Union Ministry for Corporate Affairs should have a complete and thorough study of different types of procedures adopted by different companies in respect of shares-certificates still held in physical form by large number of share-holders. Many aged share-holders because of non-awareness or death of spouses or relations have not been able to get their decades-old share-certificates dematerialized. There are also cases where due to some reasons, premises registered with companies locked with companies now requiring latest share-certificates issued after premises being locked for dematerialization.
It is quite common that signatures of share-holders differ after decades. Many companies require signature-verifications according to their own format but on letter-heads of banks. But banks provide signature-verification in their own format and not on format provided by companies for the purpose. This creates a lot of problems when procedures and requirements of banks and companies differ with share-holders affected. Procedure for getting deposited dividends and shares transferred to Investor Education and Protection Fund -IEPF- should be simplified.
Union Ministry of Corporate Affairs should introduce simplified and common forms for different purposes like for dematerialization of shares and for recovery of dividends from IEPF, which should be available on website of the ministry. All such forms should be like passport-application forms where share-holders may fill details on forms on websites, and then filled forms may be downloaded to be submitted to Depository Participants, companies, banks or others concerned. Even advance copy of such filled-up forms on websites can also be e-mailed to concerned ones.
All companies should be directed to send one more reminder 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 IEPF, clearly mentioning procedure to claim these. 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. Non-listed companies should also compulsorily inform investors likewise about unclaimed securities, dividends, interest etc.
MADHU AGRAWAL