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Investor Interest Exclusive
How to get physical shares transferred and converted into

demat
Moneylife Digital Team
28 January 2015
99
Some people are holding shares not transferred in their name and dont know
how to go about the transfer. Here is the procedure

Corrected: As per Companies(Share Capital & Debentures) Rules, 2014, form
7B has been replaced with form SH-4

UPDATE: Updated to include additional information provided by NSDL's Rajesh
Doshi on demat and bank names that provide franking facility

Several people are still left with shares in physical format. If these are
transferred in their name, they can continue to hold them and get them
dematerialised anytime they want to. What about those who are holding shares
not yet transferred in their names? One cannot sell these shares in physical
forms through stock exchanges, unless it is dematerialized. Several readers of
Moneylife, said they wanted to transfer physical shares jointly held. But they
dont know the way out.

Asking National Securities Depository Ltd (NSDL) is of no help. You will get a
standard reply like this: "Shareholders can dematerialise physical shares in their
own name. As such, transfers of physical shares are outside the purview of
depository system. There is also no trading in physical shares on the stock
exchanges and hence they can only be transferred in private deals. The
recommended course of action for investors holding physical shares is to
dematerialise them. Transfer of demat shares is also exempt from stamp duty."
http://www.moneylife.in/article/fadnavis-orders-probe-into-goof-up-in-obama-dinner-invite/40303.html 1/71

When we asked around, one member of Moneylife Foundation, Adil Daruwalla
turned out to be helpful on how get the franking done. We made our own
enquiries. Here is the procedure to transfer shares in physical form...

1. Send the share certificates along with the Share Transfer Deed (Form SH-4
available with stock exchange and brokers) duly filled in, executed and affixed
with appropriate share transfer stamps (available with authorised stamp
vendors) at 0.25% of the market value (of the scrip) on the date of execution of
the transfer deed. Self certified copy of the PAN Card of the transferee(s) needs
to be submitted along with the instrument(s) of transfer and Stamp duty has to
be affixed.

Since 1 July 2002, Maharashtra government has banned sale and use of share
transfer stamps and mandated franking for such deeds. This facility was
available at Bank of India branch in BSE building. However, since December
2014, this facility has been closed. Franking now happens at Town Hall General
Stamp office only or other central offices of collectorate of stamp fees within
Maharashtra State, through online registration or without online registration.
The process can be found at https://gras.mahakosh.gov.in.

a. For paying the stamp duty without registration, you can use your online bank
account. Here are the steps involved in the process...


I. Select Pay without registration
II. Select Department as Inspector General of registration
III. In payment type, select Non Judicial Stamps
IV. Select the appropriate location in District

V. In office name, select General Stamp Office Mumbai
VI. In Scheme Name, select 'Purchase of franking code SOS Mumbai only'
VII. Select year as 2014 - 2015
VIII. In Article Code, select One time Adhoc
IX. Fill in the Amount
X. Give Payee details
XI. Select e-payment/Bank
XII. Fill in image text
XIII. Click on Submit
XIV. Print GRN MTR6 Challan

Take this printout with your share transfer form to the office to get your stamp
fee franked on your transfer form.

i. If you do not have an online account, then

I. Print the GRN MTR6 Challan
II. Fill in your details and make the payment at your concerned bank's branch
where they accept payment for general stamp office with pay in slip etc.
III. Take the Form and the paid amount along with your transfer for franking.

In both cases, you will have to carry a letter addressed to the Additional
Collector (Stamps) in following format...

From:
_________
_________
_________

To
The Additional Collector Stamps
General Stamp Office Fort
Mumbai 23

Sub:- To Affix Special Adhesive Stamps on Share transfer form

Respected Sir,

With reference to the above mentioned subject, I have to state that I have paid
stamp duty of Rs.________________ as per MTR Challan No 6 (GRN No.
__________________________)

I hereby request you kind selves to kindly affix the requisite stamp duty on the
same.

Yours Faithfully

(Note: For Shares, stamp duty @ 0.25% of the market value or the
consideration amount (whichever is higher) should be affixed on the
instrument of transfer.)

One can submit the letter, form and receipt to the General Stamp Office
between a specific time period. The franked documents can be collected
between a specific period the next day.

Rajesh R Doshi, Senior Executive Director of NSDL said, "My understanding is
that any bank, which offers franking facility for legal documents can also
provide the same for transfer deeds. We use services of Kapol Cooperative
Bank branches at Kalbadevi and Fort for franking of legal documents. We have
inquired with them and they have confirmed that they would provide services
of franking transfer deeds for physical share transfer. Investors can approach
them. There are other banks such as Punjab and Maharashtra Co-operative
(PMC) Bank and Citizen Co-operative Bank who also provide facility for
franking legal document however we have not used their facility. Investors may
inquire with them as well."

Here is the checklist for getting your deed franked
1. Covering letter to the Additional Collector Stamps. Two copies, one to submit
and second for receipt of the office and collection next day.
2. MTR 6 Challan with the GRN No if you have done e payment
3. Share transfer form
Every share transfer form that has to be franked requires the above process.

After getting the deed franked, the investor can send the share certificates
(physical shares) and the share transfer deed (in form SH-4) duly filled in and
signed to the company or registrar. It takes about 10 to 21 days to process the
transfer.

The statutory time limit fixed for completing a transfer is one month under the
Listing Agreement and two months under the Companies Act, 1956.

How to convert shares into demat form?
Dematerialisation (demat in short form) signifies conversion of a share
certificate from its present physical form to electronic form for the same
number of holding. Demat is optional and an investor can still hold shares in
physical form. However, she has to demat the shares if she wishes to sell the
same through the stock exchanges. Similarly, if an investor purchases shares,
she will get delivery of the shares in demat form.

There are two depositories, NSDL and Central Depository Services Ltd (CDSL),
which hold securities of an investor in electronic form, through depository
participants (DPs). DPs provide the link between an investor and company
through the Depository.

Mr Doshi from NSDL said, physical shares can be dematerialized in the demat
account in the name(s) of share holders holding physical shares. In case, shares
are held jointly in physical form by investors, then the same can be
dematerialized by opening a demat account in joint names.

"However," he said, "as I understand, investors prefer to make use of existing
demat account held in single name by first transferring physical shares held in
joint name into single name. Transferring physical shares requires payment of
transfer fees through franking of transfer deed documents, a service investors
used to avail from BOI Shareholding. Since BOI Shareholding has now stopped
this service, investors can use franking facility provided by some banks."

Here is how you can convert your physical shares into demat...

Open a Beneficiary Account with a DP registered with SEBI and with any one
of the depositories, NSDL or CDSL.
Submit the dematerialization request form (DRF) (in triplicate) to your DP
duly filled in and signed by all the shareholders, along with share certificate(s)
and necessary documents. Ensure that the names and order of names as per
certificate(s) matches with the names and order of the names as per the DP
account.
Obtain an acknowledgement from the DP.
On receipt of DRF, the DP will generate a dematerialization request number
(DRN), which is electronically transmitted to the Company or STA through the
concerned Depository.
Simultaneously, the DP will send the physical certificate(s) with the original
DRF to the Company or STA for verification and confirmation.
The Company or STA, on receipt of DRF and share certificate(s) will process
the request. If the DRF is found to be in order, i.e. verified signature and
certificate(s), then it will electronically confirm the request.
The DP on receipt of such confirmation, will credit the account with the
shares dematerialized.
The DP will hold the shares in the dematerialised form thereafter on the
shareholders behalf and she will become beneficial owner of these
dematerialised shares.

Important points to note
1) Validity of the executed instrument of transfer:
for shares: - 60 days from the date of execution.
for debentures: - for an indefinite period
2) SEBI has notified vide its Circular No. MRD/DoP/Cir-05/2009 dated 20 May
2009 that it is mandatory for all transactions in the securities market including
transfer of shares in physical form of listed Companies to be accompanied with
copies of PAN card/s of all the transferees. Therefore attach self-certified copies
of PAN card/s of all the transferees along with the instrument of transfer
3) Keep photocopies of certificates, instrument(s) of transfer and other
documents sent by post. In case of a loss in transit, they come handy.
4) Always include your complete address along with pin code while filling in
the instrument of transfer/opening an account with a depository participant.
5) Do not send share certificates / DRF documents to the Company / Registrars
directly.

