SEBI Allows 6-Month Window for Physical Share Transfers from July 7

SEBI has given relief to investors by announcing a six-month window for re-filing rejected transfer requests for physical shares. For shareholders whose earlier transfer requests were denied, returned, or left unattended due to missing or incorrect documents, the window for this opportunity is from July 7, 2025, to January 6, 2026.

Why This Window Was Needed?

Since April 1, 2019, SEBI has stopped allowing the transfer of shares in physical form to encourage dematerialisation (demat) of shares. A short grace period was provided until March 31, 2021, for investors to correct and re-lodge any rejected transfer requests. However, many shareholders were unable to meet this deadline due to paperwork issues or delays.

Following several requests from investors, listed companies, and Registrar & Transfer Agents (RTAs), SEBI decided to reopen the facility to protect investor rights and facilitate easier investing.

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Key Details of the Window

• Who Can Apply: Investors who submitted transfer deeds before April 1, 2019, but whose requests were rejected or returned due to document errors.
• Demat Requirement: Transfers under this window will only be allowed in dematerialised (electronic) forms.
• Pending Cases Included: Requests still pending with listed companies or RTAs as of July 2, 2025, can also be re-lodged.

What RTAs and Listed Companies Must Do?

• Set up special teams to handle these transfer requests.
• Spread awareness about this facility every two months through newspapers and online platforms.
• Send monthly reports to SEBI detailing the number of requests received, approved, and rejected, as well as the processing time.

Legal Backing and Investor Benefit

SEBI has issued this facility under the SEBI Act, 1992, and its regulations concerning listed companies and share transfer agents. The aim is to ease the process for investors while continuing the move towards a fully digital market.

Conclusion

This is a final opportunity for investors who encountered issues during the transition from physical to digital shares. SEBI advises shareholders to utilise this window to settle pending transfers. The initiative reflects SEBI's efforts to protect investor interests and modernise market processes.