Investor Information - Investor
FAQ
On Transfers
On Transmission
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On Transposition
On Amalgamation/Consolidation
On Change of Specimen Signature
On Change of Address
On Loss of Securities
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On Tax Deduction
On Mandate/ECS
On Old/time-barred instruments/unclaimed
dividend/interest
On Issue of New Certificates
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On Dematerialisation/Rematerialisation
On Change of Name
What is..
On Transfers
| What care should I take while buying or
selling securities? Purchase or sell securities only through authorized
stockbrokers duly registered with Stock Exchanges. Ensure that you receive a Contract Note
for all transactions. The broker's stamp with the SEBI registration/Code number should be
affixed on the reverse of the transfer deed(s).
For securities held in electronic form, please contact your depository participant.
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What amount of stamp duty should I affix
on the transfer deed?
For Shares, stamp duty @ 0.25% of the market value or the consideration amount
(whichever is higher) should be affixed on the transfer deed. The rate per share can be
picked up from any newspaper. The date for which the rate is picked up must be the same as
the execution date mentioned on the transfer deed. Stamps are available at the stamp
Office, Stock Exchange or with the Share brokers.
Special note: With effect from 1.7.02, for transactions in physical form, the
Government of Maharashtra has banned the sale and use of share transfer stamps. The
Government has started putting their stamp by using franking machine at the Stamp Office.
For transactions executed in Maharashtra, instead of affixing share transfer Stamps, stamp
duty @ 0.25% of the market value or the consideration amount (whichever is higher) should
be franked on the transfer deed.
Electronic transactions do not attract any stamp duty, however each Depository
Participant may levy a transaction charge. The rate should be confirmed with your
depository participant beforehand.
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Why should I keep securities in joint
names?
It is advisable to register securities in joint names in order to facilitate
Succession.
If I wish to add the name of my spouse,
children or any other person, what procedure should I follow?
Addition of the name of a joint holder, even a family member, is considered a
"Transfer" and attracts stamp duty. A regular transfer deed would be required to
be executed. Blank transfer deeds would be available with your local stockbroker / stock
exchange. (Please refer question no.2 for stamp duty payable.)
For securities held in electronic form, please contact your depository participant.
Can I avail the nomination facility?
Yes. For securities held in physical form, you may nominate a person by completing Form
2B and registering the same with Tata Share Registry Limited.
For securities held in electronic form, please contact your depository participant.
Important points to note
- Always include your complete address along with pin code while
filling in the transfer deed / opening an account with a depository participant.
- Keep photocopies of certificates, transfer
deeds and other documents sent by post to TSRL. In case of a loss in transit, they come
handy.
- A transfer deed for shares is valid for only
one year from the date of presentation or the last book closure of the company, whichever
is later. For debentures the transfer deed is valid for an indefinite period.
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On Transmission
| If the holding is in joint names and
either of the holders is deceased, what is the procedure for deletion of name? Submit
an attested copy of the death certificate of the deceased holder along with the relevant
certificates and the prescribed transmission form available with TSRL, duly completed and
signed by the survivors so that the name of the deceased can be deleted from the Company's
records as well as from the certificates.
Attestation on the document should be done by a Notary or your Bank Manager under his
official seal. For securities held in electronic form, please contact your depository
participant.
Along with the deletion of the
deceased holder's name, can I add another joint holder?
Yes, but the transaction would be treated like a normal transfer and would attract
stamp duty. An attested copy of the death certificate of the deceased holder along with
the relevant certificates and duly completed transfer deed should be submitted to TSRL.
(Please refer question no.2 for stamp duty payable.)
For securities held in electronic form, please contact your depository participant.
I am the legal heir / executor in
respect of the sole holder who is now deceased. How do I transmit the securities?
Please submit the certificates along with the Succession Certificate or Probate of Will
or Letter of Administration obtained in respect of the sole holding. In case you do not
have any such form of Legal Representation, please write to TSRL for further advice.
Dependent upon the type and size of holding, certain documentation may be required for
transmission of securities in favor of the legal heirs
For securities held in electronic form, please contact your depository participant.
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On Transposition
| Can I interchange the order of names
for my holdings? Yes. For securities held in physical form, the request for
change in the order of names of registered holders should be made in the prescribed
Transposition form available at the offices of TSRL. The form is to be signed by all the
joint holders and submitted along with the certificates.
In case you wish to interchange the order of the names for demat purposes, the form OA
(available with your Depository Participant) may be duly completed in the desired order of
names and submitted to them with the Dematerialisation Request Form and the certificates.
