Description
SEBI opens a one-year special window from February 05, 2026 to February 04, 2027 for transfer and dematerialisation of physical securities sold/purchased prior to April 01, 2019.
Summary
SEBI has opened a special one-year window from February 05, 2026 to February 04, 2027 for transfer and dematerialisation of physical securities that were sold/purchased prior to April 01, 2019. This window is available for fresh lodgements as well as previously rejected transfer requests. Securities transferred will be credited only in demat mode and will be under a one-year lock-in period from the date of transfer registration.
Key Points
- Special window open for one year: February 05, 2026 to February 04, 2027
- Applicable to physical securities sold/purchased before April 01, 2019
- Available for fresh lodgements and previously rejected/returned transfer requests
- Transferred securities must be credited in demat mode only
- One-year lock-in period applies from date of transfer registration
- No transfer, lien-marking, or pledging allowed during lock-in period
- Disputes between transferor and transferee are excluded from this window
- IEPF-transferred securities not eligible under this window
Compliance Requirements
For Investors/Transferees:
Mandatory documents to be submitted:
- Original security certificate(s)
- Transfer deed executed prior to April 01, 2019
- Proof of purchase by transferee
- KYC documents of transferee (as per ISR forms)
- Latest Client Master List (CML) not older than 2 months, attested by Depository Participant
- Undertaking cum Indemnity as per Annexure-A format
For Listed Companies/RTAs/Depositories:
Identity Verification:
- Mandatory verification of PAN, identity proof, and address proof of transferee(s) and transferor(s)
- In case of name mismatch in PAN vs transfer deed, additional documents required (Officially Valid Document or gazette notification for name change)
Signature Verification:
- Follow procedure in Para (B) of Schedule VII of SEBI LODR Regulations, 2015 for signature differences or non-availability
Non-delivery/Non-cooperation Cases:
- Special procedures apply when objection memo is not delivered to transferor or transferor is untraceable
Important Dates
- Circular Issue Date: January 30, 2026
- Window Opening Date: February 05, 2026
- Window Closing Date: February 04, 2027
- Lock-in Period: One year from date of transfer registration
- Eligibility Cut-off: Transfer deeds executed before April 01, 2019
Eligibility Matrix
| Execution Date of Transfer Deed | Lodged Before April 01, 2019? | Original Certificate Available? | Eligible? |
|---|---|---|---|
| Before April 01, 2019 | No (fresh lodgement) | Yes | ✓ |
| Before April 01, 2019 | Yes (rejected/returned) | Yes | ✓ |
| Before April 01, 2019 | Yes | No | ✗ |
| Before April 01, 2019 | No | No | ✗ |
Impact Assessment
Investors: Provides opportunity for investors holding old physical securities to get rightful access to their securities through transfer and dematerialisation. Particularly beneficial for those whose earlier transfer requests were rejected due to documentation issues.
Market Participants: RTAs and listed companies need to establish processes for handling these special window requests, including enhanced verification procedures for identity and signatures.
Market Infrastructure: Promotes the transition from physical to demat holdings, improving market efficiency and reducing risks associated with physical certificates.
Limitations: The one-year lock-in period restricts immediate liquidity of transferred securities. Dispute cases and IEPF securities remain outside the scope of this facility.
Impact Justification
Facilitates investors holding physical securities purchased before April 2019 to transfer and demat them during a one-year window. Affects RTAs, listed companies, and investors with old physical certificates but not directly impacting trading operations.