SEBI’s 6-month extension for transfer of physical shares that missed earlier deadline

Mumbai, Jul 03

SEBI has given a six-month extension for transfer of physical shares that missed earlier deadline.

It will be applicable to those who still have physical share certificates, the Securities and Exchange Board of India (SEBI) has decided to open a special six-month window to enable the transfer of such securities.

In a circular issued on Wednesday, the capital market regulator said that while such transfer was discontinued in March 2021 – after extending the earlier deadline of April 2019 - it has received feedback that many investors missed the deadline due to issues with the documents and hence should be given an opportunity to resubmit the share certificates.

SEBI received representation from investors as well as RTAs and listed companies that some of the investors had missed the timelines for re-lodging their documents for transfer of securities, a SEBI circular said.

This issue was discussed in a Panel of Experts which included RTAs, listed companies and Legal Expert. Based on discussion, the Panel recommended that to alleviate the issue faced by the investors that missed the March 31, 2021 deadline for re-lodgement, one more opportunity may be granted for them to re-lodge such shares for transfer, it added.

“SEBI's special six-month window for transfer of physical shares offers a vital relief to investors who missed the earlier deadline to dematerialize their holdings. This move allows such shareholders to convert physical certificates into demat form, enabling them to legally transfer or sell their shares”, said a market analyst to Bizz Buzz who doesn’t wish to be quoted.

It benefits long-term or legacy investors, especially senior citizens, by unlocking value from dormant holdings and ensuring liquidity. Moreover, it enhances transparency, reduces fraud risks, and brings more investors into the formal financial ecosystem, he added.

EoM.