What Happens When You Lose Shares?

What if the shares you acquired went missing or were lost? In that scenario, you must get in touch with the corporation to request a duplicate shareholder. The duplicate shareholder will be entered in the register of renewed and duplicate share certificates and will include the shareholder's name, number, and date of the new share certificate. The issuance of duplicate share certificates and the cancellation of existing share certificates will be announced to all stock exchanges where the company's shares are listed. Therefore, if you lost shares as well but are unsure of who to contact, this blog will at least give you a vague idea.

Process for issuing a second share certificate

  • Filling up an application for a duplicate share certificate and submitting it to the corporation along with the necessary paperwork, the shareholder's signature, and notification of lost shares is the first step for recovery of lost shares.
  • With the approval of the board of members, the firm must issue a duplicate share certificate in order to recover lost shares and they must consider the following issues:
  • The Board should consider the Rs. 50 per share certificate fee for issuing a duplicate share certificate, as well as any out-of-pocket costs incurred when looking into the shareholder's proof for the recovery of lost shares.
  • If all of the documents are accepted by the board, the company will issue a duplicate share certificate and a share certificate to the shareholder for recovery of lost shares.
  • If the company is not a listed company, the shareholder will receive the share certificate for the purpose of recovering shares within 45 days of the company receiving the documents, or within three months.
  • The duplicate certificate is then issued, and entries are made in the "Register of Renewed and Duplicate Share Certificate," which should be kept at the registered office of the company or by another individual as designated by the Board of Members.

Requirement to publish missing shares notice

  • Filling out an FIR (first information report), which includes the entirety of the lost share certificate, including the folio number, business name, Paper Shares certificate number, and a unique number of shares, among other details, is the first step in giving notice for reporting the loss of share certificates in a government gazette in order for recovery of lost shares.
  • The second stage is to publish a board notice informing shareholders of the loss of share certificates together with shareholder information, such as share certificate numbers, distinguishing numbers of missing shares, etc., in a government gazette.
  • The third stage is to alert the public of the loss of the share certificate so that the company can issue a duplicate share certificate, which also aids in the recovery of lost shares, through the publication of a general notice in a government gazette at the registered office.
  • After confirming the documents provided, registrars will then carry out requests for the issuance of duplicate Shares certificates, which typically takes four to six weeks and also requires prior approval from the company's board of directors.
Read Also This - How do I claim an old share certificate

Conclusion

We believe you now understand the fundamental steps involved in the recovery of lost shares and how to obtain duplicate shares if your original shares are lost. The cost of publishing a general notice, which includes documents like an affidavit, indemnity, surety bond, police FIR report, disclosure of lost share certificates, and a voucher copy of the government gazette advertisement regarding the loss of share certificates, is typically borne by the shareholder.

Comments

Post a Comment

Popular posts from this blog

Who Can Help Recover Unclaimed Shares In India?

Image
One fine day you learned that your parents or grandparents had purchased actual shares in blue chip firms, and that their value had skyrocketed. However, you have no idea how to get those shares back.Because there are so many shares with the government's Investor Education and Protection Fund (IEPF) that have not been claimed by the shareholders or their legal heirs/nominees/successors, many people invest in shares but forget to claim them or their legal heirs may not be aware of the shares or the claiming process. Therefore, you may use this blog to help you recover unclaimed shares in India. If you need any assistance with share recovery, Legalraasta is here to provide full guidance and speed up the process. Who all qualifies for share recovery from the IEPF Authority? Any shareholder with shares that have been transferred to the IEPF that are unclaimed may request a return of those shares by submitting an application to the IEPF Authority, although a claimant may only subm
Read more

How Can I Check My Shares Transferred To Iepf

Image
The Investor Education Protection Fund (IEPF) Authority was created to safeguard the interests of investors who hold shares on the Indian Stock Exchange but have not received their dividend payments. With the exception of bonus or split shares, dividends on shares that have not been claimed for seven years in a row are transferred to the IEPF. As a result, it is imperative that shareholders be advised to maintain track of their money and to claim their dividends on time. In order to raise investor awareness and safeguard their interests in the money market, the IEPF Authority revives inactive shares and makes refunds of unclaimed dividends, matured deposits, or debentures to investors. You will learn how to check funds transferred to the IEPF in the IEPF shares recovery in this blog. How can we find out the status of shares transferred to Iepf? To check the status of shares transferred to Iepf, go to the official website and then click on Search Unclaimed/Unpaid Amounts. These are
Read more

How Do I Retrieve Lost Shares?

Image
The use of physical share certificates has significantly decreased since the Securities and Exchange Board of India (SEBI) required that all shares be in a demat form. However, a number of investors continue to maintain their physical stock certificates despite the danger they are taking, and many investors have missed out on significant potential gains as a result of misplaced share certificates. Therefore, if you have also lost shares and want to know how to get them back, see our Legalraasta for advice. Today's article is specifically for you and will explain how to get your shares back. Procedures for recovering lost shares Simply fill out Form IEPF-5 on the official government website to request a refund or recovery of lost shares in your name , and send it to the MCA government website along with the basic application and share information. Alternatively, you can get in touch with a group of legal and financial consultants. One of the top legal and financia
Read more