Procedure of cancelling Physical Share Certificates

[Ruhi Bhasin]

Dear All,

Can any one share with me the procedure & documents of cancelling physical share certificates? 

Thanks & Regards,

ACS Ruhi Bhasin 

C/o D M Narang & Co.,

Chartered Accountants, 

+91-9711484535

+91-9213740814                                                                       

[CS Shainshad Aduvanni]

Dear Ms. Ruhi Bhasin,

Please specify the reason for such cancellation. Is it Cancellation of shares.

Regards

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CS Shainshad Aduvanni
Company Secretary
Coimbatore

09841414439

[Ruhi Bhasin]

Dear Sir,

Thanks for anticipation.

Reason of cancellation of shares is wrongly direct issue of shares in demat form by the RTA. 

In this case, we have to cancel physical share certificates. 

Hope this shall suffice. 

[CS Riju]

 Dematerialisation – Procedure

 

The registered owner of share will submit a request to the DP in the Dematerialisation Request Form DRF for dematerialisation, along with the certificates of securities for dematerialised. Before submission, the shareholder has to deface the certificates by writing "SURRENDERED FOR DEMATERIALISATION".  The DP will verify that the form is duly filled in and the number of certificates, number of securities and the security type (equity, debenture etc.) are as given in the DRF. If the form and security count is in order, the DP will issue an acknowledgement slip duly signed and stamped, to the client.

 

ü  The DP will scrutinize the form and the certificates.

ü  The securities found in order, the details of the request as mentioned in the form are entered in the DPM (software provided by NSDL to the DP) and a Dematerialisation Request Number (DRN) will be generated by the system.

ü  The DRN so generated is entered in the space provided for the purpose in the dematerialization request form.

ü  A person other than the person who entered the data is expected to verify details recorded for the DRN. The request is then released by the DP which is forwarded electronically to DM (DM - Depository Module, NSDL's software system) by DPM.

ü  The DM forwards the request to the Issuer/ R&T agent electronically.

ü  The DP will fill the relevant portion viz., the authorisation portion of the demat request form.

ü  The DP will punch the certificates on the company name so that it does not destroy any material information on the certificate. (find attachment)

ü  The DP will then dispatch the certificates along with the request form and a covering letter to the Issuer/ R&T agent.

 

Cancellation of Shares;

 

ü  R&T agent passes it to issuer for subsequently convening a board meeting for recording the cancellation and with the presence of the Two Director or one Director and the CS if any share will be destroyed for its non existence.

 

Learned members may please correct..

 

Regards, 

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Regards,
CS Riju C.K. B.Com., A.C.S. | Chennai-India +91 96000 64707  | Tanzania-East Africa +255686771384  

[Ruhi Bhasin]

Dear Sir,

Thanks for sharing your views.

Just wanted to tell that I want to cancel physical share certificates due to direct issue of shares in demat form. 

Our co has issued shares in physical form and applied for its demat, but RTA has done its allotment in demat form. For this purpose, I have to cancel share certificates.

Would the given procedure be followed in this case?

As per you contention a Board Meeting is required to be convened to cancel the issued share certificates.

You may please correct my self in case of any discrepency.