Securities with lock-in periods

Some instruments, especially tax-saving infrastructure bonds or equity-linked savings scheme (ELSS) funds, come with lock-in periods and cannot be directly transferred to another demat account. However, there is a way out. The securities with lock-in periods can be transferred only by the issuers. To get them transferred, the accountholder will have to first get these instruments rematerialised. Once they are converted to physical certificates, you can hold them as physical shares or units or get them dematerialised again in another demat account. Note that this is possible only if the security owner and the demat accountholder are the same person. Similarly, if you have taken a loan against securities in your demat account (pledged shares), you cannot transfer them without the lender's permission.