Description
BSE 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
BSE 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 initiative aims to facilitate ease of investing and secure investor rights in physical securities. Transferred securities will be mandatorily credited 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 previously rejected/returned/unattended transfer requests
- Transferred securities must be credited to demat account only
- One-year lock-in period applies - no transfer, lien-marking, or pledging allowed
- Requires original security certificate and transfer deed executed before April 01, 2019
- Disputes between transferor and transferee are excluded from this window
- Securities transferred to IEPF are not eligible
Regulatory Changes
This circular builds upon the previous circular dated July 02, 2025 which opened a special window for re-lodgement of transfer deeds. The current initiative extends facilitation by allowing both transfer and dematerialisation in a single process.
Compliance Requirements
For Transferees (Investors):
Must submit:
- Original security certificate(s)
- Transfer deed executed prior to April 01, 2019
- Proof of purchase (as available)
- KYC documents 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: Mandatorily verify PAN, identity proof, and address proof of transferor(s) and transferee(s). For name mismatches with PAN card, accept Officially Valid Documents or gazette notification
- Signature Verification: Follow procedures as per Para (B) of Schedule VII of SEBI LODR Regulations, 2015
- Non-delivery/Non-availability: Special procedures apply for non-delivery of objection memo, non-cooperation, or inability to trace transferor
Eligibility Matrix:
| Transfer Deed Date | Lodged Before Apr 2019 | Original Certificate | Eligible |
|---|---|---|---|
| Before Apr 1, 2019 | No (fresh lodgement) | Yes | ✓ |
| Before Apr 1, 2019 | Yes (rejected/returned) | Yes | ✓ |
| Before Apr 1, 2019 | Yes | No | ✗ |
| Before Apr 1, 2019 | No | No | ✗ |
Important Dates
- Circular Date: January 30, 2026
- Window Opens: February 05, 2026
- Window Closes: February 04, 2027
- Lock-in Period: One year from date of transfer registration
- CML Validity: Not older than 2 months from submission date
Impact Assessment
Market Impact: Medium - This circular provides a targeted solution for investors holding physical securities from transactions prior to April 2019. It addresses a historical backlog rather than current market operations.
Operational Impact: Medium - RTAs, listed companies, and depositories will need to establish processes for handling these legacy transfer requests with enhanced verification requirements.
Investor Impact: High for affected investors - Provides a clear pathway for investors who have been unable to transfer or dematerialize old physical securities, particularly those with previously rejected requests. The one-year lock-in period ensures regulatory oversight while the mandatory demat requirement aligns with modern market infrastructure.
Exclusions: Dispute cases must be resolved through court/NCLT. IEPF-transferred securities are not covered under this window.
Impact Justification
Facilitates investors holding old physical securities to transfer and dematerialize them, addressing a specific historical issue rather than broad market impact. One-year window provides reasonable time for compliance.