SEBI Opens 6-Month Window to Re-Lodge Rejected Transfers

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  • Last Updated on 4 July, 2025

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SEBI physical share transfer window

Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97; Dated: 02.07.2025

In a significant move to resolve long-pending issues related to physical share transfers, the Securities and Exchange Board of India (SEBI) has announced a 6-month special window from July 7, 2025, to January 6, 2026. This initiative provides shareholders with an opportunity to re-lodge transfer deeds that were originally lodged before April 1, 2019 but were rejected or returned due to deficiencies in documentation or processing.

1. Background – Challenges in Physical Share Transfers

Under SEBI’s earlier mandate, the transfer of securities in physical form was discontinued effective April 1, 2019, with a shift toward compulsory dematerialisation. However, numerous shareholders had lodged transfer deeds before the cut-off date that were returned or rejected for reasons such as:

  • Incomplete or incorrect documents
  • Signature mismatches
  • Other procedural deficiencies

These shareholders were left without recourse, unable to resubmit their transfer requests under the revised norms.

2. Special Window to Resolve Legacy Issues

To address these legacy grievances, SEBI’s special window will allow eligible shareholders to re-lodge previously rejected transfer deeds. However, SEBI has clearly specified that any such re-lodged securities must be issued only in demat mode, in line with the current regulatory framework.

3. Compliance Obligations for Listed Companies and RTAs

SEBI has directed listed companies and their respective Registrars and Transfer Agents (RTAs) to facilitate the smooth handling of these transfer-cum-demat requests during the special window. They are required to:

  • Verify and process re-lodged requests in a timely manner
  • Ensure compliance with dematerialisation norms
  • Avoid unnecessary delays or rejections due to minor procedural issues

4. Encouraging Investor Protection and Market Efficiency

This move by SEBI reinforces its commitment to investor protection and aims to bring closure to long-standing transfer issues. It also aligns with the regulator’s ongoing push for digitalisation, transparency, and operational efficiency in the Indian securities market.

Shareholders who are eligible for re-lodging are encouraged to act within the specified timeframe to dematerialise their holdings and ensure seamless ownership transfer.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied