How to extinguish shares???

zankhana Trivedi (Company Secretary) (462 Points)

02 December 2010  

Dear All..

Can anyone guide me on the procedural aspects for extinguishing shares in case of Demat as well as physical holding??

Here the question for extinguishing shares arise becasue the Company is cancelling its share Capital under section 100 of the Companies Act, 1956 which is in excess of wants of the Company. To be very clear the Company is cancelling its non promoter holders shares. After such reduction the Company will have only Promoter holders & will become 100% wholly owned subsidiary. So once the Court will pass the order for such cancellation the Company will have to extinguish its shares..

In this regard i would like to know what could be the Procedural aspects regarding intimating NSDL/CDSL & R & T A for extinguishing the shares.. In case of NSDL/CDSL for extinguishing shares, the depository will debit the accout of holders.. but how it will be done that i want to know.. In case of R & T A which kind of documents to be submitted for extinguishing the shares???? 

Thanks & Regards