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Convert Physical Shares into Demat Form Before This Deadline; Here is How to do it.

Convert Physical Shares into Demat Form Before This Deadline; Here is How to do it.

11, Jul 2018

Convert physical shares into demat form before December 5, 2018

To keep a check on fraudulent transactions, Securities Exchange Board of India (SEBI) has notified that there will be no transfer of physical shares after December 5, 2018. For transfer of shares, it will be mandatory for you to hold shares in a Demat form. It is a welcome move as companies have often complained that investors holding physical shares at times do not get dividend income due to change in their address. Holding shares in a demat form will help them complete the corporate action.

Vikash Jain, co-founder at Share Samadhan says, “This may be a big problem for pending transfer cases in physical form. One can still hold the share in physical form but cannot transfer post December to anyone unless it gets dematerialized.”

How to convert physical shares into demat form

Vikash Jain explains how to covert physical shares into demat form

  • A shareholder can get his shares dematerialized by submitting a Dematerialization Request Form (DRF) to its Depository Participant(DP). A DP is usually an intermediary between a shareholder and the Depository i.e. NSDl & CDSL.
  • After submission of DRF, a demat request is raised by DP with a unique DRN (Demat Request Number) and the physical share certificates are sent for verification to the concerned authorities (RTA).
  • Upon verification from RTA, the DP team will convert all the physical share certificates into electronic form. It takes approximately 3-4 weeks for the DP team to convert physical shares into Demat Form or electronic form.
  • In case of death of a shareholder before converting shares into demat mode, legal heirs will have to transmit the shares in their name and then get the dematerialization done in their respective names. However if shares are in joint names and one of the joint holder is deceased, the process of Transmission cum demat can be carried out by submitting a single form to DP.
  • In case of loss of physical shares, the shareholder will have to get the duplicate share certificates issued in his name from the Company. After receiving the duplicate share certificates, the shareholder can get his shares dematerialized by filling the DRF. Demat request can be fulfilled only for the companies which are having active ISIN.
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HOW TO CLAIM UNCLAIMED DIVIDEND / SHARE TRANSFERRED TO IEPF?

HOW TO CLAIM UNCLAIMED DIVIDEND / SHARE TRANSFERRED TO IEPF?

09, Jul 2018

WHAT IS IEPF?

Investor Education and Protection Fund (IEPF) is for the promotion of Investors’ Awareness and Protection of the interests of investors in India. Dividend which remains Unpaid or Unclaimed for a period of 7 (seven) years from the date of transfer to special account is transferred along with interest accrued to IEPF.

WHAT AMOUNT GOES TO IEPF?

Following amount (list not exhaustive) shall be credited IEPF.

a)   the amount in the Unpaid Dividend Account of companies remains Unpaid or Unclaimed for a period of seven years

b)   the amount lying in the Investor Education and Protection Fund under section 205C of the Companies Act, 1956;

c)   matured deposits with companies other than banking companies;

d)   matured debentures with companies;

e)   the interest or other income received out of investments made from the Fund;

f)    redemption amount of preference shares remaining unpaid or unclaimed for seven or more years; and

WHEN AMOUNT GET TRANSFERRED TO IEPF?

Any money transferred to the Unpaid Dividend Account of a company in pursuance to section 124(5) which remains unpaid or unclaimed for a period of seven years (7 year and 37 days from the date of declaration of dividend) from the date of such transfer shall be transferred by the company along with interest accrued, if any, thereon to IEPF.

WHETHER INVESTOR CAN CLAIM DIVIDEND /SHARES FROM IEPF?

On 5th September 2016, Ministry of Corporate Affairs had notified Investor Education and Protection Fund Authority (Accounting, Audit, Transfer & Refund) Rules 2016 which allows claimants to seek refund from IEPF.

YES; Investors, whose shares, unclaimed dividend, matured deposits, debentures, application money or interest has been transferred to IEPF can now seek refund from IEPF.

For claiming such amount, claimant needs to file form IEPF-5 along with requisite documents on the IEPF website

PROCEDURE FOR CLAIMING REFUND

a)   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 Fund, may claim by making an application in Form IEPF 5

b)   The claimant shall send the copy of IEPF5 duly signed by him along with the following requisite documents to the concerned company at its registered office for verification of his claim:

·        Copy of Acknowledgement

·        Indemnity Bond

·        Advance Stamped Receipt

·        Copy of Aadhar

·        Cancelled Cheque

·        Original Certificate

·        Proof of entitlement

·        Copy of Passport, OCI and PIO card in case of foreigners and NRI) as enumerated in Form IEPF-5

c)    The company shall within 15 fifteen days of receipt of claim form, send a verification report to the IEPF Authority as per the format specified by the Authority along with all documents submitted by the claimant.

d)    After verification of the entitlement of the claimant-

to the amount claimed:  the IEPF Authority and then Drawing and Disbursement Officer of the Authority shall present a bill to the Pay and Accounts Office for e- payment as per the guidelines.

