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FAQ's

dematerialization/ rematerialisation of shares

What is Dematerialization of shares?

Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities (i.e. shares, bonds etc.) in electronic form and credited into the investor's demat account maintained by him with his Depository Participant (DP).

Why Dematerialization of shares and what are the advantages of holding securities in dematerialized form?

SEBI has notified various companies whose shares shall be traded in demat form only. By virtue of such notification, the shares of the Company are also subject to compulsory trading in demat form on the Stock Exchanges. According to the Depositories Act, 1996, an investor has the option to hold securities either in physical or electronic form. Part of holding can be in physical form and part in demat form. However, SEBI has notified that settlement of market trades in listed securities should take place only in the demat mode.

Following are the benefits of Dematerialization of shares:
- Convenient mode of holding shares, especially if you are holding shares of many companies;
- Immediate transfer of securities;
- No stamp duty is payable on transfer of shares;
- Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.;
- Reduction in paper work involved in transfer of securities;
- Reduction in transaction cost;
- No odd lot problem, even one share can be traded;
- Nomination facility;
- Saving of time – Change in address / bank account particulars etc. recorded with DP gets registered electronically with all companies in which the investor holds securities. Thus eliminating the need to correspond with each of the companies separately. Further, transmission of securities (in the event of death of the shareholder) is done by the DP, eliminating the need to correspond with all companies and following different procedures laid by them;
- Facilitates direct credit of shares in case of allotment under IPO, Rights, Bonus, Split etc. and direct credit of dividend to shareholders designated account.
- Holding investments in equity and debt instruments in a single account.

How can a shareholder dematerialize his / her share certificate(s)?

- Open a Beneficiary Account with a DP registered with SEBI and with any one of the Depositories i.e., NSDL or CDSL.
- Submit the Dematerialization Request Form (DRF) as given by DP duly filled in and signed by all the shareholders, along with share certificate(s) and requisite 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 handing over the share certificate(s).
- On receipt of DRF as above, DP will generate a Dematerialization Request Number (DRN) and the said DRN is electronically transmitted to the Company / Registrar and Transfer Agent (RTA) through the concerned Depository.
- Simultaneously, DP will send the physical certificate(s) with the original DRF to the Company/RTA for verification and confirmation.
- The Company/RTA, on receipt of DRF and share certificate(s) as above, will process the said request and if the DRF is found to be in order {viz. verification of signature and certificate(s)}, will electronically confirm the said request.
- The DP on receipt of such confirmation, will update the demat account of the investor.
- As per regulations in force presently, the dematerialization process should be completed within 21 days from the date of receipt of demat request at RTA.

How to get dividend on dematerialized shares? Will such shareholders be eligible for receiving Annual Report every year and also to attend General Meetings?

Dividend of shareholders holding shares in dematerialized form will be credited through Electronic Mode to the bank accounts as opted by them while opening the Beneficiary Accounts with the DP. In other cases, dividend warrants will be dispatched to them with the bank account details, as furnished by the Depositories, printed thereon.

Holding shares in dematerialized form will not affect the rights of the Shareholders. They, as members of the Company, will be entitled to receive Annual Report, attend General Meetings and participate and vote there at to the extent of their entitlement.

Is pledge of dematerialized shares possible?

Yes. Shares held in dematerialized form can be pledged as security for the purpose of availing loan/credit facility from a bank or as collateral for availing finance from other financial institutions, subject to complying with the terms and conditions prescribed by the DP.

What is rematerialisation of shares?

Yes. Shares held in dematerialized form can be pledged as security for the purpose of availing loan/credit facility from a bank or as collateral for availing finance from other financial institutions, subject to complying with the terms and conditions prescribed by the DP.

What is the procedure for rematerialisation of shares?

- Shareholder should submit duly filled in Rematerialisation Request Form (RRF) to the concerned DP.
- DP intimates the relevant Depository of the request through the system.
- DP submits RRF to the Company's RTA.
- Depository confirms rematerialisation request to the Company's RTA.
- The Company's RTA updates accounts and prints share certificate(s) and informs the Depository.
- Depository updates the Beneficiary Account of the shareholder by deleting the shares so rematerialized.
- Share certificate(s) is despatched to the shareholder by RTA within 30 days from the date of receipt of RRF.

