Duplicate Share Certificates: Common Issues and Solutions for Shareholders

Duplicate share certificates have been issued if a shareholder lost the physical certificate. They go through many processes before applying for a duplicate certificate. The issues associated with the process are enormous. It also requires a lot of paperwork. However, there are also solutions. This is one of the reasons why people choose dematerialisation over the traditional method.

In this blog, you’ll learn about common issues with a duplicate share certificate. In addition, you’ll also gain some knowledge about its solutions.

After that, you can clear up all your doubts regarding the share certificates.

An Overview of Duplicate Certificates

If a shareholder loses their physical share certificates, they can ask the company for a duplicate certificate. However, they have to submit certain documents and proof of their holdings, address, identity, etc.

In other words, a duplicate share certificate is needed if the real or physical certificate is destroyed or lost.

Common Issues with a Duplicate Share Certificate

Lost Share Certificate

One of the major issues that every shareholder faces is a lost share certificate. It leads to a stressful situation. So it’s important to store the proof of ownership with a duplicate certificate.

Risk of Fraud

The risk of fraud is another serious topic to be concerned about. A physical share certificate can fall into the wrong hands. Sometimes duplicate certificates can be used for fraudulent transactions.

Delay in Issuing

Obtaining a duplicate certificate is a time-consuming process. The shareholders have to submit various documents. After that, a company agrees to share a duplicate certificate for its share.

Confusion During Dematerialisation

Dematerialisation is a unique process to transfer your shares quickly in electronic form. So, a duplicate certificate may create confusion during the process. Later, it leads to delays and legal disputes.

Immediate Notification

In the event of a lost share certificate, you need to take immediate action. It should be completed in written form and via email. If you delay, it will create more disruptions.

Submission of Documents

If the physical share certificate is lost, a shareholder needs to submit a few documents for the issue of a duplicate certificate. It includes non-judicial stamp paper for an affidavit, an FIR copy, proof of address, and proof of identity.

Publishing Notice

As per the law, the shareholder needs to publish a notice. It must be related to the loss of a physical certificate. After that, the duplicate certificate will be processed.

Follow up with the Firm

After applying and submitting the documents, a shareholder needs to make a follow-up visit to the firm. They can ensure the processing of duplicate certificates.

How to Prevent the Loss of Share Certificates?

Secure the Storage

Always store your physical share certificate adequately. Make sure it’s safe, secure, and cannot be lost. For instance, put them in a safety locker at your home.

Maintain a Record

Maintain a record of all your share certificates, including their number and date. This information can help you with the issue of duplicate certificates.

Always Go for Dematerialisation

Nowadays, people are more into dematerialisation, as it ensures a fast transaction and settlement. It removes the paperwork and saves your certificates in digital form. The chance of a certificate getting lost or misplaced is minimal.

Daily Review

Review your shares and their certificates regularly. It can help you keep your certificates organised. In addition, you can quickly discover if you lost any share certificates or crucial documents.

Role of a Firm in Issuing Duplicate Share Certificates

Transparency in Communication 

A company needs to provide clear instructions and guidelines for shareholders. It can help them in the process of issuing a duplicate certificate. The information must also include details about fees and documents.

Efficient Processing 

Issuing a duplicate certificate is a lengthy and time-consuming process. Every company needs to make this process more efficient. It can prevent delays and communication barriers.

Protection Against Fraud

Every firm or company needs to take the initiative to protect its shareholders against fraud. So, a company needs to verify all the documents of the applicant.

Legal Obedience

A company that issues duplicate certificates for their shares must follow a legal guideline. It includes following the article of association. In addition, they must follow further laws related to the stock market.

Role of Innovation and Digital Solutions

Increase Security

Dematerialisation or digitalisation of shares can enhance security. It converts the physical share certificate and other documents into an electronic form. Therefore, it decreases the chance of getting misplaced.

Simple Procedure

The dematerialisation process eases the process of selling or transferring shares. It also eases the process of paperwork. It diminishes the utilisation of physical certificates. So, the innovation encourages the shareholders to invest in a simple procedure.

Diminish Costs

Physical certificates are not required during the process of dematerialisation. It also mitigates the paperwork. Correspondingly, it reduces the cost associated with paperwork and storing physical certificates.

Fast Transaction

Dematerialisation ensures a faster transaction. Whether you’re buying or selling a share, it helps you get a quicker settlement.

Infinity Solutions: A Trusted Partner for Managing Share Certificates

At Infinity Solutions, we take care of the shareholder’s aspect. We offer dematerialisation services for shares. It helps a shareholder get a quicker settlement without any hassle. Our verification process also takes less time.

You can open your Demat account without going through enormous paperwork. Since it’s completely a digital process, it doesn’t include any physical certificates. We also take care of the digital share certificates.

We ensure the safety and protection of a shareholder’s certificate.

In Summary

Duplicate share certificates have been issued to shareholders when they lost the physical certificate. However, the process is lengthy and has numerous complications. To mitigate these issues, a company needs to take several approaches. A shareholder must review their certificate daily and keep them organised. Apart from that, a shareholder needs to choose digitalisation or dematerialisation to avoid these mistakes.

In this blog, you’ve learned about common issues associated with a duplicate share certificate. In addition, you’ve also figured out its solutions.

You’ve also discovered the role of Infinity Solutions in managing your share certificates.

Do you have any concerns? Call us: +91 9027900537/9837525800