The Securities and Exchange Board of India (SEBI) has announced a special six-month window for investors to re-lodge physical share transfer requests that were rejected prior to April 1, 2019. This initiative aims to provide relief to investors who missed the previous deadlines for re-submitting their documents. The window will be open from July 7, 2025, to January 6, 2026.

The decision to open this special window comes after SEBI received representations from investors, Registrar and Transfer Agents (RTAs), and listed companies, indicating that many shareholders were unable to meet the earlier cut-off date of March 31, 2021. The matter was then reviewed by a panel of experts, including legal professionals, RTAs, and company representatives, who recommended providing another opportunity to these investors.

SEBI had initially discontinued the transfer of securities in physical form with effect from April 1, 2019. Subsequently, it was clarified that transfer deeds lodged before this deadline but rejected due to deficiencies could be re-lodged with the necessary documents, setting a cut-off date of March 31, 2021, for re-lodgement.

During this special window, all re-lodged securities, including pending requests with companies or RTAs, will be issued only in dematerialized form. This means that the standard process for transfer-cum-demat requests will be followed. SEBI has directed listed companies, RTAs, and stock exchanges to actively publicize the special window every two months across print and social media to reach affected investors.

To ensure the smooth processing of these requests, SEBI has mandated that listed companies and RTAs set up dedicated teams to handle these cases. These teams will be responsible for processing the transfer-cum-demat requests in compliance with SEBI regulations. Furthermore, companies must submit monthly reports to SEBI during the window period, detailing the number of requests received, processed, and approved, along with reasons for any rejections and average processing times. A dedicated task force will also monitor the process, with bi-monthly reporting requirements.

This initiative, issued under the powers granted to SEBI by the SEBI Act and relevant regulations, aims to protect investors' interests and ensure the orderly transition from physical to dematerialized securities. It further supports the regulator's efforts to modernize and secure India's capital markets. The special window demonstrates SEBI's commitment to balancing investor protection with the challenges that arise during the market's transition to digital securities. By providing this opportunity, SEBI seeks to restore investors' rights and facilitate ease of investing, particularly for those who were left in limbo during the shift to dematerialized shares.