Safer Share Transfers Ahead! SEBI Releases New Master Circular

Safer Share Transfers Ahead! SEBI Releases New Master Circular

Securities and Exchange Board of India (SEBI) released a new Master Circular for Registrars to an Issue and Share Transfer Agents (RTAs) on June 24, 2025. In this circular, all important rules and updates are given in one simple guide. It also includes many improvements which will help to protect investors and make the use of technology easier and more secure.

SEBI always updates its circulars to catch up changes in the market, laws and investors needs. The June 2025 circular includes new rules and also makes the existing ones stronger to improve investor services. Some of the important updates include:

• It is compulsory for the RTAs to show a dedicated email ID for investor complaints. They also need to send daily alerts about any unresolved complaints to SEBI-registered addresses.
• The circular now connects RTAs to SCORES 2.0 and Online Dispute Resolution (ODR) platforms. This is helpful in resolving complaints and keeping things transparent.
• From October 1, 2023, folios (investment records) without valid PAN, nomination, and KYC details should be frozen. If the issue is not corrected by December 31, 2025, these frozen folios may be sent to the concerned authorities.

• All service requests like issuing duplicate certificates, name changes and transmissions should be done in demat (electronic) form as per earlier rules from May 2023. RTAs are needed to send a confirmation letter within 30 days which will stay valid for 120 days.
• RTAs who are taking care of more than 2 crore folios are required to conduct cyber audits twice a year from now on. These audits should be signed off by top management and all important data should be kept on servers located in India.

• New outsourcing rules make it necessary for RTAs to have proper and clear policies to avoid conflicts of interest. They should keep important processes in house and report any suspicious activities. RTAs should submit the net-worth certificates within three months after the end of financial year and also give capital adequacy reports every quarter.
• Reports on compliance and investor complaints should be prepared every six months and checked by the board.
• RTAs must also have insurance to protect against losses or fraud caused by employees.

The new Master Circular released in June 2025 collects everything together in one clear and easy to understand document. It helps improve investor services, make sure every folio is KYC-compliant, supports full use of demat formats, makes complaint handling more strong and improves the safety of technology systems. RTAs are now expected to:

• Update public information like investor charter, complaint email IDs and complaint numbers.
• Make sure all folios have updated KYC and nomination details.
• Make use of secure technology, follow cyber safety rules and manage outsourcing carefully.
• Maintain accurate records, complete regular audits and report everything on time.
• This move shows SEBI’s strong focus on making the investment process safer, more transparent and easier for everyone.