Sebi opens 6-month special window for investors to re-lodge rejected physical share transfer deeds
Jul 2, 2025
Synopsis
Sebi has opened a six-month window from July 7, 2025, for investors to re-lodge rejected share transfer deeds lodged before April 1, 2019. It also mandated a Common Contract Note with single VWAP to simplify post-trade processes for institutional investors.
In a major relief for investors who missed the deadline to re-lodge transfer deeds for physical shares, the Securities and Exchange Board of India (Sebi) has announced a six-month special window from July 7, 2025, to January 6, 2026, allowing shareholders to re-lodge transfer documents that were lodged before April 1, 2019, but rejected or returned due to deficiencies.
The move comes after SEBI received numerous representations from investors, Registrars and Transfer Agents (RTAs), and listed companies highlighting that many shareholders were unable to meet the earlier cut-off date of March 31, 2021.
Following consultations with a Panel of Experts, Sebi decided to offer another opportunity to protect investors’ rights and facilitate ease of investing.
During this special window, all re-lodged securities — including pending requests with companies or RTAs — must be issued only in dematerialised form. Listed companies and RTAs are required to ensure proper processing of these transfer-cum-demat requests in compliance with Sebi regulations.
Additionally, SEBI has directed listed companies, RTAs, and stock exchanges to actively publicise the special window every two months across print and social media to reach affected investors.
Dedicated teams must be set up by RTAs and listed firms to handle these requests, and detailed monthly reports covering publicity efforts and re-lodged shares must be submitted to SEBI.
This initiative, issued under the powers granted to SEBI by the SEBI Act and relevant regulations, aims to protect investors’ interests and ensure the orderly transition from physical to dematerialized securities, furthering the regulator’s efforts to modernize and secure India’s capital markets.
In another news, the market regulator mandated the use of a Common Contract Note (CCN) with a Single Volume Weighted Average Price (VWAP) effective June 27, 2025. This move comes with a view to simplify post-trade processes and boost ease of doing business for institutional investors.
Until now, institutional investors and market participants were burdened with separate trade confirmations from each exchange, leading to cumbersome reconciliation, settlement complexities, and increased compliance headaches.
Responding to long-standing demands from industry stakeholders, regulators, in collaboration with exchanges and clearing corporations, developed a single consolidated contract note mechanism with a uniform VWAP.
[The Economic Times]