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COMMENTS
LALIT SHAH 2 months ago
When a none tax payer investor invested in ipo 30 year's ago and have no taxable income nore pan
card. How he can sell shares without pan card
REPLY
yash koolwal 7 months ago
while lling the drf forum client id is wrongly mention rest all are write will i get back my certi cate or
it will be transfer to the wrong mention client id kindly guide me
REPLY
Adi Daruwalla In Reply to yash koolwal 7 months ago
If you are aware that you have erroneously lled the wrong client ID on the DRF form,
inform your depository participant and show them your copy. In the rst place DP
should be checking the Client ID when accepting the same. There seems to be some
oversight. You must have stamped the certi cates which you surrendered also with
"surrendered for dematerialization" with the client Id which you say is right. Talk to the
DP showing your copy and see how they can help you. It is important to keep xerox
copies of everything you surrender.
REPLY
Adi Daruwalla In Reply to yash koolwal 7 months ago
If you are aware that you have erroneously lled the wrong client ID on the DRF form,
inform your depository participant and show them your copy. In the rst place DP
should be checking the Client ID when accepting the same. There seems to be some
oversight. You must have stamped the certi cates which you surrendered also with
"surrendered for dematerialization" with the client Id which you say is right. Talk to the
DP showing your copy and see how they can help you. It is important to keep xerox
copies of everything you surrender.
REPLY
devendrabhatt 10 months ago
respected Adi Sir, thanks for detail information sir , i want to ask that affexing of stamps is completely
stooped? if company share listed and its mkt value is only rs5/- then also we to do all above procedure?
Millennium Online Solutions (India) Ltd. is the company name its cmp is 1.84, pl advice and oblige my
email devendrabhatt@hotmail.com
REPLY
Adi Daruwalla In Reply to devendrabhatt 10 months ago
You will have to check with RTA if they will oblige by taking and adhesive stamps in your
case or Company Secretary/Secretarial department of the said company. Also depends
on what is the volume of physical shares to be transferred and the market value. If under
2 lakhs it is at the discretion of the above mentioned departments and you can get their
details from BSE website and phone the concerned RTA or company department and
nd the solution.
REPLY
devendrabhatt In Reply to Adi Daruwalla 10 months ago
THANK YOU VERY MUCH SIR.....
REPLY
Shridhar 10 months ago
Hi,
Thanks to this article, I was able to get one of my share certi cates transferred and de-materialized
without any problem ! Thank you so much.
I have a question though.
I have another physical share certi cate which I want to transfer.
I am based in Pune and this particular company's registrar is also in Pune.
Can I get the SH4 form franked from Pune itself (say, from any local registrar of ce, etc.) OR do I still
need to go to Mumbai's General Stamp Of ce and perform the procedure ?
Also, In Scheme Name, should I enter 'Purchase of franking code SOS Mumbai only' or select an option
for rest of Maharashtra ?
Thanks and Regards,
Shridhar.
REPLY
Adi Daruwalla In Reply to Shridhar 10 months ago
Please visit the web site https://gras.mahakosh.gov.in
Pune is still missing I think. So it would be better to do
Purchase of Franking Code SOS Mumbai only.
REPLY
Shridhar In Reply to Adi Daruwalla 10 months ago
Ok. Thanks a lot !
REPLY
Kevin Shah 1 year ago
What should be there written in Department Tax Id and i am not able to select in article code anything
as i am following dot to dot procedure and what is the amount to lled for stamp duty of shares and i
letter what is to be written in letter document amount,franking amount please anyone how has made
the procedure till now
REPLY
Adi Daruwalla In Reply to Kevin Shah 1 year ago
Your query Tax ID leave blank. document amount is the amount you want franked, and
same for franking amount. If you have one document then total no of document 1 and
same total. if you have more than one document; say 2 then please put the total of both
the documents.
REPLY
Chirag J Panjwani 1 year ago
Hi, my uncle holds physical sgare certi cate of few blue chip companies. The problem is when he
purchased the shares many years back that time he did not transferred share certi cate to his name
and he just having transfer deed form signed by seller along with certi cates, the problem is its like
that transfer deed is expired and my broker asked me to nd the seller adress from registrar adress
and ask him to sign a new transfer deed form... what should my uncle do now please suggest. my email
id is chirag_dec09@yahoo.co.in.
REPLY
Vedprakash Nadkarni 1 year ago
if the shares are high value then best thing to do is to open a demat account and demat shares in same
name combination ...
REPLY
Vedprakash Nadkarni 1 year ago
if the shares are high value then best thing to do is to open a demat account and demat shares in same
name combination ...
REPLY
Davidson D 1 year ago
In point no 1 by Mr. Adil Daruwala, it has been mentioned that send the share transfer form (SH-4)
duly stamped. Should it be sent to the Company or Registrar or can it be given given directly to DP for
demat purposes?
REPLY
amit 1 year ago
Hi,
My father bought shares in my name when i was young using my rstname and surname. My pan card
uses my middle name as well ( rstname middlename surname).
How can i get these shares demat.? Please advice.
REPLY
CS RAO 2 years ago
is there any deadline/last date for dematerialisation of physical share certi cates ?
what is the procedure for name correction in physical share certi cate?
REPLY
arun adalja In Reply to CS RAO 1 year ago
there is nodeadline but you cannot sell physical shares in market so it is your dead
investment and it is dead money.
REPLY
Adi Daruwalla In Reply to CS RAO 2 years ago
As of now there is no set deadline for conversion from physical shares to demat. It is
voluntary, but with the digital era advancing in India it is advantageous to hold shares in
electronic form for the future. Name correction can be done via a transfer and
submitting the proof like PAN, passport etc. If there was an error while printing and
sending show the RTA or the company the xerox of the old transfer that you have
submitted and ask them how they will do it??

