Investor Queries

Please note that for securities held in electronic form, you must contact your depository participant.

These Investor FAQ’s are for shares held in physical mode only.

Transfer of Securities in Physical Form

SEBI vide its Notification dated 8 June, 2018 conveyed that “Provided that, except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in the dematerialized form with a depository.” The same will be effective from the 5th of December, 2018. SEBI vide its Notification dated 30 November, 2018 further conveyed that the last date for processing of transfer of physical securities has been extended to 31 March, 2019.

SEBI vide its Press Release PR No. 12/2019 has further clarified that even after 01 April, 2019 –

An investor has the option of holding shares in physical form.
An Investor who is desirous of transferring shares (which are held in physical form) can do so only after the shares are dematerialized.

Re-lodgement of Transfer Requests Shares

SEBI vide its circular number SEBI/HO/MIRSD/RTAMB/CIR/P/2020/166 dated 7 September, 2020 has clarified that transfer deeds lodged prior to deadline of April 01, 2019 and rejected/returned due to deficiency in the documents may be re-lodged with requisite documents. SEBI has now fixed the cut-off date of March 31, 2021 for re-lodgement of transfer deeds. Further, the shares that are re-lodged for transfer (including those request that are pending with the Listed Company / RTA as on date) shall henceforth be issued only in demat mode.

Change of Address

Only for securities held in physical form, the following documents should be submitted:

• A covering letter requesting to update your new address.
• Self-attested copy of PAN card of first account holder.
• Self-attested copy of new address viz. valid Passport or Aadhaar Card or Election
Identity Card or Electricity / Telephone (only land line) bill / Bank Account
Statement / Passbook (which is not more than 3 months old).
• Affidavit

Please Note: The identity and address proof should be clearly legible and in the name of the First Account holder.

Issue of Duplicate Share Certificate(s)

The following documents are necessary for issue of duplicate share certificate:

1. A covering letter with the request to do so
2. Certified copy of FIR / Police Complaint of nearest police station.
3. Self attested PAN card copy & address proof of the shareholder(s) & witnesses.
4. Indemnity bond, & Affidavit.

Please Note: If the newspaper advertisement has not been given by the share-holder and is given by the Company the procedure will take about six (6) weeks.

Procedure for Deletion of Name

If the shares are held in joint names and either of the joint holder is deceased, the surviving joint holders will have to submit the following documents:

1. Original Share Certificates
2. Attested copy of Death Certificate by Notary Public / Bank Manager / First Class Magistrate /Gazetted Officer
3. Self attested copy of PAN card of the survivor(s).
4. Original cancelled cheque of the first surviving holder bearing his name.
5. Duly completed Deletion Form

Procedure for Transmission of Shares where Value is greater than Two Lakhs

If the securities were held in the physical form and in a single name only, the following documents are necessary for transmission of shares for market value of securities greater than Rs. 2 lakhs :

1. Duly signed transmission request form from applicant.
2. Original Share Certificates.
3. Attested copy of Death Certificate by Notary Public / Bank Manager / First Class Magistrate /Gazetted Officer.
4. Self-attested PAN card copy & address proof of the applicant(s)
5. Attested copy of Registered Will/Probate/Succession Certificate/Letter of Administration.
6. Affidavit from all legal heirs.

Procedure for Transmission of Shares where Value is less than Two Lakhs

If the securities were held in the physical form and in a single name only, the following documents are necessary for transmission of shares for market value of securities less than Rs. 2 lakhs :

1. Duly signed transmission request form from applicant.
2. Original Share Certificates.
3. Attested copy of Death Certificate by Notary Public / Bank Manager / First Class Magistrate /Gazetted Officer.
4. Self-attested PAN card copy & address proof of the applicant(s)
5. Affidavit from all legal heirs.
6. Attested copy of Registered Will/Probate/Succession Certificate/Letter of Administration. If Probate/Succession Certificate/Letter of Administration is unavailable, then please provide:

a. A No Objection Certificate (NOC) from all legal heirs.
b. Indemnity bond. Along with indemnity bond, self-attested PAN card copy and address proof of both witnesses required.

Procedure for Adding Nomination

For securities held in physical form, you may nominate person(s) by completing Form No.SH-13 and registering the same with us.

