Dematerialization of shares from physical form was started several decades ago. But lack of awareness has deprived many small investors about necessity of dematerialization because listed shares now cannot be sold or transferred without dematerialization. Union Corporate Affairs Ministry should direct all companies to send one more reminder by Registered or Speed Post in a time-bound period for dematerialization of shares clearly mentioning holding of shares, debentures or any other form of investment to individual investors. This reminder should also mention details of unclaimed dividends, interests etc held either by the company or transferred Investor Education and Protection Fund -IEPF clearly mentioning procedure to claim these. IEPF should o put all details of stock-holding transferred to it on its website. Non-listed companies should also compulsorily inform investors likewise about unclaimed securities, dividends, interest etc.
Even procedures for making claims either from the company or IEPF should be simplified. Moreover Depository Participants for dematerialization should only be public sector banks or other public-sector undertakings like Stock Holding Corporation of India Limited to prevent chances of frauds and cheating by private players. Provision may be there so that all forms regarding dematerialization or trading etc may be filled on website subsequently to be downloaded and printed in filled-up manner like is done for passport-applications.
MADHU AGRAWAL