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

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

Limitation on transfer of securities in Physical Form

Earlier there was amendment in SEBI (LODR) in relation with restriction on transfer of securities in physical form on 08.06.2018 (Click here for SEBI Regulation)

The amendment was come into force on the one hundred and eightieth day from the date of its publication in the Official Gazette, i.e 05.12.2018 (Extended upto 31.03.2019)

Amendment in Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

Click below for article on Initial amendment.

https://csravi2014.blogspot.com/2018/06/restriction-on-transfer-of-securities.html

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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

Reference of Amendement: As prescribed by Press Releases by SEBI on 03.12.2018

Click here for direct link of SEBI website for Press Release:

Last date for Transfer of shares in Physical Form: 31.03.2018

Point to remember:

1. Above said provisions shall not restrict to hold shares in Physical Shares even after 31.03.2018

2. These provisions shall not apply to transmission and transposition of securities

Further SEBI also clarifies through Press release (PR No.: 12/2019), dated 27.03.2019 that:

• 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.
• 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.
• The transfer deed(s) once lodged prior to deadline (i.e. 31.03.2019) and returned due to deficiency in the document may be re-lodged for transfer even after the deadline of April 01, 2019.

Thank you

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