REPLY
riaz peerbhoyrr 2 years ago
I have 700 physcal shares of Morepen Lab in my daughters name who does not have a demat a/c. I
want to get it transferred in my a/c for which I need to submit share transfer form duly stamped to the
Co.I am n mumbai so where do I frank the form. Does any bank does franking.Should the transfer form
be kept blank or lled in and signed.Is there any other alternative besides franking.?
REPLY
Adi Daruwalla In Reply to riaz peerbhoyrr 2 years ago
You can get this done at The Additional Collector Stamps
General Stamp Of ce Fort
Mumbai 23 near Town Hall. Also please read the whole write up for this process. Thanks
REPLY
Shridhar 2 years ago
Hi,
I was nally able to submit the share transfer request successfully thanks to this article.
Thanks a lot for giving such an in-depth information.
I have a couple of queries though.
My transfer application has been rejected with two Objections :
1) The share certi cate has been stamped as 'Surrendered for Dematerialization'. Please renew the
Share certi cate.
2)The share transfer form SH-4 contains corrections for buyer's address. Please get the corrections
authenticated.
Although I had submitted the certi cate for DMAT, I cancelled the procedure and the certi cate is
back with me.
The questions I have regarding the objections are :
1) How do I apply for share certi cate renewal? Any separate form? What documents are required ?
2)How exactly do I get the correction authenticated? Does the buyer simply need to sign besides the
correction? Or Do I need to do any kind of attestation ?
Thanks,
Shridhar.
REPLY
arun adalja In Reply to Shridhar 2 years ago
anyway physical shares creating problems as it is done after lapse of time.for renewal
you have to ask transfer agent or company they will tell you what is to be
done.sometimes if face value is changes then company will issue new certi cates.for any
corrections in transfer form buyer has to sign at the corrected place.you cannot submit
share certi cates to dp if it is not your name.pl.clarify people are ready to help you.
REPLY
Adi Daruwalla In Reply to Shridhar 2 years ago
This query should be raised with your Demat Bank or entity, or with your broker. What I
understand is that you tried to originally submit the shares for demat in your account.
Presuming that the demat failed you tried to transfer without getting a rematted
physical certi cate in your name???? from what i have stated the stamped certi cate
"surrendered for dematerilaization cannot be sold in physical form unless rematted with
the issuing company. Clean certi cate without the surrenderedfor demat stamp. These
facts were not included in your original query ????
REPLY
Shridhar Mandke In Reply to Adi Daruwalla 2 years ago
Thanks for reply guys and sorry if I was not clear earlier !
Ok..so here it goes...
1) The share certi cate I have is of correct face value and is valid. So, no issues there.
Also, I have told buyer to sign at the corrected place...Thanks !
2)Previously, I had submitted the share certi cate for DMAT. But for some reason, the
DMAT request was rejected by DP. Now, because of that, the certi cate is back with me
but the DP stamp of "Surrendered for DMAT" is there on certi cate.
I did not know that I cannot transfer physical shares with stamped certi cate. This is the
exact reason the registrar rejected my request.
So according to your suggestion, I contacted the registrar and they told me to write an
application signed by transferor requesting renewed certi cate.
I will be doing that now..but that's what it takes ? Only an application ? No documents
required ?
Thanks,
Shridhar.
REPLY
Adi Daruwalla In Reply to Shridhar Mandke 2 years ago
Please write when the process is completed. Because along with the application you will
need to give the old certi cate also.
REPLY
Vedprakash Nadkarni In Reply to Shridhar Mandke 1 year ago
Get an ALL STAMPS CANCELLED stamped on all certi cates by the dp who had been
given shares for demat ....then followup with the RNT agent of the company to see if that
is suf cient then submit for transfer
REPLY
M.H. Suryanarayana 2 years ago
Thanks for the info. in detail.
Please clairfy on the instruction # 10.
Moneylife Investing Investor Interest How to get physical shares transferred and converted into
demat
How to get physical shares transferred and converted into demat
M.h. Suryanarayana
Adi Daruwalla
Shridhar
Arun Adalja
Shridhar
65 comments
+ COMMENT
Moneylife Digital Team | 28/01/2015 06:49 PM |
physical shares, BSE, NSE, demat, NSDL, stock exchanges, DP, SEBI
Some people are holding shares not transferred in their name and dont know how to go about the
transfer. Here is the procedure
Corrected: As per Companies(Share Capital & Debentures) Rules, 2014, form 7B has been replaced
with form SH-4
UPDATE: Updated to include additional information provided by NSDL's Rajesh Doshi on demat and
bank names that provide franking facility
Several people are still left with shares in physical format. If these are transferred in their name, they
can continue to hold them and get them dematerialised anytime they want to. What about those who
are holding shares not yet transferred in their names? One cannot sell these shares in physical forms
through stock exchanges, unless it is dematerialized. Several readers of Moneylife, said they wanted to
transfer physical shares jointly held. But they dont know the way out.
Asking National Securities Depository Ltd (NSDL) is of no help. You will get a standard reply like this:
"Shareholders can dematerialise physical shares in their own name. As such, transfers of physical
shares are outside the purview of depository system. There is also no trading in physical shares on the
stock exchanges and hence they can only be transferred in private deals. The recommended course of
action for investors holding physical shares is to dematerialise them. Transfer of demat shares is also
exempt from stamp duty."
When we asked around, one member of Moneylife Foundation, Adil Daruwalla turned out to be
helpful on how get the franking done. We made our own enquiries. Here is the procedure to transfer
shares in physical form...
1. Send the share certi cates along with the Share Transfer Deed (Form SH-4 available with stock
exchange and brokers) duly lled in, executed and af xed with appropriate share transfer stamps
(available with authorised stamp vendors) at 0.25% of the market value (of the scrip) on the date of
execution of the transfer deed. Self certi ed copy of the PAN Card of the transferee(s) needs to be
submitted along with the instrument(s) of transfer and Stamp duty has to be af xed.
Since 1 July 2002, Maharashtra government has banned sale and use of share transfer stamps and
mandated franking for such deeds. This facility was available at Bank of India branch in BSE building.
However, since December 2014, this facility has been closed. Franking now happens at Town Hall
General Stamp of ce only or other central of ces of collectorate of stamp fees within Maharashtra
State, through online registration or without online registration. The process can be found at
https://gras.mahakosh.gov.in.
a. For paying the stamp duty without registration, you can use your online bank account. Here are the
steps involved in the process...
I. Select Pay without registration
II. Select Department as Inspector General of registration
III. In payment type, select Non Judicial Stamps
IV. Select the appropriate location in District
V. In of ce name, select General Stamp Of ce Mumbai
VI. In Scheme Name, select 'Purchase of franking code SOS Mumbai only'
VII. Select year as 2014 - 2015
VIII. In Article Code, select One time Adhoc
IX. Fill in the Amount
What is the info to be provided against this item. Please clarify.
REPLY
Adi Daruwalla In Reply to M.H. Suryanarayana 2 years ago
The person who is making the E-payment,from his concerned bank account, it can be the
person in whose names the shares are being transferred to. i.e. the Transferee.
It can also be a chartered account or a registered consultant who is doing transfer work
authorized by you on your behalf.
REPLY
M.H. Suryanarayana In Reply to Adi Daruwalla 2 years ago
Thank you
MHSuryanarayana
REPLY
M.H. Suryanarayana 2 years ago
WHo is this payee? Please clarify.
REPLY
Vikas Bachani In Reply to M.H. Suryanarayana 2 months ago
My father in law passed away leaving 500 sharez in unclaimed suspense account..i am
his daughter how do i get the physucal shre then demt and that too in my name..pleasse
advice
REPLY
Hi,
As I said, I will be coming to Mumbai next week for share transfers. However, I am a bit confused about
when to go to Stamp of ce. I read the queries on article, but got lost in some technicalities. Please
Help..
For e.g. My plan is to make online stamp duty payment on say 18th June after getting rates after
3.30pm. Then on 19th June, I'll come to Mumbai, go to stamp of ce and submit transfer form for
franking between 10.30am to 1.30pm.
After franking, I wish to submit the form to company registrar in Mumbai itself on the same day (19th).
Is it possible on the same day? Or this will require another day ?
The comment says that collection happens on next day after submitting for franking. What is
collection date ?
I Would really appreciate if you can explain this a bit more as I was planning for only a single day stay
in Mumbai.
Thanks.
REPLY
Like it says collection is next day.
Between 3-4.30pm. Next day is 20th Saturday, as per your requirement being 3rd Sat if
the month govt of ce should be open but whether it is a full day or not you will need to
check. Avoid Sat for collection if possible. Thanks
REPLY
Shridhar In Reply to Shridhar 2 years ago
Hi,
Can you please give information for the above ?
Thanks.
REPLY
Ok.Thanks a lot !!
REPLY
I am based in Pune and will be travelling to Mumbai next week to get my shares transferred.
I want to know that which District and Of ce name should I select on the GRAS website. Should it be
Mumbai only or should I select Pune and some Of ce name in Pune ?

