Transferring 800 physical shares.

[rahulkucheria]

Hello,

My father holds about 800+ shares of a company and we're looking to sell them. He does not hold the necessary documents to open a demat a/c and therefore we're thinking of transferring it to me (I hold a demat a/c). However, the problem is that all the shares are in one physical certificate.

Unlike, the 100 batch/certificate which were earlier issues, the shares are in one certificate. I read somewhere that only 500 shares can be transferred without de-materializing them. So, I tried getting in touch with the company's investor unit and they asked me to demat the shares.

So, bottom line, is there a way out? Somehow? I mean, how can they deny splitting the share certificate into two?

Any help will be appreciated.

Regards
Rahul

 

[laotze]

Hello,

My father holds about 800+ shares of a company and we're looking to sell them. He does not hold the necessary documents to open a demat a/c and therefore we're thinking of transferring it to me (I hold a demat a/c). However, the problem is that all the shares are in one physical certificate.

Unlike, the 100 batch/certificate which were earlier issues, the shares are in one certificate. I read somewhere that only 500 shares can be transferred without de-materializing them. So, I tried getting in touch with the company's investor unit and they asked me to demat the shares.

So, bottom line, is there a way out? Somehow? I mean, how can they deny splitting the share certificate into two?

Any help will be appreciated.

Regards
Rahul

As per Companies act, no where mentioned only 500 share can be transferred...you can send for transfer..if company refuses then you can send a complaint to SEBI...

Company has to transfer the shares..they can't say No..

 

[rahulkucheria]

I sent the company an email and this is the response I received,

"Sir.

Kindly do the transaction through Electronic since the value of securities is more than stipulated amount fixed by SEBI for physical transaction. Hence the Registered holder can open demat account and demat shares then the same can be transferred .

Regards"

I checked SEBI's website and found this here, http://www.sebi.gov.in/faq/faqdemat.html

7. Is it compulsory for every investor to open a beneficial owner (BO) account to trade in the capital market?

As per the available statistics at BSE and NSE, 99.9% transactions take place in dematerialised mode only. Therefore, in view of the convenience of trading in dematerialised mode, it is advisable to have a beneficial owner (BO) account for trading at the exchanges.

However to facilitate trading by small investors (Maximum 500 shares, irrespective of their value) in physical mode the stock exchanges provide an additional trading window, which gives one time facility for small investors to sell physical shares which are in compulsory demat list. The buyer of these shares has to demat such shares before further selling.

Thanks

 

[umeshmandal]

You are mistaken, any number of shares in one Share certificate can be transferred.
There was a time when only physical shares were traded, at that time the market lot used to be 50/100 shares. At that time you needed a certificate or multiple certificates totalling 100 or its multiple for "valid delivery" ! Any other number would be called "odd lot" !
You can without hesitation go ahead and send the shares for transfer in your favour to the company or their share transfer agents!

 

[rahulkucheria]

Hello,

I got in touch with the company and they said SEBI does not allow that.

I searched on the internet and found this website, sebi.gov.in/faq/faqdemat.html

It says,
7. Is it compulsory for every investor to open a beneficial owner (BO) account to trade in the capital market?

As per the available statistics at BSE and NSE, 99.9% transactions take place in dematerialised mode only. Therefore, in view of the convenience of trading in dematerialised mode, it is advisable to have a beneficial owner (BO) account for trading at the exchanges.

However to facilitate trading by small investors (Maximum 500 shares, irrespective of their value) in physical mode the stock exchanges provide an additional trading window, which gives one time facility for small investors to sell physical shares which are in compulsory demat list. The buyer of these shares has to demat such shares before further selling.

 

[laotze]

Hello,

I got in touch with the company and they said SEBI does not allow that.

I searched on the internet and found this website, sebi.gov.in/faq/faqdemat.html

It says,
7. Is it compulsory for every investor to open a beneficial owner (BO) account to trade in the capital market?

As per the available statistics at BSE and NSE, 99.9% transactions take place in dematerialised mode only. Therefore, in view of the convenience of trading in dematerialised mode, it is advisable to have a beneficial owner (BO) account for trading at the exchanges.

However to facilitate trading by small investors (Maximum 500 shares, irrespective of their value) in physical mode the stock exchanges provide an additional trading window, which gives one time facility for small investors to sell physical shares which are in compulsory demat list. The buyer of these shares has to demat such shares before further selling.

Transfer of shares company can't refuse...you are talking about selling of shares....

Don't confuse...want to transfer the share from your father name to your name..simply send the certificate alongwith Transfer Deed with relevant details to the company...

Within stipulated period..company will transfer the share and sent to you.

On receipt..you demat and sell it in the market...

This is very simple process...