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TMI BlogShare Transfer - Registration of - SEBI’s uniform norms for good/bad deliveriesX X X X Extracts X X X X X X X X Extracts X X X X ..... tee of Inter-Exchange Coordination Group of the Stock Exchanges. Based on their recommendations and further discussion with some of the major stock exchanges and custodians, SEBI has taken the following decisions on this subject: (i) All Stock Exchanges shall adopt uniform norms for good/bad deliveries (which are enclosed as Annexure "A") with immediate effect. (ii) Each Stock Exchange shall set up a separate Bad Delivery Cell (BDC) latest by August 31, 1996. This cell will deal with cases relating to bad deliveries received from its own members as well as those received from similar cells of other stock exchanges. The Exchanges will ensure that adequate insurance cover exists for possible transit loss. (iii) All stock exchanges shall adhere to the following time schedule for dealing with the cases of bad deliveries : (a) In case of deliveries coming under objection (objection cases), the first introducing broker of the same stock exchange shall be required to rectify the defects/replace the shares along with accrued benefits within 21 calendar days from the date of receipt of the objection and share certificates from the last buying broker of that exchange. If the former fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge/Introducing broker will be 36 months from the date of payment by the buyer. (vii) The Custodian shall also follow the uniform norms and procedures referred to above. Further, the custodian shall also be required to participate in settlement and bad delivery processes of clearing houses of the stock exchanges, so that on the one hand they get the benefit of the revised and expeditious system of speedy resolution of bad deliveries and on the other their risk would also be reduced. (viii) All the exchanges are directed to implement the decisions mentioned in para 2 above and send compliance reports to SEBI by September 15, 1996. Annexure 'A' SEBI approved good/bad delivery norms A. Transfer deeds No. Description Good/Bad 1. Transfer Deeds in the prescribed form and printed with the words "For the......Stock Exchange." Good Stock Exchange emblem may or may not be printed. Month and year of printing may or may not be put on the reverse of the transfer deed. 2. Mutilated Transfer Deed with the signatures of the transferor, witness, Directors and officer of the Company/distinctive numbers/any material portion badly torn, overwritten, or defaced Bad Typical Cases : (A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... illed up in the Transfer Deed. 9. Transfer Deeds without the name of the Company, name(s) of Transferor(s), Folio No., share certificate No., Distinctive No. and number of shares being written. Bad 10. In one lot with one Transfer Deed name on one certificate reading as "Ramesh C. Talati" and on another certificates as "Ramesh Chunilal Talati" but Register Folios are same on both. Good In one lot, separate transfer deeds are required for each registered folio. Good If the transferor's name is identical and folios are different and there is only one transfer deed. Good 11. In one lot within Transfer Deed names on different certificates reading as Ramesh Chunilal Talati and Talati Ramesh Chunilal but Register Folio is same. Good 12. Income-tax Authority or Collector signs as Transferor. Good (Number and Date of the relative Order necessary). 13. Instead of Executor's signature, his Agent's signature is put on theTransfer Deed. Good (Number and Date of Registration of Power of Attorney necessary). 14. Executor's signature without his rubber stamp. Good (Number and Date of Registration of Power of Attorney necessary). 15. In the case of Units transfer deed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by or on behalf of a Company against which liquidation proceedings are pending. Bad u Unless the Transfer Deed is certified and countersigned by the Liquidators. Good 23. The name of the delivering broker with his SEBI Registration number and date not mentioned at the back of the Transfer Deed. Bad In case the shares are delivered to the Clearing House by the Custodian and the Transfer deed bears the stamp of Custodian along with the Clearing Number of the Broker on whose behalf the shares are delivered. Good The date should be the pay-in date/delivery date only. 24. Shares held by a TRUST and Signed on the Transfer Deed as "NAME OF TRUST - PROPRIETOR". Bad TD signed as "NAME OF TRUST - TRUSTEE" Bad Shares held in the name of a trust, if accompanied by a copy of the resolution or the relevant portion of the trust deed authorising the trustees to transact in securities on behalf of the trust. Good 25. If shares held are duly registered by the company in the name of the HUF (Shares held by HUF and signed by KARTA) Good 26. Transferor's signature witnessed by a person but his full name not given as long as the name and address of the witness are perfectly legibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny can be ascertained. The name of the Company should be identifiable, e.g., TELCO, TISCO, L&T etc. 38. Exact position of TDs to be attached on top of the certificate. TD should be placed on the top of the share certificate. 