| TRANSFER OF SHARES |
| Q01 |
I have purchased shares of a listed Company. How do I get them registered? How
long will it take? |
| Q02 |
I would like to gift some shares to my children/relatives. How do I get them registered in their names? Does this involve stamp duty? |
| Q03 |
What is the stamp duty on shares? Where do I get these stamps? |
| Q04 |
How do I ensure that the Transfer Deed is complete before sending it to the company? |
| Q05 |
I want to add another joint-holder name to my shareholding. What is the procedure that I should follow? |
| Q06 |
I have purchased shares of listed Company long back but forgot to get them transferred in my favour. What is the procedure that I should follow now? |
| DEMATERIALISATION OF SHARES |
| Q07 |
What is Demat and what are its benefits? |
| Q08 |
How does the Depository System operate? |
| Q09 |
How do I demat my shares? |
| Q10 |
Once my shares are dematted, can I ever get them converted into physical shares? |
| Q11 |
What are the charges to be paid to demat one's physical shares? Will it be paid by the company or do I have to pay for it? |
| Q12 |
How do I get my dividends on dematted shares? Will I get the Annual Report after I
demat my shares? Will I be able to attend the AGM?
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| Q13 |
What are the chances of any fraud/disputes in using a demat account? Whom should I
approach in such cases?
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| Q14 |
Can I pledge my shares in demat form to avail any funding/loan arrangement with my
bankers?
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| NOMINATION IN RESPECT OF SHAREHOLDING |
| Q15 |
How do I make a nomination with regard to my shareholding? |
| Q16 |
Do I have to send my share certificates along with the nomination form? |
| Q17 |
My shares are held in joint names. Are the joint holders nominees to the shares? |
| Q18 |
Can a nomination once made be changed? |
| Q19 |
What is the legal position of the nominee in case of death of the shareholders? |
| Q20 |
What is the procedure for the nominee to get the shares in his name? |
| Q21 |
Can the nominee sell the shares without registration in his favour? What is the
procedure?
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| Q22 |
I have shares in the demat form. Can I send the nomination form to the company/registrar for making a nomination with respect to my shareholding?
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| TRANSMISSION OF SHARES |
| Q23 |
In case of joint holdings, in the event of death of one shareholder, how do the surviving shareholders get the shares in their names?
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| Q24 |
If a shareholder who held shares in his sole name dies without leaving a will, how can his legal heir/s (either husband/wife/son/daughter, etc.) get the shares transmitted in
their names?
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| Q25 |
If the deceased family member who held shares in his/her own name (single) leaves a
will, how do the legal heir/s get the shares transmitted in their names?
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| Q26 |
A and B had shares in the Company Both of them died. How do I get the shares
transmitted in my name?
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| Q27 |
I have already produced the attested/registered will. Since getting it probated would
take a long time and money, is it possible to avoid that procedure?
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| Q28 |
The name of a joint holder was included only for convenience by the first holder. I am
the only heir. Could you transfer the shares in my name as per the will/probate?
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| CHANGE OF ADDRESS |
| Q29 |
If there is a change in my address what is the procedure to get it recorded with the
company?
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| Q30 |
Can joint-holders request for a change of address? |
| Q31 |
Can there be multiple addresses for a single folio? |
| Q32 |
If the shares are dematted, what is the procedure for change of address? |
| TDIVIDEND |
| Q33 |
I have not received my dividend. What action do I take? |
| Q34 |
What is the procedure for obtaining a duplicate dividend warrant? |
| Q35 |
Why do shareholders have to wait till the expiry of the validity period of the original
warrant? Is it possible for you to issue stop payment instructions to the bank for the original warrant and issue a duplicate immediately?
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| Q36 |
Can I claim old dividends relating to past years that I have not received? |
| Q37 |
Whom should we approach if the outstanding dividend pertains to a period before
Seven years?
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| MANDATE/ECS |
| Q38 |
In order to protect against fraudulent encashment, I want to incorporate the details of
my bank account in my dividend warrant. What is the procedure that I should follow?
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| Q39 |
Can I authorise my bank or any other person to receive dividends on my behalf?
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| Q40 |
Why can't the company take the bank details on record in case of dematted shares?
