Dematerialization be only through government-agencies

Kashmir Times. Dated: 5/15/2018 1:55:42 PM

Dear Editor,
Dematerialization of shares from physical form was started several decades ago. But lack of awareness has deprived many small investors about necessity of dematerialization because listed shares now cannot be sold or transferred without dematerialization. Moreover there is clarity about transfer or sale of non-listed companies. Concerned ministry or department of central government should direct all companies to send one more reminder for dematerialization of shares clearly mentioning holding of shares, debentures or any other form of investment to individual investors. This reminder should also mention details of unclaimed dividends, interests etc held either by the company or transferred to government-funds as per rules, clearly mentioning procedure to claim these.
Even procedures for making claims either from the company or from government-fund should be simplified. Moreover Depository Participants for dematerialization should only be public sector banks or other public-sector undertakings like Stock Holding Corporation of India Limited to prevent chances of frauds and cheating by private players. Provision may be there so that all forms regarding dematerialization or trading etc may be filled on website subsequently to be downloaded and printed in filled-up manner like is done for passport-applications.
Non-listed companies should also compulsorily inform investors likewise about unclaimed securities, dividends, interest etc.
—Subhash Chandra Agrawal,
1775 Kucha Lattushah
Dariba, Chandni Chowk Delhi.

 

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