Description

SEBI opens one-year special window from February 05, 2026 to February 04, 2027 for transfer and dematerialisation of physical securities sold/purchased before 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 and previously rejected transfer requests. Transferred securities will be credited only in demat mode and subject to a one-year lock-in period.

Key Points

  • Special window period: February 05, 2026 to February 04, 2027 (one year)
  • Applicable to physical securities sold/purchased before April 01, 2019
  • Available for fresh lodgements and previously rejected/returned transfer requests
  • Mandatory demat credit of transferred securities
  • One-year lock-in period from date of transfer registration
  • No transfer/lien-marking/pledging allowed during lock-in
  • Requires original security certificates and transfer deeds executed before April 01, 2019
  • Dispute cases and IEPF-transferred securities not eligible

Eligibility Criteria

Eligible Cases

  • Transfer deed executed before April 01, 2019, not previously lodged, with original certificate available
  • Transfer deed executed before April 01, 2019, previously rejected/returned, with original certificate available

Not Eligible

  • Transfer deeds executed before April 01, 2019 but previously lodged successfully
  • Cases without original security certificates
  • Disputes between transferor and transferee
  • Securities transferred to IEPF

Compliance Requirements

Documents Required from Transferee

  1. Original security certificate(s)
  2. Transfer deed executed prior to April 01, 2019
  3. Proof of purchase (as available)
  4. KYC documents as per ISR forms
  5. Latest Client Master List (CML) not older than 2 months, attested by DP
  6. Undertaking cum Indemnity as per Annexure-A format

Obligations on Listed Companies/RTAs/Depositories

Identity Verification:

  • Mandatory verification of PAN, identity proof and address proof of transferee(s) and transferor(s)
  • Name mismatch in PAN vs transfer deed requires additional documents (Officially Valid Document or gazette notification)

Signature Verification:

  • Follow procedures in Para (B) of Schedule VII of SEBI LODR Regulations, 2015
  • Special provisions for signature differences or non-availability of transferor signatures

Non-delivery/Non-cooperation Cases:

  • Provisions for cases where objection memo is not delivered to transferor
  • Procedures for non-cooperation, inability or non-traceability of transferor

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
  • Reference Date for Eligibility: April 01, 2019 (securities must be sold/purchased before this date)

Impact Assessment

Positive Impacts:

  • Provides relief to investors holding physical securities from pre-2019 transactions
  • Facilitates rightful access to securities for legitimate purchasers
  • Second chance for rejected/returned transfer requests
  • Eases investor grievances related to physical share transfers

Operational Impact:

  • RTAs and listed companies need to process transfer requests with enhanced verification
  • Increased workload for document verification and demat processing
  • One-year lock-in ensures security against fraudulent transfers

Limitations:

  • Excludes dispute cases (must be resolved through court/NCLT)
  • IEPF-transferred securities not covered
  • Requires original certificates and pre-2019 execution of transfer deeds
  • Limited one-year window for eligible investors to act

Impact Justification

Provides special relief window for investors holding physical securities from pre-2019 transactions, affecting RTAs, listed companies and investors with pending transfer requests