DUPLICATE ISSUE OF SHARES
What is Duplicate Issuance of Shares?
The process known as “duplicate share certificate issuance” or “duplicate issuance of shares” enables shareholders to acquire replacement share certificates in case the original ones are lost, stolen, damaged, or unusable for any reason.
As per corporation law regulations, the corporation is obligated to furnish a duplicate share certificate within thirty-six business days. After the newspaper advertisement regarding the lost shares, the corporation has a fifteen-day window to handle any objections. Following this, if all necessary documentation is in order, the corporation will proceed to issue duplicate shares within 21 days. Nevertheless, discrepancies may occur during this process and increase the timeline.
Do I need to file a police complaint for loss of shares?
As per the New SEBI Guidelines, If the valuation of the shares on the date of the theft or loss is more than Rs. 5 Lakhs then it’s essential to report the incident to the police. Head to the nearest police station and file either a police report or a general diary entry.
For example, suppose the shareholder, a Gurgaon resident, was going to Mumbai with the real shares and the luggage containing them gets lost. Therefore, he or she has to notify the loss of the shares to the police in Mumbai. You can also register a complaint online, if that is an option provided by that specific police station.
Is it necessary to provide an advertisement for loss of shares?
If shares are lost, placing an advertisement in the Lost & Found section of a newspaper is necessary. According to the latest SEBI regulations, shares valued at over ₹5 lakhs require this advertisement. Moreover, in cases of IEPF claims, advertising in both the local or regional language and English newspapers is obligatory. The choice of local language for advertising will be based on the registered office of the company from which the shares were lost.
For instance, a resident of Delhi might have owned stock in UltraTech Cement, a company with its headquarters located in Mumbai. In the event that an individual loses their UltraTech Cement shares, they are required to place an advertisement in Mumbai, Maharashtra, English and Marathi media.
Do we get duplicate shares in the physical form?
Earlier, investors were issued duplicate shares by the corporation. However, to comply with the current SEBI regulations, the company must issue duplicate shares in the form of a Letter of Confirmation (LOC). Shareholders are required to deposit the LOC with their Depository Participant (DP) within 120 days of its issuance to facilitate the dematerialization of shares.
KYC documents needed
for Duplicate issuance
of shares