to the shares claimed: the IEPF Authority shall issue a refund sanction order with the approval of the Competent Authority and shall either credit the shares which are lying with depository participant in IEPF suspense account (name of the company) to the demat account of the claimant to the extent of the claimant’s entitlement or in case of the physical certificates, if any, cancel the duplicate certificate and transfer the shares in favour of the claimant.

e)   The IEPF Authority shall, in its records,  cause a note to be made of all the payments made.

f)    Time Period: An application received for refund of any claim duly verified by the concerned company shall be disposed of by the Authority within 60 sixty days from the date of receipt of the verification report from the company, complete in all respects and any delay beyond sixty days shall be recorded in writing specifying the reasons for the delay and the same shall be communicated to the claimant in writing or by electronic means.

g)   In cases, where the application is incomplete, a communication shall be sent to the claimant by the Authority detailing deficiencies of the application.

h)   In case, claimant is a legal heir or successor or administrator or nominee of the registered security holder, he has to ensure that the transmission process is completed by the company before filing any claim with the Authority.

i)     The claimant shall file only one consolidated claim in respect of a company in a financial year.

IEPF –CLAIM YOUR UNPAID DIVIDEND AND SHARES

In case you or your family/friends have funds lying with IEPF, it is time to track and claim your dues.

Crores of rupees in unclaimed money - right from old Equity Shares amounts to share application money, Dividend, Debentures, Interest accrued thereon and many more - is piling up but rightful owner are yet to understand the procedure to claim back from Govt fund.

Several reasons for dividend does not get claimed

Lost track of the funds owed to you.

Company/financial institution might have failed to locate Shareholder for dividend payment as contact and bank details change over the years but are not updated with company.

You were not aware of the investments made by your parents/; neither you had the complete records of those investments.

The process of claiming investment back from IEPF is cumbersome and long legal process involving form filing and serious continuous follow ups with authorities. But we should be happy with the fact that at least our investment in IEPF is safe with Government rather than being victimised with Fraudulent withdrawal of investment like sharepro case.

Need Assistance

In case, you need the assistance for same, Please reach out to Share Samadhan (www.sharesamadhan.com) at samadhan@sharesamadhan.com

T: 011 4908 4003

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Holding benami Physical Shares ? Time to write off your Investment.

Holding benami Physical Shares ? Time to write off your Investment.

03, Jul 2018

SEBI tightening the screws…..In pursuance of SEBI circular, Securities holders holding securities in physical mode shall submit a copy of PAN and bank details (a copy of the PAN card and original canceled cheque leaf /attested bank passbook showing the name of account holder) within 21 days from the date of receiving notice from Issuer Companies through their RTAs.

RTAs is under obligation to send a letter under registered/Speed post seeking PAN and bank details within 90 days from the date of this circular (which is dated 20th April 2018) and two reminders thereof after the gap of 30 days. All the 3 letters will have 21 days’ notice period to provide the details.

In case holder is the residence of Sikkim, PAN card can be substituted with valid Identity proof issued by Government.

Main Objectives

To keep a check on the wrong payment or return of dividend, interest, warrants etc and ensure smooth functioning and administration thereof. This will restrain Benami transaction also.

Although updating PAN and Bank Detail is a small change but its implication is much higher.

After effect of the Amendment:

This amendment will bring the followings changes:

  • Eliminating fraud and manipulation in payment of dividend, warrant, interest etc. to holders holding securities in physical.
  • Chances of Benami Transaction will be reduced to greater extent.
  • The proper & Adequate record will be available and linked to each folio.

What if PAN and Bank particulars not updated?

Securities holders who are unable to respond to RTA call/notice and not able to provide PAN and bank details within 180 days of the circular or have informed that the securities available in their name as per the records of RTA does not belong to them, shall be subject to enhanced due diligence by Issuer Company.  Let’s see how RTA / company would respond to those cases…

Can holder continue to hold shares in Physical form?

Yes, the holder can continue to hold the shares in physical form but whose ledger folios do not have/ having incomplete details with respect to PAN and Bank particulars are mandatorily required to furnish these details to the issuer company / RTA for registration in the folio.

Need assistance?

Please reach out to Share Samadhan (www.sharesamadhan.com) at samadhan@sharesamadhan.com

T: 011 4908 4015

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Wealth Samadhan Card – An Online secured place to save one’s Investment related Information.

Wealth Samadhan Card – An Online secured place to save one’s Investment related Information.

