Sebi extends deadline for demat of shares to 1 April
04 December 2018
Market regulator Securities and Exchange Board of India (Sebi) has extended the deadline for compulsory dematerialisation of shares held in physical form to 1 April 2019 from 5 December announced earlier.
The Board had, on 28 March 2018, decided that requests for effecting transfer of securities shall not be processed unless the securities are held in the dematerialised form with a depository. This measure was to come into effect from 5 December.
Sebi in a statement on Monday that it has received requests from market participants and shareholders for extension of the date of compliance and has decided to extend the deadline to next 1 April 2019.
Accordingly, it has been decided that the deadline be extended and the aforesaid requirement of transfer of securities only in demat form shall now come into force from 1 April 2019, Sibi stated.
Earlier, Sebi had amended relevant provisions of Listing Obligations and Disclosure Requirements Regulations, 2015 to disallow listed companies from accepting request for transfer of securities which are held in physical form from December 5.
Although, investors can continue to hold shares and securities in physical form even after the deadline, they will not be able to place the shares with the company or its registrar and transfer agent for further transfer after the deadline.
The amendment aims at curbing fraud and manipulation risk in physical transfer of securities by unscrupulous persons, apart from improving ease, convenience and safety of transactions for investors.