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| Q41 |
What is Electronic Clearing Service (ECS)?
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| Q42 |
How can I avail of the Electronic Clearing Service facility?
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| Q43 |
Is the ECS facility available across the country?
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| LOSS OF SHARE CERTIFICATES |
| Q44 |
I have lost/misplaced my share certificates. What are the steps that I should take to
obtain duplicate share certificates?
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| Q45 |
I have lost my share certificate with transfer deeds duly executed by me. How should
I proceed to obtain duplicate share certificates?
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| Q46 |
What action should I take if I retrieve the original share certificate, which I had
reported to be lost to the company?
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| MISCELLANEOUS |
| Q47 |
I wish to split/consolidate my share certificates into marketable lots. What is the
procedure that I should follow?
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| Q48 |
I hold more than one folio in the same name. Can I consolidate these folios? |
| Q49 |
I want to authorise another person to deal with my shares. Do I have to report this to
the company?
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| Q50 |
We hold shares in joint names and would like to change the order of names. |
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A. You will have to send the share certificates along with the Share Transfer Deed (available with Stock Exchange/Share Brokers) duly filled in, executed and affixed with share transfer stamps at 0.25% of the market value on the date of execution of the transfer deed. The shares, along with the Share Transfer Deed will have to be sent to the Share Transfer Agent of the Company or to the Company
Normally, it takes 21 days to process the transfer. Once the shares are registered in your name, the share certificates will be dispatched to you within 30 days from date of Lodgement. This is in accordance with SEBI guidelines.
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A. The procedure of registering gifted shares is the same as the procedure for a normal transfer. The stamp duty is also applicable to gifted shares, and the duty is at 0.25% of the market value prevailing on the date of execution of the transfer deed by the transferee.
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The stamp duty applicable on share transfer is at 0.25% of the market value on the date of execution of the transfer deed. Share Transfer Stamps can be obtained from the authorised stamp vendors. Your sharebroker can also help you in this regard.
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Please fill in all the columns of the transfer deed, sign as transferee at appropriate places and affix share transfer stamps at 0.25% of the market value on the date of execution of the transfer deed. Please ensure that the transfer deed is duly filled in and executed as explained, to avoid any discrepancy/objection on lodgement.
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| A. To add a joint-holder name to your shareholding, please execute a stamped transfer deed and submit the same to the company/registrar for transfer. Please note that such additions amount to a change in ownership of shares and the transfer procedure has to be followed. |
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A. A transfer deed is valid for a period of one year from the presentation date indicated on the stamp affixed by the Registrar of Companies on the upper portion of the deed or the closure date of Register of Members immediately after the presentation date, whichever is later. Please check whether your transfer deed is still valid. If so, submit the transfer deed duly executed and stamped along with share certificates the Share Transfer Agent of the Company or to the Company
If the validity period of the transfer deed has expired, please approach the Registrar of Companies to extend the validity of the transfer deed. Alternatively, you may approach the registered holder/seller whose signature appear on the transfer deed as seller to execute fresh transfer deeds. Thereafter you may submit the fresh/revalidated transfer deed to the Share Transfer Agent of the Company or to the Company |
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| DEMATERIALISATION OF SHARES |
A. Dematerialisation (or Demat) signifies the conversion of a share certificate from its present physical form to electronic form for the same number of holdings.
It is a direct application of scope provided by the tremendous progress made in the area of Information Technology, whereby voluminous and cumbersome paper work involved in the scrip based system is eliminated.
It offers scope for paperless trading through state-of-the-art technology, whereby share transactions and transfers are processed electronically without involving any share certificate or transfer deed after the share certificates have been converted from the physical to electronic form.
Demat attempts to avoid the time consuming and complex process of getting shares transferred in the name of buyers and also aims to shirk inherent problems of bad deliveries, delay in processing/fraudulent interception in postal transit, etc.
Dematerialisation of shares is optional and an investor can still hold shares in the physical form. However, he/she has to demat the shares if he/she wishes to sell the same through the Stock Exchanges. Similarly, if an investor purchases shares, he/she will get delivery of the shares in demat form.
