What happens if all share certificates in Depository Participant get stolen?

G

GAIV

New Member
#1
#1
DEPOSITORY PARTICIPANT. This is only a question. Nothing negative or malicious must be attributed to this.

What happens if all share certificates of all the shareholders of all the companies stored with the Depository Participants get stolen?

Look what happend in the commodities Jignesh Shah Financial Technologies case. Just like there were no commodities in the godowns and yet trading was being done, what if all the share certificates in depositories get stolen?

Where does that leave the investors with demat a/c statements? Their statements are only mere paper with no actual share certificates in the depository. Do the depositories keep scanned computerised copies of all the shares of all the companies? Are regular audits being done at depositories that all share certificates are in order?

Or should we say that no matter what happens as long as we have our demat a/c statement we are safe?


I would like people to add their views on this topic without any malicious intent in free and impartial manner.
 
C

comm4300

Well-Known Member
#2
#2
GAIV said:
DEPOSITORY PARTICIPANT. This is only a question. Nothing negative or malicious must be attributed to this.

What happens if all share certificates of all the shareholders of all the companies stored with the Depository Participants get stolen?

Look what happend in the commodities Jignesh Shah Financial Technologies case. Just like there were no commodities in the godowns and yet trading was being done, what if all the share certificates in depositories get stolen?

Where does that leave the investors with demat a/c statements? Their statements are only mere paper with no actual share certificates in the depository. Do the depositories keep scanned computerised copies of all the shares of all the companies? Are regular audits being done at depositories that all share certificates are in order?

Or should we say that no matter what happens as long as we have our demat a/c statement we are safe?


I would like people to add their views on this topic without any malicious intent in free and impartial manner.
Click to expand...
shares are stored in electronic format and not physical. No such paper certificates are involved.

They are stored in secure servers with atleast a couple of backup servers in remote locations.
 
test123

test123

Banned
#3
#3
lol that won;t happen and there are daily backups...

system like SAN Raid etc are used so chances of crash is almost zero. untill
all known data center are bombard lool again these data center are in multiple parts of world.
 
G

GAIV

New Member
#4
#4
On looking up the websites of the depositories I found this interesting information.

After demat of physical share certificates into electronic form (storing on servers), the share certificates are sent to the "ISSUER", meaning the concerned Company, say RIL, TATA MOTORS, etc. or to the "R & T Agent" i.e., Registrar and Transfer agents. These on their part may retain the physical share certificates or destroy them.

When a share holder wishes to "REMAT" i.e., convert them to physical form, he applies to his Depository and the Depository forwards the application to the "Issuer" company which after due verification prints out the share certificate and dispatches the same to the shareholder.

Of course here we must understand that new issues or new companies issue share certificates in demat format into the demat a/c anyway.
 
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