I will be using Online payment mode.
Please guide me on this...
REPLY
Please follow the steps as indicated and select Mumbai, if you are going to The Genral
Stamp of ce in Mumbai. Youe epayment I assume will be at your banks Pune Branch.
Read the update queries that have followed the publication of this article. Thanks
REPLY
Vedprakash Nadkarni In Reply to Adi Daruwalla 1 year ago
i think u can get it done in pune .. gust go to the collectors of ce in ur area and check rst
before u do the epayment
REPLY
MOHAN SIROYA 2 years ago
Senior citizens, especially the ailing and semi-literate females who are holding shares in physical form
encounter a Himalayan problem FIRST in getting the Duplicate share certi cate issued if the original
paper is misplaced or lost, then the question will arise of converting in Demat ,which is relatively a
very easy procedure if one is already having a Demat a/c either with NSDL or CDSL.
One bed ridden senior citizen housewife recently discovered that she holds 100 EQ shares of Nirlon
Ltd. but could not nd he certi cate to dematerialize. A query was made to the Registrars and Transfer
Agents who furnished a long list of requirements which she is unable to ful l as under:
i)Since her signature has undergone change due to passage of time ' FRESH SIGNATURE ON THE
LEETER HEAD OF THE BANK, duly attested by the Bank Manager, with name, Authorization code
telephone no. and account number of the Investor.
ii)Original o Attested copy of FIR led with police for such loss of certi cate with details of the shares
lost serial nos. date of loss etc.
iii)INDEMNITY BOND AND AFFIDAVIT ON STAMP PAPERS OF RS. 200 & 100 RESPECTIVELY, DULY
NOTORIZED OR SIGNED BY THE MAGISTRATE.
Now while it is possible for her to submit latest signature duly attested by the bank; she is unable to
ful l other Uncalled for requirements.
AS far as Stamp Paper Af davit, Bond are concerned, our Prime Minister Modi, time and again
mentioned that this is no more necessary but a simple SELF ATTESTED document will suf ce. Now
who can prohibit the system or the Corporate companies not to insist on such STAMP PAPER SIGNED
Documents ?
Can any learned person or the Moneylife Foundation Help Resource team can suggest what is the
solution ?
REPLY
Vedprakash Nadkarni In Reply to MOHAN SIROYA 1 year ago
Sad situation especially if u have a paltry amt of shares and costs sometimes exceed
share price ,,,
She will have to submit pan / adhaar to company and at least get an af davit for
correction of name and address and loss of shares
Ask the company if a single af davit will do esp if value of shares is below 50000 and if
they can waive off the indemnity part as the company has powers to relax rules if
justi ed
REPLY
arun adalja In Reply to MOHAN SIROYA 2 years ago
no doubt it is a real problem but as per company law one has to follow this procedure
and some brokerage houses are doing such things and they charge for each service and
one can reduce the head ache.
REPLY
Adi Daruwalla In Reply to MOHAN SIROYA 2 years ago
This is associated with loss of original shares and does not come under the purview of
transfer as mentioned in this article. Thanks
REPLY
YOGESH NERKAR 2 years ago
Town Hall General Stamp of ce is executing the franking upto Rs 5000/- only.
Whats is the process for payment stamp duty above Rs 5,000/-
Please Guide
Regards
Yogesh A Nerkar
REPLY
Mike Smith 2 years ago
Just wanted to add that if you are opting for "Payment Across Bank Counter (Cash/Cheque)", you have
to pay Rs 300 minimum. No such restriction with Net Banking.
REPLY
Adi Daruwalla In Reply to Mike Smith 2 years ago
Thank you Mike.
REPLY
Jagdish Motwani 2 years ago
Very Useful Article. Thanks
REPLY
murlidar 2 years ago
Are there any additional charges to be included in the amount to be paid online to the bank for
franking share transfer form apart from the stamp duty @.25%? The article above shows two amounts
- franking amount and document amount.
REPLY
Adi Daruwalla In Reply to murlidar 2 years ago
There are no additional charges for amounts below Rs100/- But for other cases where
the share transfer stamp fee could upto Rs5000/- please check at the Collectorate
window for additional charges.
REPLY
murlidar In Reply to Adi Daruwalla 2 years ago
Extremely thankful for your early reply and information provide.
REPLY
Can we go to the stamp of ce the same day or next day after making online payment to get the share
transfer form franked with the generated MTR6? Or do we have to wait for a few days after making
the payment online
REPLY
The collection is the next day between 3.30 - 4.30pm. Please see notices at the stamp
of ce for latest updates by the Collectorate. Thanks
REPLY
Adi Daruwalla In Reply to Adi Daruwalla 2 years ago
After making the payment MTR6 franking preferably to be done on the same day and
collection the next day. You have to take a rate from the BSE for your shares, that rate
which you take on a particular date after 03.30pm becomes your execution date. e.g. you
take the rate of 02 Feb 2015. Calculate your stamp fee. Fill your form and submit it for
franking on 03 Feb 2015 between 10.30 to 1.30pm. The collection is on 04 Feb 2015
between 03.30pm - 04.30pm
REPLY
Thank you for the detailed information. Today I visited the stamp of ce at fort, Mumbai
and submitrted the application for franking. The clerk at the counter consulted his
senior and told me that an additional Rs.5/- court fee stamp is to be applied on the
application form. So I had to walk back to the High court and procure the court fee
stamp and then resubmit the share transfer form for franking. Thanks once again to you.
REPLY
I meant submission for franking after making online payment. Is there any speci c time?
Thanks for early response.
REPLY
ramchandran vishwanathan 2 years ago
For senior citizens where there is a signature mismatch its a huge task to get physical shares into
DEMAT form. I hope the senior citizens get some special service as the DP insists on physical visit of
the shareholder
REPLY
Adi Daruwalla In Reply to ramchandran vishwanathan 2 years ago
The DP is insisting on a single visit of the shareholder to prevent any type of fraudulent
demat. Sometimes there are 3 holders and order of names on certi cates and holding
pattern with DP there is a mismatch. DP supplies you a transposition form. So to avoid
any ambiguity or discrepancy in signature if your bank and DP are the same get the
signature veri ed by the bank manager once by presenting the Senior Citizen and
request him to verify the signature in the future too. (The problem is only if the Sr.
Citizen is a single holder.) The concern is more that is the Sr. Citizen alive or not.
REPLY
arun adalja In Reply to ramchandran vishwanathan 2 years ago
I think dp can verify the signature when you open the demat account but here company
will verify your signature when you purchased the shares so both are different issue.it is
better to verify the signature by bank manager which may cost you 50 to 100 rs.
REPLY
Adi Daruwalla In Reply to ramchandran vishwanathan 2 years ago
For senior citizens, the registrars and companies provide a facility for providing and
registering your signature with a medical term called senile degeneration. This they have
to do to avoid frauds. Please cooperate with the concerned departments of companies
or their reistrars.
REPLY
Adi Daruwalla 2 years ago
Comprehensive coverage of the physical share transfer process.
The banks as stated are doing all other documents except for share transfers.
REPLY
L N Das 2 years ago
It means who are in Mumbai can dematerialise their physical shares by using the procedure given by
moneylife.com. The persons who are outside Maharashtra would not be able to dematerialise their
physical shares. Please guide us.
Thanks
Das
REPLY
Adi Daruwalla In Reply to L N Das 2 years ago
The Collectorate of ce near Asiatic Library is able to process shares that are submitted
from within the Maharshtra State. As advised by the same of ce, please write to BSE
Bombay Stock Exchange for process in other states in India.
REPLY
Adi Daruwalla In Reply to L N Das 2 years ago
The same process is applicable for people outside of Maharashtra or Mumbai. Please go
to the site and select the region where you live and select the concerned general stamp
of ce near to you, from the drop down lists that appear. Apply the same process. Thanks
REPLY
arun adalja In Reply to L N Das 2 years ago
nowdays so many banks are doing franking and you can do it by paying money they will
frank the transfer deed.
REPLY
Adi Daruwalla In Reply to arun adalja 2 years ago
Most of the banks have stopped doing the franking of share transfers. Please check the
status as of current date. if you still feel that banks are doing the franking then please be
kind enough to share the name of the banks, and branch address. Thanks
REPLY
murlidar In Reply to arun adalja 2 years ago
When I went to Axis Bank franking facility in borivali, they said they are not allowed to
frank share transfer forms and only dallal street branch of BOI is allowed.
REPLY
BOI at Dalal Street has put a notice at the pass issuing desk itself at P J Towers that they
have stopped the process. Current Date.
Thanks
REPLY
Sunil,
Please clarify if the Bank of India at dalal street is presently still continuinf to frank the transfer forms
OR as mentioned in the article above it has been discontinued from december 2014 and we need to go
to stamp of ce at town hall.
REPLY
BOI at Dalal Street has put a notice at the pass issuing desk itself at P J Towers that they
have stopped the process. Current Date.
Please go to General Stamp of ce Town Hall.
Thanks
REPLY
FREE
abc@ab
MOHAN SIROYA 2 years ago
The digital team's effort in compiling the procedure for the physical shares to be transferred in one's
name is clear. But then, it does not solve the problem. Big question remains unanswered viz; how to
get those shares de-materialized if they are not listed. One may have many such shares, which are not
yet listed for various reasons. Problem is ,how to get SUCH unlisted physical shares dematerialized?
Yes, it may fetch some value but unof cially and not
thru' DPs or regular trading. Sucheta

Dalal
Can someone enlighten on this problem pl.?
Sucheta D
supporter
REPLY
Adi Daruwalla In Reply to MOHAN SIROYA 2 years ago
This helps you to get the shares in the names you want. If company is not converting
shares to demat then sometimes it is due to penal notice served to company or delisting
or not traded etc. Write to the company or check with your demat rm or bank why is it
that particular company you cannot convert the shares in demat format. Thanks
REPLY
arun adalja In Reply to MOHAN SIROYA 2 years ago
you are correct as dp will not accept unlisted shares for dematerilisation and nothing
can be done in this case.i have one such share which has come through restructuring of
company and they have not listed yet and I want to close my demat account but dp says
you cannot close and they are asking me to rematerlise the share and then only I can
close my demat account so I have to pay annual charges.any solution?
REPLY
Adi Daruwalla In Reply to arun adalja 2 years ago
Write to the company or check with your demat rm or bank why is it that particular
company you cannot convert the shares in demat format. Thanks
REPLY
Dhiraj Dave 2 years ago
The article mention about taking the printout of fees paid (GAR MTR6) to of ce. Can you please let us
know of ce address and whom shall it be deposited with for the franking?
REPLY
Adi Daruwalla In Reply to Dhiraj Dave 2 years ago
The address is as follows
The General Stamp Of ce
Next to Town Hall, (Asiatic Library) (Near Indian Red Cross Society)
Shahid Bhagatsingh Road
Opp Horniman Circle
Mumbai 400023.
Then please ask for the concerned window. Thanks
REPLY
Sunil 2 years ago
One clari cation. Bank of India located inside the Bombay Stock Exchange Building at Dalal Street
Franks share transfer deeds. All you need to do is pay them the necessary cash and they af x the
stamp duty on the Transfer Deed. No need to go to the Stamp Of ce and deal with the unwashed
masses. This is far simpler and pleasant
REPLY
murlidar In Reply to Sunil 2 years ago
Sunil,
Please clarify if the Bank of India at dalal street is presently still continuinf to frank the
transfer forms OR as mentioned in the article above it has been discontinued from
december 2014 and we need to go to stamp of ce at town hall.
REPLY
Sunil In Reply to Sunil 2 years ago
Sorry my mistake. This has since been stopped.
REPLY
Sushila Pursnani 2 years ago
This is a very tedious process and if the investment value is low it becomes impractical.
As a CSR initiative can the companies not initiate a investor connect program and resolve issue, this
will only help increase the free oat market cap.
REPLY
Sushila Pursnani In Reply to Sushila Pursnani 2 years ago
Apologies
It will increase the liquidity and not free oat
REPLY
Manohar Ramtri 2 years ago
From: V S
Sent: Wednesday, January 28, 2015 10:41 PM
To:
Subject: Re: How to get physical shares transferred and converted into demat
I believe this article must have been written more than 6 months ago.
As far as I know, Form 7-B has been replaced with Form SH4 (attached) 4-5 months back.
BUY
I used the new form recently for transfer of physical shares within the Sign Inweeks
family, three ago.Feedback
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Rules P
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REPLY
Sahara
Benam
arun adalja 2 years ago are not
pl clarify point no 5 important points to note if possible.for transfer you have to send share certi cate Custom
alongwith transfer form duly stamped to company or registrars. O ers
Nifty, S
REPLY Revers
report
Adi Daruwalla In Reply to arun adalja 2 years ago Mumba

attack
Yes correct, the share certi cates have to go to the company or registrar after the SH4
form is franked at the General Stamp of ce. Thanks 4th July

escalat
REPLY unfair b
Beware
RERA d
Sushila Pursnani In Reply to arun adalja 2 years ago
is auth
To be sent to the company assigned registrar
Is Trum
REPLY Push a
Care Vo
Ransom
Adi Daruwalla In Reply to Sushila Pursnani 2 years ago
new glo
Some companies have their share transfer departments in house still. All companies
have not appointed registrars. Thanks
REPLY

