In a significant relief for investors holding physical shares, the Securities and Exchange Board of India (SEBI) has opened a special 6-month window for re-lodging share transfer deeds that were submitted prior to April 1, 2019, but were rejected, returned, or left unprocessed due to documentation-related issues.
This special window will remain open from July 7, 2025, to January 6, 2026, providing eligible investors with a final opportunity to regularize such old transfer requests.
SEBI’s decision is expected to benefit a large number of retail investors and heirs of deceased shareholders, many of whom were unable to complete share transfers due to missing or incorrect paperwork at the time of original submission.
According to the SEBI circular released on July 3, 2025, this move is part of its investor-friendly reforms aimed at facilitating smoother resolution of legacy issues in the physical shareholding system.
Who Can Benefit?
The window applies only to share transfer requests lodged before April 1, 2019, which could not be processed earlier due to reasons such as:
- Incomplete documentation
- Signature mismatch
- Non-availability of supporting affidavits or succession proofs
- Other procedural or compliance-related shortcomings
The investors or their legal heirs can now re-lodge these requests by submitting the correct and complete documentation to the respective Registrar and Transfer Agents (RTAs) or listed company.
Key Guidelines:
- The re-lodged request must be for the same shares and same parties as in the original submission.
- Requests involving transfer to a new buyer not covered in the original deed will not be entertained.
- Documentation must meet current standards, including valid ID proofs, PAN, and proof of relationship (in case of heirs).
- The cut-off date for submission is January 6, 2026, beyond which no such cases will be entertained.
Background
In 2019, SEBI had mandated that all share transfers must be carried out only in dematerialized (demat) form, effectively putting a stop to the transfer of physical shares. However, there was a backlog of unresolved requests submitted before this rule came into effect.
SEBI’s latest move seeks to offer a one-time resolution mechanism for these pending legacy cases, in line with its broader push toward digitization and investor protection.
Expert Opinion
Market experts welcomed SEBI’s announcement, calling it a “positive step for investor grievance redressal”. “There are many cases where genuine investors were stuck due to technical reasons, and this window can help them finally get justice,” said Rajesh Mehta, a financial advisor in Mumbai.
However, experts also cautioned investors to act quickly and seek legal or professional help if needed, as the documentation process could be complex depending on the case.
What Should Investors Do?
- Check old records for any returned or rejected transfer requests.
- Gather supporting documents such as old transfer deeds, share certificates, communication from RTAs, affidavits, or legal heir certificates.
- Approach your company’s RTA or consult with your stockbroker/legal advisor for re-lodging the case.
This initiative by SEBI could bring closure to long-pending transfer disputes and bring dormant investments back into circulation.
Source: SEBI Circular dated July 3, 2025 – www.sebi.gov.in / https://www.sebi.gov.in/legal/circulars/jul-2025/ease-of-doing-investment-special-window-for-re-lodgement-of-transfer-requests-of-physical-shares_94973.html
