The Securities and Exchange Board of India has issued a circular opening a special one-year window for transfer and dematerialisation of physical securities sold or purchased prior to April 1, 2019, including transfer requests that were previously rejected, returned or not attended due to documentation or process deficiencies. Securities transferred through this window must be credited only in demat form to the transferee and will be subject to a one-year lock-in from the date of registration of transfer, during which they cannot be transferred, lien-marked or pledged. To use the window, transferees must submit original security certificates, the transfer deed executed prior to April 1, 2019, available proof of purchase, KYC documents (as per ISR forms), a Client Master List for the transferee’s demat account not older than two months and attested by the depository participant, and an undertaking-cum-indemnity. Disputes between transferor and transferee are excluded (to be settled through court or National Company Law Tribunal processes), as are securities already transferred to the Investor Education and Protection Fund. Listed companies, registrars to an issue and share transfer agents and depositories must verify PAN and identity and address proofs for both transferor and transferee, apply the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 process for signature differences or non-availability, and publish specified newspaper notices with a 30-day objection period where the transferor cannot be reached or required documentation is unavailable; minimal fees may be charged for such advertisements. The window runs from February 5, 2026 to February 4, 2027, with listed companies, RTAs and stock exchanges required to publicise it at least once every two months during the period. Transfer requests must be processed within 70 days of receipt of a complete application, and the depository must be informed of the lock-in, which can continue beyond one year if fraud is detected and will be released only in favour of the claimant under a competent court order.
Securities & Exchange Board of India 2026-01-30
Securities and Exchange Board of India opens February 2026 to February 2027 special window to transfer and dematerialise pre-2019 physical securities
The Securities and Exchange Board of India has opened a special one-year window from February 5, 2026, to February 4, 2027, for the transfer and dematerialisation of physical securities sold or purchased before April 1, 2019. Securities transferred through this window must be credited in demat form and are subject to a one-year lock-in, with specific documentation and verification requirements for transferees and listed companies.