Losing physical share certificates can be highly overwhelming. However, the process to replace them is well-established in India. As the world becomes more digitally oriented, a lot of investors are choosing to convert their physical shares into electronic form by opening a demat account. This has not only eased out the process of managing your investments but has reduced the chances of losing physical documents as well.
However, for those unfamiliar with the term, it is important to first understand what is demat account. Simply put, it is an electronic account that holds your shares and securities, thereby eliminating the need for physical certificates.
Steps to Replace Lost Physical Share Certificates
In case you find yourself in an overwhelming situation of losing your physical share certificates, here is an easy step-by-step guide to help you obtain a duplicate certificate and secure your investments. Take a look:
1. File an FIR
The first thing to do is report the loss of your certificate in detail, by filing a First Information Report (FIR) at the nearest police station. This is a must-have document that will be required later in the process.
Note: Instead of filing a formal complaint, many companies may require a non-traceable certificate from the police, as per its regulations. However, this applies to certain cases only.
2. Notify the Registrar/Company
Next up, report the loss of your share certificates to the company/ registrar along with the transfer agent (RTA). Here, you will have to share details like folio numbers, share certificate numbers, unique numbers, and the total number of shares that are missing.
3. Get a Stop Transfer Request
To block out any unauthorized transfers of your lost shares, ensure requesting a stop transfer after alerting the company or RTA. This makes sure that the misplaced certificates will not be misused by anyone.
4. Carry Out and Submit Indemnity Bond and Affidavit
Here, the company or RTA will need you to submit an indemnity bond and an affidavit. The indemnity bond technically acts as a guarantee that you will indemnify the company against any potential losses that arise from the issue of duplicate certificates. An affidavit, usually notarized, formally confirms the loss of your certificates.
5. Fill out the Necessary Forms
You might also need to fill out extra documents like a questionnaire, a surety form, and a letter requesting a duplicate share certificate. This entirely depends on the company’s needs. You can get these forms from the RTA or the firm.
6. Collect all the Supporting Documents
This is an important step. Make sure you have all the necessary documents required to file the situation. Do not forget to gather documents including:
- The notarized indemnity bond and affidavit
- Copy of the non-traceable certificate or the FIR
- Address proof
- Identity proof
- Every form was filled in properly and checked thoroughly as required by the RTA/firm
- Copy of bank statement displaying the share payment (if available)
7. Send in all the Documents
To ensure secure delivery, send all of the collected paperwork; including the request letter, to the firm or RTA via courier or registered post. Additionally, some firms may have in-person submission requirements at their respective locations.
8. Publish a Notice in the Newspaper
In certain cases, the company can ask you to place a notice in a local newspaper, stating the loss of your share certificates. Don’t forget to include your contact details here. This step is often necessary when dealing with high-value shares to ensure transparency and public awareness. The company will guide you throughout this process.
9. Await the Issuing of Duplicate Share Certificates
Once the company or RTA has confirmed the authenticity of your request and supporting documentation, duplicate share certificates will be issued in your name. This step can take between 4-6 weeks. However, the exact amount of time needed entirely depends on individual circumstances.
Wrap Up
Summing up, switching to a digital format is usually a better option to avoid such risks. However, once you have the duplicate certificates, you can begin the process of moving your physical shares to a demat account, by sending the duplicate certificates and a completed Dematerialisation Request Form (DRF) to your Depository Participant (DP).
However, to do this, you will need to open demat account first. Doing this will convert your physical certificates into electronic form and later, be credited to your demat account. This helps in managing your shares more efficiently and removes the possibility of future losses.
