Mumbai: In order to facilitate ease of investing and to secure investors' rights, capital market regulator Securities and Exchange Board of India (SEBI) on Wednesday decided to open a special window only for re-lodgement of transfer deeds, lodged before April 1, 2019 deadline, and were either returned, rejected or not attended due to deficiency in the documents or other reasons.
The window will be open for 6 months-starting from July 7, 2025, to January 6, 2026."During this period, the securities that are re-lodged for transfer shall be issued only in demat mode," the market regulator said in a circular.
The market watchdog asked listed companies, RTAs and Stock Exchanges to advertise the opening of this special window through various media, including print and social media, on a bimonthly basis during the six-month period.
"This issue was discussed in a Panel of Experts, which included RTAs, listed companies, and legal experts. Based on the discussion, the panel recommended that to alleviate the issue faced by the investors that missed the March 31, 2021, deadline for re-lodgement, one more opportunity may be granted for them to re-lodge such shares for transfer," the market regulator said in a statement.
Notably, the transfer of securities in physical mode was discontinued with effect from April 1, 2019.Subsequently, the market regulator clarified that transfer deeds lodged prior to the deadline and rejected or returned due to a deficiency in the documents may be re-lodged with the requisite documents.Later, March 31, 2021, was fixed as the cut-off date for re-lodgement of transfer deeds.
The decision came after the SEBI received requests from investors as well as RTAs and listed companies who had missed the timelines for re-lodging their documents for transfer of securities.
Meanwhile, last month, the market regulator introduced key reforms to enhance the efficiency, inclusivity, and investor-friendliness of Indian financial markets.These decisions were approved during SEBI’s board meeting chaired by Tuhin Kanta Pandey on June 18.
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