Forged share certificate

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Sandesh (Querist)
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20 June 2012 Hi,

I wanted to know ......in case a transferee submits to the company a duly stamped and signed transfer deed along with share certificates for transfer of shares . Upon receipt it was discovered by the CS that the share certificates are forged and certificate numbers are not true as per the records of the company.....(1) What advise should a CS give to the transferee for an action that a transferee may take? (2)Also what in case the transferror upon knowledge of this case takes legal action against company who issued him the said certificates earlier and loss suffered due to receipt of forged certificate.

Amol S Joglekar

Amol S Joglekar (Expert)
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17 August 2012 Transferree (Purchaser) to take the call. CS has already done his/her duties of communicating the fakeness of the certificates. The holder in due course is the purchaser, the transferor (seller) can not pass a better title . Catch hold the seller.