SEBI Opens Special Window for Demat of Physical Securities

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  • Last Updated on 1 February, 2026

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SEBI special window for dematerialisation

Circular no. HO/38/13/11(2)2026-MIRSD-POD/ I/3750/2026; Dated: 30.01.2026

The Securities and Exchange Board of India (SEBI) has decided to open a special window for transfer and dematerialisation of physical securities that were sold or purchased prior to April 01, 2019. This measure aims to address long-pending investor grievances arising from earlier procedural rejections.

1. Scope of the Special Window

The special window will be available for transfer requests that were submitted earlier but were rejected, returned, or not attended to due to deficiencies in documentation or process requirements. The initiative provides investors with a fresh opportunity to regularise such transfers and complete dematerialisation.

2. Duration of the Window

The special window will remain open for a period of one year, commencing from February 05, 2026, and ending on February 04, 2027. Requests must be submitted and processed within this timeframe to be eligible for consideration.

3. Exclusion of Disputed Cases

Cases involving disputes between the transferor and the transferee will not be covered under this special window. Such matters are required to be resolved separately by the concerned parties through appropriate legal forums, including the Court or the National Company Law Tribunal (NCLT).

4. Securities Transferred to IEPF Not Eligible

SEBI has also clarified that securities already transferred to the Investor Education and Protection Fund (IEPF) will not be considered for processing under this special window. Such cases will continue to be governed by the applicable IEPF framework.

5. Regulatory Objective

The special window reflects SEBI’s intent to facilitate investor protection and ease of compliance, while drawing clear boundaries to exclude disputed matters and cases already governed by statutory transfer mechanisms.

6. Key Takeaway for Investors

Eligible investors should review previously rejected or pending transfer requests relating to physical securities acquired before April 01, 2019, and take timely action within the specified one-year window to complete transfer and dematerialisation.

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