Ever since the Securities and Exchange Board of India (SEBI) mandated that all shares should be in a demat form, the usage of physical share certificates have come down drastically. However, despite the mandate, there are several investors who continue to hold their physical stock certificates without knowing the level of risk that they’re taking.
The problem with holding share certificates physically is that they can either be damaged or lost. In fact, many investors have lost out on a lot of potential profits due to missing share certificates. If you’re in this boat, don’t worry. Here’s what you can do.
Let’s take a look at the step by step process that you would have to follow to replace your missing stock certificates.
1. Firstly, lodge a complaint at the nearest police station and obtain a First Information Report (FIR) clearly detailing the folio numbers, share certificate numbers, distinctive numbers, and number of shares, among others.
2. On non-judicial stamp papers of specified value, you would have to execute both an indemnity and an affidavit in connection with the missing share certificates. Both these documents should be notarized.
3. Fill up a questionnaire form. You can get this from the company whose share certificates you missed or from the registrar and share transfer agent.
4. Fill up a surety form specifying the details of the person giving surety. Also enclose documents supporting the income of the surety such as salary slips or ITRs duly attested by a notary public.
5. Fill up a duplicate share certificate request letter. You can get the format from the company or the registrar and share transfer agent.
6. Collect and enclose all of the following documents.
7. Send all of the above documents along with the request letter to the company through a registered post.
8. Once the company ascertains the validity of the request and the documents, the duplicate share certificates will be sent to the address registered with it.
If you’re still in possession of physical stock certificates, it is a good idea to apply for dematerialization as soon as possible. Since the shares are held electronically in a demat account, you can ensure maximum safety and security. However, if you don’t have a demat account, you could always get in touch with Motilal Oswal. All it takes is a few minutes to open a demat account online for free!
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