Markets regulator Sebi on Friday proposed measures to make it easier for investors to dematerialise physical shares and transfer them, especially those lodged before April 1, 2019.
By addressing long-pending transfer issues and removing redundant steps in the current system, Sebi aims to enhance investor convenience while continuing to promote dematerialisation in the securities market.
In its consultation paper, Sebi proposed to temporarily relax rules to allow the transfer of such old shares, even though they are in physical form.
This exception, however, will be time-bound, with a sunset clause to ensure that dematerialisation remains the long-term goal. Once verified by the company or the Registrar and Transfer Agent (RTA), these shares will be credited directly to the investor’s demat account.
In addition to this proposal, the regulator has suggested abolishing the current process of issuing a ‘Letter of Confirmation’ (LOC) to further simplify the dematerialisation procedure.​Markets regulator Sebi on Friday proposed measures to make it easier for investors to dematerialise physical shares and transfer them, especially those lodged before April 1, 2019.
By addressing long-pending transfer issues and removing redundant steps in the current system, Sebi aims to enhance investor convenience while continuing to promote dematerialisation in the securities market.
In its consultation paper, Sebi proposed to temporarily relax rules to allow the transfer of such old shares, even though they are in physical form.
This exception, however, will be time-bound, with a sunset clause to ensure that dematerialisation remains the long-term goal. Once verified by the company or the Registrar and Transfer Agent (RTA), these shares will be credited directly to the investor’s demat account.
In addition to this proposal, the regulator has suggested abolishing the current process of issuing a ‘Letter of Confirmation’ (LOC) to further simplify the dematerialisation procedure. ​Latest News [ SOBAN NEWS: International and National ]
