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A share certificate is a legal document that is duly signed and attested by the company, signifying the shares held by the individual in that company or entity. It prima facie acts as evidence of the individual’s title on the amount invested by such individual or entity in that country’s capital. There are chances where the shareholder has misplaced or lost the share certificate. In that case, under Section 46 of the Companies Act 2013[1] and Rule 6(2) of the Companies (Share Capital and Debenture) Rules, 2014, the company can reissue duplicate share certificates to the shareholder.
The following steps shall be taken by the shareholder in case the share certificate is lost:
The SEBI, via circular dated 25thMay 2022, has simplified the procedure and standardised the format of documents for the issuance of lost share certificate:
Note: If the securities held are for less than Rs 5, 00,000, then the requirement of points (1) and (2) are not mandatory.
Rule-6(2) of the Companies (Share Capital and Debenture Rules), 2014 determines the provision for issuance of duplicate shares in case the share certificate gets lost or destroyed.
According to Rule 6(3) of Companies (Share Capital and Debenture Rules), 2014, the share certificatere issued shall be required to be registered in the register maintained by the company at its office.
According to SEBI circular dated 25th May 2022, the following documents are required to be submitted:
The shareholders with physical share certificates have often faced problems related to misplacement or losing the share certificate, which may result in heavy financial loss to the Shareholder. The Security Exchange Board of India has made the process of retrieving the lost share certificate seamless and convenient for the public. It is essential that proper documentation and process are followed by the aggrieved. There is a turnaround time of 15 days for obtaining a duplicate share certificate from the company; for more information and legal troubles with regard to Shares Recovery, contact experts at Enterslice.
Read our Article: Procedure for Issuance of Duplicate Share Certificate
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