Transfer of Shares
I have purchased X Company shares long back but I forgot to get them transferred in my favour. What is the procedure that I should follow now?
If you hold physical securities in listed companies, you can’t transfer them by way of sale on the stock exchange or an off-market transaction between the buyers and sellers, with effect from 1 April 2019. The initial deadline set by the Securities and Exchange Board of India was set at 5 December 2018, which was extended to 31 March 2019
Securities held in physical or paper form after April 1 2019 is illiquid. This means that you will no longer be able to sell or transact without first dematerializing them. However, it does not take away the validity of the securities or the rights and benefits under them.
Transmission of Shares
If the securities are held in single name with a nominee in physical Mode what are documents required for Transmission
Yes. Work is Easier is such cases compared to Without Nominee Cases. You Can Contact our team in this regards and they will Guide you over this
The name of a joint holder was included only for convenience by the first holder. I am the only heir. Can Company transfer the shares in my name as per the Will/Probate?
As per law, the joint holder is deemed to be having indivisible ownership of the joint property and the Company cannot ascertain as to how or why the name was included. As per the Articles of Association of the Company, the surviving joint holders are the only persons recognized as having title to the shares.
I have already produced the attested/registered Will. Since getting it probated would take a long time and will have to pay money, is it possible to avoid this procedure?
You will appreciate that in order to ascertain that the will in question is the last will and testament made by the deceased, it is important that the same is authenticated/probated by the Court. This is to protect the interest of the investors at large and to obviate any future claims/disputes on the same.
If the deceased family member who held shares in his/her own name (single) had left a will, how do the legal heir/s get the shares transmitted in their names?
The legal heirs will have to get the will probated by the High Court/District Court of competent jurisdiction and then send a copy of the probated copy of the will, along with relevant Documents You Can Contact our team in this regards and they will Guide you over this
If a shareholder who held shares in his sole name expires without leaving a will, Can his legal heir/s (either husband/wife/son/daughter or parents) get the shares transmitted in their names?
Yes, You Can Contact our team in this regards and they will Guide you over this
Dividends
What is the procedure for obtaining a unclaimed dividend from IEPF?
IEPF form-5 along with Required Documents to be sent to Nodal officer of company. You Can Contact our team in this regards and they will Guide you over this
I have not received my dividend. What action do I take?
You may write to our RTA furnishing the particulars of the dividend not received. The signature of the shareholders should match with specimen signature as per in the records of the RTA. Also quote your folio number/client ID particulars (in case of dematted shares). The RTA will check the records and issue a duplicate dividend warrant if the dividend remains unpaid in the records of the Company and is not transferred to the Investor Education and Protection Fund.
Loss of Share Certificates
I have lost/misplaced my share certificates, what are the steps that I should take to obtain duplicate share certificates?
You Can Contact our team in this regards and they will Guide you over this
Change in Address/ Status/ Name
What is the procedure to be followed if my status has changed from 'Non-Resident' to 'Resident'?
You Can Contact our team in this regards and they will Guide you over this.
My status has changed from 'Resident' to 'Non-Resident'. How do I ensure that the payments are repatriated outside India?
In the event, your residential status has changed to that of a non-resident and sale proceeds of the Shares or dividend payment is sought to be repatriated outside India, please obtain prior permission from the Reserve Bank of India through your banker in India (Authorised Dealer) and submit to the Company.
Where the sale proceeds and/ or dividend payment is not sought to be repatriated, a duly completed Form of Undertaking would be required to be submitted to the Company.
If the shares are dematted, what is the procedure for change of address?
Since your Depository Participant maintains the records of your dematted shares, you have to approach your DP to effect any change in your address.
Can there be multiple addresses for a single folio?
No. There can be only one registered address for one folio.
If there is a change in my address, what is the procedure to get it recorded with the Company?
Kindly send a request letter quoting the folio number signed by the registered holders' as per their specimen signature registered in the records of our RTA stating the new as well as the old address.
IEPF (Investor Education and Protection Fund)
Mr. X is a legal heir or successor or administrator or nominee of Mr. Y, the deceased shareholder. The shares of the deceased have been transferred by the Company to the IEPF due to not claiming dividend for seven consecutive years. How Mr. X being the legal heir or successor or administrator or nominee of Mr. Y can claim back the shares?
As per the IEPF Rules, the transmission process has to be completed by the Company before filing any application/claim with the IEPF Authority. You Can Contact our team in this regards and they will Guide you over this
Mr. X. a shareholder holds 100 shares on which dividend has remained unclaimed or unpaid for 7 years. Out of these, 40 shares are such on which there has been a stay order given by the Court restraining its transfer and payment of dividend. What will happen to these 40 shares? Whether these 40 shares will also get transferred to the IEPF?
Rule 6(3) (b) of the IEPF Rules provides that in case there is a specific order of Court or Tribunal or statutory Authority restraining any transfer of such shares and payment of dividend, the Company shall not transfer such shares to the IEPF. Hence, in the present case, as the Court had directed a stay order on the stated 40 shares, such shares shall not be liable for transfer a IEPF. However, the remaining 60 shares shall be transferred to the IEPF.