krishna 2 years ago
What happens to share certi cates of companies that are not active or delisted or defunct ?
Esp if there was any offer to buy back or a swap ?
REPLY
Adi Daruwalla In Reply to krishna 2 years ago
Get latest address of the company from BSE website. Write to the company regarding
your concern and get a reply from them. BSE website will show you the address to write
to. Or nd the latest address on your dividend advice or in the physical or web based
Annual General Report that you receive. Thanks
REPLY
Sushila Pursnani In Reply to krishna 2 years ago
Check with the registrar & transfer agent of the respective company
REPLY
Harish Shenoy Kateel 2 years ago
Major problem is share transfer agents harassing with replies like signature mismatch etc. Any
solution to this?
REPLY
Adi Daruwalla In Reply to Harish Shenoy Kateel 2 years ago
Get your signature attested by your nationalized bank manager. If you don't have
nationalized bank account then get it done by your private bank manager or your broker,
with their respective bank manager code or broker code. Then submit to company again
for nishing the process with your covering letter that you have now removed the
mismatch. Submit self signed PAN, AAdhar etc. Thanks
REPLY
DHAVAL RAMBHIA In Reply to Harish Shenoy Kateel 2 years ago
Get the new signature veri ed by ur bank manager.
REPLY
Adi Daruwalla In Reply to DHAVAL RAMBHIA 2 years ago
Get the new signature form lled for the Company, then get the new signature attested
by your nationalized bank manager. If you don't have nationalized bank account then get
it done by your private bank manager or registrar and then re lodge after the company
acknowledges that they have on record your new siagnature. Thanks
REPLY
I think form 7b is no more valid the new form is SH-4 which does not have validity and can be
downloaded and printed on green paper. Only execution date is to be put on SH-4 and validity is two
months from this date.
REPLY
Yes there is no more 7B, It is SH4
Thanks
REPLY
Economy & Nation
RIL, BP to invest around Rs6,000 crore to improve gas

recovery
28 January 2015
1
Gas output from D1 and D3 fields in KG-D6 block has fallen from about 54
mmscmd achieved in 2010-11 to just over 8 mmscmd

Reliance Industries Ltd and its partner BP Plc of UK will invest about Rs6,000
crore by 2016 to help sustain and improve recovery from the two main gas
fields in the eastern offshore KG-D6 block.

Also, the two companies are working to develop 3-4 trillion cubic feet of gas
discoveries off the east coast, BP India head Sashi Mukundan said at the India
Energy Congress on Wednesday.

He said the focus area was enhanced oil recovery as even a 1% enhancement
can add almost 8% to the existing proved reserves of India about 450 million
barrels of additional reserves.

The same goes in terms of how we can extract gas from tighter and difficult
reservoirs. Take the case of BP and RIL, an investment of Rs5,000 to Rs6,000
crore in the 2014-2016 timeframe is enabling deployment of world-leading
technologies for deep-water gas for the first time in India to sustain production
and improve recovery from the two existing fields, he said.

Gas output from Dhirubhai-1 and 3 (D1&D3) fields in KG-D6 block has fallen
from about 54 million standard cubic meters per day achieved in 2010-11 to
just over 8 mmscmd due to unexpected water and sand ingress shutting wells
after wells.

The block as well as NEC-25 off the Odisha has many discoveries which the two
firms are focussing on.

We have 3-4 tcf of discoveries in new fields that we are working to develop in
the next several years, he said.

He said the government needs to support and unshackle industry to attract
players to participate in this very capital intensive and risky business.

The government, he said, needs to play a key role as an enabler, and provide
flexibility and space for participants to work at scale and build competitiveness.

Globally, this is an industry which is used to assuming large risks including
market risk and managing without any Government support, he said while
calling for an enabling policy and regulatory environment including the
freedom to market and price, with minimum intervention.

In fact, it is well appreciated that the government assumes zero risk but
benefits through taxes, royalty and profit share, in addition to the economic and
developmental benefits to the nation, he said.

Indias energy consumption is rising faster than any other nation
hydrocarbon needs are expected to rise by 120% to more than 1,100 million
tonnes of oil equivalent by 2035.

The country needs to choose its options and align its energy mix wisely, he
said, adding the Indian oil and gas sector is rich with opportunity and can
attract many potential takers.

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COMMENTS
Roni Mollick 5 months ago
Dear Sir,
My father has expired few years ago. He had several blue chip shares in physical mode in joint mode (in
his & my mother's name). However the spelling of surname is wrong for both of them .
Please advise us how to dmat those shares in my mother's favour.
REPLY
Economy & Nation
Fadnavis orders probe into goof-up in Obama dinner invite

28 January 2015
1
The invitation to the dinner, hosted by Rashtrapati Bhavan for the US President,
had been delivered at Delhis Maharashtra Sadan on 17th January, but was not
forwarded to Fadnavis in time

Maharashtra Chief Minister Devendra Fadnavis, who missed a dinner date with
US President Barack Obama, on Wednesday said he will look into reasons
behind the invite not reaching him in time, though it was received at
Maharashtra Sadan in Delhi over a week before the event.

The invitation was received on 17th January. The official concerned sent it to
Mumbai by speed post, Fadnavis told reporters in Mumbai.

The resident commissioner at Delhi has been asked to send a detailed report.
Action will be taken as per rules, he said.

The invitation to the dinner, which was hosted by Rashtrapati Bhavan for the
US President, had been delivered at Delhis Maharashtra Sadan on 17th
January, but was not forwarded to Fadnavis in time.

The Chief Minister and his wife Amruta Fadnavis were among the dignitaries
present at the high tea hosted for US President Barack Obama and his wife
Michelle at Rashtrapati Bhawan on Sunday.

Amruta was later quoted as saying: I told Michelle Obama I have always
admired her. I follow her activities and efforts towards social causes and how
she is a role model for women worldwide.

She said that she will always cherish these proud moments of greeting
President Obama and his wife.

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COMMENTS
Suketu Shah 2 years ago
Politics by govt babus who work for Congress still who have to be thrown out of their jobs.
REPLY
Investor Interest
Investor Interest
Vanishing companies and the unending ght of investors to

recover money
Virendra Jain
12 January 2015
31
More than 3,000 listed companies have disappeared over the years. Even after a
massive exercise and expenses, by the executive, Parliament and High Court's
order, investors continue to be in a lurch

Over the last two decades, hundreds of companies that have vanished after
picking up hundreds of crores of rupees from investors. And despite, direction
from High Court some 15 years back, none of the investors have received a
single penny. Hearing a public interest litigation (PIL), the Allahabad High
Court had also directed the central government to set up a joint co-ordination
and monitoring committee (CMC) to identify companies, which had
disappeared after raising money from public issues and recover money from
them.

Later, the Joint Parliamentary Committee (JPC) also took up this issue and in its
report to the Parliament in 2002, recommended: What the Committee are
seriously concerned is about how the investors may get their money back from
the vanishing companies. The Committee urge that Securities and Exchange
Board of India (SEBI), the (then) Department of Corporate Affairs (MCA),
Company Law Board (CLB) and Reserve Bank of India (RBI) should work
seriously towards achieving this objective and take all necessary steps, including
attachment of properties of directors of vanishing companies.

The Allahabad HC order approved that the CMC would settle the policy issues
regarding the delinquent companies/ promoters and would monitor the
progress in regard to the action. The Secretary, DCA (now Ministry of Corporate
Affairs) and Chairman of SEBI would be the co-chairman of the CMC and senior
officials of DCA and SEBI would be other members.

Seven Task Forces, comprising of Regional Director/ Registrars of Companies

(ROC), SEBI and stock exchange officials, would assist the CMC and identify
companies which have disappeared or which have mis-utilised the funds
mobilised from the public and suggest appropriate action in terms of the
Companies Act and SEBI Act after necessary investigations.

Formed in 1999, the CMC identified 238 vanishing companies: 229 by March
2001 and another nine in 2007. All 238 companies initial public offerings
(IPOs) were issued during 1992 to 1999.

The JPCs attention was drawn on vanishing companies by Midas Touch during
its deposition. In its report submitted to the Parliament in 2002, JPC stated:

14.28 Pointing out that investors have lost confidence due to the happenings in
the last decade in the stock market, a representative of Midas Touch Investors
Association (Virendra Jain) cited the case of vanishing companies and said:

In the years immediately after liberalization, 1.5 crore new investors, small
investors as we call them, came into the market between 1992 and 1996
through IPOs. They were duped. At that time Rs86,000 crore were raised in
four years through public issues and right issues by four thousand odd
companies. Most of these 1.5 crore investors who came in for the first time in
the stock market were duped Till date 229 companies (only) have been
identified by the Government appointed monitoring committee, as having made
public issues and disappeared. No one has been arrested and no money has
been recovered. There has not been even an action plan as to how to recover
that money.

JPC report further stated:
11.42 The Committee note that the action by SEBI and DCA has enabled the
tracing of 160 out of 229 companies which were earlier treated as vanished.
There are still 69 companies, which remain untraced.

Since then, the issue of vanishing companies has been raised during the
Question Hour of Lok Sabha and Rajya Sabha over 150 times. The data given
in the replies has virtually been the same!