Note: You can transpose full or part of the holdings. For securities held in
electronic form, please contact your depository participant. |
On Amalgamation/Consolidation
| I have multiple folios, can I
amalgamate the accounts? Yes, you can. If you have more than one folio with
identical names and in the same order, please write to TSRL along with the certificates
pertaining to the folio having the smaller holdings. Do not send the certificates
pertaining to the larger holdings, in which account the multiple folio is being
amalgamated. Prescribed amalgamation forms are available at all offices of TSRL.
For securities held in electronic form, please contact your depository participant.
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I have certificates in various
denominations, can these be consolidated into marketable lot/ Single certificate?
Please send us the certificates, provided they are under the same folio, along with a
covering letter to TSRL. If they are not under the same folio, but have the same order of
names, please follow the procedure mentioned for amalgamation of the accounts to
facilitate consolidation into marketable lots/single certificate. |
On Change of Specimen Signature
On Change of Address
| How
do I record a change in my address? A letter duly signed by the first holder stating the new address and all
the Folio Nos. must be sent to TSRL. You must ensure that the signature of the first
holder is as per the specimen signature recorded with TSRL.
A computerized acknowledgement will
be sent to your new address confirming the updation of the change in our records.
In case you have dematerialized
your holdings, please write to your DP immediately and ensure that you receive a
confirmation of them having noted your new address.
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On Loss of Securities
| What
should I do if my share/debenture certificates are lost/stolen? Please immediately intimate TSRL regarding
loss of certificates, giving details of folio number and distinctive numbers. It is
advisable to lodge a complaint with the local Police Station.
Kindly send TSRL an acknowledged
copy of the Complaint / FIR for advice on the further course of action.
You should state:
- Name of the Company in which you
hold securities.
- Your full name and address, as
recorded with TSRL.
- The distinctive number(s) of the
certificate(s) that is/are missing.
If you do not know the number(s) of
the missing certificate(s) please provide the number(s) of the certificates still in your
possession. Please also state if the certificate(s) is/are lost or stolen. If the
certificate(s) is/are stolen, we will require the F.I.R as issued by the Police. Your
letter must be signed by at least one of the holders. We will send you the documents to be
executed for issue of duplicate certificates.
In case you trace your
certificates, please inform TSRL immediately so as to avoid any complexity/delay in future
transactions. |
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On Tax Deduction
| I am
not a taxpayer, am I required to file a declaration for non-deduction of tax at source for
my dividend/interest amount? As per the recent Finance Bill, tax will be deducted at source at the
prescribed rates, if the amount due to you exceeds Rs.2500 (the current threshold limit).
In case you are not a tax-payer/not liable for deduction of tax at source, please furnish
a declaration in Form 15G for dividend, Form 15H for claiming tax exemption from interest
paid on debentures/Fixed deposits., Form 15 for Non-Residents and for Corporate, tax
exemption certificate issued by Income tax authorities.
Note: Kindly send the forms
duly completed by the 1st of April every year to avoid missing out on the book
closure/record dates due to oversight. Forms15H/15G are valid for only one financial year
and fresh declaration has to be submitted every year.
How do
I obtain a duplicate Tax Deduction certificate?
Please write, giving:
- Details of the TDC that you require.
- Name of the Company in which you
hold the securities.
- Your full name and address .
- Your folio number, which will be
available from the share/debenture certificate(s) or dividend/interest warrant(s)
- Payment date(s) and financial year
For any queries not covered herein,
please refer to TSRL for clarifications, quoting your Reference Folio No.
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On Mandate/ECS
| What are
the ways I can receive the dividend/interest amount due to me? Advantages:
Ensures receipt of your
dividend/interest amount in any designated bank account on the payment date, thus
maximizing interest.
Ensures receipt of payments even if
the change in your address has not been notified to TSRL.
Minimizes risk of misappropriation.
Precludes the need for you to pay
the payment cheque into a bank account.
The following ways to receive the
corporate benefits i.e dividend / interest are listed below:
- The warrant can be mailed to your
address as recorded with us or to the address as downloaded to TSRL by your
Depository Participant.
- The warrant can be posted directly
to your bankers if a mandate instruction is registered with us, for physical holding only.
- The net amount due to you can be
credited electronically to your bank account based on the ECS instructions submitted to
TSRL for physical holdings, and downloaded to TSRL by your Depository Participant for
electronic holdings.
