The Securities and Exchange Board of India (Sebi) on Thursday said the timeline for share transfers would be reduced to 15 days from one month earlier.
“With a view to expedite the transfer process in the interest of the investors, it has been decided, in consultation with the Registrars Association of India, stock exchanges and market participants, to reduce the timeline for registering the transfer of shares to 15 days. The same timeline shall also be applicable for transfer of debt securities,” the market regulator said in a circular.
At present, the listing agreement for shares prescribed under the Securities Contracts (Regulation) Act, 1956 specifies a period of one month for registering transfer of shares from the date of lodgment.
Sebi has directed all the recognised stock exchanges to amend clauses in their listing agreements to facilitate the new timeline.
The regulator has also asked registrars to an issue and share transfer agents to stick to the new timelines for transfer of shares and debt securities.
The new timeline would come into force effective October 1, Sebi said.
