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Mumbai (Maharashtra) [India], January 31:
The Securities and Exchange Board of India (SEBI) has announced a special one-year window for investors to transfer and dematerialise physical securities.
SEBI said the window will help investors whose requests could not be processed before April 1, 2019. Such cases were delayed due to procedural or documentation-related issues.
According to the regulator, the special window will remain open from February 5, 2026, to February 4, 2027. The new measure will come into effect on February 5, 2026.
SEBI stated that the move will allow investors to regularise pending cases. It will also ensure rightful access to their securities.
The window will also cover earlier transfer requests. These include cases that were rejected, returned, or not processed due to document deficiencies or other reasons.
SEBI Removes Letter of Confirmation Requirement
Separately, SEBI has removed the requirement for issuing a Letter of Confirmation (LOC) for crediting securities to demat accounts.
The regulator said the decision aims to simplify processes and reduce delays.
Earlier, listed companies and Registrars to an Issue and Share Transfer Agents (RTAs) issued an LOC. Investors had to submit it to their depository participant. This process usually took around 150 days.
SEBI said listed companies and RTAs will now directly credit securities to investors’ demat accounts. They will do so after completing the required due diligence.
As a result, the timeline for credit of securities will reduce to around 30 days. The change will also lower the risk of loss or misuse of physical documents.
New Rules Effective From April 2026
The revised framework will come into force from April 2, 2026.
SEBI clarified that any LOC issued before this date will remain valid. Investors may use it for dematerialisation within the prescribed timeline.
“This initiative aims to improve ease of investing, enhance operational efficiency, and strengthen investor protection,” SEBI said.
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