(On Midas Touch request, it was raised for the first time on 20 December 1996
in the Lok Sabha question no. 4432 by Capt. Jagat Vir Singh Drona, MP from
Kanpur:
"The number of companies, which made their public issue in 1992 and onwards
and are not traceable?" The minister replied that the information is being
collected and shall be submitted in due course.)

The latest written replies to un-starred question (no.415) in Lok Sabha on 11
July 2014 by Nirmala Sitharaman, the Minister of State for Finance and
Corporate Affairs and to un-starred question (no.1741) in Rajya Sabha on 9
December 2014 by Arun Jaitley, Minister of Corporate Affairs were identical.
As per practice of last 12 years, the data of vanishing companies given to
Parliament is same: Companies Identified initially: 229 & 238 (since 2007) &
Vanishing: 69 and 78(since 2007). The replies were:

(a) A total of 238 companies which had raised funds through Public issues were
initially identified as vanishing companies as they had stopped filing
documents/ balance sheets with the regulators and were untraceable. Out of
these, 128 companies were removed from this category and placed under a
watch list, as these companies had started filing their documents/ balance
sheets, etc. In addition, 32 companies are presently under liquidation. Thus, as
on date, there are 78 companies, which remain in the list of vanishing
companies.

Besides the question hour, vanishing companies issue was on the agenda of
Parliamentary Standing Committee on Finance for over 10 years and discussed
at length in their meetings. The CMC and Task Forces cumulatively have
conducted over 150 meetings between 1999 and 2013.

Further, Midas Touch had submitted three lists totalling 913 companies for
inclusion in vanishing companies list after examination: 161 companies in
2012, 604 and 148 companies in earlier lists, which the CMC in its minutes of
meetings, held in 2006 and 2007, stated that over 50 companies have been
identified for inclusion and rest are under examination. However, we never got
any response and none of the company added subsequently in the list. We
estimate that over three thousand listed companies have disappeared.

Then why, at the end of the day, after such a massive exercise and expenses, by
the executive, parliament and High Courts order does CMC have so little to
show? In terms of (a) number of vanishing companies identified and (b)
recovery of money siphoned off and return to its shareholders?

Firstly, CMC and Task Forces constitutes, with few exceptions, of those whose
failure - to monitor listed companies and enforce law- enabled predatory
promoters companies to vanish. The Allahabad High Court trust in CMC was
misplaced. Supreme Court has followed different principle-entrusting the probe
to Central Bureau of Investigation (CBI) and or Special Investigation Team
(SIT)- in recent scams and it has yielded results e.g. In Saradha scam, arrests of
those suspected of aiding, abetting and sharing the booty with scamsters and
recovery of money looted has begun.

Second, in a democracy, it is the Parliaments, and not Judiciaries, prerogative
and constitutional obligation to keep an oversight over the executive.

Oversight of the executive is one of the important function entrusted to
Parliament under the Indian Constitution. This enables the Parliament to hold
government accountable and prevent unconstitutional policies and action on
part of the government.
To carry out this task effectively, Parliament has two crucial instruments at its
disposal viz. (a) Questions and Debates in the Parliament and (b)
Parliamentary Committees which can scrutinise government policies and
action.

However, answers given, in the question hour, and, discussions on

Parliamentary Committees, on vanishing companies- spread over last twelve
years- has exposed the fundamental shortcomings of system and processes
adopted for parliamentary oversight of the executive. Resultantly, it has made
Parliament largely dysfunctional on this score.
Wide-ranging reforms are required for an effective parliamentary oversight
(which may be dealt in next article). These include, but the suggestions are not
limited to:

Reforming Question Hour processes: Apprising the concerned MP, in advance,
of the
background of the issue raised and answers given, if any, in last two years of the
question raised.

Parliamentary Committee meetings: Be open to public; Institutional
mechanism be evolved for public and NGOs participation along with concerned
officials/executive.

Introducing oversight on Regulators: Presently, regulators are not directly
accountable to the parliament. Mechanism for transparent oversight of
regulators should be prescribed for institutionalising all stakeholders
participation.

(Virendra Jainis Founder & President of Midas Touch Investors Association and
had filed a litigation on the Rs1 lakh crore loss to investors on account of
suspended companies and has also intervened in the PIL against SEBIs consent
orders which let off law breakers with a small fine)

