You Deserve Your Money back

Ban on Physical Share Transfer of

Listed Company
- Problem and Solutions

CA Vikash Jain

Organized by -CAVM
Just imagine these Situation

30,000 death in Gujrat 400 daily death in Road Around 100 daily rail accident
Earthquake in fraction Accident In India Death in India in 2014
Of seconds 3000 in world

One Sudden Cardiac Documents may be Theft /

gutted in fire Floods
Arrest in every 33 Document
Sec. misplace
How bigger is the problem ?
Value of Unclaimed / Physical Investment in the country
is more than Rs 6,08,923 Lakhs Crore
Stocks / Mutual
Fund : Rs. Unclaimed
5,35,000 Crores Provident Fund :
lying in physical Rs 43,000 Crores
form

Unclaimed Unclaimed Bank

Insurance : Account:
Rs 15,166 Crores Rs 11,302 Crores

Unclaimed
Unclaimed Post
Corporate
Office accounts :
Dividends :
Rs 9,395 Crores
Rs 3,454 Crores
All hassles for an Investor !!!
Does Anyone want their family to roam around from pillar to post to
claim the investment ? Too many touch point to recover
Investments…..

• Company • RTA • SEBI

• C.S • MCA • NCLT

• PF office • Banks • Legal Advisor

• PF trust • RBI • Courts

• Broking Firm
• Insurance Co. • Post office
• Financial
• IRDA • CA
Advisor
 Shares & Securities
Critical Problems faced by Investors
•Shareholders might have lost all the share certificates.

•Transferor might have sold the shares but claims it back

fraudulently

•Shares sold by Transferor while as per IEPF it can be claimed

by Registered holder only.

•Mutual Fund certificates purchased but not transferred since

long can be transferred by transferee in his favor only if In
Person Verification of Transferor can be done.
 Transfer of Shares
•Form SH-4 dully filled, signed and executed

•Pan Card of Transferor mandatory as per Regulation 40(7) and 61(4) of

SEBI (Listing Obligation & Disclosure Requirements) Regulation, 2015.
However SEBI circular dated 06th November, 2018 has given
exemptions if shares are purchased before 01st December, 2015.
2015

•KYC documents of Transferee

•Signature verification of Transferor from bank as per format given by

RTA (Registrar & Transfer Agent)

•Stamp Duty to be paid @ 0.25% of market value of shares

Physical Shares transfer last date 31.3.19

•However as per Regulation 40 of SEBI

(LODR)(Amendment) Regulation, 2018, Transfer of Physical
shares will not be allowed after 31st March, 2019 (Earlier
deadline was 05th December, 2018)

•Exception is : Transmission or transposition of securities,

SEBI Circular dated 06th November, 2018 for Transfer of
Shares:
Shares can be transferred even if Transfer Deeds
are executed prior to notification of LODR (01st
December, 2015), without PAN of Transferor

Shares can be transferred even in case of Mismatch of

Name of transferor on PAN and Share Certificate

Shares can be transferred even in case of Non availability

Mismatch of Signatures of Transferor

In case Transferor is not approachable or is not co-operating, RTAs need

to make a public announcement in this regard with a waiting period of
30 days
If No objection after 30 days of advertisement, Shares can be transferred by
RTAs by asking for Indemnity Bond and Address proof of Transferee and also
an Undertaking that Transferee shall not sell / demat shares within 6 months
of transfer of shares in his favor.
Shares & Securities
ASTONISHING FACTS

RS 10000 of Wipro Rs 10,000 of CIPLA Rs 10,000 of Infosys

Today’s worth is Today’s worth is Today’s worth is

more than 750 cr more than 100 cr more than Rs 150 cr

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We would be glad to hear
from you….

CA Vikash Jain
Co-founder, Share Samadhan
Vikash.jain@sharesamadhan.com
997 111 3156

Regd office
B 35, Lower Ground Floor,
South Ex Part II, New Delhi- 110049 (India)
M: +91 8800332200| P: +91 11 4908 4001 (60 lines)
ww.sharesamadhan.com
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