August 02, 2020

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.


1 )   Please make Nominations - on Form 2 B. 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.


Present Cumbersome Procedures , please click ;- 

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