Simplify Procedures For Issue of Duplicate Physical Share Cerificates

Share Investors want that SEBI should rework the set of rules framed earlier for the issue of duplicate Physical share certificates which may have been misplaced / lost by investors.

Old rules , which are still prevalent , prescribe a whole lot of time consuming and costly compliances like  lodging  FIR , placing advertisements in newspapers , indemnity bonds etc etc.

These old rules do not have much relevance in the present times and only add up to stress and expenditure.

 1 ) Earlier share certificates could have been lost / misplaced along with valid transfer deeds. That meant a genuine loss to the legal  holder of such  share certificates in case the seller / transferor got , may be with dishonest intentions , new share certificates issued .Transfer deeds used to be valid for minimum two months or the till the next Book Closing . Also , transfer deeds were , a sort of , indefinitely valid as out dated  Transfer Deeds could , always be got  re validated by applying to the Registrar of Companies    .

Now , Transfer Deeds have been abolished leading to a completely changed scenario vis a vis Physical Share Certificates  . 

Physical Shares , now ,  have very limited purposes i.e. they can be Dematerialised.  , Also , physical share certificates can be used for in case of  Death of the Holder i.e. Transmission of shares.

So , in present times , if share certificates are lost there only Two parties involved . The Share holder and the Company  . There is , absolutely , no Third Party whose interest may be at a risk of compromise if duplicate share certificates are issued .

So, there is no need , now , for cumbersome requirements like FIR , Newspaper advertisements , Indemnity Bond etc.

A simple letter / Undertaking to the Company should be sufficient for Issue of Duplicate Share Certificates.

2 ) These days Physical Share certificates are held , mainly , by senior citizens and why subject old people to unnecessary harassment.

3 ) Missing Share Certificates lead to their remaining in Non Demat mode . This  creates difficulties in case of Rights Issue / Buyback by the Company.

4 ) Further , as Dividends of such Physical shares is , generally , taken by investors in Physical Mode there are chances that , in case ,  Dividends remain unencashed for 7 years such shares are , for all practical , purposes , confiscated by the Govt.

SUGGESTIONS FOR HOLDERS OF MISSING SHARE CERTIFICATES

1 )   Please make Nominations - on Form SH 13 This way the heirs can , always , claim those shares with less procedures. 

We do not have to send our Share Certificates ( which may be missing ) along with our Nomination Forms.

2 ) Get your Bank Details recorded with the Company so that our Dividends do not remain unpaid and are not put to , de facto ,confiscation.

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Present Cumbersome Procedures , please click ;-

http://www.rareindianshares.info/2011/03/procedure-for-issue-of-duplicate-share.html