Recently the Securities and Exchange Board of India (SEBI), has, vide its notification dated June 8, 2018, come up with the great changes in the physical share transfer norms applicable to all the listed Companies in India. SEBI. in order to control the malpractices related to physical share transfers in the listed, has mandated that, in all the listed Companies, with effect from 5th December 2018, ONLY Dematerialized securities will be allowed to be transferred except for transmission or transposition of securities.
The aforesaid tough step has been taken by the SEBI in order the curb the malpractice which is being followed in India by transferring the physical shares without complying the proper legal procedure as laid down under the law of land.
The RTAs/ the listed Companies will not be allowed to entertain and undertake any physical transfers request from any security holders after the expiry of the period of One Hundred and Eighty days i.e. 5th December 2018. Further, it is advisable to all the listed companies to during It is advisable that during this transitional period, the Companies must write to their shareholders and inform them about the restrictions proposed to be imposed by SEBI after 5th December 2018 and also brief them of advantages of holding securities in Demat mode.
Kindly click here to view for the Notification in this respect
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