“From Paper to Portfolio: SEBI’s 2025 Deadline to Demat Old Share Certificates”

“From Paper to Portfolio: SEBI’s 2025 Deadline to Demat Old Share Certificates”

Until April 1, 2019, investors could transfer shares in physical form. Beyond that, SEBI mandated dematerialization: physical shares could still be held, but any transfers required converting to demat.

A grace period was provided until March 31, 2021, to re‑lodge previously submitted but rejected or returned physical transfer requests. However, many investors missed this deadline due to documentation issues.

📅 What’s New: The 6‑Month Window

To address these lapses, SEBI has opened a one-time special 6‑month window:

• For whom? Investors whose transfer deeds were submitted before April 1, 2019 and remained rejected, returned, or unprocessed due to deficiencies.
• When? July 7, 2025, to January 6, 2026.
• Important: This opportunity is final—no further extensions are expected .

🔄 Process Details

• Re‑lodgment + Demat:
  Any deeds re‑lodged must be processed in dematerialized form, integrating the standard transfer‑cum‑demat procedure.
• Responsibility of RTAs and Companies:
  SEBI has mandated:
  1. Dedicated teams to manage these re‑lodgment requests;
  2. Bi‑monthly publicity via print, digital, and social media to raise awareness throughout the window.
  3. Monthly reporting to SEBI, including the number of requests received, processed, approved, rejected, reasons, and turnaround times.

💡 Why It Matters

• For legacy shareholders: Many still hold valuable shares in paper form, often left in limbo due to minor documentation oversights.
• Investor protection: SEBI’s move underscores its commitment to safeguarding investor rights and reducing procedural friction.
• Finality: This appears to be the last chance for investors to act—so prompt action is critical.

🧭 Step‑by‑Step: What Investors Should Do

1. Check your physical share deeds: Ensure they were dated before April 1, 2019, and previously faced rejection or non‑processing.
2. Contact the company's RTA or your Depository Participant (DP): Re‑submit the transfer deeds promptly after July 7, 2025.
3. Ensure required documents: PAN, KYC, valid signatures, etc., are properly updated—these are common causes for prior rejection.
4. Follow up with RTA: RTAs should issue a confirmation letter after transfer.
5. Submit demat request: Within 90 days of confirmation, submit to your DP, who will facilitate crediting shares to your demat account.
6. Monitor status: RTAs and listed companies are legally bound to provide monthly public updates—but proactive follow‑up ensures no delays.

🧩 Final Thoughts

• ✅ Deadline alert: July 7, 2025 – January 6, 2026 is the only window.
• 📄 Not universal: Only eligible for physical share deeds dated pre‑April 1 2019 that had previously failed.
• 🔜 Must be demat‑processed: No fresh physical transfers allowed.
• 📢 Awareness expected: Companies and RTAs will be promoting this regularly.
• 🔄 Don’t wait: Submit early and engage actively.