SEBI Opens Special Window for Demat of Physical Securities

Circular no. HO/38/13/11(2)2026-MIRSD-POD/ I/3750/2026; Dated: 30.01.2026

The Securities and Exchange Board of India (SEBI) has decided to open a special window for transfer and dematerialisation of physical securities that were sold or purchased prior to April 01, 2019. This measure aims to address long-pending investor grievances arising from earlier procedural rejections.

1. Scope of the Special Window

The special window will be available for transfer requests that were submitted earlier but were rejected, returned, or not attended to due to deficiencies in documentation or process requirements. The initiative provides investors with a fresh opportunity to regularise such transfers and complete dematerialisation.

2. Duration of the Window

The special window will remain open for a period of one year, commencing from February 05, 2026, and ending on February 04, 2027. Requests must be submitted and processed within this timeframe to be eligible for consideration.

3. Exclusion of Disputed Cases

Cases involving disputes between the transferor and the transferee will not be covered under this special window. Such matters are required to be resolved separately by the concerned parties through appropriate legal forums, including the Court or the National Company Law Tribunal (NCLT).

4. Securities Transferred to IEPF Not Eligible

SEBI has also clarified that securities already transferred to the Investor Education and Protection Fund (IEPF) will not be considered for processing under this special window. Such cases will continue to be governed by the applicable IEPF framework.

5. Regulatory Objective

The special window reflects SEBI’s intent to facilitate investor protection and ease of compliance, while drawing clear boundaries to exclude disputed matters and cases already governed by statutory transfer mechanisms.

6. Key Takeaway for Investors

Eligible investors should review previously rejected or pending transfer requests relating to physical securities acquired before April 01, 2019, and take timely action within the specified one-year window to complete transfer and dematerialisation.