Investors

In case of transfer of shares held in physical form, the following points should be noted :

(1) Buy or sell the shares only through the share brokers who are members of the Stock Exchanges, or through their sub-brokers registered with SEBI.

(2) Ensure the following before taking delivery of shares :
• Transfer forms are valid for a period of 12 months from the date of endorsement by the Office of the Registrar of Companies or till the first book closure after the said date whichever is later.
• The broker’s stamp with his SEBI Registration No. is affixed on the reverse side of the transfer deed. This will safeguard your interest as regard the authenticity of the transaction.
• The transfer deed is signed by the transferor(s) and duly attested and / or notarized. If the transfer deed is signed by the Constituted Attorney of the transferor, the registration number of the Power of Attorney is mentioned on the transfer deed.
• The share certificates are fully paid and bear the fully paid endorsement on the share certificates.

(3) Ensure the following after taking delivery of shares :
• Shares are lodged for transfer with the Registrars & Share Transfer Agents (R&STA) appointed by the Company – M/s. TSR Darashaw Limited (TSRDL).
• Transfer deed is properly filled and signed at the appropriate places by the buyers.
• Register shares in joint names in order to avoid any procedural difficulties in the event of any unfortunate event like death of the shareholder.
• If the transfer deed is signed by the Constituted Attorney, forward duly notarized Power of Attorney for registration by the R&STA. The number allotted should always be mentioned in future communication / transfer deeds.
• In case the shares are to be transferred in the name of a company, the transferee should also enclose :

1. Certified copy of Memorandum and Articles of Association.
2. Certified copy of Certificate of Incorporation if not included in (i) above.
3. Certified copy of the Board resolution authorizing the investment and the authorized signatories alongwith their specimen signatures.

FIIs / NRIs should attach the attested copy of approval of Reserve Bank of India (RBI) alongwith the particulars of NRO / NRE bank account to enable the Company to remit the dividends.

In case of an existing shareholder, the order of the names in the shares lodged for transfer should be the same as in the existing Folio No. and the existing Folio No. should be mentioned correctly so that the shares can be registered under the same folio.

• Address / pin-code / telephone / fax no., etc. should be clearly filled in the transfer deed. This will help in speedy communication.
• Share transfer stamps are affixed at the present rate of 0.25% of the market value of the shares on the date of execution of transfer deed. (With effect from 01.07.2002, for transactions in physical form, the Government of Maharashtra has banned the sale and use of share transfer stamps. The Government has started putting their stamp by using franking machine at the Stamp Office. For transactions executed in Maharashtra, instead of affixing share transfer stamps, stamp duty @ 0.25% of the market value or the consideration amount [whichever is higher] should be franked on the transfer deed).
• Retain photocopies of all the transfer documents lodged for transfer till the transferred shares are received back.

(4) Lodge the shares for transfer before any record date or book closure date to ensure that Corporate benefits like dividends, rights shares, bonus shares, etc., if any, are received.

(5) Transfer requests are processed within 30 days from the date of lodgement. If you do not receive any communication, please write to the Company’s R&STA for necessary investigation.

In respect of shares held in electronic form (demat form), please consult a Depository Participant, who will help you to register the shares in your name, as the Company will not be involved in transfer / transmission, etc. of shares held in demat form. The Depository Participants (and Depository) will themselves handle and complete these transactions.

Please inform the R&STA viz. TSR Darashaw Limited (TSRDL) immediately if there is any change in address, quoting Folio No. duly signed by the first holder as per specimen signature recorded with the R&STA.

If shares are held in demat form, please inform your DP regarding the change of address.

Transmission is the process of transfer in the event of death of a shareholder. The following need to be ensured in such an event :

• Where shares are held in joint names, please submit a certified copy of the death certificate of the deceased shareholder to the Company’s R&STA, alongwith the share certificates so that the name of the deceased can be deleted from the Company’s records as well as the share certificates.
• Where the shares are held in single name, on death of the registered holder, documents like Succession Certificate issued by a Competent Court or Probate or Letter of Administration where the deceased has left a Will have to be submitted.

