SEBI extends Deadline for Restriction on Transfer of Listed Securities in Physical Form, upto 1 April 2019

SEBI extends Deadline for Restriction on Transfer of Listed Securities in Physical Form, upto 1 April 2019

Based on representations from stakeholders, the SEBI has extended the deadline upto 1 April 2019, for compliance with the new requirements for transfer of listed securities in dematerialised form earlier notified to be applicable w.e.f. 5 Dec. 2018, i.e. now restriction on transfer of listed shares, debentures, etc. securities held in physical form shall be applicable from 1 April, 2019. Further, SEBI has clarified certain issues about 1 April, 2019 deadline, as under:

SEBI Press Release (PR) No. 12/2019 dt. 27 March 2019

Transfer of securities held in physical mode – clarification

The Board, on March 28, 2018, decided that except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in dematerialized form with a depository. This measure shall come into effect from April 01, 2019.

Subsequently, SEBI has received representations from shareholders for extension of the date of compliance. In view of the same, the following are hereby clarified:

1. The above decision does not prohibit the investor from holding the shares in physical form; investor has the option of holding shares in physical form even after April 01, 2019.

2. Any investor who is desirous of transferring shares (which are held in physical form) after April 01, 2019 can do so only after the shares are dematerialized.

3. The transfer deed(s) once lodged prior to deadline and returned due to deficiency in the document may be re-lodged for transfer even after the deadline of April 01, 2019.

The above Board decision is not applicable for demat of shares, transmission (i.e. transfer of title of shares by way of inheritance / succession) and transposition (i.e. re-arrangement / interchanging of the order of name of shareholders) cases.

SEBI Press Release (PR) No. 49/2018 dt. 3 Dec. 2018

Transfer of securities only in demat form- Deadline extended till April 1, 2019

The Board, on March 28, 2018, decided that except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in the dematerialized form with a depository. This measure was to come into effect from December 5, 2018.

Subsequently, SEBI has received representations from shareholders for extension of the date of compliance. In view of the same, the deadline has been extended and the aforesaid requirement of transfer of securities only in demat form shall now come into force from April 1, 2019.

Related Posts:

SEBI’s Modified Procedure on Documentation for Transfer of Securities in Physical Mode

Leave a Reply