Still have shares in physical form? This is your last chance to convert them to demat

SEBI said the amendments and the ongoing push towards dematerialization are expected to make investing easier, protect the rights of genuine investors, and ensure smoother processing of investor requests.

If you are still holding share certificates in physical form, the Securities and Exchange Board of India (SEBI) may have just offered you a last opportunity to convert them into digital form.

On December 17, SEBI approved changes to the Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, aimed at simplifying investor services and reviving transfer rights for genuine investors holding physical shares. The reforms are expected to significantly reduce processing times and reopen a limited window for registering certain long-pending physical share transfers.

A key change is the removal of the requirement for a Letter of Confirmation, which investors previously needed for requests such as issuing duplicate certificates, transferring shares, or crediting securities arising from corporate actions. Under the old system, investors had to submit this letter to their depository participants, a process that often took around 150 days. Now, after proper checks by registrars and companies, securities will be credited directly to investors’ demat accounts, cutting the processing time to about 30 days and reducing the risk of loss or misuse of physical documents.

Physical share transfers were officially discontinued from April 1, 2019. SEBI had earlier allowed investors to re-lodge transfer deeds executed before that date, but that window closed on March 31, 2021. A special re-lodgement window ran from July 7, 2025, to January 6, 2026, yet many investors remained excluded, particularly those whose transfer deeds had never been lodged within the prescribed timelines.

To address this, SEBI has now approved a further window for investors holding original physical certificates along with the transfer deeds for shares purchased before April 1, 2019. These transfers can now be lodged afresh, subject to strict due diligence by registrars and companies. Cases involving disputes or suspected fraud are not eligible.

SEBI said the amendments and the ongoing push towards dematerialization are expected to make investing easier, protect the rights of genuine investors, and ensure smoother processing of investor requests.