Issuing share certificates

Dear Dipti,

You may choose Demat format (go through NSDL website) or a physical copy format guided by Companies (Issue of Share Certificate) Rules, 1960 which prescribes the format.

Further, revenue stamp (1 Rupee) are to be affixed with the common seal of the company.

The format may be developed by each company the way it prefers, keeping in mind the Rules above mentioned.

yes the format has to be printed and handed over to the Share holders.

I hope the above clarifies the position.

Regards,

Vrinda

Hi Dipti

Share certificates can be bought from outside and there is format for printing the details on the share certificate. It must be signed by two directors and an authorised signatory (Company Secretaty, if there is one). The seal of the company must be affixed at the bottom middle of the share certificate and a revenue stamp must be pasted on the middle of the seal.

There is no stamp duty for share certificates.

Regards,

Subbu

Revenue stamp is to b pasted on Share Certificates.

Re.1 stamp for per Rs.1000 of value of shares.

Thank you Vrida Ji, Subbu Ji, and Shridhi Ji,

Bottom line - 

(1) Need to print the share certificates with appropirate details. 

(2) Need to past 10X 5 Revenue Stamps for 5000 shares worth50,000 at10 each.

(3) Need to apply company seal on the stamps.

(4) Make entry in the register.

Thanks for your support :)

Hi Dipti

Last but not least, hold a board meeting to approve the issue of share certificates:):)

Regards,

Subbu

Hi

In karnataka state the REVENUE STAMP Is banned on 2003,

in this case what we need to do ???

hi,

if revenue stamps are banned in karnatka state then the person needs to file application with SDM (state district  magistrate) and they  will do stamping on the certificates.

regards.

B R Ramesh Ji,

Its correct that Revenue Stamp is discontinued (not banned) in karnataka. It this case no revenue is to be paid for the documents at all. Simply the company seal will do.

Megha Masta Ji,

Are you sure that is the process? Because if no revenue is to be paid on the documents then there is no need to file application with DM.

Lets see what experts have to say about it.