The Depositories Act, 1996 has been enacted to regulate the matters related and incidental to the operation of Depositories and demat operations. Two Depositories are in operation - National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
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A. The operations in the Depository System involve the participation of a Depository, Depository Participants, Company/Registrars and Investors. The company is also called the Issuer.
A Depository (NSDL and CDSL) is an organisation like a Central Bank, i.e. Reserve Bank where the securities on an investor are held in the electronic form through Depository participants.
A Depository Participant is the agent of the Depository and is the medium through which shares are held in the electronic form. They are also the representatives of the investor, providing the link between the investor and the company through the Depository.
To draw an analogy, the Depository system functions in a manner similar to a banking system. A bank holds funds in accounts whereas a Depository holds securities in accounts for its clients. A bank transfers funds between accounts while a Depository transfers securities between accounts.
In both systems, the transfer of funds or securities occurs without the actual handling of funds or securities. Both, the bank and the Depository, are accountable for the safe keeping of funds and securities respectively. The company signs an Agreement with NSDL/CDSL (the depositories) and installs the necessary hardware/software for operations.
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A. First, please open an account with a Depository Participant (DP) and obtain a unique Client ID number. Thereafter, kindly fill up a Dematerialisation Request Form (DRF) provided by the DP and surrender the physical shares intended to be dematted to the DP.
Upon receipt of the shares and the DRF, the DP will send an electronic request through the Depository to the company/registrar for confirmation of demat. Each request will bear a unique transaction number called Demat Request Number (DRN)
Simultaneously, the DP will surrender the DRF and the shares to the company/registrar with a covering letter requesting the company to confirm the demat. After verifying the documents received from the DP, the company/registrar will confirm the demat to the Depository.
This confirmation will be passed on from the Depository to the DP, which holds your account. After receiving this confirmation from the Depository, the DP will credit the account with the dematerialised shares. The DP will then hold the shares in the dematerialised form on your behalf and you become the beneficial owner of these dematerialised shares.
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A. If you hold shares in the electronic form, you have the option of converting your holding to the physical form by submitting a Rematerialisation Request Form (RRF) through your DP. The procedure if similar to that of Dematerialisation. Upon receiving such a request from your DP, the company will issue share certificates for the number of rematerialised shares.
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| A. The charges for demat have to be borne by the shareholder. The charges differ from DP to DP and therefore you will have to contact your DP for details regarding the same.
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A. On the Record date, the Depository Participants will provide a list of demat account holders indicating the number of shares they hold in the electronic form to the company (known as Benpos). On the basis of Benpos, the company will issue dividend warrants in favour of the demat account holders.
The rights of the shareholders holding shares in demat form are on par with holders in the physical form. Hence, you will be eligible to procure the Annual Report and can rightfully attend the AGM as a shareholder.
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A. Common risk factors applicable to trading in physical shares like mismatch in signatures, loss in postal transit, etc., are absent since dematted shares are traded scrip less.
However, in the unlikely event of any dispute, the concerned Stock Exchange and/or Depository Custodian viz. NSDL/CSDL or SEBI would have to be approached for resolving such issues.
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A. Yes. You will have to contact your DP for this purpose.
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| NOMINATION IN RESPECT OF SHAREHOLDING |
A. To make a nomination, please submit a duly filled in and signed nomination form in duplicate. If you hold shares along with other holders, then all holders are required to sign the nomination form.
After the company receives the form and finds it in order, a registration number will be allotted to the nomination. A duplicate copy of the nomination form submitted by you will then be returned to you with an endorsement indicating the registration number and date.
Nomination can be made only in respect of shares held in the physical form. In case of dematted shares, your nomination has to be recorded with your Depository Participant.
Only one nomination can be made for each folio. Folios that have a different order or combination of names of shareholders require separate nominations.
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| A. Joint holders are not nominees. They are joint holders of the relevant shares and possess joint rights on the same. In the event of death of any one of the joint holders, the surviving joint holder/s of the shares is/are the only person/persons recognised by the company as the holders of the shares.
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| A. A nomination once made can be revoked by submitting a fresh nomination. If the nomination is made by joint holders, and one of the joint-holders dies, the surviving joint holder/s can make a fresh nomination by revoking the existing nomination.
