One of my cousin’s wife in U.K. had an NRI account in India. It was being handled by one of my uncle. She was allotted shares of a private bank public issue almost 20 years back. The shares are still in physical form. The uncle who was handling the account and applications for public issue is no more. She has no pass book/Cheque book of the bank account and only reference available is the photocopy of application of public issue, shares in physical form and copy of some unclaimed dividend cheques.
She wants to sell the shares. The shares are in physical form and requires to be in demat form for selling through stock market. Instead of going through procedure of opening a demat account, dematerializing the shares, can she sell the same in physical form?
Is it possible to gift the shares to someone in India, may be relative but not with blood relation? Can the recipient convert shares into demat form and sell? What is his/her tax liability? Is there any FEMA violation?
What could be the best solution to sell the shares?
CAclubindia
