The Securities and Exchange Board of India vide its notification dated 2nd December 2020 has issued operational guidelines for crediting the transferred shares into the respective demat account of the investor following re-lodged transfer request.
Subsequent to processing of re-lodged transfer request, the RTA (registrar to an issue and share transfer agent) would retain physical shares and intimate the investor (transferee) about the execution of transfer through a letter of confirmation. This letter will be sent through speed post or e-mail, with the digitally signed letter containing details of endorsement, shares, folio of investor as available on physical shares.
Further, the investor would have to submit the demat request, within 90 days of issue of letter of confirmation, to depository participant along with the letter of confirmation. The RTA would also issue a reminder at the end of 60 days of issue of letter of confirmation, informing the investor to submit the demat request.
The Depository Participant will process the Demat Request on the basis of Letter of Confirmation, as this letter is a confirmation of holding of physical shares on behalf of the investor by RTA.