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A. Upon the death of a shareholder, the nominee, to the exclusion of any other legal heir/beneficiary, is the only person in whom the shares vest. In other words, in case of a valid nomination, the company will not entertain any claim from legal heirs or beneficiaries and the shares will be transmitted only in favour of the Nominee.
In case the nomination is made by joint-holders, it will come into play only upon the death of all the joint holders. Therefore if one of the joint shareholders dies, the shares will devolve on the surviving shareholders to the exclusion of the nominee. In this case, the surviving shareholders may make a fresh nomination if they so desire.
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A. Upon the death of a shareholder, the nominee is entitled to have the shares transmitted in his favour. He/she is required to submit a notice in writing to this effect along with the share certificate(s) of the deceased shareholders. Alternatively, the nominee can transfer the shares held by the deceased shareholder to a third party.
If a nominee opts for registration of shares in his name, he is required to produce proof of identity, e.g. copy of passport, driving license, voter's identity card or such other proof to the satisfaction of the company. The nominee should also submit a duly attested specimen signature along with a request for transfer.
Upon scrutiny of the documents submitted by the nominee, shares will be transmitted in his favour and share certificates will returned to him duly endorsed.
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| A. Yes, a nominee can sell the shares to a third party, without registration of shares in his favour. However, the usual procedure for transfer of shares will have to be followed.
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A. For making a nomination with respect to dematted shares, you will have to approach your DP. In the account opening form provided by the Depository Participants, there is a provision for providing the name of the nominee. Please consult your Depository Participant for further details.
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A. The surviving shareholders are required to submit a request letter supported by an attested copy of the Death Certificate of the deceased shareholder and the relevant share certificates.
The company/registrar, on receipt of the said documents, will delete the name of deceased shareholder from its records and return the share certificates to the applicant/registered holder with the necessary endorsement.
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| A. The legal heirs are required to obtain a Succession Certificate or Letter of Administration with respect to the shares. A true copy of the same, duly attested by the Court Officer or Notary, should be sent to the company along with a request letter, transmission form, and all original share certificates for transmission in their favour. |
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| A. The legal heirs are required to get the will probated by the High Court/District Court of competent jurisdiction and then send us a copy of the probated copy of the will. This should be accompanied by a relevant schedule/annexure setting out the details of the shares, the relevant share certificates in original and the transmission form for transmission.
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| A. To get the shares transmitted in your name, kindly obtain a Succession Certificate/Letter of Administration of the last deceased joint holder in your favour, and follow the procedure for transmission of shares.
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| A. In order to ascertain that the will in question is the last will and testament made by the deceased, it is important that the same is authenticated/probated by the Court. This is to protect the interest of the investors at large and to obviate any future claims/disputes on the same.
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| A. As per law, the joint holder is deemed to be having indivisible ownership of the joint property and the company cannot ascertain as to how or why the name was included. As per the Articles of Association of the company, the surviving joint holders are the only persons recognised as having title to the shares.
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| A. Kindly send a request letter signed by the shareholder (first named shareholder in case of joint-holders) providing the new address along with the pin code. Also quote your folio number.
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| A. No. The letter of request will require the signature of the first holder only. |
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| A. No. There can be only one registered address for one folio. |
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| A. Since your Depository Participant maintains the records of your dematted shares, you have to inform them about any change in your address. Your Depository Participant will then pass on this information when any action, like despatch of Annual Accounts or payment of dividend etc., is due to be taken by the company.
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| A. You may write to the Company/Registrar furnishing the particulars of the dividend not received. Also quote your folio number/client ID particulars (in case of dematted shares). The company/registrar will issue a duplicate dividend warrant if the dividend remains unpaid in the records of the company.
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A. No duplicate can be issued during the validity of the original warrant. Hence, if the validity period of the lost dividend warrant has not yet expired, you will have to wait till the expiry date. However, once the validity period has expired, if the dividend warrant is still shown as unpaid in our Bank Statement, we shall issue a duplicate warrant to you expeditiously.
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| A. Since the dividend warrants are payable at par at almost 100 centres all over the country, it is not practically possible for banks to issue stop payment instructions. Hence. it becomes necessary for us to wait till the validity of the original warrant has expired.
