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Wednesday, December 10, 2014

Lost Papaer Share - What to do?

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Lost Share

Certificates An investor will not be able to transact in paper certificates if they were not converted to demat form. If they do not have the certificates or only have a partial record of the investments, in terms of the IPO application or allotment notice, it is possible to retrieve them.

Quality of Company

Some companies that went public with IPOs in the past have vanished. They may not have completed the process of securitising their shares. Such shares may not be amenable to retrieval and selling, and should be treated as written off investments.

Registrar Investors

can write to the registrar of the company, using the information for investor services available on the company's website. Many of them have formats for registering a complaint. Else, a plain paper application will also do.

Documents

If the investor has any supporting document or information, which can help him locate the shares, such as dividend warrant, notice for shareholders' meetings, voting on resolutions or annual report mailer labels, they should attach these to provide information to the registrar.

Verification

On locating the investor in the shareholders' list, the registrar will seek documentary proof from the claimant and the completion of demat request. This will need proof of identity and address, and signatures of the investor and completion of the demat request form.

Confirmation

If the registrar can establish the identity of the investor in their records, he will issue a notification indicating the credit of shares in the demat account. These can then be sold on the stock exchange.

Points to note

If the original investor is no more, the process will have two steps: documentation for transmission to nominee or heir, and then demat in the new names.

If dividend warrants have not been encashed or revalidated for a period of seven years, that money would have gone to the investor protection fund, and its retrieval is a different process.


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