In a circular by SEBI dated September 07, 2020, the cut-off date for re-lodgement of transfer deeds has been decided as of March 31, 2020. The shares that are re-lodged for transfer, including those requests that are pending with the listed company / Registrar and Transfer Agent, as on date, shall henceforth be issued only in Demat mode. A press release is also being issued in this regard to disseminating this information to investors.
This circular by SEBI is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
This circular is in terms Regulation 40 (1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which talks about the transfer or transmission or transposition of securities.
40 (1) Save as otherwise specified in provisions of securities laws or Companies Act, 2013 and rules made thereunder, the listed entity shall also comply with the requirements as specified in this regulation for effecting the transfer of securities.
Provided 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 the dematerialized form with a depository.
The securities held in physical form now cannot be transferred, the physical mode of such transfer has been discontinued with effect from April 01, 2019. However, shareholders holding securities in physical form are allowed to tender shares in open offers, buy-backs through tender offer route, and exit offers in case of voluntary or compulsory delisting. However, such tendering shall be as per the provisions of respective regulation.
Subsequently, through a Press Release No. 12/2019 on March 27, 2019, it was explained that transfer deeds which were lodged before the deadline of April 01, 2019, and rejected or returned due to deficiency in the documents may be re-lodged with requisite documents. And the cut-off date for such re-lodgement has been fixed as March 31, 2020.