Please note :
Investors are informed that after verification of the documents submitted and in case of change in signature / non-availability of signature / inability to sign due to old age or health problem / difference in name / requirements related to enhanced due diligence, additional documents will be called for, viz. Affidavit, Government Gazette, proof of identity/address, PAN and bank details, and such other additional procedures/documents, as applicable.

Procedure for Cancellation or Variation of Nomination

For securities held in physical form, you may vary or cancel the nomination and nominate new person(s) in place of the existing nominee(s) by completing Form No. SH-14 and registering the same with us.

Please note :
Investors are informed that after verification of the documents submitted and in case of change in signature / non-availability of signature / inability to sign due to old age or health problem / difference in name / requirements related to enhanced due diligence, additional documents will be called for, viz. Affidavit, Government Gazette, proof of identity/address, PAN and bank details, and such other additional procedures/documents, as applicable.

Procedure for Change of Specimen Signature

To register your new signature for securities held in physical form, an Affidavit to this effect is required to be executed. The draft of the Affidavit can be downloaded from our website. Please follow the instructions detailed on page 2 of the Affidavit.

For securities held in electronic form, please contact your depository participant.

Procedure for Change of Name for Individual Shareholders

For Change of Name, following documents are required:

1. Attested copy of Marriage Certificate / Divorce Decree / Gazette Notification duly attested by Notary Public /
Bank Manager / First Class Magistrate
2. Original share certificates
3. Self-attested copy of the PAN card of shareholder
4. Letter from shareholder requesting for change of name

Procedure for Dematerialization/ Rematerialization of Shares

1. Shareholders may open a demat account with a SEBI-registered depository participant (DP) of their own choice.
2. Submit the demat request form (DRF) along with the share certificates to the DP.
3. The DP will forward the demat request to us and if found in order, we shall confirm the same.
4. In the books of the company, your holding will be debited from your folio and credited to your demat account.
5. The process will take up to 21 days from date of submission of demat request form to DP
6. Once shares are dematted, all corporate benefits including dividend, bonus, interest, rights shares will be directly credited to your demat account.

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.

Procedure for Updation of Bank Account Details for Electronic Remittances

Pursuant to SEBI Circular No. EBI/HO/MIRSD/DOP1/CIR/P/2018/73 dated 20 April, 2018, holders, whose bank details and PAN have not yet been registered with the Company or where such details are incomplete are required to furnish these details for registration.

For securities held in physical form, please submit the following:-

1. Electronic Credit remittance form duly completed and signed by the first holder as per the specimen signature recorded with the Company. The form can be downloaded from our website
2. Cancelled cheque in original bearing the name of the first holder, failing which the holder shall submit copy of Bank Passbook/ Bank Statement (not more than 3 months old), duly attested by the Bank Manager under his name, full address and official stamp of the Bank.

Please note :
After registration of the Bank details, remittances will be made via electronic bank transfer. In cases where the electronic payment instructions have been rejected by the bank, the Company will request the banker to make payment though physical instrument such as banker’s cheque or demand draft to such securities holder incorporating his bank account details.

For securities held in electronic form, the bank details have to be registered with your depository participant.

Procedure for Time-barred instruments / Unclaimed Dividend

You can obtain the dividend even though the instrument is time-barred, provided the amount has not been transferred to the Investor Education and Protection Fund.

Please mail us the outdated instrument. A fresh instrument will be issued, if the amount reflects an outstanding status in the records of the Company and mailed to the address as recorded with us.

In case there is a change in address to be registered, please refer to instruction under “Change of address”

As per the Amendment vide the Companies Act and Rules, Section 205 (A) of the Companies Act 1956, all unclaimed Dividend / Interest / Principal / Maturity amounts on Deposits/Securities/ Debentures after expiry of 7 years from the date they were due for payment shall be transferred to Investor Education and Protection Fund. (“THE FUND”).

Procedure for Refund of unclaimed / unpaid amounts and shares from the Investor Education Protection Fund (IEPF)

As per provisions of the Companies Act, and Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, it is prescribed that all shares shall be transferred to IEPF in respect of which unpaid or unclaimed dividend is transferred as provided under Section 124 (5) and 124 (6) of the Companies Act, and rules prescribed therein.

According to the said IEPF Rules, Companies are required to transfer such shares for which dividend has not been claimed for 7 consecutive years, to the demat account of IEPF Authority.

