This case pertains to the transfer of shares and the issuance of ...

Court Rules NSE Cannot Halt Share Transfer; Orders Issuance of Duplicate Certificate to Petitioner.

November 13, 2024

Case Laws     Companies Law     HC

This case pertains to the transfer of shares and the issuance of a duplicate share certificate. The key points are: The National Stock Exchange (NSE) issued a "stop transfer" direction to the transfer agent, citing default by a trading member in making payments. The petitioner challenged this direction, arguing that the shares did not constitute assets of the defaulting member. The court held that the NSE, being a stock exchange, is covered under the definition of 'State' and amenable to writ jurisdiction. The impugned communication was neither an order nor a decision under the Securities Contracts (Regulation) Act (SCRA), and the NSE failed to show authority for issuing such a direction. The court quashed the impugned communication and consequential proceedings by the NSE against the transfer agent, allowing the petition for the issuance of a duplicate share certificate as the shares were still recorded in the petitioner's name.

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