In respect of shares held in electronic form (demat form), please consult the Depository Participant, who will help you to register the transmission of shares. The Depository Participants (and Depository) will themselves handle and complete these transactions.

It has been observed that the signatures of many shareholders have changed considerably over the years. The R&STA recognize and accept minor changes in the signatures. But, where there is significant variation in the signature, the R&STA will be constrained to reject the transfer of shares or request for dematerialisation of shares, etc. In order to avoid such difficulties, we request you that any change in the specimen signature should be intimated to R&STA immediately to enable mailing of the required forms (this is applicable only for holdings in physical form) to the shareholder, for enabling R&STA to register such change of specimen signature in its records.

If shares are held in demat form, please contact your DP.

Transposition refers to the change in the order of the names of the registered holders of shares in a company.

Request for transposition of shares signed by all the shareholders indicating the change in the order of the names alongwith the share certificate(s) can be lodged with the R&STA of the Company – M/s. TSR Darashaw Limited (TSRDL).

In case of interchange of order of the names for demat purposes, please contact your Depository Participant.

Nomination will enable smooth inheritance of ownership of the shares by the Nominee without any procedural difficulties. (Presently, there is no difficulty where shares are registered in joint names. But if the shares are held in an individual name, addition of a joint name can only be done as a transfer, involving share transfer form, stamp duty, surrender of original certificates, etc. Following the nomination procedure eliminates all this inconvenience). Therefore, if the shares are held in a single name, then please advise nomination immediately without delay to the R&STA of the Company.

Any investor holding share in Demat / electronic form should contact his DP directly for nomination (the Company / R&STA does not register nomination for shares held in electronic / Demat form).

Some of the common queries on this subject are clarified below :

1. Who can nominate?
   Nomination can be made only by individuals holding shares in a single name and also by joint holders provided the number of joint holders does not exceed two. If the shares are held jointly by three or more persons nomination is not possible. This facility is also not available for Societies, Companies, Partnership Firms, Karta of HUF, Holders of Power of Attorney, etc.
2. What is the procedure for nomination?
   Nomination should be made in the prescribed Form, which is available with the R&STA of the Company. Nomination must be signed by all the shareholders. Separate forms should be submitted to the R&STA in respect of each Registered Folio No.
3. Who can be a nominee?
   Only an individual can be a nominee. Also, there can be only one nominee for each folio.
4. Whether a minor can be a nominee?
   A minor can be a nominee. Where minor is appointed as a nominee, the name and address of the guardian and the date of birth of the minor are to be given.
5. Can a Non-Resident Indian be a nominee?
   A Non-Resident Indian can be a nominee on repatriable or non-repatriable basis subject to Reserve Bank of India permission, as applicable.
6. Is the nomination facility available for shares held in depository / demat mode?
   Shareholders holding shares in electronic form should approach their concerned Depository Participants regarding nomination.
7. When will the right to the shares vest in the nominee?
   Nominee will acquire the right to the shares only on the death of the individual shareholder (where shares are held by only one person). Or on the death of both the joint holders (where shares are held jointly).
8. What is the procedure to be followed by the nominee for claiming shares in the event of death of the holder / joint holders?
   In the event of death of holder or joint holders the nominee should produce such evidence as the Company / R&STA may require for registering himself / herself as the holder of shares. Normally, an attested copy of death certificate of the shareholder(s) along with original share certificates and proof of identity of nominee will be needed. However, if the specimen signature of the nominee is furnished in the Nomination Form itself, further proof of identity may not be insisted upon.
9. Can the nomination be withdrawn / changed?
   In principle, the law has permitted that the nomination can be varied or cancelled. But the rules and procedures for variation / cancellation have not yet been prescribed.
10. What is the right of the nominee in the event of transfer / sale of shares by the registered holder after making the nomination?
    Any transfer / sale of shares by the holder / joint holders automatically cancels the nomination already made.
11. Whether legal heirs can claim shares of a deceased member when a nomination had already been made by the deceased member?
    Nominee shall have all rights in respect of the shares for which he / she has been nominated, notwithstanding any other legal right claimed by heirs or successors through a Will or through any other legal process. The nominee will be the only person who can claim the shares of a deceased member.

