The Securities and Exchange Board of India (SEBI) has announced a one-time special window to facilitate the transfer and dematerialisation of physical securities that were sold or purchased prior to April 01, 2019. The measure is intended to resolve long-pending investor cases where transfer requests were earlier rejected, returned, or not processed due to procedural or documentation-related deficiencies.
This initiative forms part of SEBI’s broader efforts to improve ease of doing investment while ensuring that investors are able to secure their legitimate rights in securities.
Duration of the Special Window
The special window will remain open for a period of one year, commencing on February 05, 2026, and closing on February 04, 2027. Only those transfer and dematerialisation requests that are submitted and processed within this period will be eligible for consideration.
Securities and Transfers Covered
The window applies to physical securities where the transfer deed was executed prior to April 01, 2019, and the original security certificates are available. It also covers cases where transfer requests were earlier rejected, returned, or not attended to due to deficiencies in documents or process requirements.
All securities transferred under this framework must be credited to the transferee only in demat form. Physical holding after transfer is not permitted.
Mandatory Lock-in Requirement
SEBI has prescribed a mandatory lock-in period of one year for securities transferred under this special window, beginning from the date of registration of transfer. During this period, the securities cannot be transferred, pledged, or lien-marked.
Where fraud is detected during the lock-in period, the lock-in may continue until further directions are issued by a competent authority.
Documentation and Due Diligence
Investors must submit original security certificates, a transfer deed executed before April 01, 2019, proof of purchase where available, and KYC documents as prescribed.
A latest Client Master List of the demat account, not older than two months and duly attested by the Depository Participant, is mandatory. An undertaking-cum-indemnity in the prescribed format must also be provided.
Listed companies and RTAs are required to carry out identity and signature verification and follow the prescribed due diligence process before effecting the transfer.
Cases Not Covered Under the Window
Cases involving disputes between the transferor and the transferee are excluded from this special window and must be resolved through appropriate legal forums, including courts or the National Company Law Tribunal.
Securities that have already been transferred to the Investor Education and Protection Fund are also not eligible for processing under this framework and will continue to be governed by the applicable IEPF regulations.
Processing Timeline and Disclosure
Once complete documentation is received, listed companies and RTAs are required to process eligible transfer requests within 70 days. SEBI has also directed companies, RTAs, and stock exchanges to publicise the availability of the special window during the one-year period.
Key Takeaway for Investors
Investors holding physical securities acquired before April 01, 2019, and facing unresolved transfer issues now have a limited opportunity to regularise their holdings. Timely action within the prescribed window is essential to complete transfer and dematerialisation under this special dispensation.
SEBI Circular dated 30/01/2026: Special Window for Transfer and Demat of Physical Securities