SEBI halves time for transfer of equity/debt securities to 15 days

The Securities and Exchange Board of India (SEBI) has directed stock exchanges, registrars to issue and share transfer agents to reduce the time for share transfer to 15 days from the current 30 days with a view to expedite the transfer process in the interest of the investors.

''It has been decided in consultation with Registrars Association of India (RAIN), stock exchanges and market participants to reduce the time-line for registering the transfer of shares to 15 days. The same time-line shall also be applicable for transfer of debt securities,'' a SEBI release said today.

The listing agreement for equity shares prescribed under the Securities Contracts (Regulation) Act, 1956 inter alia specifies a period of one month for registering transfer of shares from the date of lodgment.

This has now been halved to 15 days. Accordingly, all the recognised stock exchanges have been directed to:

  • Amend clauses 3 (c) and 12A(3) of the listing agreement for equity shares;
  • Amend clauses 3(c) and 14(b) of the SME Equity listing agreement;
  • Incorporate the time-line of 15 days for transfer of debt securities and the provision for compensation of the opportunity losses caused during the period of delay in transfer, in the listing agreement for debt securities, on the lines of the existing provisions in the listing agreement for equity shares and SEBI circular of 27 dated September 2001; and
  • Amend any other clause as applicable in the above listing agreement.

SEBI has directed all registered registrars to issue and share transfer agents to adhere to the time-lines for transfer of shares and debt securities.