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Shares in demat form: Sebi extends deadline to April 1

Shares in demat form: Sebi extends deadline to April 1

New Delhi: Markets regulator Sebi on Monday extended the deadline for transfer of shares of listed companies only in demat form to April 1. The last date has been extended after taking into consideration representations from shareholders as the initial deadline was to end on December 5.

Shares in the demat form will help in maintaining a transparent record of shareholding at companies amid rising concerns over beneficial ownership of entities In March, Sebi's board decided that except in case of transmission or transposition of securities, requests for effecting transfer of securities will not be processed unless the securities are held in the dematerialised form with a depository. This measure was to come into effect from December 5.

"Subsequently, the regulator 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," it said in a statement.

Meanwhile, pen manufacturer Flair Writing Industries and Assam-based Neccon Power and Infra have received markets regulator Sebi's go ahead to float initial public offerings. With this, the total number of companies getting clearance from the Securities and Exchange Board of India (Sebi) has reached 75 this year so far.

Neccon Power and Flair Writing filed their IPO papers with Sebi in September and obtained the regulator's 'observations' on November 29 and November 30 respectively, according to the latest update with the capital markets watchdog.

Sebi's observations are necessary for any company to launch public issues such as initial public offer (IPO), follow-on public offer (FPO) and rights issue.

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