As per recent SEBI circular Physical shares will not be transferred after 5 December 2018 .Many people for some reason do not want to get the same demated but dispose off at discount to any buyer . is it legal to buy shares from these people /advertise to buy shares etc ?
please somebody answer the above .
@Bhuvan @siva @Newbie420 @nithin
I believe one can still buy in physical form till the december deadline after which the holder will loose the right to transfer in physical form.
@siva Thanks but i need to know do you need any regulatory approvals etc to buy shares (till November end )from people /advertise to buy shares ,who for some reason do not want to get the same demated but like to sell at discount . reason for not getting the share demated can be like name slightly differs on certificate like on certificate name is Virat kumar kohali wherein demat and all documents are Virat kohali ( i personally have some physical shares like this and now getting it transferred as sold by vkk and bought by vk so as to demat it ). there can be other reasons too for not getting demated.
No additional approval is required as one has to go through share transfer agent / broker only to complete this process.
One can buy/sell. But the big question is would the company accept the request to transfer the title of ownership.
company/share transfer agent will have no reason to reject the transfer of few hundred or few thousand shares if the documents are in order mainly signature of seller and transfer stamps .
my precise query is what if i advertise to buy ( only buy ) physical shares ? is it allowed as per sebi rule.
There are few i know and must be few unknown who may approach me (if i advertise in local newspaper))to sell such physical shares at discount.
i know about many dealers who buy unlisted unquoted delisted shares but not sure if they have taken some sebi approval to do so.
Not sure though , but I don’t find any reason to get prior approval.
@siva : same feed back i got from my known people that since it is an activity only for a limited period ( as of now , just can not transfer after 5 December 2018 ) and i will not be issuing any purchase bill but only bank payments there should not be an issue.there are many dealers who buy -sell unquoted shares and none of them have any sebi approval/registration number mentioned on website.
Here’s the latest circular.
- The 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 amendment is not applicable for transmission (i.e. transfer of title of shares by way of inheritance / succession) and transposition (i.e. re arrangement / interchanging of the order of name of shareholders) cases.
- Any investor who is desirous of transferring shares (which are held in physical form) after December 5, 2018 can do so only after the shares are dematerialized.
Before December 30th, I don’t think it should be an issue but after December 30th, you cannot.
since i am in market since a long time ,after this sebi notification started getting inquiries if i can buy there physical shares at some discount . these investors do not want to get the shares demated for various reasons like (A) name on certificate is slightly different from name on demat account (B) do not have any demat account being not active in market © unaccounted physical shares (D) name on aadhar and pan differ from name on share certificate so selling as physical share is better choice as while transferring sellers documents are not required but only buyers .
last date to TRANSFER listed physical shares is 05 December 2018 and for UNLISTED physical shares the date is October 03.
what will happen to P group at BSE which is physical settlement group…it has to be withdrawn by bse much before December 05.
@chinmay : this was the detailed discussion i had on this forum on physical shares.