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COMMENTS
Dipakkumar J Shah 2 years ago
As far as I understand, No association works for public at all. Kirit Somaya also had been approached
many years bacn but no body did so far.
This reminds me a CERC in Ahmedabad . WHo had been given one case of Amin Auti , Bajaj Dealer .
Who was delivering the scooters without paying octroi to the persons residing in side city limit!!!!.
Those who claiming actual living out side octroi limit were charged Octroi!!! It was intimated to Bajaj
AUto also no action so far for all these years.Gandhian Culture of Bajaj Faminly???!!!!I was told by
Amin Auto to take Ocroi charges for me only. The others in que were of more than 50000 persons and
amount inlacs of rupees???
I did not compromise the case . Finally summoned up and dismissed by Consumer Forum!!!!
Shah D J
REPLY
Sucheta Dalal In Reply to Dipakkumar J Shah 2 years ago
Associations can guide you, but most do not have the money to ght your battle.
Also, the middle class does not donate, so "associations" cannot get any stronger or
more resourceful.
We do tell people how not to lose money -- and those are FREE seminars. But guess
what, only a tiny percentage of people want to attend and learn how to avoid mistakes.
Otherwise we should have a few lakh members!!
I would suggest you check out http://foundation.moneylife.in and look at event videos under
EVENTS
REPLY
Hemant In Reply to Sucheta Dalal 2 years ago
Here i would suggest to charge,nobody cares, once their problem resoles.People should
realize that they should be ready to pay if they want service.
REPLY
Dipakkumar J Shah In Reply to Hemant 2 years ago
Charity is charity. Mr Krit Somaiya should be intimated about all information of idle
company and , defaulter in ling accounts, Companies Under Liquidation should be
available on web of MCA. All and every thing should be Good Governance Minimum
Governance by M C A and all of ces. Web complaint shoiuld be transparent. Web
Complaint page automatically expires and do not respond to properly.!!! God knows
their Intentions of MC A , Score etc.
REPLY
Dipakkumar J Shah In Reply to Sucheta Dalal 2 years ago
Thanks for reply. But facts behind should also be seen.
When the matter comes up should be taken in spirit for all the persons truely and
sincerely in true spirit the object for which Organization working for only.
Shah D J
REPLY
Sucheta Dalal In Reply to Dipakkumar J Shah 2 years ago
The object usually is to guide people on how to ght for their rights. That is done, clearly
and comprehensively.
REPLY
shanti Patel 2 years ago
Dear Readers,
Please comforward and give us the details of such companies to us at the of ce of the Bombay
Shareholders Association, 3rd Floor, Bhupen Chambers,Near Bombay Stock Exchange, Near Union
Bank Main Building. Fort, Mumbai-400001
We will take up the matter with the appropriate authorities.
S.K.PATEL
Co-Secretary-Bombay Shareholders Association
Mobile-9892485457
REPLY
Dipakkumar J Shah In Reply to shanti Patel 2 years ago
I have asked the question are you the same S K Patel who was living in Syndicate Bank
Building 4th Floor>?? Fort Mumbai?
Shah D J
REPLY
shanti Patel In Reply to Dipakkumar J Shah 2 years ago
No Mr. Shah
REPLY
shanti Patel In Reply to shanti Patel 2 years ago
No Mr. SHAH
REPLY
Dipakkumar J Shah In Reply to shanti Patel 2 years ago
1. The Baroda Crystal Glass Works Limited at Vadodara. For last more than 72 years no
communication to shareholders after Private Issue of shares!!!
2> Poddar Projects Limited .
Many Companies are there.
3. Mittal Steel Limited at Bangalore.
5 Bengal Steel and Iron Limited .
Many more.
List of Under Liquidation process not known.!!!??
Companies are working silently but no communication to SHareholder.
Under Transfer of Property Act, every transfer has to be documented. But many
Companies without taking share certi cate duly transferred the shares to one
company??? Hon . High Court and Supreme Court No Voice ??? Granted the same
without transfer of shares as it should be!!!!
What isn the provisions of Law?
Mr Patel , r u the same who was in Syndicate Bank Building or other?
Shah D J
REPLY
Dipakkumar J Shah In Reply to Dipakkumar J Shah 2 years ago
There are thousand of companies silent and working for bad use of funds of Public Issue
money. They may be delisted companies. Who cares for . !!!!
REPLY
Vaibhav Dhoka 2 years ago
Vanishing companies problem is spreading fast and it only panics investors.But there are many
companies that they are not vanished but there is no rm action on for their failure.failure. Neesa
Leisure is one such company.The investigation and regulatory action should be as in USA,time bound
and action oriented.
REPLY
Dipakkumar J Shah In Reply to Vaibhav Dhoka 2 years ago
This also reminds me of one case . Ludhiana Company L W S Kintwear Limited . Who
declared and paid the dividend . Issued TDS Certi cates . But not actula paid the
Dividend amount at all to all shareholders. R O C For years together were not taking any
action for more than 10 years. You know the purpose behind it..... After complaining and
complaining for all these years to all departments, after 10 years I got the reply that the
matter has been taken up for criminal prosecution !!! Then I asked that for all these
years why were you silent over this ?? No reply.
Shah D J
REPLY
Dipakkumar J Shah In Reply to Vaibhav Dhoka 2 years ago
It is all about Corruption in SEBI and M C A , Registrar of Companies. Modiji can not take
action of GOOD GOVERNANCE!!! It is just to say. Nothing more. SEBI , M C A , Are they
Prepares some Rules to control,!!!???? but for what? To call them to their of ce and to
give them hefty amount. What is the meaning of GOOD GOVERNANCE!!!!
REPLY
shanti Patel In Reply to Dipakkumar J Shah 2 years ago
Dear Mr.D.J.Shah,
Please give us full list of all the companies. We shall do whatever is possible including a
meeting with Mr.Kirit Somaya, M.P.
Regards,
Yours Sincerely,
S.K.PATEL
9892485457
Co-Secretary of Bombay Shareholders Association
REPLY
Bhagywant Daphale 2 years ago
Wow, in name of law, SEBI gives notices, many a times these notices work only against the interest of
general investors, give notice, spread panic and then company is screwed up so is the public money, in
odisha in name of law so many companies were closed down before even the investigation but how
about investors?? PACL was close down in name of law, I guess company was never in default but now
agents, customers are on street, people lost the employment, investors lot their money, people who
put up hard work for years to take company to top level are facing jail time, for whom all this shit
happened??? If it is for public, can SEBI or government pay public and then recover it from company???
REPLY
MDT In Reply to Bhagywant Daphale 2 years ago
Thanks for your comment.
At Moneylife, we warn people that money invested in any company for 'double return' in
shortest time or in corporate FDs, is unsecured and not 100% safe. We tell 'investors' to
look at credit ratings and only invest in AAA rated companies and not be greedy for 1%
or 2% more or fall prey for quick, double money schemes by ponzi or chain money
operators.
Any entity, be it a company as you like to call it, or an individual, who collects money
from 'investors' with a promise to give extraordinary returns (in any form) needs to
obtain proper registration and other permissions from regulators like SEBI and RBI.
Do you know, all MLMs and ponzi schemes work on geometric expansion? For instance
one gets ten sponsor to sponsor another ten and so on. The fraudsters call it expanding
matrix (!) that gives corresponding kick-backs at various levels. The problem with
pyramid schemes is simple math and common sense. At a mere three levels deep, there
would be 1,000 people, while at six levels deep there would be 10 lakh people believing
that they can make a 'fortune' and 'achieve a dream' by mere selling.
Moneylife Foundation has also been repeatedly writing to the RBI to act against MLM
companies, because they cannot possibly transfer pro ts out of India without
permission from the banking regulator. Over the past ve of its existence, Moneylife
Foundation has conducted over 200 nancial literacy seminars. Each of our core literacy
modules warns investors against investing in multi-level marketing schemes which offer
extraordinary returns linked to the enrollment of more members.
And if you, yourself is not careful about 'investing' your hard earned money, why should
anyone be blamed? Have you ever asked, SEBI or RBI or any publishing house before
putting your hard earned money in the company to get quick and double returns? Then
why blame regulators and media? Remember, media, like Moneylife, is just a messenger,
in the sense it has not ordered the company to shut its business, it is the job of
regulators, the adjudicating authority.
Hope people like you would be more careful next time while 'investing' your hard earned
money for receiving extraordinary return without checks with the regulators.
Thanks again
Regards,
MDT
REPLY
Who is to hear PIL. I have received a reply from Supreme Court that I should le PIL . But the Fact is
that per Law Hon. Justice Supreme Court can consider the POst Card or letter as a Petition? WHo
dare to ???!! No?. Reply I have received. Even if you say where total ignorance of Law totally , ignored
by R O C, O L, M C A and all MCA Of ces for 20 years. Never reported in last 140 years all over the
world!!! A case of Dividend paid out of capital, from publis issue moeny, and mere book entry of pro t.
Why they do not take any action? Because their Pockets are being lled...
See the nal Judgment given by Justice Mr Mohit Shah in the Company Petition 17 of 1996 of Gujarat
High Court. You can know how the ow is owing? Final wordings used , blunt and more.
God save us.Good Governance and all.
Shah D J
REPLY
Shah D J
REPLY
Shah D J
REPLY
manoharlalsharma 2 years ago
At least u can LOCK the assets of the VANISHING coes.,and AUCTION it when market upps.But it is
found that coes., r selling the assets openly getting money and sleeping Government agencies
REPLY
u k saluja 2 years ago
Wonderful article by Shri V.Jain. It is really the need of the hour. Huge number of companies vanishing
in India after duping small investors. Recent cases of Avon Corpn.Ltd. and Micro Technologies India
Ltd., Mumbai are the recent examples where small FD holders and others have been duped of huge
sums. Many article written in Moneylife, representations made to MCA, Liquidators, CLB,
Reg.Directors, Deptt. of Company Affairs and others have not brought any response what to talk to
getting back the money from such unscruplous promoters of such companies. People are the helm of
affairs should rise to the occasion and protect the interest of the small investors and get back their
hard-earned money from such companies. Thanks.
REPLY
Dipakkumar J Shah In Reply to u k saluja 2 years ago
For FDR I led a Petition U/s 58 to Company Law Board Northern Region against Jindal
Steel Power Co Limited. A Naveen Jindal Company. For more than 6 years no reply or
order. When some one of my representative visit the of ce of CLB Norther Region they
are threatened ??? No details are available>>>> Commerce Graduates are taught
Liquidators Accounts. But in fact No such accounts are sent to Shareholders as in the
case of Company Working and sending regularly.!! Comment.
Shah D J
REPLY
V K JAIN 2 years ago
In response to Shri Parimal Shah comments:
You are absolutely right. In our view also, only a PIL in Supreme Court can put enough pressure and
produce results, IF entrusted to SIT.
We/Midas Touch would provide all the information it can, in such an endeavour, if earnestly
undertaken by any one of you.
Virendra Jain
REPLY
shanti Patel In Reply to V K JAIN 2 years ago
Dear Mr.Jain,
We all investors are thankful to you for the work you are doing.
As fa as vanishing companies are concern, nothing concrete has been done. I know few
such companies. I know a MILKMAN have oated a company, collected crores and today
moving in Merc.,staying in a posh locality and childerns are studying abroad!
Now insteed of VANISHING companies, a new trend is seen. A company makes a public
issue at a hafty premium say at Rs.100 and slowly and slowly the prize of share goes
down because it starts making losses and ultimately it reaches Rs.2. I feel SEBI should
order Forensic Audit in all such cases where the prices have gone down by 70 to 90
percent. Above all these, nancial literacy is MUST for all the investors in which MONEY
LIFE is doing great work.
Please send me your mobile no./email id.
My Mobile no.9892485457
Email Id; SKPATEL55555@gmail.com
Shanti Patel
Co-Secretary-Bombay Shareholers Assodication.
Chartered Accountant
REPLY
Veeresh Malik 2 years ago
Thank you for this article. Much appreciated.
In this context, I led a PG which is still "under process", as follows.
Registration Number : CBOEC/E/2014/00908
Name Of Complainant : Veeresh Malik
Date of Receipt : 30 Jun 2014
Received by : Central Board of Excise and Customs
Of cer name : Smt. Hemambika R. Priya
Of cer Designation : CommissionerCoordination
Contact Address : D/o Revenue, Room No. 245-C,
North Block, CBEC
New Delhi110001
Contact Number : 23092038
e-mail : cpgrams-cbec@nic.in
Grievance Description : There are 16 Stock Exchanges in India where over 9000 companies are said to
be listed and over 4500 of these companies are said to have defaulted on abiding by listing terms,
though some of them are said to be paying the annual listing fees to keep their status alive. The
grievance here is that service tax is in some cases reportedly being charged and collected, being
charged and not collected, and in some cases it is not being charged and or collected. Since it is likely
that the 14 Regional Stock Exchanges which have huge reserves will soon be shut down or absorbed
by BSE/NSE, my grievance is that service tax dues from these regional stock exchanges as well as
BSE/NSE on listing fees need to be quanti ed and collected well before this take-over by BSE/NSE
takes place so that there is no loss to Consolidated Fund of India."
Readers are welcome to and invited to le paralel PGs / RTIs and escalate to PMO also if possible to
ask about fate of this PG also.
Thank you MoneyLife!!
REPLY
Parimal Shah 2 years ago
Why can we not have a PIL in the supreme court requesting constitution of SIT in view of the non-
performance and squandering away public money on unproductive investigations over lastalost 20
years?
-Parimal
REPLY
Dipakkumar J Shah In Reply to Parimal Shah 2 years ago
The ow for 20 years is full developed by....................
You name , it is booked from all angles!!!!We can not expect such things from such
bodies whose business is to impart Justice!!!!!
REPLY
Dipakkumar J Shah In Reply to Parimal Shah 2 years ago
The case I have referred below is reported to Hon. Supreme Court of India by e mail. The
issue is different. Debit of ATM Charges issue free of cost on a contract signed by
Depositor. But without taking Signature of depositors a fresh, by way of giving
advertisement in all India News Papers in general started debiting ATM Charges Rs 50
and now more. My PIL in High Court of Gujarat on record is pending ,but by order said
dismissed. Worth to be noted . Special Civil Application Number 7736 of 2006. Please
have a look ........
REPLY
The lsit you may be refering of recent Public Issues. Let me take you to one company named The
Baroda Crystal Glass Works Limited , well back in 1940...
So far no communications sent by the company to shareholders so far???? One complaint is lodged
with R O C many times . But nothing. Even further to this there is a one case reported to R O C a case
of dividend paid illegal , out of capital. For more than 20 years. Such case never reported in world over
in last 140 years. But nothing has happened or in process!!!!! What king of strict compliance of Law is
expected from Supervising and Law Compliance Authority? Every R O C has gained out of the
Complaint sent by me to R O C!!!!! What could be I do not have any knowledge. Many silent
companies are being handled by professionals internally for their own purpose ?? No accounts are
sent to shareholders no notice is also sent to shareholders , no communication!!!
REPLY
Investor Interest
What are Bonus Debentures?

