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TM (-)     29 November 2012

Transfer of shares

Thank you in advance. After my father died in 2006 we discovered last year that he held substantial number of shares in a company.We discovered this through  dividend warrants which had been received at an old address and not deposited.He has left everything to my mother in his will and all three of us, his daughters are not contesting his will and are happy to give shares t our mother. The original shares are lost and my sisters do not live in India. The company has acknowledged him as a shareholder but insists on a probate of the will or a succession certificate which I am toldwill take years. I have repeatedly asked the company if both my sisters and I could give an indemnity deed but company does not agree. Is there a way out? Can they be made to see sense.



Learning

 1 Replies

rahul saxena (advocate)     01 December 2012

Dear , company has stated rightly, these are requirment presecribed by regulators and they have to follow it. Legally there is no other way. But as company does not have to report this thing to regulators, they can proivde some relaxation like on the basis of indeminity bond from all family members, id proof, copy of ration card to establish relation of praposed nominee with father etc but it totally comes under their discretionary power . 

It seems that share holder (father) has not made anyone nominne while executing KYC (know you client). In the mean time you should also approch court to get completed all formalities. It would take around 1-1.5 years.


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