regarding shares
Querist :
Anonymous
(Querist) 14 October 2010
This query is : Resolved
Dear all,
My brother had bought some shares in my name. I am receiving some returns on those shares every year directly by the company. However the original shares are not with me and with my brother. He is not returning it to me either. Hence I am not able to deposit the cheques in the bank as the shares are not reflected in my income tax returns--my brother was handling my income tax file and I did not know anything about it. Only for past couple of years I am doing it myself as I have some independent income.
The cheques every year are going waste. Is there anyway I can now reflect those shares in my ITR. What is the way to get those shares? Can I directly contact the company? Can I show that I have lost those shares and they be reissued again? I do not know anything about the technicalities of such dealings. Please educate me and I will be grateful to you all.
There is possibility that I am not clear in my query. Please bear with it and ask me anything if you want further clarifications.
Thank you very much indeed.
R.Ramachandran
(Expert) 14 October 2010
Please clarify in detail the following:
(1) Whether you are holding any de-mat account in any bank for the purpose of Shares?
(2) If so, check up the de-mat account where the number of shares in your account would be indicated.
(3) If you do not hold any shares, please indicate roughly in which year the shares were purchased - that is when the shares used to be in physical form or not. If the shares used to be in physical form, then the shares could be in your name only on the basis of a transfer application duly signed by you and registered with the Company. Do you remember having signed the share transfer applications to get the shares in your favour?
(4) In any case, now that you are receiving the dividend warrants directly from the Companies - (i) please note the name of the company; (ii) note the share certificate numbers which would be indicated in the counter-foil of the dividend warrant; (iii) it will also indicate as to how many shares are in your name; (iv) who is the registrar / transfer agent of that company.
Once you know the details, you can get in touch with them and ascertain whether the shares are in physicl form or de-mat form. If the share certificates are in physical form, then you have to tell that you have lost/misplaced the said certificates and ask for duplicate copy; and then apply separately for de-mating the same. Before demating the certificates, you have to open a de-mat account with a Depository viz., HDFC Securities, ICICI Bank etc.
(5) Since the dividends are completely exempt from income-tax, you should have no difficulty/problem in depositing the same in your bank account. (In case I.T. authorities ask about the source of the shares tell that it was purchased in your name by your brother.)
(6) If you have not deposited the dividend warrants of earlier years; you can approach the company concerned and they will verify their unpaid dividend register and would issue a fresh dividend warrants to you.
If you still need some more clarification, and if you are not comfortable in discussing the same in the Forum, if you feel like, you may contact me by sending private message (PM) available in the Forum.
Querist :
Anonymous
(Querist) 14 October 2010
Thank you Mr. Ramchandran. No I do not remember having signed any papers. In past also shares were bought in my name but I never receive them, they were sold off also. Those days shares used to be in physical form.
These particular shares seems to have been bought in the year 2003 because this warrant is 6th dividend return for the year 2009-2010. Now how should I go about it so that I have full say in deciding on fate of the shares. As of now I only receive periodical dividend. I have the counterfoil with the e-mail ID and phone and fax numbers of the the investor relations cell.Do you think I can phone them to know the details? My brother may have placed my signature if they are in the physical form.
I want to be now aware of all these things/issues and how to take control of all these things. Please educate me further, though I know in this process you are giving me a lot of your precious time.
R.Ramachandran
(Expert) 14 October 2010
Dear Mr. Anonymous,
For your query, "Do you think I can phone them to know the details? My brother may have placed my signature if they are in the physical form", my answer is an emphatic YES. Go ahead and contact the company concerned over phone and get the job done. Nothing to worry at all. You also ask for past dividend warrants which you did not deposit. They will issue fresh dividend warrants.
Querist :
Anonymous
(Querist) 14 October 2010
Thank you very much Mr. Ramchandran. I will act as per advise. Many thanks.
