Scrip certificates denote transferable ownership claims in corporate securities, representing entitlement convertible into shares or bonds. Scrip is a transferable certificate evidencing entitlement to specified shares, debentures, bonds or corporate profits. As a certificate of ownership-absolute or conditional-it acknowledges the named person or current holder and circulates in place of the underlying security until exchanged. A scrip certificate is typically issued in exchange for a letter of allotment and is surrendered when the represented securities are delivered.