News

Capital markets regulator SEBI’s latest board meeting has cleared a set of measures aimed at speeding up share-related processes, reducing paperwork, and easing compliance. The changes are especially significant for investors still holding shares in physical form, apart from reforms in debt markets, unclaimed amounts, and credit ratings.

SEBI has announced a one-time window for investors holding physical shares to transfer them in their own name. The window will remain open from 7 July 2025 to 6 January 2026.

The facility applies to shares purchased before 1 April 2019, provided the original share certificates are available.

Shares involved in legal disputes or fraud-related cases will not be eligible under this window, SEBI said.

SEBI has streamlined the share transfer process by removing the need for a separate Letter of Confirmation in several cases. After verification, shares will now be credited directly to the investor’s demat account.

This is expected to cut processing time from about 150 days to nearly 30 days.

Issuers will now be required to transfer unclaimed amounts to the IEPF only once, after seven years from maturity. Earlier, transfers had to be made repeatedly on each due date.

The move gives investors more time to claim their funds directly from companies.

SEBI has allowed credit rating agencies to rate instruments regulated by other authorities, including the RBI. The scope of ratings for unlisted debt instruments will also be expanded, subject to stricter conditions.

Clear disclosures will be mandatory, with rating reports required to distinguish between SEBI-regulated products and those overseen by other regulators.

SEBI has raised the threshold for identifying High Value Debt Listed Entities to Rs 5,000 crore of outstanding debt from Rs 1,000 crore earlier.

This will ease compliance for NBFCs, housing finance companies, asset reconstruction companies, insurers, and REITs.

SEBI’s moves aim to make markets faster, simpler, and more efficient. Physical shareholders get a long-awaited exit route, transfers become quicker, and rules around debt and ratings turn more practical—supporting stronger investor confidence.

Shares can be transferred either through an offline or online method. Both the transferor and transferee must have demat accounts with DPs linked to NSDL or CDSL.

Step 1: Get a Delivery Instruction Slip (DIS) Collect the DIS from your current broker.

Step 2: Fill the DIS carefully You need to mention:

Beneficiary broker ID (16-digit ID)

ISIN of the shares

Number of shares

Mode of transfer (off-market or inter-depository)

Step 3: Submit the DIS Submit the signed DIS to your broker. Ensure all details are correct.

Step 4: Collect acknowledgement Take an acknowledgement slip as proof.

Step 5: Transfer completion Shares usually reflect in the new demat account in three to five business days. A small fee may apply.

Step 1: Register online Register on NSDL’s Speed-e or CDSL’s Easiest platform.

Step 2: Fill the online form Enter beneficiary details, ISINs, and number of shares.

Step 3: Submit documents to DP Provide a copy of the form to your DP for verification.

Step 4: Initiate transfer After verification, initiate the transfer online. Shares are usually transferred within one to three business days.