In view of the above, the Company recommends that the shareholders make use of the nomination facility at the earliest. The completed nomination form may be sent to the R&STA of the Company.

In case you have more than one folio in the same name or with identical names in the same order in case of joint holdings, and wish to consolidate the folios, please write to the Company’s R&STA alongwith the relevant share certificate(s) and folio details to enable them to consolidate the shareholding in a single folio.

If the shares are held in joint names, the request should be signed by all the joint holders. This will avoid multiple communication, and also reduce the risk of loss during the postal transit.

In respect of shares held in electronic form (demat form), please consult your Depository Participant.

SEBI vide its Circular dated D&CC/FITTC/CIR-15/2002 dated 27th December, 2002, mandated that all Share Registry work in terms of both physical and electronic segments should be maintained at a single point either in-house or by a SEBI registered R&STA.

All the work related to share registry in terms of both physical and electronic is being maintained by the Registrars and Share Transfer Agents of the Company – M/s. TSR Darashaw Limited (TSRDL) and the Company does not have a separate in-house department for the same.

All share related matters like transfer, transmission, change of address, dividend, bank mandate, nomination, power of attorney, demat, remat, etc., are being dealt with by the R&STA. The Depository Participants will also forward to the R&STA the share certificates submitted for dematerialisation. Any document / communication received by the Company on the above will also be forwarded by the Company to the R&STA. Shareholders are requested to send all documents, and address all future correspondence to the R&STA directly .

It is suggested that in case the shareholder is holding shares in single name, kindly convert the same into joint holding because in the eventuality of any untoward event the share(s) can be transmitted easily without adhering to the lengthy legal procedure. Such requests, however, will amount to transfer and have to be accompanied by duly executed transfer deed with appropriate transfer stamps.

In respect of shares held in electronic form (demat form), please consult your Depository Participant.

Investors may provide details of their Bank Account i.e. the name of the Bank, Branch and Account No. to the Depository Participant (DP) in respect of their holdings in electronic form and to the R&STA of the Company (Tata Share Registry Limited) in respect of physical holdings to enable printing of the same on the dividend warrant. This will help to avoid any fraudulent interception and encashment of dividend warrant. Dividend warrant will be posted to the registered address, wherever dividend mandate is not registered with the R&STA of the Company.

Consequent upon amendment to Section 205A of the Companies Act, 1956, and introduction of Section 205C by the Companies (Amendment) Act, 1999, the amount of dividend remaining unclaimed for a period of seven (7) years shall be transferred to the Investor Education and Protection Fund (IEPF) and cannot be claimed thereafter.

As per the new Section 205C, unclaimed dividend for the financial year 1997-98 has been transferred to IEPF set up by the Central Government. Amounts transferred to this fund cannot be claimed.

The R&STA of the Company – M/s. TSR Darashaw Limited (TSRDL) is entrusted with the work relating to the issue of duplicate share certificates. Hence, inform the R&STA immediately in case of loss of share certificate(s), who in turn will inform the procedure to be followed for obtaining duplicate share certificate(s).

Duplicate share certificates are normally issued, if the original(s) is / are not traceable even after undertaking the best search by the holder. Duplicate share certificate(s) is / are issued after obtaining duly filled-in and executed Questionaire, Affidavit, Indemnity, Surety, Newspaper advertisement (in case of market value of shares exceeding Rs. 50,000/-) alongwith a copy of the FIR lodged with the police in certain cases (format of the said documents is available from the R&STA). On receipt of the duly executed duplicate procedure forms / documents, the same are forwarded to the Company for its approval. A notice is also sent regarding the lost shares to the Stock Exchanges where the shares are listed. On receipt of the approval of the Company, the R&STA issues the duplicate shares and mails them to the investors.

