Ministry : Ministry of Finance (SEBI)

Ease of Doing Investment _ Special Window for Transfer and Dematerialisation of

Subject : ministry of finance

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

The Securities and Exchange Board of India (SEBI) has introduced a time-bound special window to facilitate the transfer and dematerialisation of physical securities purchased before April 1, 2019, aiming to strengthen investor rights and simplify access to long-pending securities transactions.

Key Points

• A one-year special window will be open from February 5, 2026, to February 4, 2027, allowing investors to lodge transfer and demat requests for physical securities bought prior to April 1, 2019, even if previously rejected due to documentation deficiencies.
• Transferred securities will be mandatorily credited in demat form and locked in for one year from the date of transfer registration, during which they cannot be transferred, pledged, or lien-marked.
• Eligibility requires submission of the original security certificate, pre-April 2019 transfer deed, proof of purchase, KYC documents, an updated Client Master List (CML), and a notarized Undertaking-cum-Indemnity bond (Annexure-A).
• Cases involving disputes between transferor and transferee or securities already transferred to the Investor Education and Protection Fund (IEPF) are excluded from this facility.
• If the transferor cannot be contacted or does not respond, companies must publish notices in one national and one regional newspaper, followed by a 30-day objection period before proceeding with the transfer.
• Listed companies and RTAs are required to process complete applications within 70 days and must publicize the window via print and social media every two months during its operation.

One-Year Window to Resolve Legacy Physical Share Transfers

SEBI’s latest circular opens a critical pathway for investors holding unresolved physical securities transactions predating April 2019, addressing long-standing barriers to ownership formalization. By allowing re-submission of rejected or lapsed transfer requests and mandating demat conversion with a one-year lock-in, the move enhances market transparency while safeguarding against fraudulent claims. The inclusion of relaxed procedural norms—like newspaper advertisements in place of untraceable transferors—demonstrates a pragmatic approach to investor facilitation. This initiative reflects SEBI’s broader push toward a fully dematerialized market and reinforces investor protection in India’s evolving securities ecosystem.