SEBI extends deadline for transfer of shares in demat to April 1, 2019
The new deadline stands at April 1, 2019 as compared to December 5, 2018.
December 03, 2018 / 06:51 PM IST
The Securities and Exchange Board of India (SEBI), has given investors more time to convert shares and other securities held in physical certificate format into demat. The deadline has been revised to April 1, 2019, from December 5, 2018.
SEBI has made it mandatory to hold the shares and securities in dematerialised form with a depository for investors keen to in trade them after December 5. Investors were advised to complete the KYC process before the due date. This led investors to rush to the registrar and transfer agents for requisite paperwork.
Many senior citizens hold investments in physical certificate format. This is especially the case with the popular non-convertible debentures and bonds. The transfer of these instruments would have been possible if the investors held them in demat form after December 5. Demat is a must only if you intend to trade the shares.
“SEBI has received representations from shareholders for extension of the date of compliance. In view of the same, the deadline has been extended and the aforesaid requirement of transfer of securities only in demat form shall now come into force from April 1, 2019,” said the press release from SEBI.
The extended deadline with gives investors more time to comply with the new regulatory norms. A point to note is the recent NCD issuances made it mandatory for investors to apply through their demat accounts and declined issuance of physical certificates. Earlier, the issuance was in both physical and demat modes. The new deadline will provide some breathing space to investors.