Still Holding Physical Shares? SEBI's Special Demat Window Is Open
- Abhijeet Agrawal
- 7 days ago
- 3 min read
Updated: 3 days ago
If you or your family still hold old physical share certificates, there is an important opportunity you should know about. SEBI has opened a special window that allows certain investors to complete the transfer and dematerialization of physical securities until 4 February 2027.
If you have old share certificates lying at home, inherited shares from your parents, or physical shares that were purchased years ago but never properly transferred, now is the time to check them.
What has SEBI changed?
The Securities and Exchange Board of India (SEBI) has introduced a special one-year window for transfer and dematerialization of certain physical securities.
The window is open from: 5 February 2026 to 4 February 2027
It is intended to help investors who acquired physical securities before 1 April 2019 but were unable to complete the transfer because of documentation, procedural or other issues.
The special window also covers certain transfer requests that had previously been rejected, returned or not processed because of deficiencies in documents or the process.
Why is this important?
Physical share certificates were once a normal way of owning shares. Today, however, buying and transferring listed securities works through the dematerialized (demat) system.
SEBI discontinued the transfer of securities in physical form from 1 April 2019. Existing physical shareholders can still hold their securities but transfers generally need to take place through dematerialization.
This created a problem for people who had purchased physical shares many years ago but never completed the transfer.
Who can use the special window?
The special window is primarily relevant to physical securities that were sold or purchased before 1 April 2019.
It can cover cases where:
Physical securities were purchased before 1 April 2019
The investor/legal heir/nominee still has the original physical certificates
The investor wants the securities ultimately credited to a demat account
The transfer was never completed
A transfer request was submitted earlier but was rejected
Documents were returned because of deficiencies
A previous transfer request was not processed
What happens to the shares?
Under the special window, securities transferred through the process must be credited to the transferee's demat account. They cannot simply be issued back as physical certificates. SEBI has also prescribed a one-year lock-in for securities transferred through this special window. During that period, the securities cannot be transferred, lien-marked or pledged.
In simple terms:
Physical certificates → verification & transfer process → demat account
What if the shareholder has passed away?
This is extremely common with old physical shares.
You may find:
“My father had shares.”
or:
“My grandfather invested in several companies' decades ago.”
The problem is often not the investment itself — it is establishing ownership and completing the legal and KYC formalities required to transmit the securities to the rightful heirs.
Such cases can involve:
Death certificate
KYC
Transmission of securities
Legal-heir documentation
Succession certificate, where applicable
Multiple heirs
Old physical certificates
Company/RTA correspondence
Demat account creation
This is also where an apparently simple investment can turn into a complicated administrative process.
Have old physical shares? We can help.
At Shares Nidaan, we help investors and families navigate the process of tracing, verifying and recovering old financial assets.
Our support can include:
Physical Share Dematerialization: Helping you navigate the process of converting eligible physical shares into demat form.
Old Share & Dividend Claims: Helping trace old holdings and unpaid dividends.
IEPF Claims: Assistance with eligible shares and dividends transferred to IEPF.
Inherited Investments: Support with documentation and processes involving investments held by deceased family members.
End-to-End Assistance: From identifying the appropriate process and coordinating documentation to following up with the relevant company/RTA and other authorities.
This article is for general informational purposes. Eligibility and documentation requirements can vary by case, company and RTA. The SEBI circulars and applicable regulations should be checked for the specific circumstances
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