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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 ..... by the Executive Committee 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 buyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of Company Objection by the last buying broker to be noticed to the Exchange/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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, Bengali, Gujarati, Hindi, Kannada, Kashmiri, Malayalam, Marathi, Oriya, Punjabi, Sanskrit, Tamil, Telugu and Urdu - as per Constitution of India - Eighth Schedule [Articles 314(1) and 451]. 7. Signature of the Transferor is in an Indian language other than the Scheduled languages of India or when the Transferor has affixed his thumb impression. Good If attested by any person authorised to attest signatures under the Seal/Stamp of his office. 8. Transfer Deeds in respect of joint holdings signed by all the joint holders in any order : Good Provided the signatures are against the relative names filled 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 requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amp UNDER BOARD RESOLUTION is mentioned on the face or the reverse of the transfer deed. Good 18. Transfer Deed signed by a custodian on behalf of a client. u In the signature column the custodian does not put the stamp as Constituted Attorney on behalf of the transferor. Bad u Transfer Deed signed by a Custodian on behalf of the client and in the signature column it puts the stamp By constituted attorney to the transferor with the P/A number given on the reverse of the TD with the stamp and signature of the custodian. Good the abovementioned details entered on the face of the TD and not mentioned on the reverse of the TD. Good 19. Shares sold by FIIs and transfer deed signed by a Custodian on behalf of the FII. (Copy of RBI approval is not required to be attached with each market lot). Good 20. In case of GDR, u photocopies of the RBI approval attached to the deliveries; or Good u If RBI approval number and date is mentioned on the transfer deed and attested by the introducing m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s signature attested by a Bank official u only the designation mentioned. Bad u If the name, Designation of the attesting authority signing along with the complete address is given. Good 30. Attestation by Gram Panchayat or a Surpanch or Village Magistrate or Village Munsiff under his seal. Good 31. Signature attested by any person authorised to attest signatures with his full name and address with the official Seal/Stamp of his office. Good 32. Transferor s signature is attested by a Notary Public Good (the necessary seal, rubber stamp adhesive stamps as prescribed for such attention should be affixed in case where Notary attestation is required, i.e., in cases where Rectification of objections is required due to signature differences). 33. Transfer Deed is signed by the transferor : u Signature is clearly of a name different than the name of the transferor. Bad u If signature is same for two different shareholders under two different Transfer Deeds. Bad 34. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty bears a date of or after the date from which the Register of Members of the Company closed last. 47. Transfer Deed endorsed by the Prescribed Authority on a date prior to closure of the Register of Members of the Company delivered after the date of closure of Register of Members. Bad 48. Transfer Deeds accompanying debenture certificates or any other permissible listed security (other than equity) whether date-stamped by the prescribed Authority or not: Good Provided for the convertible portion a separate date-stamped Transfer Deed is delivered. 49. Transferor s signature on the transfer deed with the date on which he has signed. Good 50. Witness is a Non-Resident and the address given is of a foreign country. Good 51. Distinctive numbers range TO partly filled in the transfer deed, e.g., 4589201-300 etc. Good 52. In the case of mutual funds, the ROC stamp and signature are missing (except in case of Schemes of Unit Trust of India). Good 53. Certificates with multiple folios per market lot attached to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead 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 the last date of call payment or next book closure announced by the company whichever is later. Good All call payment receipts after due date must be endorsed as cheque/draft realised by the Bank/Co./Registrars. Good 65. All securities with sticker issued by the companies in lieu of endorsement. Good 66. If call money paid but not endorsed on share certificate even after the book closure but transfer affected after the call payment date. Bad 67. If the final call is endorsed but the initial or the initial and the second call not endorsed ( i.e., if market FULLY PAID ). Good 68. In case of fully convertible debentures, after the debentures have been convert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 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 certificate contains name of the one transferor but transfer deed contains two names and signatures respectively. Bad 79. Preferential/promoters quota shares under lock-in-period delivered which are not transferable. Bad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holder. Good 94. Lock-in-period mentioned in the certificate, without specific date of release of lock-in. Bad 95. 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re returned as objection from the company due to the above reason : u company objection memo stating that the shares are missing/lost/stolen accompanied by a copy of Court Order or FIR u copies of both sides of the transfer deeds u copies of both sides of the share certificates B. Otherwise one of 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 objecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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