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A duplicate share certificate is a certificate that is issued when the shareholder's physical shares get lost. A share certificate is prima facie evidence that acts as a proof of ownership. Whenever the shareholder(s) addressed the misplace of share certificate or loss of share certificate, he should immediately take action by filing an application by requesting the concerned company to issue a duplicate share certificate.
Whenever a person loses his share certificate, it can lead to a substantial financial loss to the shareholder and the company where he held shares. Therefore, to avoid such unnecessary loss of the company and its shareholders, the Companies Act, 2013 provides for the issue of the duplicate certificate.
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A share certificate is a legal proof of ownership in a company. Without it, shareholder(s) might face difficulties in exercising the legal rights, including receiving of dividends, and voting rights at meetings. However, some of the most common reasons that you might need a duplicate share certificate are:
Loss or Misplacement
It is quite possible that the share certificates can be easily misplaced during moves or misplaced paperwork.
Theft
Share certificates, when stolen, can lead to unauthorized transactions.
Damage
Over time, regular handling and exposure can cause a certificate to become unreadable.
Name Change
A new share certificate may be required reflecting their updated name due to various reasons like post-marriage or divorce.
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The procedure for issue of duplicate share certificates is as follows:
Firstly, the applicant shareholder(s) must write an application notifying the concerned company about the loss or misplace of share certificate requesting the issue of duplicate share certificate.
The applicant must attach the documents and evidence to initiate the company to investigate the application received for the request for a duplicate share certificate.
After the submission of the required documents, the shareholder will need to pay the necessary fees for a duplicate certificate. Provided, the fees should not exceed Rs.50 per share certificate.
This is the stage when the company shall examine the application and the documents submitted by the applicant for the issue of duplicate share certificate by listed company.
The concerned company after satisfaction shall issue the duplicate share certificate, which will be signed by the company’s authorized signatories and sealed with the company seal.
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Outlined below are the steps to be followed by shareholders in the event of a misplace of share certificate in India:
For listed companies, obtaining a duplicate share certificate typically takes around 45 days from the application date. For unlisted companies, this process may extend up to three months.
The timeline to issue of duplicate share certificate by listed company shall be within forty-five days from the date of submission of complete documents with the company respectively. Meanwhile, the unlisted company shall issue the duplicate certificate within three months.
According to SEBI guidelines, the Company’s board should not charge more than Rs. Fifty per certificate. Meanwhile, the professional charges for obtaining a duplicate share certificate vary from service to service and documentation; however, for further inquiry, you may contact experts.
Investorlink has a team of professionals to provide support and assistance in obtaining a duplicate certificate in cases of misplaced or loss of share certificate:
Lost shares could mean lost wealth- Reclaim and Secure What’s Yours!