Whom should a shareholder inform change in address, bank account details etc. in respect of shares held in demat form?

Since shareholders demat account is maintained by their DP, all request/communication regarding change in address, bank account details, ECS mandate, registration of nomination etc. should be addressed by the shareholders to the DP directly.

To whom should shareholder contact in case of non-receipt of dividend, bonus etc.?

Shareholder in such case need to contact the RTA of the Company, quoting their beneficiary account number (i.e. Client ID) and DP ID.

To whom should a non-resident Indian shareholder should inform about change of his residential status?

Non-resident Indian shareholders are requested to inform about the following to the Company or its RTA (in case of shares held in physical form) or the concerned Depository Participant (in case of shares held in dematerialized form) , as the case may be, immediately of:

a) The change in the residential status on return to India for permanent settlement
b) The particulars of the NRE Account with a Bank in India, if not furnished earlier

What is the procedure for transfer of shares?

Transferee(s) need to send share certificate(s) along with share transfer deed in the prescribed Form SH4, duly filled in, executed and affixed with share transfer stamps along with self attested copies of PAN card(s) of all buyers and sellers to the Company's RTA. The statutory time limit fixed for completing a transfer is 15 days from the date of receipt of request for transfer under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and one month under the Companies Act, 2013.

What is the stamp duty payable on transfer of shares?

As per Article 62(a) of Schedule 1 of Indian Stamp Act, 1899, currently stamp duty is payable @ 0.25% of total consideration viz. being the market value of the shares as traded on the date of execution of transfer.

Is Permanent Account Number for transfer of shares in physical form mandatory?

SEBI vide its Circular MRD/DoP/ Cir-05/2009, dated May 20, 2009 and Schedule VII: Transfer of Securities (See Regulation 40(7) and 61(4)) has clarified that for securities market transactions and off-market / private transactions involving transfer of shares in physical form of listed companies, it shall be mandatory for the transferee(s) and transferor(s) to furnish copy of PAN card to the Company/ its RTA for registration of such transfer of shares.

What should transferee do if share certificate is returned with objections?

Transferee needs to immediately proceed to get the errors/ discrepancies corrected. Transferee needs to contact the transferor (seller) either directly or through his broker for rectification or replacement with good securities. After rectification or replacement of the securities the same can be resubmitted for effecting transfer. In case the errors are non rectifiable, purchaser has recourse to the seller and his broker through the Stock Exchange to get back his money. However, in case of off-market transactions, matter should be settled with the seller only.

What is the procedure for conversion of single holding into joint holdings or joint holdings into single holding?

Conversion of single holding into joint holdings or joint holdings into single holding leads to a change in the pattern of ownership, and therefore, procedure for a normal transfer as mentioned above needs to be followed.

How to get shares registered which are received by way of gift? Does it attract stamp duty?

The procedure for registration of shares gifted (held in physical form) is same as the procedure for a normal transfer. The stamp duty payable for registration of gifted shares would be @ 25 paise for every Rs. 100 or part thereof, of the face value or the market value of the shares prevailing as on the date of the document, if any, conveying the gift or the date of execution of the transfer deed, whichever is higher. The procedure for registration of shares gifted (held in demat form) is the same as the procedure for transfer of shares in demat form in off-market mode. Transfer of shares as gift in the demat from does not attract any stamp duty.

What is the procedure for getting shares in the name of surviving shareholder(s), in the event of death of one of joint shareholder?

The surviving shareholder(s) will have to submit a request letter supported by an attested copy of the death certificate of the deceased shareholder and accompanied by the relevant share certificate(s). The Company's RTA, on receipt of the said documents and after due scrutiny, will delete the name of the deceased shareholder from its records and return the share certificate(s) to the surviving shareholder(s) with necessary endorsement.

Can a shareholder delete his name from a part of his shareholding under a folio?

No. Deletion of name has to be done for the entire shareholding under a folio.

After deletion of name, as above, can a shareholder add another name?

