Sebi to permit transfer of pre-FY20 physical shares to resolve legacy investor issues
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In a move to resolve legacy investor grievances, the Securities and Exchange Board of India’s (Sebi) chairman, Tuhin Kanta Pandey, stated that the regulator is proposing to allow investors who had purchased physical securities before FY20 but could not lodge such transfers earlier to now complete them and have those securities transferred in their name. “This measure will provide long-awaited relief to physical shareholders,” said Pandey.
Speaking at the Morningstar Investor Conference in Mumbai, the Sebi chief highlighted the importance of practical and effective compliance while streamlining operations and safeguarding investors. “As markets evolve, new technologies and global linkages bring fresh complexities. The next frontier, therefore, lies not only in compliance but in anticipating risks before they surface,” Pandey said.
According to him, cybersecurity remains a foremost concern for all market participants. He urged firms to safeguard sensitive client data and critical infrastructure from sophisticated threats. Robust risk controls, real-time monitoring, and compliance safeguards need to be put in place, even as the rise in algorithmic and high-frequency trading brings efficiency.
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Pandey stated that meeting client expectations for faster and personalised service may add further pressure on systems, but effective and timely grievance redressal is crucial to maintaining investor confidence. “Intermediaries must also ensure operational resilience, maintaining business continuity and readiness amid market volatility and rapid digital transformation.”
The real differentiator for market institutions will not be how quickly they comply with regulations but how meaningfully they internalise them. “The strongest and most respected firms will be those that see compliance not as a ceiling but as a foundation,” Pandey stated.
Speaking about the steps taken by Sebi, the regulator has facilitated a single submission of compliance reports by trading members at one exchange instead of multiple submissions across exchanges.
Sebi is also looking into reviewing the SEBI (Stock Brokers) Regulations, 1992, to make them more relevant, simple, and streamlined.
Pandey reiterated that institutions form the backbone of the markets and must lead in governance, innovation, culture, and collaboration. “When institutions make such transparency a habit, they begin to transform investor relationships from transactional to enduring,” he said at the conference.