Reserve Bank of India (RBI) has introduced Electronic Clearing Service (ECS) for facilitating crediting of dividend directly to the shareholder’s bank account. This facilitates quick credit of the dividend amount and eliminates any delay or loss of the dividend warrants in transit and also ensures safety against fraudulent encashment.

The salient features of ECS facility are :

- Instant credit : This facility provides instant credit of dividend / interest amount to the investors bank account electronically at no extra cost. ECS also eliminates the delay in postal transit and fraudulent encashment of warrants.

- Optional Scheme : This scheme is optional

- Coverage : ECS is presently available in major cities / centers like Ahmedabad, Bangalore, Kolkata, Chennai, Delhi, Hyderabad, Pune, etc. RBI has been extending this facility to various centers from time to time. The scheme is at present available only for payments up to a maximum amount of Rs. 5,00,000/-.

Under this arrangement, the payment instructions would be issued electronically through the Company’s Bankers to the Clearing Authority (Reserve Bank of India) and the Clearing Authority would supply credit reports to the Bank with which shareholder maintains the specified account and his / her bank will give instant credit to the shareholders account. In view of the above, shareholders are advised to avail ECS facility for the credit of dividend directly to their bank accounts.

The shareholders are requested to furnish information as required in the format, accurately and completely in all respects (use separate sheet for each folio). The information will be kept confidential and will be utilized only for the purpose of effecting payments meant for shareholders. The present mandate for ECS will supersede the earlier bank instructions, if any. For the shares held in physical form, the mandate may be advised to the R&STA of the Company and for the shares held in demat form, the same may be intimated to your Depository Participant with whom you hold your demat account.

To avail the ECS facility (i.e. direct electronic credit to your bank account), in respect of shares held in physical form, please write to R&STA (Tata Share Registry Limited) specifying the following details :

1. Your Folio No.
2. Name and address of the bank branch
3. Account type and Account number
4. The nine (9) digit code number of the bank and branch as appearing on the MICR cheque issued by the bank.

Please note that ECS facility is, at present, available / given only in select cities. Extension of this facility, in future, to more towns depends on the response from the shareholders from various towns.

The traditional system of scrip based dealing in shares involves enormous paper work and is time consuming. The process begins with buying share certificates in paper form and ends with getting the certificates endorsed in the buyer’s name. It also involves problems like bad deliveries, forgery and fake certificates, tearing / mutilation due to bad handling, loss of certificates, delay in receipt due to huge volumes being handled by postal department, etc.

Depository system aims at facilitating scripless trading and settlement of securities in dematerialised form. It eliminates the problems associated with physical securities and enables faster settlement / transfer and reduction in transaction cost like brokerage, postage, etc. There is no stamp duty to be paid by the buyer.

Depository system is prevalent in many advanced markets and has been playing significant role in development of integration of the markets.

Depository system involves the following main constituents :

(i) Depository :
A Depository is an organization where the securities of a shareholder are held in the form of Electronic Accounts / Electronic form at the request of the shareholder through a ‘Depository Participant’. Depository holds electronic custody of securities and also arranges for transfer of ownership of securities on the settlement dates.

At present, National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) are the depositories operating in India and offer the following services to the investor, through their respective agents viz. Depository Participants (DP) ;

• Dematerialisation i.e. conversion of physical holdings to electronic form.
• Rematerialisation i.e. conversion of securities held in electronic form into physical certificates.
• Transfer of securities.
• Maintenance of holdings in electronic form.
• Settlement of market trades done in the depository segment of stock exchanges.
• Settlement of Off market trades.
• Facilitate Pledge / hypothecation of dematerialised securities.
• Electronic credit in public offerings of companies.
• Receipt of non-cash corporate benefits such as bonus, rights in electronic form.