Addition of name tantamount to transfer of share. It can be done by following the procedure laid for transfer of shares.

In case of a deceased shareholder who held shares in his / her own name (single) and had left a Will, how do the legal heir (s) get the shares transmitted in their name(s)?

The legal heir(s) should obtain a Succession Certificate or Letter of Administration with respect to the shares and send a true copy of the same, duly attested, along with a request letter, transmission form, and the share certificate(s) in original, to the Company's RTA for transmission of the shares in his / their name(s).

What is the procedure for transposition i.e. Change in order of names?

Share certificates along with a request letter duly signed by all the joint holders together with self attested PAN of all the holders may be sent to the Company's RTA for change in order of names, known as 'transposition'. Transposition can be done only for the entire holdings under a folio. For shares held in demat form, investors are advised to approach their DP concerned for transposition of the shares.

What is the procedure for obtaining duplicate share certificate(s) in case of loss / misplacement of original share certificate(s)?

Shareholders who have lost / misplaced share certificate(s) should inform the Company's RTA, immediately about loss of share certificate(s), quoting their folio number and details of share certificate(s), if available. The RTA shall immediately mark a 'stop transfer' on the folio to prevent any further transfer of shares covered by the lost share certificate(s). It is recommended that the shareholders should lodge a FIR with the police regarding loss of share certificate(s). They should send their request for duplicate share certificate(s) to the Company's RTA and submit documents as required by the RTA.

What a shareholder should do in case he find the original share certificate(s) reported as lost/ misplaced?

Shareholder shall return the original share certificate(s) to RTA of the Company for cancellation.

What is the procedure for replacement of share certificate(s) in lieu of torn, defaced or mutilated share certificate(s)?

Shareholder shall submit his / her application in writing to Company's RTA, duly signed by all the shareholders, requesting for replacement of share certificate(s), enclosing therein the torn, defaced or mutilated share certificate(s).

What is the procedure for splitting of a share certificate into smaller lots?

Shareholders may write to the Company's RTA enclosing the relevant share certificate for splitting into smaller lots. The share certificates, after splitting, will be sent by the Company's RTA to the shareholders at their registered address.

What is the procedure to get the certificates issued in various denominations consolidated into a single certificate?

Consolidation of share certificates helps in saving costs in the event of dematerializing shares and also provides convenience in holding the shares physically. Shareholders having certificates in various denominations under the same folio should send all the certificates to the Company's RTA for consolidation of all the shares into a single certificate. If the shares are not under the same folio but have the same order of names, the shareholder should write to the Company's RTA for the prescribed form for consolidation of folios.

What is the procedure to get change of address registered in the Company's records?

Shareholders holding shares in physical form, may send a request letter, duly signed by all the holders, giving the new address along with Pin Code, to the Company's RTA. Shareholders are also requested to quote their folio number and furnish proof such as attested copies of PAN Card / Aadhar Card / Passport / Latest Electricity or Telephone Bill / Lease Agreement etc. If shares are held in dematerialized form, information about change in address needs to be sent to the DP concerned.

Whether a shareholder’s Power of Attorney (POA) submit an application to effect a change in his address?

Yes, if the POA has been registered with the Company and if such POA contains a provision authorizing him to instruct companies to record change in shareholders address. In case the POA has not been registered, POA holder is required to submit a certified true copy of the POA along with his application for effecting change in shareholders address.

What is the procedure for registering change of name of shareholders?

Shareholders may request the Company's RTA for effecting change of name in the share certificate(s) and records of the Company. Original share certificate(s) along with the supporting documents like marriage certificate, court order / Gazette Notification, copy of self attested PAN Card should be enclosed. The Company's RTA, after verification, will effect the change of name and send the share certificate(s) in the new name of the shareholders. Shareholders holding shares in demat form, may request the concerned DP in the format prescribed by DP.

What is the procedure for authorizing any other person to deal with the shares of the Company?

Shareholders need to execute a Power of Attorney in favour of the concerned person and submit a notarized copy of the same to the Company's RTA. After scrutiny of the documents, the RTA shall register the Power of Attorney and inform the shareholders concerned about the registration number of the same. Whenever a transaction is done by the Power of Attorney holder, this registration number should be quoted in the communication.

nomination facility

What is nomination facility?