In terms of the provision of Companies Act, 2013 and IEPF Rules, the Company has transferred such shares by cancelling the original share certificate registered in the names of the shareholders and issuing duplicate share certificate in lieu of the original share certificate and transmitting the same to the demat account of IEPF Authority. Thereafter, the original share certificate would automatically stand cancelled and deemed non-negotiable or not tradeable and there would be no holding under the registered Folio of the holder. Please note that no claim shall lie against the Company in respect of unclaimed dividend amount and shares transferred to IEPF pursuant to the IEPF Rules.

In terms of Section 124 (6) of the Companies Act, and Rule 7 of the IEPF Rules, you may claim from IEPF Authority both the unclaimed / unpaid amounts and the shares by making an online application in prescribed Form IEPF-5 and sending the physical copy of the same duly signed (as per the specimen signature recorded with the Company) along with requisite documents enumerated in the Form IEPF-5 to the Nodal Officer of the Company. The Rules and the application form (Form IEPF-5), as prescribed by the MCA for claiming back the shares / dividend are available on the website of MCA at http://www.iepf.gov.in/IEPF/Forms/IEPF-5_help.zip

Please note that :
1. No claim shall lie against the Company in respect of unclaimed dividend amount and shares transferred to IEPF Authority pursuant to the said Rules.
2. All the subsequent corporate benefits accruing on your shareholding shall also be credited in favour of the demat account of IEPF Authority and you can claim the benefits from them.

Please also note :
Investors are informed that after verification of the documents submitted and in case of change in signature / non-availability of signature / inability to sign due to old age or health problem / difference in name / requirements related to enhanced due diligence, additional documents will be called for, viz. Affidavit, Government Gazette, proof of identity/address, PAN and bank details, and such other additional procedures/documents, as applicable.

Filing Complaints on SCORES

Filing complaints on SCORES – Easy & Quick

(a) Register on SCORES portal
(b) Mandatory details for filing complaints on SCORES:
(i) Name, PAN Number, Address, Mobile Number & EMail ID.
(c) Benefits:
(i) Effective communication
(ii) Speedy redressal of the grievance

Demat account - Fees, Charges and FAQ

Demat Account has made a whole lot of changes in a trader’s life. The entire procedure of investing, trading, holding, and monitoring has been made convenient, cost-efficient, and faster. You, no longer, worry about your shares and other investment papers getting stolen or damaged. You no longer run helter-skelter to get the certificates of your stock tradings. Everything is taken care of by just passing instructions to your Depository Participant (DP) from the comforts of your home, even as you enjoy your life and go about with other important things.

However, it is impossible for a person to get something for nothing. In the case of Demat accounts too, you have to pay a small amount for making your trading possible with the click of a mouse. Charges may come in the form of opening charges, safety (or custodian) charges, Annual Maintenance Charges (AMC), transaction charges, and Demat & Remat charges. With more and more brokers and banks offering Demat facilities and with competition on the rise most of the DPs are making a lot of incentives in these payments these days. Many of the DPs have waived off Demat Account opening charges, as well as the Annual Maintenance Charges for the first year. Some DPs are offering some other benefits like better transaction charges.

Earlier, the banks used to charge anything between Rs 700 to 900 as opening charges. Despite the opening charges, the prospective investors were flocking towards them for opening Demat account because of the well-integrated banking network and investment services and easy stock market investment through the three-in-one account, that encompass trading as well as a bank account. However, nowadays the Demat account opening charges levied by the Depository Participant (DP) are either nominal or Nil. Brokerage firms and banks make it a point to offer it as an incentive for opening two-in-one accounts or three-in-one accounts. Such accounts make it extremely easy for beginners and casual investors to trade or simply invest in the stock market. All the transactions involving these accounts are seamless and integrated under one common platform. Broking firms, however, charges for the additional costs, if involved, such as stamp duty, GST or other statutory levies by SEBI.

Most of the Depository Participants (DPs) do pay the custodian fees as one-time charges to the depository, and a number of them do not levy any custodian fees from the investor for maintaining a demat account. DPs who charges custodian fees do it on a monthly basis. These charges depend on the number of securities that are held in a demat (otherwise known as a dematerialised) account. The charges normally are in the range between Rs 0.5 and Rs 1 for each ISIN (International Securities Identification Number). The DPs, i.e. your bank or the broker, do not charge any custodian /custodial fees for the ISIN for those companies that have already paid the one-time charges to the depository. Earlier most of the DPs did charge the clients for both credits and debits to their demat account. But nowadays utmost DPs only charge for the debits to your demat accounts.

