Dematrialisation of shares
Heaven 2011
(Querist) 04 February 2010
This query is : Resolved
Good afternoon respected all. I assist the legal department of a listed Company. One shareholder holding 300 eq shares of the company, sent Demat request form for 100 shares electronocally through ABC bank (say banker)to our RTA. However no physical share certificates and DRF were sent by the banker (the address of the Company was wrong in the Courier slip. later the copy of the slip was e mailed by the share holder. Clearly it was a mistake on the part of ABC Bank. The RTA is in need of indemnity bond and fresh DRF physically along with the share certificate. But it seems that the shar certificate is also lost by the banker and that the banker has not admitted. Now the share holder wants to take legal action against the company? Can they do so? can the Banker be held liable under any acts of India? if so kindly site the relevant acts name? Further is it possible to either demat or transfer only 100 share out of 300 shares held by the share holder?
Regards,
Asish Sil
R.Ramachandran
(Expert) 09 November 2010
Dear Asis,
The RTA of the Company is responsible to dematerialise only those shares which have been received for dematerialisation. If out of 300 shares only 100 shares have been sought for dematerialisation, you have to do for 100 only. But for dematerialising even this 100 shares, the physical shares should have been delivered to you. If it has not been delivered, no action can be taken against you. It is the bank against which action would lie from the customer.
