Is it advisable to inform loss of share certificate to company /registrar or simply ignore and continue getting dividend ,rights ,bonus and expect if split take place automatically the share will come without the need to surrender the original share certificate. I m asking this because once you inform about loss of certificate your folio no get blocked till you complete the formalities which are too tedious and some time very difficult for a small investor to comply…like 2 sureties of high net worth person for infinite time period and some time even bank guarantee .
Hi @sabkaview,
It is advisable to inform the RTA that you have lost the share certificates and would need them to be re-issued. When you inform the RTA that you’ve lost the share certificates, they would block the folio number for any kind of transfer.
If any corporate actions (Right issue/Bonus) takes place, the company RTA issues physical share certificates to that effect. In case of a split, the company RTA will issue the new share certificates with the new face value for quantities held under the folio number.
The possibility of misusing share certificates is little since there are checks in place if there is any transfer or dematerialization done. RTA requires seller’s attention more than the buyer’s as they require only ID and address proofs of the buyers.
There is another option called as “Stop Share transfer” which will stop any action being taken against the folio. (Including Dividend, split shares, share transfer and Dematerialization). This is if you are really concerned about your physical shares.
The process of getting the duplicate share certificates will take 25-30 working days (depends upon the RTA). This may seem tedious and time-consuming but this would be the best way forward.
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based on my personal experience i can say that once you inform in writing about loss of share certificate the folio no is blocked thus stopping all corporate action till you complete the formalities of duplicate share certificate. i am still pursuing the formalities for a friend for 2 companies and it is over one year of continues documentation with few visits by him to the local office of registrar (in 1 case where it is available ) even after submission of documents like police complaint ,affidavit , agree to bear cost of paper advertisement, indemnity bond 2 sureties with net worth certified by CA the duplicate share certificate is yet to come. in one case however the issue appear to have settled recently as the company has asked for a demand draft of rs 2000 for paper advertisement which have been dispatched this week only but in another case the registrar is asking for bank guarantee for 10 years . both the registrar’s are very popular and known .
based on above experience i gather that it is advisable not to inform the company about loss of share certificate and wait for split to take place .