Have you invested in the stock market? more than 2 decades before.
There are many who still holds physical shares. Last week one of my friends had given a company name which was bought in 1992. It was almost more than 27 years and he thought of redeeming the amount now.
The company name was “Dev Fastners” and located in Chennai. The company is not listed now and completely closed.
My friend’s mother had purchased in 1992 from someone whom she doesn’t remember now. As the company is closed their investments of a few hundred are lost.
How to recover the money in the stock market?
Suppose if that company exists, at first physical shares need to be submitted with any of the brokers. If the registrar of the company is available, you can approach the registrar for these matters.
After verifying the details, the registrar helps in transferring physical shares to the Demat form. Now you will be able to sell or buy more of these shares.
Last year, one of my friends had shown a huge list of shares that he was holding in Demat form. All the companies were bought in the 1990s by his father. Most of the companies were not even traded now. He wanted to know how to sell these stocks or turn the portfolio.
Suggested him to approach the broker who can help with selling of all these shares. In the span of the next few weeks, everything was sold off and the amount was available in his demat. Later we invested in a few stocks.
Why you need to dematerialize every share now?
As per the regulations issued by SEBI, all the physical shares should have been dematerialized. The ultimate reason is to avoid any fraud from happening. The only sector were technology had helped in increasing the penetration of financial services to everyone.
There are many unclaimed dividends, unpaid bonus shares, etc. All these are lying in idle accounts. Once if everything is dematerialized, it is easy to transfer all the pending payments to the bank account directly.
Steps to redeem physical shares ;
Consolidate all physical shares together. Identify Mutual funds and share certificates separately.
Old Mutual fund physical papers can be easily redeemed by approaching their office in person along with valid documents and cheque leaf. Along with any dividends it will be credited to your bank account.
In the case of Shares,
Take the physical share and approach the registrar
If the registrar is not available, approach the broker with whom you have doubt
If the company is listed, your documents will be verified and everything will be settled
If the company is not listed, you cannot do anything
If your claim is not given proper reply, approach the SEBI or get in touch with Share Samadhan for recovery.
What is Share Samadhan?
I heard about Share Samadhan a year before. If you need help in converting physical shares that need lots of documentation, Lost physical shares, debt recovery, Unclaimed dividends, etc are all taken care of by them.
I got in touch with them for my friend’s physical share recovery and after they started their work, the broker had started responding.
Shares could have created wealth if you have not redeemed for a long time. So don’t look at that as just paper.