Transfer of securities held in
physical mode - clarification
Board, on March 28, 2018, decided that except in case of transmission or
transposition of securities, requests for effecting transfer of securities
shall not be processed unless the securities are held in dematerialized form
with a depository. This measure shall come into effect from April 01, 2019.
SEBI has received representations from shareholders for extension of the date
of compliance. In view of the same,
the following are hereby clarified:
above decision does not prohibit the investor from holding the shares in
physical form; investor has the option of holding shares in physical form even
after April 01, 2019.
investor who is desirous of transferring shares (which are held in physical
form) after April 01, 2019 can do so only after the shares are dematerialized.
3. The transfer deed(s) once lodged prior
to deadline and returned due to deficiency in the document may be re-lodged for
transfer even after the deadline of April 01, 2019.
The above Board decision is not
applicable for demat of shares, transmission (i.e. transfer of title of shares
by way of inheritance / succession) and transposition (i.e. re-arrangement /
interchanging of the order of name of shareholders) cases.