The Securities and Exchange Board of India (SEBI) had its Board meeting held last year, on 28th March 2018 decided that except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in dematerialized form with a depository.
In this regard, SEBI had amended Regulation 40 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI (LODR) Regulations, 2015”) vide an Amendment dated 8th June 2018 by insertion of a proviso to this effect. This Amendment was effective from 180th day of the date of notification of that amendment, i.e., with effect from 5th December 2018.
Thereafter, due to various representations received from shareholders of various listed companies, SEBI had again issued another Notification for making this proviso to Regulation 40 of SEBI (LODR) Regulations, 2015 effective from 1st April 2019.
Subsequently, SEBI had again received representations from various shareholders for extension of the date of compliance. In view of the same, SEBI has vide a Press Release dated 27th March 2019 clarified the following:
1. The above decision does not prohibit the investor from holding the shares in physical form; investor has the option of holding shares in physical form even after April 01, 2019.
2. Any investor who is desirous of transferring shares (which are held in physical form) after April 01, 2019 can do so only after the shares a dematerialized.
3. The transfer deed(s) once lodged prior to deadline and returned due to deficiency in the document may be re-lodged for transfer even after the deadline of April 01, 2019.
The above decision of SEBI is not applicable for demat of shares, transmission (i.e. transfer of title of shares by way of inheritance / succession) and transposition (i.e. re-arrangement / interchanging of the order of name of shareholders) cases.
A copy of the Press Release issued by SEBI is available on following Link:-
No comments:
Post a Comment