SEBI opens one-year special window for transfer and dematerialisation of physical shares

The Securities and Exchange Board of India said it will open a one-year special window from February 5, 2026 to February 4, 2027 to facilitate the transfer and dematerialisation of physical securities.
The facility applies to shares that were bought or sold before April 1, 2019.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Purpose of the move

According to the regulator, the window will allow investors to re-lodge transfer requests that were earlier rejected, returned, or left incomplete due to documentation or procedural deficiencies.
The measure is intended to help investors regularise holdings and complete the transfer-cum-dematerialisation of legacy physical securities.

Background

SEBI had made it mandatory from April 1, 2019 for all share transfers to be carried out only in dematerialised form.

However, some investors with older holdings or incomplete paperwork were unable to complete transfers under the revised framework.

Conditions and lock-in

Securities transferred through this route will be credited only in demat form and will be subject to a mandatory one-year lock-in from the date of registration of transfer.
During the lock-in period, such securities cannot be transferred, pledged, or lien-marked.
The window is applicable only where the transfer deed was executed before April 1, 2019 and the original share certificate is available.

Exclusions

SEBI said the facility will not apply in cases where share certificates are missing or where securities have already been transferred to the Investor Education and Protection Fund.
Disputed cases between transferor and transferee will also be excluded and must be resolved through legal channels.

Documentation and processing

Investors will be required to submit original security certificates, duly executed transfer deeds, proof of purchase where available, know-your-customer documents, an attested client master list of the demat account, and an undertaking-cum-indemnity bond.

SEBI has directed listed entities and registrar and transfer agents to process eligible requests within 70 days of receiving complete documentation and to publicise the special window during the one-year period.