Please ensure that the bank account
details provided is correct and complete to avoiddelay in credit.
How do I
change or lodge fresh mandate instructions with the company?
For securities held in physical
form, please send us a covering letter specifying your folio number, banker's name,
address, account type and account number. The dividend/Interest amounts payable to you can
be sent directly to your bank under intimation to you. In case you desire the warrant to
be mailed to your registered address after incorporating the bank account details on the
warrant, you may specify this requirement. In your request letter to be lodged with TSRL.
For securities held in electronic
form, please contact your depository participant.
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What are
the features of the Electronic Clearing Facility (ECS) introduced by the Reserve Bank of
India (RBI)?
Reserve Bank of India has
introduced the Electronic Clearing Service which allows electronic credit of the dividend
/interest amount to your bank account for the amount due to you.
The salient features are:
- Instant credit - This Facility
provides instant credit of dividend/interest amount to your bank account electronically at
no extra cost. ECS also eliminates the delay in postal transit and fraudulent encashment
of warrants.
- Optional Scheme - This scheme is
optional Coverage - ECS is presently available in major cities / centres like Ahmedabad,
Bangalore, Calcutta, Chennai, Delhi, Hyderabad, Mumbai, Pune. RBI has been extending this
facility to various centres from time to time. The scheme is at present available only for
payments upto a maximum amount of Rs. 5,00,000/-.
- Procedure for credit - Under this
facility the amount of dividend / interest payable to you would be directly credited to
your bank account. Your bank branch will credit your account and indicate the credit entry
as 'ECS' transaction in your passbook / statement of account.
In case ECS facility is not made
available to you by the Company / their Bankers at a particular centre or the amount
payable to you exceeds Rs. 5,00,000, the dividend / interest amount due to you would be
remitted by means of a dividend / interest warrant which would be posted to your address
with the particulars of the bank/branch and account number furnished by you duly
incorporated on it.
How do I
avail of the ECS Scheme introduced by Reserve Bank Of India (RBI) ?
To avail of ECS facility (i.e
direct electronic credit to your bank account), please write to TSRL specifying the
following details:
- Your Folio Number
- Name and address of the bank branch
- Account type and account Number.
- The 9 Digit code number of the bank
and branch as appearing on the MICR cheque issued by the bank.
This is applicable only for
securities held in physical form. For securities held in electronic form, please contact
your Depository Participant.
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On Old/time-barred
instruments/unclaimed dividend/interest
| I
have an old warrant which I forgot to encash and is now time-barred? Can I still obtain
the amount due to me? Yes. Provided the amount is not transferred to the General Revenue Account
of the Central Government or the Investor Education and Protection Fund.
Please mail the outdated instrument
to TSRL to enable issue of a fresh instrument, if the amount reflects an outstanding
status in the records of the company.
When
is unclaimed dividend/interest amount transferred to the General Revenue Account/Investor
Education Protection Fund of the Central Government ?
As per the Companies Act, all
unclaimed and unpaid dividend maintained in the separate dividend account of the Company
was to be transferred to the General Revenue Account of the Central Government after the
prescribed period of approximately 3 years. Prior to such transfer, an intimation
requesting the investor to claim the amount has always been sent by TSRL. In spite of
this, if an investor did not make the claim, the outstanding dividend amount would get
transferred to the Central Government after the stipulated period. Any claim thereafter
would have to be made to the Registrar of Companies in the prescribed form available with
TSRL.
However as per the Amendment vide
the Companies (Amendment) Ordinance, 1998, Section 205 (A) of the Companies Act 1956, this
clause has been amended with effect from 31st October, 1998. Accordingly, any amount,
which remains unpaid or unclaimed for a period of 7 years, shall be transferred by the
company to the "Investor Education and Protection Fund"("The Fund").
No investor can claim this amount thereafter from the Fund. |
On Issue of New
Certificates
On
Dematerialisation/Rematerialisation
| How do I
open an account with a Depository and will I be periodically informed about the movement
in my electronic account? You may open an account with a Depository Participant (DP) of your choice.
As an investor you will interact with National Securities Depository Limited (NSDL) or
Central Depository Services Ltd. (CDSL) through your Depository Participant) Your DP will
allot you an account number which will serve as a reference for all your future dealings
with them. It may be advisable to be aware of the rates that will be charged to you by
your DP for various activities.
Your DP will update your account
after each transaction, and would periodically furnish you with a statement of holding.
You may verify this with your DP at the time of opening your electronic account.
