The Securities and Exchange Board of India (SEBI), has given
investors more time to convert shares and other securities held in
physical certificate format into demat. The deadline has been revised to
April 1, 2019, from December 5, 2018.
SEBI has made it mandatory
to hold the shares and securities in dematerialised form with a
depository for investors keen to in trade them after December 5.
Investors were advised to complete the KYC process before the due date.
This led investors to rush to the registrar and transfer agents for
requisite paperwork.
Many senior citizens hold investments in
physical certificate format. This is especially the case with the
popular non-convertible debentures and bonds. The transfer of these
instruments would have been possible if the investors held them in demat
form after December 5. Demat is a must only if you intend to trade the
shares.
“SEBI has received representations from shareholders for
extension of the date of compliance. In view of the same, the deadline
has been extended and the aforesaid requirement of transfer of
securities only in demat form shall now come into force from April 1,
2019,” said the press release from SEBI.
The extended deadline with gives investors more time to comply with the
new regulatory norms. A point to note is the recent NCD issuances made
it mandatory for investors to apply through their demat accounts and
declined issuance of physical certificates. Earlier, the issuance was in
both physical and demat modes. The new deadline will provide some
breathing space to investors.