Investors, especially big ones, are worried about the growing tactics of the registrars and companies to delay share transfers. Investors and brokers complain that registrars are refusing transfer on flimsy reasons. The problem is acute in the case of shares which are in the demat mode and sent for immobilisation. Over 50 per cent of the share transfer requests are initially rejected by the registrars. Then investors will have to re-apply but transfer is not assured again.

``The situation is serious as more scrips are coming to the demat mode. This means investors can trade only inshares in the demat form through a depository. Investors are running from pillar to post to get their shares immobilised through a depository. Registrars are delaying things. SEBI needs to look into this dilatory tactics of registrars,'' said a dealer with National Stock Exchange.

According to a merchant banker, the SEBI needs to direct the registrars to effect the share transfer or dematerialisation process within a prescribed time-frame. Registrars who delay share transfers should be penalised.

In a recent move to help BSE-promoted Central Depository Services kick off operations, SEBI had directed that demat shares should be transferred directly by the depositories within two hours. This directive will force both the CSDL and NSDL to have efficient links with the clearing corporations of the exchanges. Any buy/sell order will have to be transferred by the depositories within two hours without going to the registrars. This will speed up share transfers and foreign investors prefer such a system.

Thisdirective is expected to hit the business of registrars in a big way. The bread and butter of registrars normally comes from these companies.