How do I
convert my paper certificates into an electronic holding and will I continue to receive
corporate benefits?
To dematerialize your holding, you
should first have an account with a DP of your choice. You may then hand-over to your DP,
the certificates along with the 'Dematerialisation Request Form' (DRF). Only the
securities registered in your name can be submitted for dematerialization. Your DP will
then send the DRF and the certificates to TSRL and an electronic request will also be sent
through the NSDL/CDSL network reconfirming the same. TSRL will verify the documents and if
found in order, the dematerialization request will be confirmed to NSDL/CDSL who will in
turn inform your DP. In the books of the Company, your folio with TSRL will be debited and
the account of NSDL/CDSL will be credited in respect of such dematerialized securities.
NSDL/CDSL in their electronic records will credit the account of your DP. Your DP will
then credit your account with the number of securities that have been dematerialized and
the securities will thereafter be held in electronic form. This process would take
approximately 15-20 days.
Yes, all the corporate benefits
such as dividend, interest, bonus shares, rights shares will be issued by TSRL to the
beneficial owners i.e. the accountholders who hold the securities in electronic form. The
dividend/interest amounts as and when declared/paid will be sent to you/your bankers
directly. The entitlement of rights and bonus shares/debentures wherever applicable, will
be credited to the beneficiaries account as per the investors' option and the terms of the
issue.
How do I
trade (buy / sell) in electronic form?
You may buy and sell securities in
electronic form through the depository by coordinating with your broker and your DP. Such
transactions would be simpler and faster. Payments for such transactions would be made in
the same way as is done for physical certificates. Securities purchased in electronic form
are credited to your account on the very next day of payout with no formalities of filling
transfer deeds or applying to the Company for registration. All such transactions are
exempt from stamp duty and accordingly no share transfer stamps are required to be
affixed.
Such transactions are not routed
through the Company and the debit/credit takes place directly in the Depository System.
However, corporate benefits would be paid to the person holding such securities on the
Record date/Book closure date as applicable.
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How can I
reconvert my electronic holding into paper form?
As per the existing guidelines, an
investor can choose to reconvert his electronic holding into physical form at any time
through his DP. On receipt of the rematerialisation request along with the 'Remat Request
Form' (RRF) the Company will issue fresh certificates. |
On Change of Name
| How do I
apply for change of name? A. Individuals
Please write to TSRL, giving the
following details:
- Reason for change of name
accompanied by supporting document duly attested
- The name(s) of the company (ies)
in which you hold shares
- Full details of both your old and
new names
- Your Ref Folio Number - which can
be found on your share/debenture certificates or dividend/interest counterfoil
Enclose:
Consequent to marriage /
divorce / attaining majority,
please send an attested copy of the
marriage certificate / divorce decree / birth certificate or school leaving certificate as
the case may be along with the certificates and a covering letter signed by all the
holders.
You may use the prescribed
transmission form available with TSRL
B. Corporate
Please write to TSRL enclosing an
original or certified copy of the Certificate of Incorporation on Change of Name.
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What is..
| What is
Transmission? If
the shareholding is in joint names and either of the holders is deceased, then the
procedure to delete the deceased person's name from the Company's records as well as from
the certificates.
Submit an attested copy of the
death certificate of the deceased holder along with the relevant certificates and the
prescribed transmission form available with TSRL, duly completed and signed by the
survivors so that the name of the deceased can be deleted from the Company's records as
well as from the certificates.
What is
Consolidation?
The process by which an investor
gets a single certificate in return for the submission of multiple share certificates of
smaller denominations is called as consolidation. The denomination of the single
certificate issued will be the sum of the smaller denominations of the multiple
certificates. provided they are under the same folio.
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What is
Amalgamation?
The process by which an investor
can merge the holdings of multiple folios (provided the names are identical and are in
same order) into a single folio is called Amalgamation.
What is a
Split?
Split is a process by which a
requisite number of certificates as required by the Investor, can be generated in lieu of
a single certificate of a particular denomination, provided the total denomination of the
generated certificates is equal to the denomination of the original certificate.
What is a
Subdivision?
Subdivision is a process by which
the Company reduces the Face Value of it's existing shares. This leads to an increase in
the no. of shares of a lesser Face Value.
What is a
Merger?
Whenever a company buys a company
or companies or performs a deed where by the share holders of the acquired company
automatically become the share holders of the parent company then such an activity is
called Merger.
What is
Dematerialization?
This is a process whereby the
holdings held in physical form are converted to Electronic form
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