Nomination refers to the act of nominating a person in whom the shares would vest in the event of unfortunate death of the nominator (shareholder).

What are its advantages?

Notwithstanding anything contained in any other law or any testamentary deposition or otherwise, in respect of the shares, where a nomination has been made in accordance with the provisions of Companies Act, on the death of the shareholder, (or in case of joint holdings, on the death of all the joint holders), the Nominee shall become entitled to the rights in relation to such shares held by the deceased shareholder(s), to the exclusion of all other persons unless the nomination is revoked. This facility is mainly useful for individuals holding shares in sole name.

How a shareholder can make a nomination with regard to his physical shareholding?

Shareholder shall submit Nomination Form in duplicate, duly filled and signed by all the shareholders. Shareholders can nominate three nominees per folio by giving the percentage of their holding to each nominee. However if the shareholder(s) hold more than one folio; but in different order of names or hold in joint names in more than one folio in different combination of names, then they can appoint different nominees under each folio. On receipt of the request for registration of nomination, the RTA will register the same by allotting a registration number. The duplicate copy of the nomination form will be returned to the shareholder(s) indicating the registration number and the date of registration of nomination.

How does the Nomination for shares held in dematerialized form work?

In case the shares are held in dematerialized form, the nomination has to be recorded by the DP, who is maintaining the demat account. Once the nominee details are updated in shareholders demat account, the individual will be nominee for all the shares available in shareholders demat account. There is no need to separately inform each company of the demat account nominee.

Can a shareholder nominate a person for a part of his shareholding?

No. The nomination should be made for the entire shareholding under a folio.

Who can appoint a nominee and who can be appointed as a nominee?

Individual shareholders holding the shares / debentures in single name or joint names can appoint a nominee. While an individual can be appointed as a nominee, a trust, society, body corporate, partnership firm, karta of HUF or a power of attorney holder will not be nominee(s). Minors can, however, be appointed as a nominee.

Is the nomination form required to be witnessed?

Yes, a nomination form must be witnessed by two witnesses

Are the joint holders deemed to be nominees to the shares?

Joint holders are not nominees; they are joint holders of the relevant shares having joint rights on the same. In the event of death of any one of the joint holders, the surviving joint holder(s) of the shares is / are the only person(s) recognized under law as holder(s) of the shares. Surviving Joint holder(s) may appoint a nominee.

Can a nomination made be changed? What is the effect of nomination upon transfer of shares?

Yes. A nomination once made can be revoked by making a fresh nomination. In case joint shareholders have made a nomination, and one of them expires, the surviving shareholder(s) can make a fresh nomination. Further, upon transfer of shares, the nomination stands automatically rescinded.

What is the procedure for transfer of shares in favor of the Nominee?

Upon death of the shareholder or the joint holders, as the case may be, the Nominee would be required to furnish the following documents in addition to any other documents as may be required by the RTA for the purposes of identification:
- Duly executed transmission Form;
- Certified true copy of death certificate of the shareholder;
- Proof of date of birth of the Nominee, in case the Nominee is a minor
- Declaration by the Nominee confirming his rights
- The original share certificate(s).

RTA, on being satisfied about the identity of the Nominee, will request the Nominee elect to either register himself as a shareholder or to transfer the shares. The Nominee is then required to issue a notice of his election. However, if the Nominee elects to be registered as a shareholder, he shall send a notice to RTA in writing, stating that he so elects.

What is the effect on the nomination in the event of death of one of the joint holder?

In the event of death of one of the joint holder, the shares get transmitted in the name of the surviving holder. The death of one of the joint holder does not rescind the nomination, as the Nominee will have title to the shares only after the death of all the joint holders. However, as stated earlier, the surviving shareholder(s) can make a fresh nomination.

In case of death of the shareholders, what is the legal position of the nominee?

