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Investors can hold shares in physical form even after Dec 5: Sebi

Press Trust of India  |  New Delhi 

Markets regulator Sebi today said its new guidelines do not bar investors from holding shares in the physical form even after December 5.

The clarification comes after the Sebi received several calls concerning the applicability of its directive.

The regulator, in July, had said that transfer of shares of listed companies has to essentially be in dematerialised mode from December 5.

"The new amendment does not prohibit the investor from holding the shares in physical form, investor has the option of holding shares in physical form even after December 5, 2018," the (Sebi) said in a statement.

The new rule is not applicable for transfer of title of shares by way of inheritance or succession and interchanging of the order of name of shareholders.

Besides, the regulator said that any investor who is desirous of transferring shares, which are held in 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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, August 10 2018. 18:20 IST