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| A. As per the present law, the company retains all unpaid/unclaimed dividends for the past seven years i.e. from the date of dividend paid. If you have not received any of these dividends, you may write to the Company/Registrar with relevant particulars like folio number, concerned dividend, etc., and we shall arrange to pay the dividend if it remains unpaid in our records.
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| A. You may make an application to the Registrar of Companies, Maharashtra, 2nd Floor, Hakoba Compound, Mumbai Cotton Mills Estate, Dattaram Lad Marg, Mumbai 400033 in Form No. II. However, please note that the company will transfer the all the unpaid payments more then seven year to the Investor Education and Protection fund established under the Companies Act,1956 in the year 2002. As per the applicable law, no refund can be claimed by the shareholders for such dividends. |
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A. If you hold shares in the physical form, please submit your folio number, details of name, of your bank and account number to company/registrar who shall incorporate the same in all your future dividend warrants.
However, if you hold the shares in demat form, these details will have to be provided to the Depository Participant with whom you have a demat account. Your Depository Participant in turn will pass on this information to the company. This procedure is in accordance with depository regulations. |
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A. Yes. Please write to us and furnish the name and address of the authorised person/bank along with your folio number. The warrant will be dispatch directly to the mandatee under intimation to you.
Please note that this procedure is applicable only if you hold shares in physical form.
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| A. As per the Depository Regulations, the company is obliged to pay dividend as per the details of demat shareholders furnished by the concerned Depository Participant. The company cannot make any change in such records received from the Depository. |
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| A. Under this system, you can receive your dividend electronically by way of direct credit to your bank account. This avoids a lot of hassles like loss/fraudulent interception of dividend warrants during postal transit. This also expedites payment through credit to your account compared to dividend warrants in the physical form. We would strongly recommend that you opt for Electronic Clearing Service, if you have not done so already. |
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| A. You have to submit the ECS form duly completed along with a photocopy of a leaf of your cheque as advised in the Form and company/registrar shall take due note of the same in their records. All subsequent dividends will be paid to you through direct credit to your bank account. |
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| A. No. The Reserve Bank of India has enabled ECS facility at select cities only. Most of the companies provides this facility at centers made available by RBI only. |
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| LOSS OF SHARE CERTIFICATES |
A. Please inform to the company/registrar imediately about the loss of share certificates. Kindly quote your folio number and details of share certificates, if available. The company/registrar shall immediately mark a caution on your folio to prevent any further transfer of shares covered by the lost share certificates.
Also lodge a complaint with the police regarding loss of share certificates and comply with the following formalities:
a. Furnish an acknowledged copy of the police complaint.
b. Furnish an indemnity for loss of share certificates.
c. Publish a notice in a newspaper on the lines of the draft notice of loss of share certificates and submit the paper cutting of the notice to the company. The notice should contain the details of registered shareholder(s), share certificate numbers and distinctive numbers of shares lost.
Upon receipt of all the above documents, company/registrar shall proceed to issue duplicate share certificates to you.
However, please note that if the lost share certificates and the valid transfer deeds are lodged with the company by a third party for transfer, the case will have to be dealt with on the basis of relevant facts and you will be advisee further course of action at that time.
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| A. Kindly follow the procedure described in the preceding answer. |
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| A. Please surrender the original share certificate to the company/registrar if duplicate share certificates have been issued. However, if the original share certificates are found before you comply with the procedure for obtaining duplicate share certificates, please inform the company/registrar immediately so that they can remove the caution from your folio immediately. |
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| A. Please forward your share certificates along with a request letter signed by the registered shareholder/s and we shall split/consolidate the share certificates accordingly. |
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A. Yes. Please forward the share certificate relating to those folios which you wish to merge and we shall consolidate your folios and return the share certificates by endorsing the consolidated folio number.
You may please note that the folios to be consolidated should be in the identical name or in the same order of identical names (in case of joint-holding) and bear the same address.
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| A. Yes. You will have to execute a Power of Attorney in favour of the concerned person and submit a notarised copy of the same to the company/registrar for registration. After scrutiny of the documents, they shall register the Power of Attorney and provide you with the registration number of the same. |
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| A. Please forward your share certificates along with a request letter duly signed by all the joint-holders as per the specimen signatures recorded with the company. |
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