In case of shares held by sole holder, upon the death of the shareholder, the nominee, to the exclusion of any other legal heir/beneficiary, is the only person in whom the shares vest. In other words, in case of a valid nomination, the Company will not entertain any claim from legal heirs or beneficiaries and the shares will be transmitted only in favour of the Nominee. In case the nomination is made by joint-holders, it will come into play only upon the death of all the joint holders. Therefore, if one of the joint shareholders dies, the shares will devolve on the surviving shareholders to the exclusion of the nominee. In this case, the surviving shareholders may make a fresh nomination if they so desire.

What is the effect of nomination when a shareholder dies leaving a minor nominee?

In terms of Sub-Section (4) of Section 72 of the Companies Act, 2013, if the Nominee is a minor, it shall be lawful for the holder of the shares to nominate in the prescribed manner any person to become entitled to shares in the event of his death during the minority of the Nominee. A perusal of the prescribed Form SH 13 reveals that in case of a minor Nominee, a person is required to be named as a guardian to whom the shares shall vest in the event of death of the shareholder during minority of Nominee. On attaining majority, the Nominee is required to send a notice of his decision to either become a shareholder or to transfer the shares.

What happens if the Nominee dies before the Shareholder?

If a nominee dies before the shareholder, the nomination automatically gets cancelled until and unless the shareholder furnishes fresh nomination form to the company. In such an event the company transmits the shares in favour of the legal heirs or the holder(s) of the succession certificate. Thus the heirs of the nominee are not entitled to the shares if the nominee has predeceased the shareholder.

What rights are conferred on the nominee and how can he exercise the same?

The nominee is entitled to all the rights of the deceased shareholder to the exclusion of all other persons. In the event of death of the shareholder, all the rights of the shareholder shall vest in the nominee. The nominee is required to apply to the Company by reporting the death of the nominator along with the death certificate.
The nominee has an option to decide to register himself as a shareholder or he could send an application to have the shares transferred to any other person to whom the nominator could have otherwise transferred the shares. If the nominee opts to transfer the shares to a third party, he should submit to the Company's RTA the transfer deed(s) duly stamped and executed accompanied by the relevant certificate(s) and other documentary proof(s).
If shares are held in dematerialized form, nomination has to be registered with the concerned DP directly, as per the format prescribed by the DP

What is the procedure for getting physical shares in the name of legal heir(s) in the event of death of the sole shareholder without nomination?

The following documents needs to be submitted by the legal heir(s):
- Duly signed transmission request form; - Original or Copy of death certificate duly attested by a Notary Public or by a Gazetted Officer; - Self-attested copy of PAN card (Copy of PAN card may be substituted with ID proof in case of residents of Sikkim after collecting address proof) - Additional documents:
a. Affidavit from all the legal heirs made on appropriate non judicial stamp paper – to the effect of identification and claim of legal ownership to the securities. Provided that in case the legal heir(s)/claimant(s) is named in the succession certificate or probate of will or will or letter of administration, an affidavit from such legal heir/claimant(s) alone would be sufficient. b) For value of securities up to Rs. 2,00,000 (Rupees Two lakh only) per issuer company as on date of application, one or more of the following documents: i. Succession certificate or probate of will or will or letter of administration or court decree, as may be applicable in terms of Indian Succession Act, 1925. ii. In the absence of the documents as mentioned at (i) above
b. A No objection certificate [NOC] from all legal heir(s) executed by all the legal heirs of the deceased holder not objecting to such transmission (or) copy of Family Settlement Deed duly notarized, and
c. An Indemnity bond made on appropriate non judicial stamp paper – indemnifying the STA/ Issuer Company. c) For value of securities more than Rs. 2,00,000 (Rupees Two lakh only) per issuer company as on the date of application:
d. Succession certificate or probate of will or will or letter of administration or court decree, as may be applicable in terms of Indian Succession Act, 1925.

What is the procedure for getting demat shares in the name of legal heir(s) in the event of death of the sole beneficial owner without nomination?

