What is Duplicate Issuance of Shares?
Duplicate issuance of shares, also referred to as the issuance of a duplicate share certificate, is a process that enables shareholders to receive a replacement share certificate for their ownership in a company. This is necessary when the original certificate is lost, stolen, damaged, or rendered unusable for any reason.
How long does it take a company to issue duplicate shares?
As per Company Law regulations, a company must issue a duplicate share certificate within 36 working days. During the first 15 days after publishing a newspaper advertisement regarding the lost shares, the company will accept any objections. If all submitted documents are in order, the duplicate share certificate will be issued within the following 21 days. However, discrepancies may arise during the verification process.
Do I need to file a police complaint for loss of shares?
If your physical share certificates are lost, stolen, or go missing for any reason, you must report the loss to the police by filing a general diary or a police complaint at the nearest station. For example, if a shareholder from Delhi loses their shares while traveling to Kolkata, they must file the report at a police station in Kolkata, where the loss occurred. If the local police station provides an online complaint option, the report can also be filed digitally.
Is it necessary to provide an advertisement for loss of shares?
When shares are lost, an advertisement must be placed in the "Lost & Found" section of a newspaper. However, under recent SEBI regulations, this requirement applies only if the share value exceeds ₹5 lakhs. Additionally, for IEPF claims, an advertisement must be published in both an English newspaper and a local/regional language newspaper. The local language is determined by the registered office location of the company whose shares were lost. For instance, if a shareholder from Kolkata loses Reliance shares, which have a registered office in Mumbai, the advertisement must be published in both English and Marathi newspapers circulating in Mumbai (Maharashtra).
Do we get duplicate shares in the physical form?
Earlier, companies issued duplicate share certificates to shareholders. However, as per the latest SEBI guidelines, duplicate shares are now issued in the form of a Letter of Confirmation (LOC). Once the shareholder receives the LOC, they must submit it to their Depository Participant (DP) for share dematerialization within 120 days from the date of issuance.