SEBI recently mandated dematerialization of physical shares held by an investors, by brining an amendment to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and disallowing listed companies from accepting request for transfer of securities which are held in physical form with effect from 01st April 2019 except in case of transmission or transposition.
In this regard, SEBI has been posed with several questions from the investor community, and the authority has issued a Press Release clarifying its stance as under:
1. The investor are not prohibited 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 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.
Click here to read the press release
