The Securities and Exchange Board of India (SEBI) on April 08, 2026, issued circular regarding the mechanism for lock-in of pledged shares under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The Securities and Exchange Board of India (SEBI), vide notification dated March 21, 2026, has amended the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 to allow specified securities—where lock-in cannot be created—to be marked as “non-transferable” by depositories during the lock-in period.
To operationalise this change, depositories have issued a framework requiring issuers to amend their Articles of Association, notify lenders/pledgees, and make appropriate disclosures in offer documents. Necessary system and process updates have also been implemented by depositories.
Stock exchanges, depositories, merchant bankers, and issuers are required to ensure compliance with this mechanism for lock-in of pledged shares. The circular has been issued to safeguard investor interests and strengthen regulation of the securities market.
[Circular No. HO/49/(17)2026-CFD-POD2/I/8965/2026]