26, Jun 2018
Share Samadhan has recently launched an online platform to store/update investment related information so that the same can be accessed by you or your family in case of any contingency. We all agree that the world is prone to VUCA (Volatility, Uncertainty, Complexity and Ambiguity) and so the life is. Everyone wish that their preserved Wealth / Investment reaches in the legitimate rightful hands but by nature we seldom share the brief elaborated commercial / financial information with our family/nominee and in case of any eventuality they find it difficult / take abnormal time to recover the financial assets. Most of us work very hard in life time to create financial assets, invest time & efforts in financial planning, pondering over that expensive house we plan to buy and creating wealth through stocks, gold real estate, mutual funds, bank deposits, PF, Postal Savings etc . For all of us, the sole motive of such measures is to leave rich wealth legacy for our children / family so that they lead a comfortable lives. Therefore, it's important that the wealth is transferred in the hands of the rightful claimant of the wealth for whom it was created. The data is available in the public domain the various investments of Rs. 3,00,000 Crore have just been in either physical papers or gone unclaimed due to various reasons. And one of the main reason is that the deceased family was not aware of the financial investments owned by the person before his death as the same was not shared by the individual with the family. Share Samadhan has launched a service with secured server wherein one can preserve the information (minimal information) of the investments made by the individual and the same information will be shared with the family members (opted by individual) in case of untoward incidents of the wellbeing and the health of the individual and help the nominated person/s to get the investments transferred in their name at certain fees. We have the competence and the ability to smooth transition of the financial assets to the family members as we have been providing this service through our company Share Samadhan. Share Samadhan (www.sharesamadhan.com ) has been assisting clients to recover all their Unclaimed Investment in Old Shares, Provident Fund, Matured Insurance, Mutual Fund, Postal Savings, and Inoperative bank accounts etc. since last 5 years. Here we would like to point out that the subscriber of Wealth Samadhan Card has to share very minimal information which is adequate enough for us (Share Samadhan) to create valid linkages to various financial investments/assets owned by the individual in untoward situation of the wellbeing of the subscriber . This information would be shared by us with the family member/s of the deceased (opted by him/her at the time of the registration with us) and extend help/services to the family member/s for transferring the investments / assets in their names on a professional fees linked to the transfer of the assets in the name of family member/s . Family members would have the option to take avail our services. To know the well-being of the subscriber or member we would stay in continuous communication with him / her though mail or telephone. Reiterating once again, we will not ask any financial document and not even amount of investments (Hence risk of confidentiality). Very minimal information would be asked for to create the valid linkages to the investments . One has to just click the nature of investments / assets….example is there at the link below It is a sort of a checklist with minimal information to create valid linkages to the investments owned by the individual so that meaningful information can be passed on the family members at the time of untoward incident affecting the health and wellbeing of the individual . The whole purpose is to ensure that the wealth earned by the individual in his/her life time does not go unnoticed. We (Share Samadhan) pass on a meaningful information to the family members and help them in transfer of the assets in their names if they like. Even in a situation where the information of the investments owned by the individual has been shared with the family members, in case of untoward situation of the subscriber, Share Samadhan will help in smooth transfer of the investments to the nominated person by providing its expertise and services at a fees linked with the realisation of the value of investments . This will help the family and save the hassles of running from pillar & post to lay their rightful claim on the financial assets and transfer the same in their names . We Bring One Window Solution to facilitate smooth transfer of the financial assets to the nominated person. https://sharesamadhan.com/wealth-samadhan-info
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SEBI Restriction on Transfer of Physical Share

SEBI Restriction on Transfer of Physical Share

21, Jun 2018

Still holding Physical Share of Listed Entity!! Please get rid of it before 5th December 2018.

Otherwise You may lose your right to transfer.

On 8th June 2018,  SEBI has notified vide Notification No. SEBI/LAD-NRO/GN/2018/24

 by issuing SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) (FOURTH AMENDMENT) REGULATIONS, 2018 that except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in the dematerialized form with a depository. In other words there will not be any transfer of physical share after 5th December 2018.

SEBI has decided to amend Regulation 40 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’) which deals with transfer or transmission or transposition of securities.

According to this amendment, the requests for effecting the transfer of listed securities shall not be processed unless the securities are held in the dematerialized form with a depository. Therefore, for effecting any transfer, the securities shall mandatorily require to be in demat form.

 

Why this amendment?

To keep a check on the instances of fraudulent transfer and for ensuring more transparency, this amendment has been brought into force.  Investors holding physical shares sometime loose track about corporate action such as bonus / dividend due to change in their address and those corporate action remained unclaimed.

Sharepro fiasco is the classic fallout for Investors who were holding physical shares. Recently, Aptech, Britannia Industries ltd, Asian Paints filed a complaint against its share transfer agent Sharepro for illegally transferring dividends and shares to fraudulent accounts.

 

After effect of the Amendment:

This amendment will bring the followings changes:

  • Eliminating fraud and manipulation in physical transfer of securities
  • Chances of error will be reduced.
  • Transfer of securities only in demat form will augur well for capital market and significantly speed up the transfer of securities, improve convenience and safety of transactions for investors.

 

Can holder continue to hold shares in Physical form?

Yes, the holder can continue to hold the shares in physical form but one can not transfer the same in physical form.

 

Need assistance?

Please reach out to Share Samadhan (www.sharesamadhan.com) at samadhan@sharesamadhan.com

T : 011 4908 4015

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Missing Money