The thought of losing/misplace of important documents such as a share certificate can be frightening as there are chances of the documents being misused which may lead to huge financial losses.
Here we have elaborated on the steps one should take in the case for issue of duplicate share certificates.
If you have lost/misplaced your share certificates, you need to do the following things:
STEPS TO BE TAKEN ON SOS BASIS BY SHAREHOLDER
- Immediately inform the respective company of which holding shares about the loss of share certificate. While one will have to send the communication to company or RTA in writing, as a precaution there should be an immediate email communication to them as well.
- Do not forget to quote your distinctive folio number, certificate number and other details for their reference.
ACTION TAKEN BY COMPANY OR REGISTRAR OR TRANSFER AGENT (RTA)
- On receipt of information about the loss of share certificates, folio number or other details provided the company generally put 30 days freeze on any transfer in order to prevent fraud or illegal transfer.
- On establishing the identity of the investor, the company will send the procedure on how to issue duplicate share certificates which include the format of an affidavit, surety, indemnity agreement.
DOCUMENTS TO BE FURNISHED FOR DUPLICATE CERTIFICATE
- Prepare affidavit, and indemnity bond agreement on stamp paper of Rs. 100 and 300 respectively as directed by company/RTA.
- File FIR with police quoting the following details of lost certificate:
- Folio number
- company name
- share certificate number
- distinctive number etc.
- Publish a general notice in the government gazette.
PROCESS ADOPTED BY COMPANY OR RTA AFTER RECEIVING OF DOCUMENTS FROM SHAREHOLDER
- After verification of the document submitted, company/RTA will initiate the request to issue duplicate share certificate.
- This process will take around 4-6 weeks to receive a duplicate certificate.
- The word “DUPLICATE” is written in bold and legible letters.
Tags :Corporate Law