Sebi directs listed firms to tighten due diligence for demat requests

Market regulator Securities and Exchange Board of India (Sebi) on Tuesday directed listed companies, depositories and registrar and transfer agents (RTAS) to strengthen their due diligence regarding the processing of dematerialisation request of physical shares. The transfer of securities held in physical form is not permitted from

April 1, 2019. Sebi has asked all listed companies or their RTAS to provide details of their shareholders holding shares in physical mode to the depositories by December 31, 2019. The depositories, in turn, will capture the relevant details and put in place systems to validate any dematerialization request received after December 31.