anjali (service) (85 Points)
20 July 2010
A promoter of a company has pldged me physical shares and gave me signed form 7B , the company is listed . The promoter is not repaying me the loan . pls advise how do i encash on the shares what is the procedure how do i dematerailse the securities and what form is to be filed etc.
ars
(CS)
(445 Points)
Replied 02 August 2010
As I understand u have given some loan to a person against shares of a listed co.-as a security.
1. First of all u should possess the physical shares along with a duly signed copy of the transfer deed- which i presume u have.
2. U may get the signature varification done at the registrars of the co. on the basis of the signed TD, in ur possession- this will make the things clear that whether the transferor signatures tallies or not. If yes u may take the following route, but if not then proceed with recovery, since shares can not be transferred in ur name.
3. See the quoted price of the shares u r holding and calculate the amt. u may receive by selling them in near future. - if u r satisfied then go ahead with demat.
4. Send the transfer deed duly filled in and stamped to the registrars for transfer the shares in ur name-preferably in the order of names/s in which u r holding the demat account, if any.
5. After recving the physical shares duly transferred into ur name/s apply for demat with ur DP
6. On getting credit of the demated shares into ur account u may proceed for sale of the sahres or retain the same - as per ur choice.
The whole process will take at least 45-60 days time.
I hope ur requirement is met with.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
