OPERATIONAL GUIDELINES FOR THE DEMAT OF SHARES PURSUANT TO RELODGED TRANSFER – Eshwars
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OPERATIONAL GUIDELINES FOR THE DEMAT OF SHARES PURSUANT TO RELODGED TRANSFER

Authored by Lakshmi Rengarajan

SEBI had issued a circular stating the cut-off date of re-lodgment of transfer as 31st March 2021 beyond which all the transfer of shares will be made in demat mode.

In this regard, SEBI has issued the following set of operational guidelines for crediting the transferred shares into the demat account of the transferee.

Step 1: After the transfer of shares, the Registrar and Share Transfer Agent (“RTA”) shall retain the physical shares and intimate the transferee of the execution of transfer through letter of confirmation (“LOC”) through registered post/ speed post/ email.

Step 2: The transferee should submit the demat request within 90 days of issue of LOC to the depository participant. At the end of 60 days from the date of issue of LOC, RTA should also inform the transferee to submit the demat request.

Step 3: Depository participant on the basis of LOC will process such demat request.

Step 4: In case of non-receipt of demat request from transferee within 90 days of LOC, the shares will be credited to the suspense escrow demat account of the company.

In case where shares are transferred by RTA pursuant to the non-cooperation or inability of the transferor, the RTA, at the time of approving the demat request, should intimate the depository and the shares will be in locked in for a period of six months from the date of registration of transfer in demat mode.

This circular can be read here: https://www.sebi.gov.in/legal/circulars/dec-2020/operational-guidelines-for-transfer-and-dematerialization-of-re-lodged-physical-shares_48336.html

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