
• While crediting securities to the demat account of the transferee, the listed company/RTA shall intimate the depository regarding the one-year lock-in.
• If fraud is detected during the lock-in period, the lock-in shall continue until further instructions, and release of securities shall be only as per orders of a competent court.

7.  Listed companies / RTAs shall process complete transfer requests within 70 days from the date of receipt of complete documentation.

Listed companies, RTAs and Stock Exchanges are required to periodically publicise the opening of this special window during its validity.