CA. Simardeep Singh
26 December 2014
0
Bonus Debentures were first issued by Hindustan Lever Ltd. way back in 2001,
and since then only six other companies have issued bonus debentures, the
latest being NTPC. What are these instruments?

The Board of Directors of National Thermal Power Corporation (NTPC) Ltd. at
its meeting held on December 23, 2014, has approved a Scheme of
Arrangement for the issuance of secured fully paid-up bonus debentures of face
value of Rs12.50 each against every equity share of Rs10. In a first by a Public
Sector Undertaking, NTPC has proposed to reward its shareholders through an

innovative way of issuing bonus debentures. However, this innovative reward is
seldom used by Indian companies. Bonus Debentures were first proposed to be
issued by Hindustan Lever Ltd. way back in 2001, and since then only six other
companies have issued bonus debentures. What are bonus debentures?

As the name suggests, a bonus debenture denotes a debenture issued as a bonus
to the eligible shareholders, that will entail a certain interest payment on
periodical basis and will be redeemable after a fixed duration as may be
decided by the company. Accordingly, an issue of bonus debentures turns
accumulated free reserves into debt for the company.

Bonus Debentures v/s Dividend: While approval of dividend results in
immediate cash outflow to the company, issue of bonus debentures defers the
same.

Bonus Debentures v/s Bonus Shares: Issue of bonus shares does not alter the
net worth of the company, whereas issue of bonus debentures results in
decrease in equity and a corresponding increase in debt. This results in increase
in the debt equity ratio of the company. Further, bonus shares do not involve
any cash outlay. But bonus debentures involve outflows in the form of dividend
distribution tax, periodical interest and outflow towards redemption of bonus
debentures.

How does it impact Shareholders? As said above, issue of bonus debentures
does not result in immediate receipt of cash by the shareholder. However, since
these bonus debentures are generally listed on recognized stock exchanges,
shareholders can sell these in secondary market. Going by the latest issued
bonus debentures by Blue Dart Express Ltd. with coupon rate of 9.50% p.a. and
redeemable after 5 years, it is being traded at Rs10.20 at BSE as against face
value of Rs10. Hence, the shareholder would be able to pocket another gain of
Rs0.20 per debenture by selling it in secondary market.

Further, since the issue of bonus debentures is treated as deemed dividend

under the Income Tax Act, 1961, the company has to pay Dividend Distribution
Tax on the face value of the debentures issued. Accordingly, the shareholder
does not have to pay any further tax on the face value of debentures issued to
him. However, the annual interest receipt and capital gain on sale of debentures
(over and above the face value) shall be taxable in the hands of the
shareholders.

Why is not Popular? Despite all the inherent advantages of bonus debentures
for the shareholder as well as the company, it is not a popular instrument. This
is due to the fact that the issue of bonus debentures is not expressly covered
under provisions of the Companies Act, 1956 or the Companies Act, 2013.
Bonus debentures are therefore issued as a scheme of the arrangement under
Section 391 to Section 394 of the Companies Act 1956 which involves
procuring approvals of shareholders, High Court, Reserve Bank etc. Hence, the
use of this way to reward shareholders gets discouraged due to lengthy and
time consuming procedures.

Having come this far, it is really hoped that Companies Act also captures this
innovative financial instrument soon and makes the process simpler for the
companies. Till then, lets celebrate the issue of bonus debentures by NTPC. Any
bonus is a good bonus, after all!

User
Submit
Investor Interest
Investor Interest
SBI launches economic index

10 December 2014
0
The short-term report, to be released in the first week of every month by SBI,
will forecast the state of the economy two months down the line

The State Bank of India will use its loan book to give indicators on the domestic
manufacturing activity from January 2015.

The SBI Composite Index will have both monthly and yearly indices. The short-
term report, to be released in the first week of every month, will forecast the
state of the economy two months down the line. The annual index will make
year-on-year forward predictions.

Economic forecasts published by British lender HSBC, with global business
survey compiler Markit, are the HSBC India Services Purchasing Managers
Index (PMI), HSBC India Manufacturing PMI and the Markit India Business
Outlook.

Soumya Kanti Ghosh, chief economic advisor at SBIs economic research
department, said that SBIs figures are not intended to rival HSBCs numbers.
However, during the eight years of back-testing (2007-2014), the SBI index
accurately predicted economic direction 72% of the time while the PMI had a
50% strike rate.

The SBI will also use public data on industrial production, international trade,
commodity prices and current and futures prices in the stock markets to
forecast possible expansion or contraction of the economy.

To represent the manufacturing sector, SBI will use the monthly Index of
Industrial Production data rather than GDP figures, which are released ever
quarter. The SBI index is built to be conservative yet robust in its forecast.

The HSBC manufacturing index is based on data compiled from replies to
questionnaires sent out to purchasing executives in around 500 manufacturing
companies, covering factors such as new orders, purchases, output and delivery
time. Like the HSBC indices, the SBI index is built on a scale of 0 to 100, with a
number above 50 indicating growth over the corresponding pervious period and
a number below 50 suggesting contraction.

Arundhati Bhattacharya, chairperson and managing director, SBI, said that the
index
will take into account the credit demand and other indicators of economic
activity like consumer spending, mining activity, interest rates, inflation,
exchange rate and other thematic indices and service and manufacturing
activities.
User
Submit

Demonetisation India

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7/4/2017 Fadnavis orders probe into goof-up in Obama dinner invite

How to get physical shares transferred and converted into

IV. Select the appropriate location in District

Alert me when a new comment is posted

LALIT SHAH 2 months ago

card. How he can sell shares without pan card

yash koolwal 7 months ago

it will be transfer to the wrong mention client id kindly guide me

Adi Daruwalla In Reply to yash koolwal 7 months ago

copies of everything you surrender.

Adi Daruwalla In Reply to yash koolwal 7 months ago

copies of everything you surrender.

devendrabhatt 10 months ago

Adi Daruwalla In Reply to devendrabhatt 10 months ago

case or Company Secretary/Secretarial department of the said company. Also depends

devendrabhatt In Reply to Adi Daruwalla 10 months ago

THANK YOU VERY MUCH SIR.....

Shridhar 10 months ago

without any problem ! Thank you so much.

I have a question though.

I have another physical share certi cate which I want to transfer.

I am based in Pune and this particular company's registrar is also in Pune.

need to go to Mumbai's General Stamp Of ce and perform the procedure ?

for rest of Maharashtra ?

Thanks and Regards,

Adi Daruwalla In Reply to Shridhar 10 months ago

Please visit the web site https://gras.mahakosh.gov.in

Pune is still missing I think. So it would be better to do

Purchase of Franking Code SOS Mumbai only.

Shridhar In Reply to Adi Daruwalla 10 months ago

Ok. Thanks a lot !

Kevin Shah 1 year ago

the procedure till now

Adi Daruwalla In Reply to Kevin Shah 1 year ago

Chirag J Panjwani 1 year ago

Vedprakash Nadkarni 1 year ago

name combination ...

Vedprakash Nadkarni 1 year ago

name combination ...

Davidson D 1 year ago

amit 1 year ago

uses my middle name as well ( rstname middlename surname).

How can i get these shares demat.? Please advice.

CS RAO 2 years ago

arun adalja In Reply to CS RAO 1 year ago

investment and it is dead money.

Adi Daruwalla In Reply to CS RAO 2 years ago

submitted and ask them how they will do it??

riaz peerbhoyrr 2 years ago

Adi Daruwalla In Reply to riaz peerbhoyrr 2 years ago

You can get this done at The Additional Collector Stamps

General Stamp Of ce Fort

Shridhar 2 years ago

Thanks a lot for giving such an in-depth information.

I have a couple of queries though.

My transfer application has been rejected with two Objections :

Share certi cate.

back with me.

The questions I have regarding the objections are :

correction? Or Do I need to do any kind of attestation ?

arun adalja In Reply to Shridhar 2 years ago

Adi Daruwalla In Reply to Shridhar 2 years ago

facts were not included in your original query ????