If the value of shares of the Company as on the date of application is up to Rs. 5,00,000, the legal heir(s) should submit the following documents to the DP:
- Notarized copy of the death certificate
- Transmission Request Form(TRF),
- Affidavit – to the effect of the claim of legal ownership to the shares,
- Deed of indemnity – Indemnifying the depository and Depository
- Participants (DP),
- NOC from legal heir(s), if applicable, or family settlement deed duly executed by all legal heirs of the deceased beneficial owner. If the value of shares of the Company as on the date of application is more than Rs. 5,00,000, the legal heir(s) should additionally submit one of the following documents to the DP:
- Surety form
- Succession certificate
- Probated will
- Letter of Administration

dividend

What are the ways of payment of dividend?

Dividend is paid either electronically or physically. Broadly following are the ways by which dividend is paid:
- National Automated Clearing House (NACH) - National Electronic Fund Transfer (NEFT) - Direct Credit to shareholders’ account by bank - Physical despatch of Dividend Warrant

What is NACH

National Automated Clearing House (NACH) is a centralized clearing system launched by the National Payments Corporation of India (NPCI). It is a centralized, web-based clearing service that can ease the work of banks, financial institutions, the government and corporates by consolidating all regional ECS systems into one national payment system, thereby removing any geographical barriers in efficient banking. The various facilities offered by NACH include standardization and digitization of mandates, overall simplification, reduction of operational cost, and minimization of activation time. It comes in two variants – ECS Credit and ECS Debit. The significant benefits to bank customers include automatic debits from their account for bill payments (telephone, electricity, etc), loan installments, insurance premiums and more.

There are four types of electronic clearing services:
- Local ECS
- Regional ECS
- National ECS
- NACH

While the Local ECS, Regional ECS, National ECS are controlled by the Reserve Bank of India or by the designated commercial banks, NACH functions on all India platforms managed by the National Payments Corporation of India (NPCI).

How NACH is different from NEFT or RTGS?

The NACH is different from NEFT or RTGS fund transfer because in case of NACH a person is not required to give a separate mandate for every transaction. A single mandate works for multiple transactions.

How does NACH operate for payment of dividend?

NACH operates on the principle of single debit to the sponsor bank’s account and multiple credits to different destination banks’ accounts.

It provides investors an option to collect dividend / interest directly through their bank accounts rather than receiving the same through post. Under this option, investor's bank account is directly credited and an advice thereof is issued by the Company after the transaction is effected. The concerned bank branch credits investor's account and indicate the credit entry in his / her pass book / statement of account. If any investor maintains more than one bank account, payment can be received at any one of his / her accounts as per the preference of the investor. The investor does not have to open a new bank account for the purpose

What is the advantage of NACH?

The advantage of NACH includes faster credit of remittance to the beneficiary's account, coverage of more bank branches and ease of operations for the remitting agencies.

Shareholders are advised to avail the payment of dividend through NACH, which has the following advantages:
1.Shareholders need not make frequent visits to their bank for depositing the physical paper instruments.
2.Prompt credit to the bank account of the investor through electronic clearing.
3.Fraudulent encashment of warrants is avoided.
4.Exposure to delays / loss in postal service avoided.
5.As there can be no loss in transit of warrants, issue of duplicate warrants is avoided.

Who can appoint a nominee and who can be appointed as a nominee?

Individual shareholders holding the shares / debentures in single name or joint names can appoint a nominee. While an individual can be appointed as a nominee, a trust, society, body corporate, partnership firm, karta of HUF or a power of attorney holder will not be nominee(s). Minors can, however, be appointed as a nominee.

How to avail of NACH Facility?

Investors holding shares in physical form may send their NACH Mandate Form, duly filled in, to the Company’s RTA.
However, if shares are held in dematerialized form, NACH mandate has to be sent to the concerned depository participants (DP) directly, in the format prescribed by the DP. Investors must note that NECS essentially operates on the new and unique bank account number, allotted by banks post implementation of Core Banking Solutions (CBS). Therefore, shareholders are requested to furnish the new bank account number allotted by the banks post implementation of CBS, along with a copy of cheque pertaining to the concerned account, to the Company’s RTA in case the shareholders hold shares in physical form and to the concerned DP in case the shareholders hold shares in demat form. In case shareholders do not provide their new account number allotted after implementation of CBS, the ECS to their old account may either be rejected or returned.

