I’m not sure why I see many companies regularly informing exchange about the loss of share certificates. I assume this should be an important asset. Is there any other conclusion to why this message more often?
Example everywhere once in a while:
XYZ Limited has informed the Exchange about Loss of share certificates
Just like how we lodge FIR if we lose anything valuable (gold, purse etc) , If share certificates are lost, we have to lodge an FIR and inform the company about the same as there is a risk of lost shares being sold to someone.
Once, we inform the same to the company, the company shall stop the share transfer and request the shareholders to comply with the formalities for issue of duplicate share certificate.
Once, that is done company issues fresh duplicate shares to the concerned investors after posting the same in newspaper and exchanges. that is done to make sure that nobody objects to the fresh issue. (there is a possibility that someone may say those shares are mine etc)
The question is: seeing this message is transmitted so often - could there be more to it ?
SEBI just simplified the procedure.
There is no need to file FIR and issue advertisement in newspaper if value on date of submission of application is less than 5 lacs.
The problem is most people do not even remember how many shares they bought or what it’s value was, when purchased xx years ago. They just vaguely remember that they once purchased shares of y company.
I came across a situation where, Mr.A who bought shares 30 - 40 years ago, does not even remember he owns shares of y company, but the person who brought the stock broker to Mr.A’s house clearly remembers, Mr.A actually had purchased significant number of y company shares that time.
Well, if you lost something precious, you would file a complaint, correct? Similarly, they ask for information to prevent someone else from using the stocks in a haphazard manner.