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Duplicate Share Certificate- An Overview

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.

Are you unaware of the process of getting a duplicate share certificate?

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Why You Might Need a Duplicate Share Certificate?

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.

The list of documents required for duplicate share certificates is as follows:

  • An indemnity bond agreement on judicial stamp paper of Rs.500.
  • An affidavit on a non-judicial stamp paper of Rs. 100, attested by the Notary Public or Special Executive Magistrate.
  • FIR registered with the police on loss of share certificate or misplace of share certificate mentioning the name of the certificate, folio number, and distinctive number of shares.
  • An advertisement published in a newspaper about the loss of share certificate or misplace of share certificate.
  • Identity and residence proof of the shareholder(s).

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Procedure for Issue of Duplicate Share Certificate

The procedure for issue of duplicate share certificates is as follows:

Notify the Company

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.

Attachment of Documents/Evidence

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.

Payment of Fees

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.

Examination of Application

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.

Issuance of Duplicate Share Certificate

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.

Click here and streamline the procedure for issue of duplicate share certificate with our experts.

Steps to Follow in Case of Misplace of Share Certificate in India

Outlined below are the steps to be followed by shareholders in the event of a misplace of share certificate in India:

  • The shareholder should immediately notify the company regarding the loss or misplace of share certificate.
  • Misplace of share certificate shall be communicated by posting a letter to the company’s address or by sending an e-mail to the concerned company.
  • This letter or an email must be accompanied with details like name, folio number, address, and share certificate number.

Timeline for Obtaining a Duplicate Share Certificate

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.

Fees for Duplicate Share Certificate

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.

Frequently Asked Questions

The rule for duplicate share certificate is that the unlisted company shall issue the duplicate share certificate within three months on hindsight, the 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.

To get a duplicate share certificate, the applicant shareholder needs to send a letter requesting the company’s registrar to issue of duplicate share certificate. This said letter should include details like the shareholder’s name, folio number, certificate number, number of shares, FIR, proof of identity, etc.

Yes, you can get copies of share certificates from the concerned company in case the shareholders have misplaced or lost the share certificate, or it was damaged or torn.

The documents required for duplicate share certificates are an indemnity bond, affidavit, FIR or police report, advertisement on paper, identity proof, residence proof, etc.

Yes, it is now possible to get a share certificate online, one can download it by login into the issuing company’s website. Subsequently, it has to be digitally signed by the concerned authority.

If the original share certificate is lost or damaged, one shall apply for a duplicate share certificate to the concerned company.

It is the company’s responsibility to create and issue the share certificates to the shareholders within two months of allotting the shares to the shareholders.

Yes, FIR is a mandatory document to be attached with the request letter to the company for the issue of duplicate share certificate in India.

The original share certificate is kept by respective shareholders; However, it is the responsibility of the shareholders to safely and securely store their certificates as they are important documents, prima facie evidence of owning shares in a company.

No, a share certificate does not expire, a share certificate remains valid until the shareholder named on it sells or transfers the shares.

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