New Delhi: The Securities and Exchange Board of India (Sebi) on Friday said its new guidelines do not bar investors from holding shares in the physical form even after December 5. The clarification comes after the market regulator received several calls concerning the applicability of its directive. The regulator had said in July that the transfer of shares of listed companies had to be in the dematerialised mode from December 5.
“The new amendment does not prohibit investors from holding shares in the physical form. Investors have the option of holding shares in the physical form even after December 5, 2018," Sebi said in a statement. The new rule does not apply to transfer of title of shares by way of inheritance or succession and interchanging of the order of the name of shareholders.
Besides, the regulator said any investor desirous of transferring shares held in the physical form after December 5 can do so only after the shares are dematerialised. Shares in the demat form will help in having a transparent record of shareholding at companies amid rising concerns over beneficial ownership of entities.