39. Transferor and witness is the same. Bad 40. Transfer Deeds in the prescribed form and name of a particular Stock Exchange filled in or not. Good 41. Transfer Deed not in the prescribed form. Bad 42. Witness and attesting authority identical. Good 43. Transfer Deeds bearing signatures of witnesses, the address of the witness being in a different city or town or Centre other than that of Transferor or Transferee. Good 44. Prescribed Authority (ROC) seal overlapping and stamped twice. Good Even if the signature of the Registrar of Companies is partly printed and the date stamp is also partly printed but both the signature and the date should be apparent. 45. The Endorsement of the Prescribed Authority (e.g., Registrar of Companies) bears the same date as the date from which the Registrar of Members of the Company is closed. Good 46. If the Endorsement of the Prescribed Authority (e.g., Registrar of Companies) bears a date prior to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date is prior to the lock-in period last date and the date of introduction into the market is before the last date of lock-in-period. Bad 62. Some companies allot record numbers for shares issued by them apart from distinctive number ranges. For these shares, if record number is filled up along with distinctive number ranges on the transfer deed. Good If only the record number has been filled up instead of distinctive number ranges on the transfer deed. Bad 63. If there is no Common Seal of the Company or the Seal is mutilated or not embossed. Bad In cases where the shares/units are issued by institutions which are not incorporated under the COMPANIES ACT, the certificate will not contain the SEAL, as such institutions are not bound by the COMPANIES ACT. Companies having rubber stamp, instead of common seal embossed on the certificate. Good up to 31-12-1996 64. The last date for payment of call has expired and the call has not been paid or if the call has been paid, the necessary Call Receipt has not been attached. Bad the call payment receipt with the stamp of the Bank before or on the due date if attached to the securities is good delivery for three months for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and pasted with transparent self-adhesive tape. Bad (ii) Where shares have been transferred to a new holder and if torn at the original holder's name portion. Good (iii) Folio number and name overwritten in one or two characters and not authenticated by the authorised signatory. Good (iv) If the share certificate is torn at the company name portion but is decipherable. Good (v) Corrections in transfer Number or Date of transfers, if legible and not authenticated. Good (vi) Share Certificates with bar codes not concealing any material information. Good 75. If the name of the Company has been disfigured in the body of the share certificate so as to affect it materially. Bad If the name of the company is identifiable. Good 76. Certificates in the case of UNITS discharged by the transferor for purpose of repurchase and then cancelled by him and initialled. Bad 77. Share certificate contains one name but the transfer deed consists of two signatures. Bad If both the signatures on the transfer deed are identical in nature or can be identified as signature of the same person. If the transferor has signed twice but has struck off the 2nd signature Good 78. Share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Shares issued in the name of Sole Proprietor/Partnership firm signed by the Proprietor/Partner. Bad Units/debentures issued in the name of Sole Proprietor/partnership firm signed by the Proprietor/partner. 96. In case the shares of a company are not pari passu with the existing equity shares of the company in two financial years then new share dividend declared for the previous year, i.e., the old new compensatory value (ONCV) for two years has to be paid. Good the full dividend declared will have to be paid (interim + final) C. Miscellaneous 97. Validity period of Company Objection by the last buying broker to be notified to the Exchange/Introducing Broker is 36 months from the date of payment by the buyer. 98. Objections must be accompanied with Share Certificates. 99. Shares lodged for transfer after book closure (but before one year from the date of stamping the transfer deed) are returned under objection can be lodged as company objection. 100. Where shares have been duly transferred by the company in the name of the transferee, and thereafter the company sends a letter informing the transferee that the shares have been transferred based on fraudulent documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the following documents are required: u public notice given by the company/registrar u notification from any stock exchange u letter of intimation from the company to stock exchange. CLARIFICATION 1 Please refer to our letter No. SMD/RCG/2796/96, dated July 16, 1996 on the subject of Uniform norms for Good/Bad deliveries. We have received requests for clarification regarding the applicability of the validity period of the company objections, referred in para 2(vi) of our above referred letter and in item No. 97 of the annexure accompanied with the said letter, from some of the exchanges. A clarification on the issue also appears necessary in view of comments from public in certain sections of the press. In this regard, we would like to advise the stock exchanges as under : 1. In cases where the date of the company objection is July 16, 1996 or any subsequent date, the validity period of company objection by the last buying broker to be notified to the exchange/introducing broker will be 36 months from the date of payment by the buyer. 2. In all other pending cases of company objections, bearing a date prior to July 16, 1996, the validity period will be as per the rul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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