Description

SEBI opens a one-year special window from February 05, 2026 to February 04, 2027 for investors to transfer and dematerialize physical securities that could not be transferred before April 01, 2019.

Summary

SEBI has introduced a special one-year window from February 05, 2026 to February 04, 2027 to enable investors to regularize and complete transfer cum dematerialisation of physical securities. This facility is available for investors who were unable to transfer their physical securities prior to April 01, 2019 due to procedural or documentation challenges. The window also covers transfer requests that were previously rejected, returned, or not processed due to deficiencies.

Key Points

  • Special window opens from February 05, 2026 to February 04, 2027 (one-year duration)
  • Applicable for investors who could not transfer physical securities before April 01, 2019
  • Covers cases involving procedural or documentation related challenges
  • Available for previously rejected, returned, or unattended transfer requests
  • Aims to facilitate investors’ access to their rightful property
  • Part of SEBI’s ease of doing investment initiative

Regulatory Changes

This circular creates a special remedial window for physical security transfers that were not completed by the April 01, 2019 deadline. It provides a second opportunity for investors to regularize their holdings through the transfer cum dematerialisation process.

Compliance Requirements

  • Investors must utilize the special window between February 05, 2026 and February 04, 2027
  • Transfer cum dematerialisation process must be completed within the window period
  • Applicable for both new applications and previously rejected/returned requests
  • Investors should ensure proper documentation to avoid deficiencies

Important Dates

  • February 05, 2026: Special window opens (effective date)
  • February 04, 2027: Special window closes
  • April 01, 2019: Original deadline reference for physical security transfers

Impact Assessment

This circular provides relief to investors who hold physical securities that could not be transferred before the April 2019 deadline. The one-year special window enables these investors to regularize their holdings and gain access to their property rights. The measure is particularly beneficial for investors who faced procedural hurdles or documentation issues in the past. By reopening the transfer cum dematerialisation facility, SEBI is addressing a gap that may have left certain investors unable to access or trade their securities. The impact is positive for affected investors but limited to a specific segment of the market dealing with legacy physical securities.

Impact Justification

Medium importance as it provides a remedial mechanism for investors who missed the April 2019 deadline for physical security transfers. Impact is medium as it affects a specific segment of investors holding untransferred physical securities, facilitating access to their rightful property.