Brief Overview:
SEBI has eased investor processes by introducing a one‑year special window for transfer‑cum‑dematerialisation of physical securities prior to April. Together, these reforms allow investors to regularise long‑pending physical share transfers, gain demat credit smoothly
Technical Details:
Key Highlights
1) 1-year special window introduced to facilitate transfer‑cum‑dematerialisation of physical securities bought or sold before April 1, 2019.
2) All transfers under this window will be credited only in dematerialised form, with a mandatory one‑year lock‑in period for the transferred securities.
3) Transfer disputes or securities already transferred to the Investor Education and Protection Fund are not eligible.
4) No more requirement of issuing a LOC for investor service requests.
5) RTAs and listed companies will directly credit securities to investors’ demat accounts.
6) Reduces the dematerialisation timeline from 150 days to 30 days.
7) Investors must submit a recent attested Client Master List along with their request for direct demat credit.
Takeaways:
SEBI’s dual reforms significantly streamline investor processes by opening a one‑year special window for regularising legacy physical share transfers while simultaneously removing the LOC requirement enabling faster, direct credit. The new measures ease investing, minimise paperwork, strengthen investor protection by modernising long‑standing procedures in the securities market.
For further details, please see:
SEBI |Doing away with requirement of issuance of LOC
SEBI | Special Window for Transfer and Dematerialisation of Physical Securities
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