RESPONSIBILITY AND ROLE OF LISTED COMPANY
In continuation to SEBI Circular dated June 08, 2018, restricting Physical Share Transfers w.e.f December 05, 2018, BSE vide its circular dated July 05, 2018 has directed the listed entities that in order to ensure the dematerialization of shares held by the public, all the Listed Companies should take the following actions:
- Take special efforts through their RTAs to send letter under Registered/Speed post to the holders of physical certificates appraising them about the amendment and sensitise them about the impact of the regulation on the transfer of shares held by them in physical form w.e.f December 5, 2018.
- Advise their RTAs to send 2 reminders, preferably at a gap of 30 days, to such shareholders who continue to hold their shares in physical form, advising them to get the same dematerialized.
- Place information on their website intimating the investors about the proposed change and provide appropriate guidance on how to dematerialize their shares.
- Ensure that the signature cards of all the holders of physical securities are handed over to its RTA at the earliest.
- Companies have been requested to take the above steps and inform BSE of the Compliance Report (in a format that will be issued by them) with the steps taken.
In view of the above directions, it is advisable that one Letter be sent to physical shareholders at the earliest, apprising them of the amendment in Regulation 40 of LODR Regulations and asking them to convert their shares into demat and also provide the formalities, other instructions and forms required for the said conversion and contact details of Company and RTA in the letter itself.
Thereafter, one reminder may be be sent sometime in August ‘2018 and second reminder in September ‘2018 after a gap of 30 days.
In cases where Annual General Meeting Notices are yet to be dispatched, the letters/ reminders may be sent alongwith the Notice.