SEBI
Introduces Special Window for Re-lodgement of Physical Share Transfers
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SEBI
circular (SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97 dated July 2, 2025)
In
a major investor-friendly move, the Securities and Exchange Board of India
(SEBI) has announced the opening of a special six-month window to facilitate
the re-lodgement of transfer requests for physical shares. This decision
addresses long-standing concerns from investors who were unable to meet earlier
deadlines due to documentation deficiencies.
Background
and Context
The
transfer of securities in physical form was discontinued effective April 1,
2019. However, to accommodate pending cases, SEBI had earlier allowed
re-lodgement of transfer deeds that were originally submitted before this cutoff
date and returned due to incomplete or defective documentation. The final date
for such re-lodgements was March 31, 2021.
Despite
the previous relief window, several investors, RTAs, and listed companies
continued to approach SEBI, citing missed deadlines and unresolved issues. In
response, SEBI constituted a panel including legal experts, RTAs, and listed
company representatives. After reviewing the matter, the panel recommended
reopening the facility to protect investor interests.
Key Highlights of the Circular
- Re-opening
of Transfer Facility:
A new special window will be open from July 7, 2025, to January 6, 2026,
allowing re-lodgement of transfer requests that were lodged before April 1,
2019, but were returned, rejected, or left unattended due to documentation
errors or other procedural gaps.
- Mandatory
Dematerialisation:
All shares re-lodged during this window will be transferred strictly in dematerialised
form. The process will involve standard procedures for transfer-cum-demat
requests.
- Public
Awareness Initiatives:
Stock exchanges, RTAs, and listed companies are directed to actively promote
this window through print and social media, with updates being published
every two months during the active period.
- Dedicated
Teams for Redressal:
Companies and RTAs must allocate dedicated teams to handle incoming
requests efficiently and ensure timely processing.
- Monthly
Reporting to SEBI:
All entities involved must submit monthly reports to SEBI on two fronts:
- Publicity
efforts undertaken
- Status
of share transfer requests (format provided in Annexure-A of the
circular)
This
circular is issued under the authority of Section 11(1) of the SEBI Act, 1992
and in accordance with the SEBI Listing Regulations, 2015 and the SEBI RTA
Regulations, 1993. The aim is to uphold investor rights, promote fair
practices, and ensure continued development of the securities market.
Conclusion
SEBI’s
initiative to reopen the re-lodgement facility exemplifies its commitment to
investor protection and ease of doing investments. This move not only gives
another chance to investors to regularise their holdings but also enhances
transparency and accountability through a structured and monitored process.
Investors who missed the earlier deadline now have a valuable opportunity to secure
their rightful ownership, provided they act within the six-month window.