How does one get dividend on shares held in electronic form?

The Company obtains the details of beneficiary holders (Shareholders) from the Depositories as on the date of book closure / record date fixed by the Board of Directors. Dividend in respect of shares held in electronic form is normally credited through NACH to the bank account as per the details provided in the Beneficiary Account of the shareholder maintained by the DP. In the absence of such NACH facility in a particular city, the dividend warrants are dispatched to the address as available in the DP account and the bank account details are printed thereon.

What should a shareholder do in case of non-receipt of dividend?

Shareholders may write to the Company's RTA, furnishing the particulars of the dividend not received, and quoting the folio number/DP ID and Client ID particulars (in case of dematerialized shares). On expiry of the validity period, if the dividend warrant still appears as unpaid in records, duplicate warrant will be issued. The Company’s RTA would request the concerned shareholder to execute an indemnity before issuing the duplicate warrant.

However, duplicate warrants will not be issued against those shares wherein a ‘stop transfer indicator’ has been instituted either by virtue of a complaint or by law, unless the procedure for releasing the same has been completed.

Shareholders are requested to note that they have to wait till the expiry of the validity of the original warrant before a duplicate warrant is issued to them, since the dividend warrants are payable at par at several centres across the country and the banks do not accept ‘stop payment’ instructions on the said warrants.

Why do the shareholders have to wait till the expiry of the validity period of the original warrant?

Since the dividend warrants are payable at par at several centres across the country, banks do not accept 'stop payment' instructions. Hence, shareholders have to wait till the expiry of the validity of the original warrant.

What is the procedure for revalidation of dividend warrants?

Shareholders who have not encashed their dividend warrants within the validity period may send their request of revalidation to the Company's RTA enclosing the said dividend warrants. The Company's RTA will after due verification of the records, issue a revalidated dividend warrant. The revalidated warrant will be valid for a period of 3 months from the date of such warrant.

Why cannot the Company take on record bank details in case of dematerialized shares?

As per the Depository Regulations, the Company is obliged to pay dividend on dematerialized shares as per the bank account details furnished by the concerned Depository. Therefore, investors are requested to keep their bank particulars updated with the DP.

Why shares should be transferred before the book closure/ record date fixed for dividend payment?

The dividend on shares lying in the clearing account of the brokers cannot be made available to the members directly by the Company. In case an investor has bought any shares, he must ensure that the shares are transferred to his demat account before the book closure / record date.

What are the statutory provisions governing unclaimed dividend?

As per the provisions of Section 124 of the Companies Act, 2013, dividends not encashed / claimed by the Members of the Company, within a period of 7 (seven) years from the date of declaration of dividend, shall be transferred by the Company to the Investor Education and Protection Fund (IEPF).

Further, pursuant to the provisions of Section 124 of the Companies Act, 2013 and Investor Education and Protection Fund Authority Rules, 2016 (IEPF Rules), all shares on which dividend has not been paid or claimed for seven consecutive years or more shall be transferred to an IEPF suspense account (in the name of the Company) within 30 (thirty) days of such shares becoming due for transfer to the Fund.

However, shares in respect of which specific order of Court or Tribunal or statutory Authority restraining any transfer of such shares and payment of dividend is registered with the company or shares which are pledged or hypothecated under the provisions of the Depositories Act, 1996, shall not be so transferred. The voting rights on shares transferred in the name of IEPF Authority shall remain frozen until the rightful owner claims the shares.

The Members/claimants whose shares and/ or unclaimed dividend have been transferred to the Fund, may claim the shares or apply for refund by making an application to IEPF Authority in Form IEPF 5 (available on www.iepf.gov.in) along with requisite fees as decided by the Authority from time to time. The member/claimant can file only one consolidated claim in a Financial Year as per IEPF Rules. The Company and IEPF Authority shall deal with the application in the manner provided in IEPF Rules.

Where can a shareholder find details of the unclaimed dividend amounts accruing into the Investor Education and Protection Fund?

This information is available at http://www.bajajcorp.com/unpaid_dividend.aspx in addition to being made available on Ministry of Corporate Affairs website.