Process to Find Larsen & Toubro Physical Share Certificates in India

India’s financial market has undergone a remarkable digitisation. However, even as the country makes this digital shift, some investors still like their physical share certificates- even if it’s a scrip of fantastic companies like Larsen & Toubro. While these paper documents can provide peace of mind (thanks to their availability) and are evidence of legitimate ownership, they do come with risks.

You see, a physical share certificate is prone to damage or loss. Don’t worry, though, in this blog, we will look into the importance of physical share certificates in India, what losing them means, and how you may claim or dematerialise them.

What is a Physical Share Certificate?

Before we move further, let’s give you a brief overview of what a physical share certificate is. Physical share certificates are documents provided by companies to their shareholders, thus signifying ownership of a definite quantity of shares. Simply put, these certificates are the living proof that you hold a share of any firm.

Talking about the constituents, these certificates contain crucial information such as your credentials, how many shares you have, the serial number, and the seal of the company. These certificates were immensely important documents before the advent of digitisation. ‘

Why Do Physical Share Certificates Still Matter in India?

The present digital landscape in India might make you think that physical share certificates are obsolete, but that’s not the case. Despite the push towards digitisation, hard copies of share certificates remain prevalent, and it’s evident from the statistical figures and facts. Let’s glance over them.

• In 2023, the National Securities Depository Limited (NSDL) calculated that more than 200 million physical share certificates were in circulation across the entire country.
• The Securities and Exchange Board of India (SEBI) states that more than 1.5% of shareholding in the securities market still exists in physical form, which translates to a monetary valur of around 3.5 trillion INR.

Risks Associated with Holding Physical Certificates 

Holding physical certificates has numerous risks. The prominent ones are:

• Loss/Misplacement: Physical documents are prone to being misplaced or getting lost. A lost share certificate can probably raise disputes over ownership.
• Theft or Fraud: Physical certificates are also susceptible to theft or fraudulent activities, such as unauthorised transfers. Not only that, it doesn’t leave any trace behind as well.
• Damage: Physical documents, if not stored properly, can be damaged due to environmental factors or natural hazards. If damaged enough, this renders them useless.
• Restrictions on Transfers: Following April 1, 2019, SEBI has stated that transfers of securities should be conducted only in decentralised form. This makes it challenging to transact with physical certificates.

How to Safeguard Your Physical Share Certificates

Better be safe than sorry, right? Time to dig up ways in which you can safeguard your data.

Securing Your Storage and Protection

• Secure Storage: Keep certificates in a fireproof and waterproof vault to safeguard them against damage from natural hazards.
• Organized Filing: Maintain an organised filing system with clear labels to keep track of your certificates. It would be handy for easy retrieval.
• Regular Audits: Periodically check the condition and presence of certificates to ensure they are intact and accounted for.

Creating Digital Backups and Inventory Management 

• Scanning: Digitally scan your physical certificates. Store them securely on encrypted devices or cloud services. This would help you retrieve your documents whenever you want to.

• Inventory List: Maintaining a log is often a necessity. Make a detailed list, including certificate numbers, share amounts, and the companies. This would help you organise your certificates.
• Use of Government-Backed Platforms: Government-authorised platforms are an excellent way to store digital copies of your documents. Platforms such as DigiLocker would come in handy.

Informing the Trustworthy 

• Nomination: Ensure that all your shareholdings have nominated beneficiaries to facilitate smooth transfer in case of unforeseen events.
• Communication: Inform trusted family members or legal advisors about the existence and location of your physical share certificates.

What is a Loss of Share Certificate?

As you might have guessed, a share certificate loss refers to when the physical document that represents the ownership of shares has been misplaced, stolen, or destroyed. In simpler words, a lost share certificate can be detrimental to you as well as your shares. Let’s have a look at the common causes of loss.

The Causes

• Misplacement during Relocation: Moving homes or offices can lead to the misplacement of important documents. This is a very common cause of losing documents, and it might happen to you too.
• Theft: Burglaries or unauthorised access can result in the theft of valuable documents. Another reason why people don’t prefer hard copies of their documents these days is.
• Natural Disasters: Events like floods, fires, or earthquakes can destroy physical documents.

The Consequences of Losing a Share Certificate

Delayed Transactions: Without the physical certificate, selling or transferring shares becomes a challenging task for you.

Legal Complications: Without the certificates, proving ownership may require you to provide legal affidavits or court interventions.

Financial Loss: Potential loss of dividends or capital gains if ownership cannot be established promptly.

In these cases, opting for a duplicate share certificate is the only viable option left. Let’s see how you can opt for one in India.

Steps to Obtain a Duplicate Share Certificate in India

Step 1: File a Police Complaint

First things first, you need to lodge a police complaint regarding the loss of your share certificate through an FIR (First Information Report). Informing the authorities regarding the loss of your data is a vital step, since it officially records the proof of your loss.

Step 2: Publish a Public Notice

Run your phone through the newspaper agencies and publish a notice through them. Mention the loss of the share certificate in the notice and invite objections, thus jusitfying your claim. This step serves a crucial role in ruling you out from the list of frauds.

Step 3: Submit an Indemnity Bond

Prepare and submit an indemnity bond to the company’s registrar, indemnifying the company against the lost certificate. This ensures that your claim can’t be taken into reference against any future claims.

Step 4: Application Process with RTA

Submit a formal application to the company’s RTA (Registrar and Transfer Agent) along with the FIR, public notice, indemnity bond, and any other required documents. The RTA will verify the details and process the request on your behalf.

The Timeline and Fees

Providing you with the share certificate duplicate would typically take 4-6 weeks. But it varies based on the organization and legitimacy of the original documents. The fees can also differ, based on the company’s policies.

Dematerialisation: The Future of Shareholding

What is Dematerialisation?

Dematerialisation, as the term suggests, is the process of transforming your share certificates from paper to a digital form, thus allowing for easier and more secure management of your securities. But you might ask, why is it referred to as the future of shareholding? Well, let’s look at the benefits that it offers, and you shall get your answer.

The Benefits of Dematerialisation

• Heightened Security: Dematerialisation significantly minimises the risks of damage, theft, or loss of your certificates.
• Transactions are Simpler: You don’t need to dig in the rubble for your certificates, and this means that you can buy, sell, or transfer your shares faster.
• Improved Cost-Effectiveness: Dematerialisation of your certificates also helps you save on the costs that arise from stamp duties and physical storage.
• Complies with Regulations: By dematerialising your certificates, you conform to SEBI laws on trading securities in electronic form.

Seamless Physical Share Certificate Experience With Us

If you are looking for the perfect agency to secure your share certificates, then Infiny Solutions might be the ideal choice. The reason? Well, there isn’t just a single reason; there is a plethora of reasons for choosing us.

• Experience in Share Recovery: We specialise in recovering lost or misplaced share certificates. Skip the hassle, you’d get your certificates back in your hands.
• Wide Range of Services: We provide a spectrum of services, right from filing an FIR for the lost documents to liaising with the RTAs, and end-to-end solutions, custom-made for you.
• Efficient Work: We make it a necessity to keep things efficient, because of which we provide you with a smooth process of getting your duplicate certificates.
• Good Reviews: Our customers generally think we are rather amazing. We strive to be professional and cautious with sensitive financial documents.

Before We Go

Physical share certificates might make you believe that you’ve got an upper hand, but that’s not the case. While it’s prevalent in India, it does have certain risk factors, as discussed above. Whether you possess shares of conglomerate giants such as Larsen & Toubro, having a backup plan is a requirement in today’s world. That’s where Infiny Solutions stands to help you out.

Ready to conquer the share market? Contact us ASAP!