Transfer of shares in physical form to be stopped from December 5

NSDL establishes new helpline and website to help people adopt the new way


SEBI has recently amended relevant provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 to disallow listed companies from accepting request for transfer of securities which are held in physical form with effect from December 5, 2018.

The shareholders who continue to hold shares and other types of securities of listed companies in physical form even after this date, will not be able to lodge the shares with company / its RTA for further transfer.

They will need to convert them to demat form compulsorily if they wish to effect any transfer. Only the requests for transmission and transposition of securities in physical form, will be accepted by the listed companies / their RTAs.

This amendment will help in curbing fraud and manipulation risk in physical transfer of securities by unscrupulous persons. Further, with shares held in demat form will improve ease, convenience and safety of transactions for investors.

All the investors who are holding shares etc. in physical form, should consider opening a demat account at the earliest and submit request for dematerialization of their shares in order to protect the liquidity of the shares.

You may help your friends/relatives who may be holding shares in physical form by informing them about this change. NSDL team can be reached for help at Optionmally, NSDL ’Investor Helpline Number 1800222990 can ber accessed too.

31 May 2020, 6:41 AM (GMT)

India Covid19 Cases Update

190,536 Total
5,406 Deaths
91,621 Recovered

Back to top button