The Securities and Exchange Board of India (SEBI) has announced a one-year special window to facilitate the transfer and dematerialisation of physical shares that were bought or sold before April 1, 2019.

The special window will remain open from February 5, 2026 to February 4, 2027, offering relief to investors who were unable to complete share transfers due to documentation or procedural issues.

This move is expected to benefit investors holding legacy physical share certificates and help them regain rightful access to their assets.

Why Has SEBI Introduced This Special Window?

Since April 1, 2019, SEBI has made it mandatory for all share transfers to be carried out only in dematerialised (demat) form.

However, many investors faced difficulties due to:

• Incomplete paperwork
• Procedural errors
• Rejected or returned transfer requests
• Legacy holdings passed through generations

To address these challenges, SEBI has now provided a structured opportunity for eligible investors to regularise their holdings.

What Does the Special Window Allow?

During this one-year period, investors can:

• Re-lodge previously rejected transfer requests
• Complete transfer-cum-dematerialisation of eligible physical shares
• Rectify documentation deficiencies
• Get shares credited into their demat accounts

This ensures investors can finally formalise ownership and access their securities in electronic form.

Important Conditions & Eligibility

The special window is applicable only if:

• The transfer deed was executed prior to April 1, 2019
• The original physical share certificate is available
• The case is not disputed
• The securities have not been transferred to the Investor Education and Protection Fund (IEPF)

Mandatory Lock-In Period

Shares transferred through this route will:

• Be credited only in demat form
• Be subject to a mandatory one-year lock-in from the date of transfer registration

During the lock-in period, the securities:

• Cannot be transferred
• Cannot be pledged
• Cannot be lien-marked

This provision ensures regulatory compliance and prevents misuse.

Cases Not Eligible Under This Window

The following cases are excluded:

• Missing original share certificates
• Shares already transferred to IEPF
• Disputed cases between transferor and transferee

Disputes must be resolved through courts or the NCLT before proceeding.

Documents Required to Avail the Special Window

To complete the transfer-cum-dematerialisation process, investors must submit:

• Original share certificate
• Duly executed transfer deed
• Proof of purchase (where available)
• KYC documents
• Attested Client Master List (CML) of demat account
• Undertaking-cum-indemnity bond in prescribed format

Incomplete documentation may delay processing.

Processing Timeline

SEBI has directed listed companies and their Registrar & Transfer Agents (RTAs) to:

• Process eligible applications within 70 days
• Publicise the availability of the special window via print and social media

This ensures wider awareness among investors.

What Should Investors Do Now?

If you hold physical shares purchased or transferred before April 1, 2019 and faced difficulties earlier, this is a time-bound opportunity to regularise your holdings.

Delaying action could mean missing a rare compliance window.

Final Thoughts

The SEBI special window for physical shares (Feb 2026 – Feb 2027) provides much-needed relief for investors stuck with legacy share certificates. By enabling transfer-cum-dematerialisation under a structured framework, the regulator aims to simplify compliance and help investors regain access to their rightful assets.

If you or your family members hold old physical share certificates, reviewing eligibility and initiating the process early is advisable.

 

FAQs:-

1️. What is SEBI’s special window for physical shares?

SEBI has opened a one-year special window from February 5, 2026 to February 4, 2027 to allow investors to transfer and dematerialise physical shares that were bought or sold before April 1, 2019.

2️. Who is eligible under this special window?

The window is applicable only if:

• The transfer deed was executed before April 1, 2019
• The original share certificate is available
• The case is not disputed
• The securities have not been transferred to IEPF

3️. Can I transfer physical shares after April 1, 2019?

Normally, SEBI mandates share transfers only in dematerialised form after April 1, 2019. However, this special window allows eligible investors to regularise old physical share transfers executed before that date.

4️. What documents are required for transfer-cum-dematerialisation?

Investors need to submit:

• Original share certificate
• Duly executed transfer deed
• Proof of purchase (if available)
• KYC documents
• Client Master List (CML) of demat account
• Undertaking-cum-indemnity bond

5️. Will the transferred shares be credited in physical form?

No. Shares transferred under this special window will be credited only in demat form.

6️. Is there any lock-in period after transfer?

Yes. Shares transferred through this route will have a mandatory one-year lock-in period from the date of registration.

During this period, the securities:

• Cannot be transferred
• Cannot be pledged
• Cannot be lien-marked

7️. What if my original share certificate is lost?

Cases where the original share certificate is missing are not eligible under this special window.

8️. Can I apply if my shares are already transferred to IEPF?

No. Securities that have already been transferred to the Investor Education and Protection Fund (IEPF) are not eligible under this window.

9️. What if there is a dispute between transferor and transferee?

Disputed cases are excluded. Such matters must be resolved through courts or the NCLT before any transfer can be processed.

10. How long will RTAs take to process the request?

SEBI has directed listed companies and RTAs to process eligible applications within 70 days of receiving complete documentation.