How to Get Share Certificate Online in India

The following are the significances of a Share Certificate:

1. Considered as an important documentation of shareholders
2. Helps in maintaining genuine shareholders’ names and helps tracking ingenuine names

1. Helps in auditing and reconciliation
2. Regular updation by the company is required to track the occurrence of changes in ownership of shares

Essential Information in a Share Certificate

The following are the details that should be mentioned in the Share Certificate:

1. Numbers of shares

1. Amount paid on such shares
2. Name of the owner of the shares
3. Member’s folio number
4. Number of shares represented by the share certificate
5. Issuing company’s name

1. Company’s CIN no. (Corporate Identification Number)
2. Address of the registered office of the company

Online Methods to Obtain in a Share Certificate

The following are the procedures of issuing Share Certificate:

1. Allotment of Shares and Board Meeting:

Here are the initial steps followed during allotment of shares through board meeting:

1. Board meeting with concerned members is organised
2. Share allotment committee will be appointment to look after the affairs related to allotment
3. The committee will prepare a report and submit it to the board
4. Report will be approved by the board

1. Fresh shares will be issued to the investors
2. After approval of share subscription, individuals will receive a letter from the company secretary
3. Until the company releases the final certificate, the letter would serve as the interim share certificate

2. Registration of members: A register will be created with the information about the shareholders, the quantity of shares, and the sum that each shareholder must pay to have a share issued.

3. Preparing and Printing Share Certificate:

1. As per the format details mentioned in the Articles of Association (AOA) of the company, the stock certificate format will be prepared by the company secretary.
2. Fill in the certificate will all the required details
3. Must be signed by at least two directors
4. Must also be signed by the company secretary
5. All the certificates must have the company stamp

4. Intimation and dispatch of Share Certificate: Company secretary will intimate the respective shareholders about the dispatch of share certificate either through SMS, phone call, or email ID.

Timeline for Share Certificates Issuance

Here are the situations when companies issue share certificate:

1. Share certificate is issued when fresh shares and consequent subscription is issued
2. Issuance of share certificate is mandatory in case of horizontal or vertical transfer of share between shareholders

1. Loss or damage of original share certificate
2. Share certificate is issued within two months of incorporation which varies depending on company
3. Share certificate should be issued within a span of two months from allotment of shares
4. Stock certificate should be issued by the company to the transferees from the entity involved within one month of the transfer in case of transfer of shares

How to Get a Duplicate Share Certificate?

The following are the steps to obtain a duplicate share certificate:

1. In case your original share certificate has lost, then file an FIR (First Information Report) at the local police station
2. Keep the copy of the FIR
3. Write an application to the company informing about the loss of original share certificate
4. Attach the copy of the FIR along with the application

1. Indemnity bond of Rs.200 should be issued to the company that confirms that the cost of duplicate share certificate will be paid by you
2. Depending on the merit of the application, it might get approved or rejected by the board of directors
3. A 15-day window will be provided where objections regarding issuance of duplicate share certificates to the applicant will be entertained
4. If no objections, then company will issue the duplicate share certificate

Pros and Cons of Having a Share Certificate

The following is the list of advantages and disadvantages of Share certificates:

Advantages

Here are the advantages of the Share Certificate:

1. Genuine shareholders can be tracked, and dividend distribution can be done using share certificates

1. Serves as an entitlement of dividends that helps in effective financial planning
2. Share certificate is a proof to the fact that you own a particular number of shares of a company on a said date

Disadvantages

Here are the disadvantages of the Share Certificate:

1. Share certificates can be passed on to other individuals without intimating the company

1. Companies must keep a track of transfer of share certificate that increases back-office work
2. Share certificates only acknowledge the number of share and does not have any liquidity attached to it
3. Issuance of share certificates involves a lot of time, resources, and additional cost to the company.

Legal Penalties for Delay in Share Certificate Issuance

According to the Companies Act of 2013, a corporation must provide share certificates within the allotted time frame; otherwise, there will be fines for late issuance. The following circumstances will result in penalties in addition to the penalty amount:

1. Company can be punishable for non-issuance of share certificate: Rs.25,000 (extendable to Rs.5 lakh)
2. Defaulting officers can also be punishable: Rs.10,000 (extendable to Rs.1 lakh)

Checklist Before Applying for a Share Certificate

Here are some of the significant points that should be considered about the share certificates:

1. All the legal rights related to the stock is guaranteed by the bearer share certificate

1. Collection and preservation of all old specimen of share certificates is known as Scripophily
2. Share certificate is provided either in registered format or bearer format