(ii) Depository Participant (DP) :
It is the intermediary appointed by Depository where the Investor opens his demat account for dematerialising securities whenever required and his account of securities transactions is maintained in the same way like a bank account. DP acts as an agent of the Depository and is the interface between the investor, depository and the company.

(iii) Company / Registrar & Share Transfer Agent :
The Company or its Registrar & Share Transfer Agent is the third link in the process. Complete details of physical shareholding alongwith relevant data is available with the Company or its R&STA who handles the transfer related activities. The share certificates submitted for dematerialisation are sent to the Company’s R&STA for completing the process.

(iv) Investor :
The Investor or the Shareholder is the person who is holding shares in the Company and whose shares are to be traded in demat form as specified by SEBI.

Some of the important points to be noted are as follows :

• For each different combination of names a separate Demat account is required to be opened.
• The Depository Participants charge certain charges like Account opening charges, Demat charges, Remat charges, Transaction charges, custody charges, etc.

The investors / shareholders should choose a DP after evaluating various factors like the quantum of charges, the quality of services offered, convenience of dealing, their overall reputation, etc.

The main benefits of the Depository System are as follows :

• Unique Account Number for each client
• Electronic transaction of securities eliminates the problems and delays arising out of paper based system
• There is no scope for any risk of loss, theft, or fraud with regard to share certificates
• Bad deliveries are almost eliminated
• There is no need for filling in transfer deeds and lodging / dispatching the transfer documents with the Company / R&STA, thus avoiding a lot of paper work
• No waiting for the shares to be transferred in your name and suffer delays on account of processing time
• When shares are bought in a depository mode, the same can be credited to the investors account within a few days time after the payment. Similarly, when shares are sold in electronic form, payments are made much faster. Hence the settlement cycles are very fast
• No stamp duty on transfer of securities. The investor saves on stamp duty @ 0.25% of the market value of shares and although the investor incurs some cost towards DP’s service charges, it could still lead to some saving
• Investment is highly liquid at all times as there is shorter waiting period for realizing money
• Internet based trading is possible only with dematerialised shares
• Dematerialised shares can also be pledged as security for obtaining loan
• The marketable lot for transaction in depository mode has been fixed as one share. Therefore, the problem of odd lots is totally eliminated
• Once an account is opened with DP, the same can be utilized by the investor for transacting securities of all the companies which are part of the depository system

Buying and selling shares in electronic form is just like buying and selling physical shares – the only difference is that trading in electronic shares is simpler and safer :

• If an investor wishes to sell his / her shares held in electronic form, he / she has to place order with his / her broker and instruct his / her DP by way of a Delivery Instruction to debit his / her account with the number of shares sold by him / her.
• When an investor buys shares held in electronic form, he / she must inform the broker about his / her depository account number so that the electronic shares bought by the investor can be credited into his / her account. The investor has also to instruct his / her DP by way of a Receipt Instruction to receive credit in his / her account.
• Payment for electronic shares either bought or sold is made in the same way as in the case of physical securities.

Dematerialisation :

Dematerialisation is a process by which the physical certificates of an investor are taken back by the company or its R&STA and an equivalent number of securities is credited in the demat account of that investor. In other words, the shareholding gets converted from physical form to that of electronic form (demat form).

For dematerialisation of securities, an investor will have to first open an account with a Depository Participant (DP) and then submit request for dematerialisation of the securities in a specified form alongwith relevant certificates. The demat request alongwith the certificates is forwarded to the Company / R&STA who after due verification will confirm the dematerialisation. The investor’s account with his DP will get credited. However, in the records of the Company / R&STA the depository’s account will get credited as it is holding the securities on behalf of the investor.

The entire process of dematerialisation is normally completed within a period of 15 days from the date of demat request.

Whenever there is any corporate action like distribution of dividend or issue of bonus shares, the company will obtain the shareholding position of dematerialised shares from the depository through a Beneficial Position statement called BENPOS.