Mr. X being a shareholder has sold 100 shares to Mr. Y on which dividend has not been claimed. Further, Mr. has not lodged the transfer deed for transfer of shares in his/her favour. In such a scenario, as the dividend remained unclaimed, the same shall be transferred to IEPF Account. Please clarify the process whereby Mr. X and Mr. Y can claim the said shares from IEPF Authority.
The transfer of shares can be given effect only if a share transfer’s deed is duly executed by the concerned parties which will be required to submit with the Company by providing all the supporting papers for verification by the Company. The transfer deed may be submitted either by Mr. X or Mr. Y. Post registration of the transfer of shares by the Company, the application in e-Form IEPF-5 shall be made by the transferee i.e. Mr. Y by following the procedure mentioned earlier.
In case the documents as attached in Form IEPF-5 are not sufficient or incomplete and further documents are sought for from the claimant, is there a time limit to provide the rectified documents to the IEPF? Whether IEPF Authority can reject such application?
IEPF Second Amendment Rules, 2017 provide for a time period of 90 days from the date of communication to submit rectified documents to the IEPF Authority. Further, IEPF Authority may reject the Form after providing an opportunity to him to furnish response within a period of 30 days.
Can IEPF Authority reject the application of the claimant made in IEPF-5?
In case, the IEPF Authority do not receive all the documents from the claimant within 90 days from the filing of IEPF-5, then the IEPF Authority may reject the Form after providing an opportunity to him to furnish response within a period of 30 days.
In case a company does not declare dividend in any year(s) during the consecutive period of 7 years but has declared the same before that, then whether it will be construed that dividend has remained unpaid unclaimed for 7 consecutive years for the purpose of transferring the shares to the IEPF?
The qualifying condition for transferring the shares to IEPF in the said case is the continuous failure on the part of the shareholder to claim dividend for seven consecutive years irrespective of the fact of the company that whether the company is declaring dividend or not in each of the seven years. Accordingly, the shares will be transferred to the IEPF demat account since the dividend on such shares, irrespective of when it has been declared, has remained unpaid
Suppose a company declares dividend in the year 2008-09, one of its shareholders does not claim the dividend for a consecutive period of 7 years from the year 2008-09. As per the IEPF Rules, in addition to the unpaid and unclaimed dividend for the year 2008-09 the underlying shares will also be transferred to the IEPF Authority in the FY 2015-16. What will be the treatment of the dividend declared on such shares in the years 2009-10, 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15? Will such dividend shall also be transferred to the IEPF Fund in the FY 2015-16 itself or whether the company let such amount lie in the unpaid dividend account and wait for its due date for transfer to IEPF arrive?
In such an event where the shares have been transferred to the IEPF, the dividend for the FY 2009-10 till 2014-15 will still be lying in the unpaid dividend account. This means that a shareholder can claim dividend for the aforesaid period from the Company. But considering the fact that the shares for the said dividend has already been transferred to IEPF, and that as on date the shares are held by the IEPF, it will be very illogical to say that a shareholder who as on date does not even hold the shares, but can claim the dividend for the same.
In cases where the claimant is a legal heir or successor or administrator or nominee of the shareholder and the shares of original shareholders have been transferred by companies to the iepf?
Since the completion of transmission process is a pre-requisite for making claim, therefore companies as well as the depository participant, as the case may be, shall on the receipt of all required documents from such legal heirs or successor or administrator or nominee of the shareholder verify and confirm that the transmission process is completed. You Can Contact our team in this regards and they will Guide you over this.
What is the purpose of e-Form IEPF-5?
Any person whose shares, unclaimed dividend, matured deposits, matured debentures, application money due for refund or interest thereon, sale proceeds of fractional shares, redemption proceeds of preference shares etc. has been transferred to the IEPF Fund, may claim the shares under provision to sub-section (6) of section 124 or apply for refund, under clause (a) of sub-section (3) of section 125 or under proviso to sub-section (3) of section 125, as the case may be, to the Authority by making an application in Form IEPF 5 online available on website.
Whether the provisions of section 124 of the Act, 2013 are also applicable in case of interim dividend being unpaid or unclaimed?
The provisions of section 124 are also applicable in case of interim dividend
Can IEPF re-transfer the shares?
No, IEPF cannot re-transfer the shares which have been credited in its Fund, unless any rightful owner makes an application in the prescribed form to get it re-transferred
Does the shareholder cease to be owner once the shares are transferred to the IEPF?
The transfer of shares to IEPF is a temporary suspension of property rights. Looking at the IEPF it seems it is the custodian of the shares because there is a provision for the shareholders to claim it back. Therefore, it cannot be said that the shareholder ceases to be the owner.
When the unclaimed/ unpaid amount shall be transferred to the IEPF Fund?
Mr. A has not claimed dividend for FY 2008-2009, however he claimed dividend for FY 2009-2010. In the instant case the dividend that remains unpaid for FY 2008-2009 shall be transferred to IEPF on expiry of seven years, i.e. FY 2015-16. However, the underlying shares cannot be transferred in FY 15-16 since Mr. A has claimed dividend on such shares for the FY 2009-10. The shares will only be transferred in case there is a failure of consecutive seven years in payment of dividend In the present case, the underlying shares will only get transferred to IEPF in the FY 2017-18 provided Mr. A has not encased any dividend on such shares from FY 2010-11 and onwards.