Franking of share certificate

3767 views 2 replies

Gargi Ranade

415 Points Joined June 2013

Dear All,

We have issued and allotted 7 share certificate the stamp duty payable on these share certificate as per maharashtra stamp act is more than 50k on each share certificate .

Usually ,we use to frank our share certificate through BOI shareholding Ltd.

However , now a days BOI is not allow to frank each share certificate over and above 5k.

Now as shares are already issued and necessary resolutions and FCGPR and all other formalities have been already complied, hence I am not in a position to split the share .

I understand that IDBI bank e franking facility helps to frank such type of share certificate , but I do not know the exact procedure of such kind of franking & whether same is treate as valid or not.

Please guide me how to frank share certificate through IDBI & whether same is considered as valid in Maharshtra ,

Replies (2)

RoHaN k

CA & CS

308 Points Joined May 2009

This is Generality ,

1]Certificate need to send to bank , pay the fees , get the franking done.

2] but in Maharashtra now one time franking is allowed upto 5000/-

3] So you need to break number of shares in such a manner so each share certficate will have max 5000/- amount of frankin fee.

Gargi Ranade

415 Points Joined June 2013

Thanks a lot.....

It serves a great help but in my case it is a FDI for which I have already filed Board Resolution with ROC & RBI along with FCGPR and which has been duly taken on record by both the authorities , so share certificate spliting is out of question for me at this juncture .

but , I have herad that IDBI & PNB offered some online stamp duty payment portal & issue certificate for the said franking which shall be attached to the physical share certificate.

I think many people opt for this , as portal itself mentions share certificate as one of the menu of the drop down list ,it must be recognised as a valid franking of share certificate .

Members view solicited.

Thanks & Regards,

Gargi