Rematerialisation :

Rematerialisation is a process of converting electronic holding back into physical holding. The DP should be given a request for rematerialisation in a specified form who in turn will forward the same to the depository. The depository after verifying that the investor has necessary securities balance will intimate the Company / R&STA accordingly who in turn will print the relevant certificate and dispatch the same to the investor.

The entire process of rematerialisation is normally completed within a period of 30 days from the date of remat request.

Procedure to convert electronic holding into physical holding :

Any investor wishing to convert securities held in electronic form to physical form has to submit a Rematerialisation Request Form (RRF) to his DP for rematerialisation of the same.

DP will electronically transmit RRF to depository and generate Rematerialisation Request No. (RRN).

RRF submitted by the investor will be sent by the DP to the R&STA.

R&STA will verify the RRF and confirm the rematerialisation to NSDL / CDSL. NSDL / CDSL will remove the securities rematerialised from the investor account.

R&STA will print the certificates and dispatch the same to the investor on rematerialisation.

Arbitration : Settlement of claims, differences or disputes between one member and another and between a member and his clients, authorized clerks, sub-brokers, etc. through appointed arbitrators. It is a quasi-judicial process that is faster and is an inexpensive way of resolving a dispute. The exchange facilitates the process of arbitration between the members and their clients. After both the parties select the arbitrator and after due deliberation and after considering the merits of the case an award is given. In India, arbitration is governed by the Arbitration and Conciliation Act, 1996.

Auction : An auction is a mechanism utilized by the Stock Exchange to fulfill its obligation to a counter party member when a member fails to deliver good securities or make the payment. Through auction, the exchange arrives to buy good securities and deliver them to the buying broker or arranges to realize the cash and pay it to the selling broker.

Bad delivery cell : When a delivery of shares turns out to be bad because of company objection, etc. the investor can approach the bad delivery cell of the stock exchange through his broker for correction or replacement with good delivery.

Bid and offer : Bid is the price of a share a prospective buyer is prepared to pay for particular scrip. Offer is the price at which a share is offered for sale.

Brokerage : Brokerage is the commission charged by the broker for purchase / sale transaction through him. The maximum brokerage chargeable, as stipulated by SEBI, is at present 2.5% of the trade value.

Carry forward trading : Carry forward trading has evolved in response to local needs in India and it refers to the trading in which the settlement is postponed to the next account period on payment of contango charges (known as “vyaj badla”) in which the buyer pays interest on borrowed funds or the backwardation charges (known as “undha badla”) in which the short seller pays a charge for borrowing securities.

Circuit breakers : It is a mechanism by which exchanges temporarily suspend the trading in a security when its prices are volatile and tend to breach the price band.

Clearing : Clearing refers to the process by which all transactions between members is settled through multilateral netting.

Company objection : An investor sends the certificate along with the transfer deed to the company / R&STA for transfer. In certain cases the registration is rejected because of signature difference, or if the shares are fake, forged or stolen, etc. In such cases the company / R&STA returns the shares along with a letter which is termed as a company objection.

Cum-bonus : The share is described as cum-bonus when a potential purchaser is entitled to receive the current bonus.

Cum-rights : The share is described as cum-rights when a potential purchaser is entitled to receive the current rights.

Day order : A day order, as the name suggests, is an order which is valid for the day on which it is entered. If the order is not matched during the day, at the end of the trading day the order gets cancelled automatically.

Dematerialisation : Dematerialisation is the process by which shares in the physical / paper form are cancelled and credits in the form of electronic balances are maintained on highly secure systems at the depository.

Ex-bonus : The share is described as ex-bonus when a potential purchaser is not entitled to receive the current bonus, the right to which remains with the seller.

Ex-rights : The share is described as ex-rights when a potential purchaser is not entitled to receive the current rights, the right of which remains with the seller.

Forward trading : Forward trading refers to trading where contracts traded today are settled at some future date at prices decided today.

Good-bad delivery : A share certificate together with its transfer form which meet all the requirements of title transfer from seller to buyer is called good delivery in the market.