Like other charges, some of which are waived off, a Demat account holder will have to pay an annual maintenance charges (AMC) to the Depository Participant (DP) for the services rendered. Also known as folio maintenance charges, these charges are to be paid in advance and typically ranges from Rs 300 to 900 per annum. Some DPs may also charge quarterly fees, while others may charge a lifetime fee of over Rs. 2000 and above. However, with a number of DPs competing among each other to lure customers, many of them have waived off AMC charges for the first year and initiate billing from the second year only. The DPs under banks normally have differential rates of AMC. Those banks who offer three-in-one (demat, trading & savings) account generally charge lower as the mapping of the trading account is with the same bank’s savings account. However, in a case when the mapping is with other bank’s savings account they charge higher.

The transactions that are happening in your Demat account is with the ultimate aim of making a profit out of it. Your DP, for its services in helping you earn money, charges a nominal fee as transaction charges. You will have to pay this per transaction fee each time financial securities comes in or goes out from your Demat account. However, most of the DPs charge it on a monthly basis. The transaction fees differ with DPs depending on the kind of transaction like for buying and selling. Usually, when you buy shares your Demat account gets credited. Similarly, when you sell shares your demat account goes debited. Some DPs only charge when the securities are debited while some others charge for buying and selling. Some DPs levy a charge either based on the number of transactions you have made or a flat rate for the entire month. Some tend to charge roughly Rs 1.5 for each share you trade.

FAQs

Is Demat account a necessity for trading?

As per the Securities and Exchange Board of India (SEBI), the Regulator for the Securities market in India owned by Government of India, to trade in the stock market it is mandatory to hold a Demat account.

How does a Demat account work?

Demat account works just like your bank account. When shares are purchased money gets deducted and vice versa. The purpose of Demat account is to eliminate the risk of holding physical share certificates. When securities are purchased or sold it immediately gets reflected in the account, which holds shares and securities in an electronic form.

Should I necessarily dematerialise my physical certificates?

It is not compulsory for you to dematerialise your physical certificates. As per the Depository Act of 1996 you have an option to hold shares either in physical or dematerialised form.

How can I buy/ sell shares through a DP?

One has to give clear instruction to his/her DP for any transaction in the prescribed forms, which will be provided at the time of opening the Demat account. Your account will be given a credit/debit after settlement.

What role a DP has? Is it essential to have a DP?

By opening an account with a DP you can buy and sell shares in the electronic form through any broker. All you need to do is to give your DP account details. On buying shares in the depository mode you must similarly inform the broker about your depository account details so that the shares bought would be re-credited to your account with the DP.

Tac Deduction on Dividends

As per the Finance Act 2020 and applicable Section 197A of the Income-Tax Act, 1961 and amendments thereto tax will be deducted at source, with effect from 1st April, 2020, as follows-

FOR RESIDENT INDIVIDUALS: at the rate of 10%, if the amount due exceeds Rs.5000.00 (the threshold limit).

In case a resident individual is not a tax-payer/not liable for deduction of tax at source, a declaration in Form 15G for claiming tax exemption from dividend or interest paid on debentures is required to be submitted to TSRDCPL. For a resident individual who is of the age of 60 years or more, this declaration is to be made in Form 15H.

FOR NON RESIDENTS: (including Companies other than domestic Companies) at the rate of 20%. To avail TDS benefit under Double Taxation Avoidance Agreement, Non Resident investors to submit,
– Tax Residency Certificate (TRC) issued by the Tax / Government authority of the country in which the Non-Resident is a resident of.
– Form 10F containing therein information to be provided under sub-section (5) of section 90 or sub-section (5) of section 90A of the Income-tax Act, 1961, if not so covered in TRC.

Important points to note
• Form 15G/15H, as applicable, must be submitted in Duplicate and in HARD COPY.
• Self attested copy of valid PAN Card of the declarant must be sent along with the tax exemption form in Form 15G/15H as applicable. Declaration shall be invalid if the declarant fails to furnish his valid PAN.
• In case PAN is not available, tax deducted at source will be at higher rate.
• Name of the Company and Folio No./ DP id Client id must be provided in the Form15G/15H.
• The duly completed forms may please be sent by the 1st of April every year to avoid missing out on book closure/record dates.
• Forms15H/15G are valid for only one financial year and fresh declaration has to be submitted every year.