Issue of Duplicate Shares by Companies

Date: 21-09-2014                                                     SUGGESTION

To,

Hon’ble Smt. Nirmala Sitharaman

MoS for Company Affairs

Ministry of Company Affairs,

Govt of India, New Delhi

secy.mca@nic.in

Respected Madam,

Subject: Issue of Duplicate Shares by Companies

I thank BJP Govt for taking steps to make life of common Indians easy while dealing with Govt offices and simplifying procedures and processes.

At present while obtaining duplicate shares in lieu of original share certificates [in paper form] which are either lost or misplaced or destroyed or stolen etc the share holder has to comply with publication of public notice, filing FIR or complaint with police, execute indemnity bond and affidavit and offering surety etc.

I suggest that in case value of shares as on date of application for issue of duplicate shares is less than Rs.50000/-, the condition of publication of notice [which is not cost effective] and filing of FIR/Complaint with police be waived. Companies in such cases should issue duplicate shares or credit to demat account on the basis of indemnity bond and affidavit with one surety who is worth market value of shares.

This will expedite procedure and share holder will not be required to visit police station or expend on publication of notice. This will save him cost and predicament [and hidden charges] of getting FIR/complaint filed in police station.

I am sure my suggestion will be positively considered by your Ministry.

Thanking you,

Yours faithfully,