Delivery of a share certificate, together with a deed of transfer, which does not meet requirements of title transfer from seller to buyer is called a bad delivery in the market.

Insider trading : Trading in a company’s shares by a connected person having non-public, price sensitive information, such as expansion plans, financial results, takeover bids, etc. by virtue of his association with that company, is called insider trading.

Jumbo certificate : A jumbo share certificate is a single composite share certificate formed by consolidating / aggregating a large number of market lots.

Market lot : Market lot is the minimum number of shares of a particular security that must be transacted on the Stock Exchange. Multiples of the market lot may also be transacted.

No-delivery period : Whenever a book closure or record date is announced by a Company, the Stock Exchange sets a no-delivery period for the security. During this period, trading is permitted in that security. However, these trades are settled only after the no-delivery period is over. This is done to ensure that investor’s entitlement for corporate benefits is clearly determined.

Odd lot : A number of shares that are less than the market lot are known as odd lots. These shares are illiquid in nature, as they cannot be transacted on the Stock Exchange.

Order driven trading : It is a trading initiated by buy / sell orders from investors / brokers.

Over the counter trading : Trading in those stocks which are not listed on a stock exchange.

Pay-in : Pay-in day is the designated day on which the securities or funds are paid in by the members to the clearing house of the Stock Exchange.

Pay-out : Pay-out is the designated day on which securities and funds are paid out to the members by the clearing house of the stock exchange.

Price band : The daily / weekly price limits within which price of a security is allowed to rise or fall.

Price rigging : When a person or persons acting in concert with each other collude to artificially increase or decrease the price of a security, that process is called price rigging.

Quote driven trading : Trading where brokers / market makers give buy / sell quote for a scrip simultaneously.

Record date : Record date is the date on which the beneficial ownership of an investor is entered into the register of members. Such a member is entitled to get all the corporate benefits.

Rematerialisation of shares : It is a process through which shares held in electronic form in a depository are converted into physical form.

Screen based trading : When buying / selling of securities is done using computers and matching of trades is done by a stock exchange computer.

Settlement : It refers to the scrip-wise netting of trades by a broker after the trading period is over.

Settlement guarantee : Settlement guarantee is the guarantee provided by the clearing corporation for settlement of all trades even if a party defaults to deliver securities or pay cash.

Splitting / Consolidation : The process of splitting shares that have a high face value into shares of a lower face value is known as splitting. The reverse process of combining shares that have a low face value into one share of higher value is known as consolidation.

Spot trading : Trading by delivery of shares and payment for the same on the date of purchase or on the next day.

Stop transfer : The instruction given by a registered holder of shares to the company / R&STA to stop the transfer of shares as a result of theft, loss, etc.

Trade guarantee : Trade guarantee is the guarantee provided by the clearing corporation for all trades that are executed on the stock exchange. In contrast, the settlement guarantee guarantees the settlement of trade after multilateral netting.

Trading for delivery : Trading conducted with an intention to deliver shares as opposed to a position that is squared off within the settlement.

Transfer deed : A transfer deed is a form that is used for effecting transfer of shares or debentures and is valid for a specified period. It should be sent to the company along with the share certificate for registering the transfer. The transfer deed must be duly stamped and signed by or on behalf of the transferor and transferee and complete in all respects.

Transmission : Transmission is the lawful process by which the ownership of securities is transferred to the legal heir(s) of the deceased.

• All requests for change of name should be accompanied with a copy of the notification in the Official Gazette or a newspaper.
• Request for change of name consequent upon marriage / divorce should be accompanied with marriage certificate / divorce decree.
• For effecting change of status from minor to major, please send proof of age (such as attested copy of Birth Certificate or School Leaving Certificate).
• In the case of limited companies, a certified copy of the Certificate of Incorporation consequent to change of name issued by the Registrar of Companies should be submitted along with Memorandum and Articles of Association.
• The new specimen signature duly attested by holder’s bank should be lodged with the R&STA to take on record the new signature.

If shares are held in demat form, please inform your DP regarding the change in name / status.

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