SEBI’s Special Window for Physical Share Transfers: A Six-Month Opportunity

Circular No. SEBI/HO/MIRSD/MIRSD‑PoD/P/CIR/2025/97 — July 2, 2025

Why SEBI Launched This Circular

• Physical share transfers were discontinued from April 1, 2019. However, many investors had lodged transfer requests before this date that were rejected or returned due to incomplete paperwork. 
• An initial deadline to re-lodge documents was set as March 31, 2021.
• SEBI recognized that many individual investors—especially HNIs, women, and small investors—missed this deadline, losing access to their rightful holdings.
• To protect investor rights and promote ease of investing, SEBI has now introduced a special six-month re-lodgement window.

What the Circular Says (Key Highlights)

1. Window Period: July 7, 2025 – January 6, 2026.
2. Eligible Applications: Only for physical share transfer requests lodged before April 1, 2019, also rejected or returned.
3. Mandatory Demat Conversion: All re-lodged shares must be issued in dematerialized form via transfer-cum-demat process. 
4. Publicity Requirement: RTAs, companies, and exchanges must publicize this window bi-monthly via print and digital media.
5. Dedicated Teams & Reporting: Focused processing teams must be set up. Monthly reports—number of requests received, processed, approved, rejected, average processing time—must be submitted to SEBI.

Real-Life Example

Mrs. Sharma, a woman investor, bought shares in 2018 and submitted a transfer deed. The request was rejected due to missing signature and she missed the 2021 deadline to reapply. Now, during the new window, she can re-submit (along with her Demat Client Master List), and the shares will be credited directly to her Demat account—bringing long-dormant investments back into her portfolio.

Who Stands to Gain

• HNIs & Legacy Holders: Recapture lost investments from long-pending transfer requests.
• Women Investors: Unlock delayed holdings, bringing clarity and completion to their financial journey.
• Novice Investors: Reinforce ownership and transparency via demat conversion, reducing dependency on physical certificates.

Broader Implications

• Digital Push Reminder: SEBI reiterates its commitment to digital/demat markets and investor convenience.
• Investor Rights Protection: This correction window aligns with SEBI’s powers under Sections 11(1) of the SEBI Act and LODR regulations.
• Compliance Expectation: Public companies and RTAs must not delay or obstruct rightful applications—they are accountable.

What You Should Do

1. Check: If you or your family members lodged physical share transfers before April 2019 that didn’t succeed.
2. Collect Documents: Transfer deed, share certificates, Demat Client Master List, ID proofs.
3. Re-submit: Through the company’s RTA during the window (July 7, 2025 - January 6, 2026).
4. Follow Up: Track monthly reports which will display processing status.

🔗 Contact your RTA or Issuer’s investor relations for details and assistance.

Final Word

This special window is not merely a compliance exercise—it’s a second chance to reclaim hidden wealth, bring forgotten investments into your Demat account, and close long-standing legacy issues.

Need assistance verifying eligibility or completing the process?
Our expert team at NAM Securities is here to support you every step of the way.
📞 Contact us today to unlock your dormant investments.