TaxTMI 
TaxTMI 
Share Transfer - Registration of - SEBI’s uniform norms for good/bad deliveries
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....has also been discussed 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....
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....osed out as per the procedure of the Stock Exchange. (vi) The validity period 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. ....
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....nnada, 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 required for each registered folio. Good If the transferor's name is identica....
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.... 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 member Good 21. Consideration amount and date of execution of the transfer deeds are filled in. Bad ....
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....tation 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. Marketable lot with more than five transfer deeds. Bad Upto five transfer deeds used to make a marketable lot. Good 35. New shares which are issued on pro rata basis and old shares standing in the folio and name of same transferor and accompanied by one transfer deed for a marketable lot. Good ....
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....; 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 separate transfer deed (subject to guideline No. 35 above). Good 54. Logo of the Stock Exchange on the reverse of the transfer deed missing. Good 55. Attestation of the transferor's signatures is not mandatory. Good Except in the case where the transfer has been returned by the company due to SIGNATURE DIFFERENCE. 56. Units issued with the terms 'either or survivor', if signed by all holders Good If signed by any one of the holders Good 57. Transferor's signature on the transfer deed is facsimile signature ....
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.... 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 converted into equity, if the call money endorsement has been done only for the equity portion and not for the debenture portion. Bad 69. Call paid endorsements made by the Company with the call amount, date of payment and signature of the Authorised Signatory with or without the Rubber Stamp of the Company. Good 70. In the case of partly paid shares, when a call has been made but not paid and delivery effected during the period of ten days before the last date fixed for payment. Bad If the call receipts are attached to the documents. Good 71. Application Receipts and Call money receipts not bearing bank stamps and payment details. Bad 72. Any significant correction, erasure, overwriting, crossing out or alteration in the quantity of the shares, in the last register....
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....o names and signatures respectively. Bad 79. Preferential/promoters' quota shares under lock-in-period delivered which are not transferable. Bad 80. Share certificate issued without the signature of Secretary/Authorised signatory. Bad If the shares are transferred subsequently and the authorised signatory has signed against such transfer. Good 81. Signature missing in the initial column but signed by authorised signatory in the required column on the reverse of the certificate. Good 82. Endorsement effected on the reverse of the certificate and struck off and again endorsed. Good subject to proper authentication by the Company by putting a round stamp of the Company. 83. Certificate with company's old registered office crossed out and new address stamped without authentication. Good 84. Certificate without mentioning the place of issue. Good 85. Revenue stamp affixed on the certificate concealing any material portion of the certificate : Good Provided any material portion like locking period date, NRI details are not affected. 86. Revenue stamps affixed/impressed by the co....
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....res 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 documents, such cases cannot be lodged as company objection. 101. In case of joint holding, and in event of death of any of the holders, death certificate accompanying the transfer deed will be valid for two years from the date of death only. 102. While rectifying objections due to signature differences, a fresh signature by the transferor (if the same transfer deed is re-submitted) along with attestation is mandatory. Fresh transfer deed is mandatory if objection is rectified after book closure date. 103. In case Rights/Bonus shares tendered as corporate benefits are reported as bad delivery, if it is odd lot, the value of shares based on the rate prevalent on the day of reporting bad delivery will be paid. 104. Rectification/replacement of transfer deed under objection should be in market lot only (even if transfer deed under objection is submitted in non-market lot). 105. If Jumbo transfer deed is submitted as company objection, origina....